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Wireless Technology: Breaking the Limits of TCO Reduction in Mobile Networks

A Frost & Sullivan White Paper December 2011

Contents
Executive Summary ...................................................................................................................... 3 1. Mobile Industry Context........................................................................................................... 4 1.1 The Era of Big Data and Traffic Explosion ........................................................................................ 4 1.2 The Three Curves Dilemma ................................................................................................................. 4 2. The 3 Curves Dilemma: What are the Strategies for Network Modernization? ............... 6 2.1 A Combination of Challenges .............................................................................................................. 6 2.2 Main Concerns and Strategies for Network Modernization ............................................................... 6 2.3 Making the Right Investment Choices ................................................................................................ 7 2.4 Technological Approaches .................................................................................................................. 8 2.5 Architectural Approaches ................................................................................................................... 8 2.6 The Limit to the TCO Reduction: The Need to Focus beyond Telecom Equipment ......................... 10 3. Breaking the Limits of TCO Reduction using Technology Innovation .............................. 13 3.1 Mobile Network Deployment Challenges ......................................................................................... 13 3.2 The Wireless Technology will break todays Limits of TCO Reduction ............................................. 13 3.3 The Benefits of the Wireless Technology for Site Acquisition and Site Construction ...................... 14 3.4 A Practical Implementation: E-Blinks Wireless RRH...................................................................... 16 3.5. Examples of Sites built with E-Blinks Wireless RRH ..................................................................... 17 Conclusion.................................................................................................................................... 20

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

Executive Summary
Mobile operators around the world are crafting strategies to seize the fast-growing data services market. To truly create value added benefits to their customers, and at the same time achieve a sound financial performance, mobile operators would need to enhance the performance, capacity and flexibility of their network infrastructure. But when considering the current approaches toward network modernization, investment costs would soon exceed revenues. The possibilities for reducing the total costs of ownership of the mobile network infrastructure are limited. Although telecom vendors have developed the state-of-the-art products and the equipment is smaller, lighter, and more energy-efficient, technological advances are not always enough. To reduce the cost of network modernization, mobile operators will have to re-think the way they are approaching the upgrade and construction of cell sites. In particular, mobile operators will have to look at the increasing costs (in terms of both time and resources) derived from site acquisition and site construction. In this white paper, Frost & Sullivan reviews various architectural approaches to network modernization and technological solutions that are, or will soon be, available in the market. These architectural approaches and technological solutions will generate the urgently needed reductions to the investments in infrastructure. As far as approaches are concerned, Frost & Sullivan believes that the infrastructures of tomorrow will heavily rely on a combination of macro- and small-cells, distributed architecture, as well as network sharing. In terms of technological solutions, Frost & Sullivan considers that remote radio heads and active antennas will have a crucial role in improving the flexibility and performance of the network. But to fully exploit the capabilities of these solutions and the advantages of the abovementioned approaches, mobile operators may draw on a simple yet effective technology. A wireless link between the antenna and the base station will further facilitate the site acquisition and site construction processes, bringing in further savings in time and money to mobile operators. The white paper concludes with how mobile operators can leverage a wireless connection between the antenna and the base station, and explores some of the advantages of a wireless link versus the traditional optic fiber and the old-fashioned coaxial cables.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks
1. Mobile Industry Context
1.1 The Era of Big Data and Traffic Explosion Statisticians have coined the term big data to describe data sets that become so complex that they are very difficult to work with using simple database management tools. The term has been used to describe the continuousand exponentialgrowth of computing power and databases that characterize our economies and societies. The ubiquity of computing and the proliferation of intelligent mobile connected devicesincluding smartphones, tablets, netbooks and sensorsare generating rapid increases in the flow of new information that accentuate the big data scenario. The evolution of the telecommunications industry has been the medium for this growth. We are at the onset of a paradigm shift, moving from a world of voice to a world of data. As shown in the chart below, global mobile data traffic is increasing dramatically; by the end of 2015, traffic volumes are expected to reach 6.3 exabytes (EB) per month, a near 26-fold increase over 2010 levels. Figure 1: Mobile Data Traffic Volumes Increasing at an Exponential Rate

8.0

Exabytes per Month

6.0
4.0 3.8

6.3

2.0 0.2 0.0


2010

2.2 0.6 2011 1.2

Industry estimates indicate that the CAGR of data traffic for the period 2010-2015 is between 90% to 95%.

2012

2013

2014

2015

Year
Source: Cisco VNI Mobile, 2011

1.2 The Three Curves Dilemma This astonishing growth in data traffic has caused a mixed reaction among the management boards of mobile network operators. On the one hand, mobile network operators (MNOs) are pleased to move from a world of pure voice and messaging-based services to a world of data-based services. At the same time, there is anxiety about supporting and managing these data traffic needs in the face of weak revenue growth. Without a clear and substantial revenue stream or new revenue opportunities to support data traffic demand, industry sustainability is at risk. This dilemma is referred to as the Three Curves Problem, illustrated below.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

Figure 2: Three Curves Dilemma Data Traffic Explosion, Investment Costs, and Slow Revenue Growth

Data Traffic Investment Cost (Current Technologies)

Revenue

Time
Source: Frost & Sullivan

Today, operators have two possible lines of actions. The first one is to reduce or, at least optimize, capital and operational expenditure (CAPEX and OPEX) without compromising the quality of the value proposition. The second line of action is to identify solutions and monetization models that can strongly boost revenue growth. The growth in data traffic is driving exceptional changes for mobile network operators, radically changing the basic nature of these companies. A mobile network operator is becoming a mobile experience provider, offering a variety of services for mobility and using the mobile network as the essential building block. From this perspective, mobile network operators are moving toward a process of modernization that involves all aspects of their organization. The modernization of the network infrastructure plays a key part in this process. This paper examines the challenges faced by mobile operators and the main technical options and building blocks available to cost-effectively adapt the radio access network to the huge growth in data traffic. This paper highlights the new technologies that mobile operators will leverage in order to successfully meet their network modernization objectives.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

2. The 3 Curves Dilemma: Which Strategies for Network Modernization?


The rapid explosion of mobile data traffic is threatening the business sustainability of mobile network operators. The modernization of infrastructure plays a fundamental role, as it provides the basis for both profitable growth and value for customers.

2.1 A Combination of Challenges Building a reliable and robust infrastructure presents key economic, technical, environmental and regulatory challenges. Economic Challenges of Network Modernization: The immediate challenge facing MNOs is to find cost-effective ways to deal with the increase in data traffic. In defining their network modernization strategy, MNOs should consider the existing infrastructure, the impact of legacy systems on the migration to new technologies, and the business case around the introduction of new technologies to upgrade the infrastructure. Technological Challenges of Network Modernization: From a technological perspective, MNOs have a number of approaches, such as data offloading or frequency re-farming, that alleviate the demands for network capacity. However, MNOs are still figuring out what the right combination of approaches is and what the costs and potential savings are for each of these approaches. Regulation & Environmental Challenges of Network Modernization: MNOs challenges are intensified by the demands of various stakeholders requiring that infrastructures comply with strict standards. The purpose of these standards is to diminish any negative impact on the environment where new cell sites are being built, and to ensure that new technologies do not represent health risks. Environmental concerns also have an influence on the site owners decision-making process, as a rising number of them demand information about the impact of new cells on the environment. Based on this information, they select what technologies may be installed on their sites. In many cases, even the aesthetics of the cell site can affect the entire installation process. This is particularly true when it comes to buildings with historical, religious or cultural significance.

2.2 Main Concerns and Strategies for Network Modernization There are several prevailing concerns in network modernization projects. Network Capacity: MNOs see the imminent LTE migration as an opportunity to lessen the pressure on capacity constraints. LTE would establish more advanced QoS attributes, which would facilitate the monetization of data transport services. Nonetheless, LTE migration may also add complexity to the maintenance and upgrade procedures. Energy Efficiency: The energy consumed by the equipment deployed throughout the network represents a great portion of MNOs OPEX. Deploying more equipment would mean higher energy bills and a greater adverse impact on the environment.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

TCO Reduction: Telecom equipment vendors are rolling out new base stations and antennas with multi-frequency, multi-standard, reduced-size and energy-efficient features. The new generation of telecom equipment is becoming significantly smaller, lighter and cheaper. However, site acquisition and site construction costs are dramatically rising, exerting more pressure on MNOs finances.

The table below illustrates solutions that mobile operators can adopt in the short- and long-term. While the short-run solutions intend to alleviate the pressures on data traffic, the long-run solutions aim to ensure profitable growth and the ability to support large data traffic.

Source: Frost & Sullivan

Mobile operators should consider these options in the light of their network capabilities (capacity bottlenecks, area of coverage, ease of network upgrade, etc.) and of market-specific considerations (regulations, competitive landscape, etc.).

2.3 Making the Right Investment Choices A majority of MNOs did not anticipate the phenomenal data growth experienced over the past two years or, at least, were taken by surprise at the speed of this growth. Now these operators are accelerating toward a process of modernization, and are confronted with multiple options and modernization paths. They cannot afford to make the wrong investments, which is why mobile operators around the world are currently evaluating all available technical solutions in order to master the new technologies that will give them the edge. Frost & Sullivan believes that the major challenges facing the industry today relate more to strategic decisions than to technological considerations. However, an informed assessment requires a holistic understanding of the different technological and architectural approaches currently available.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

2.4 Technological Approaches Frost & Sullivan believes that mobile operators will need to implement a combination of 3G, 4G and offload strategies to effectively handle the sharp increase in data traffic. Fortunately, several technical and architectural options are available to adapt and improve the network performance. Radio remote head (RRH) technologies and active antennas are solutions that mobile network operators are adopting for network modernization. These technologies and their benefits will be explored on the following pages. The Role of RRH in Network EvolutionA Small Technology Playing a Big Role Placing a base station right next to an antenna used to be a burdensome task, and connecting them through coaxial cables could be both impractical and expensive. As a result, mobile operators were facing poor deployment flexibility until remote radio heads (RRH) were introduced to the market. Modern base stations are separated into two parts: the baseband unit (BBU) and a remote radio unit (RRU or also referred to as RRH). The BBU and the RRH are connected through optic fiber and communicate via industry-standard interfaces (such as CPRI or OBSAI and soon ORI). RRHs enable a greater physical distance between the base station and the antenna, significantly enhancing deployment flexibility. In addition, BBUs can be placed in strategic locations where power, backhaul, security and access requirements are met. RRH is a fundamental element in new cell site deployments, and enhances network performance in terms of capacity, coverage and energy consumption. Antenna Technology Evolution For performance and aesthetic reasons, traditional antennas have been subject of continuous enhancements. A new generation of active antennas (smart antennas) will have a beam-forming capacity, which will improve transmission speed by detecting the signals and sending feedback to the transmitter. The first generation of active antennas, sometimes referred to as semi-active antennas, have a RRH and an amplifier connected and integrated into the RF antenna. Semi-active antennas will be available soon and will improve network performance.

2.5 Architectural Approaches Network Sharing between Operators Confronted with the three curve dilemma, many mobile operators around the world are considering network sharing as a means of alleviating CAPEX and OPEX pressure. According to industry estimates, cost savings can reach 25-50 percent on-site rental, and up to 50 percent on-site building and cabinet costs. Network sharing projects range from simple passive site sharing (for instance, sharing physical site infrastructure but without sharing telecom equipment) to building a joint mobile network. Network sharing projects can also include the consolidation of the existing infrastructure assets of two mobile operators, in order to generate substantial CAPEX and OPEX savings. There are numerous challenges for the successful implementation of network sharing. The technical issues are not necessarily being the most complex as compared to the regulatory, legal and governance-related aspects of such projects.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

Distributed Architecture Distributed architecture consists of placing several BBUs in a single location, a base station hotel, where they share a supply of power and backhaul connection. Mobile operators are able to reduce backhaul-related CAPEX and OPEX by grouping various BBUs together. Multiple radio heads are connected to the centralized facility. By adopting a distributed architecture, mobile operators aim to improve the coverage and capacity of the radio access network by deploying remote radio heads in locations where there is high traffic demand. The principle behind distributed architecture is that remote radio heads are easier to deploy than traditional base stations. The main requirement for having a distributed architecture is to have access to a fiber-based network connection where the RRH is installed. Figure 3: Non-distributed versus Distributed Architecture

Non -Distributed Architecture

Distributed Architecture

Base Station Hotel

Source: Frost & Sullivan

Combination of Macro-Cells and Small CellsThe Big Wave Deployment Project An approach that uses only macro cells requires large investments to achieve high QoS and QoE. The macrocell approach provides poor flexibility because areas of high data demand tend to be concentrated in specific locations, for instance, a business district. The aggregation of macro cells usually results in idle or lost capacity, as the coverage of the new macro cell extends throughout areas of both high and low data demand. Moreover, the installation of macro cells in areas of high data demand is increasingly impossible. By contrast, an approach that combines both macro and small cells enhances the flexibility of the entire system, as it offloads traffic when possible to small cells, and enhances the end users QoS and QoE. Many credible market research groups believe that small cell deployment will be key in facing this capacity challenge and anticipate that small cells will represent more than 50 percent of mobile networks deployment by 2015. The combination of macro cells and small cells will play an important role in the strategy of mobile operators. Given the current coverage of macro cells in urban and rural areas (in a majority of developed countries), upgrading mobile networks through small cells becomes essential. A number of reasons support this view: Compared to macro sites, small cells are less expensive in terms of equipment costs and installation. According to equipment vendors, small cells may provide savings of more than 50 percent. In urban areas, small cells provide more flexible coverage than macro cells. They can be deployed in strategic sites, such as street lamp poles.
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Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

Small cells improve the QoS and QoE of macro cell users by decongesting (offloading) traffic from the macro cell. They also improve the QoS and QoE of small cell users by allocating a large bandwidth for a limited number of users. Small cells provide strong benefits in terms of energy performance and environment integration.

Figure 4 - Migrating from Macro Cells Architecture to Combined Micro Cells

Source: Frost & Sullivan

2.6 The Limit to the TCO Reduction: The Need to Focus beyond Telecom Equipment After a decade of continuous pressure on infrastructure vendors, the prices of telecom equipment have been drastically reduced and radio access equipments such as base stations and antennas now represent only a fraction of the overall site costs. In order to continue generating CAPEX and OPEX savings, mobile operators must pay attention to the costs of site acquisition, site construction and site rental.

Figure 5: High-Level Breakdown of Site CAPEX and Expected Costs Evolution in Time
CAPEX Type CAPEX Share Evolution in time

Telecom Equipment

25%

Site Construction Civil Works

50%

Site Acquisition

25%

Source: Frost & Sullivan

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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2.6.1 Site Acquisition A Time-Consuming Process The challenge related to site acquisition resides in the length and complexity of the process. Generally, it includes the following steps: Planning: This phase consists of determining where there is a coverage gap or a capacity bottleneck in the network and deciding, from a marketing and business standpoint, where it is worthwhile to deploy new sites for coverage or capacity reasons. Site search: Based on network planning, this phase consists of identifying the most suitable and available locations to build the cell sites required for coverage or capacity reasons. Zoning: Simultaneously, it must be ensured that building a cell site in the selected location complies with all relevant regulations. Site negotiation/acquisition: Once a site location has been selected, there is discussion and negotiation with the landowner about site construction and site rental. Support of local authorities and residents, accessibility to the site and proximity to a power supply are all determining factors in these negotiations. Construction: The cell site is built in compliance with any applicable regulations.

Figure 6: Different Stages in the Deployment of a New Cell Site


Time 90% of the process 10%

Planning

Site search

Zoning

Site Acquisition

Construction / operation

Source: Frost & Sullivan

The complexity of this process is considerably increased when it comes to a macro cell in urban and suburban areas. Procedures to obtain permissions from local regulators can be an extremely arduous and timeconsuming task. It is not unusual for the site acquisition process to extend over two or three years. Worse yet, mobile operators are now frequently unable to even find suitable locations in given areas despite extensive site searches.

2.6.2 Site Acquisition A Costly Process Besides the length of the site acquisition process, many other factors increase the cost of acquiring a macro cell site: public environmental awareness, public policy, and the scarcity of available sites. While mobile operators need to reduce the network TCO, the acquisition cost of macro-cell sites keeps increasing. It is imperative for mobile operators to find solutions to reverse the current trend because of the negative cost implications. In addition, mobile operators are often required to pay an up-front fixed fee to sub-contractors to search for sites in difficult areas.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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The lack of suitable site locations, particularly in urban areas, is driving mobile operators to redefine their network architecture and to look at small cells deployment. Although it may be easier to deploy a small-cell site, mobile operators must not underestimate the site acquisition time, particularly if civil works are required to connect the small cells to the network. It is anticipated that many small cells will be installed on city structures such as light poles or advertising panels. As a result, mobile operators should be able to negotiate global frameworks for small cells deployment instead of negotiating on a site-by-site basis. In summary, although the newest telecom equipment is smaller and easier to install, and should, in theory, facilitate site acquisition, the search process has evolved very little. As a result, site acquisition costs have not decreased in recent years. In fact, the increased difficulty of finding and negotiating sites in most urban and suburban areas is driving the costs up. Unless mobile operators are able to break the existing TCO reduction limits with more radical site acquisition strategies, the current trend of rising costs is likely to continue. 2.6.3 Civil Works: A Substantial Part of Cell Site Cost Civil Works for Macro-Cells According to industry estimates, site construction and civil works represent up to 50 percent of the macrocells CAPEX for a typical site in a developed country. In order to reduce the cost of civil works, mobile operators are looking at solutions that are easy to install, flexible, and do not require heavy civil works. In an urban or suburban environment, connecting the base station to the antenna can represent a big challenge and a significant part of the civil works, in particular when the distance between the base station and the antenna exceeds several dozen meters. Lack of flexibility is an inherent problem in the use of coaxial cable or optical fiber, which can lead to expensive civil works and even to sites being blocked for years. Civil Works for Small-Cells Even though equipment vendors have reduced the size and weight of their equipment, deploying a large number of small cells is a laborious task. It is believed that civil works costs will total up to 80 percent of the TCO of small-cells architecture. Laying down fiber will be one of the main contributors to civil work costs. Laying the optical fibers may be very costly in urban and suburban areas. Since small-cells architecture is needed to accommodate the surge in data traffic, mobile operators must adopt innovative solutions that will allow them to deploy small-cells faster and more easily in order to decrease the cost of civil works. 2.6.4 Site Rental: Driving Up Mobile Network OPEX In most countries, landlords are taking advantage of the expiration of their lease contract to demand higher rental fees. The scarcity of sites in urban/suburban areas has placed mobile operators in a weak negotiating position because they cannot afford to lose any site. Also, most landlords are hiring experienced telecom consultants who assist them in the negotiation with operators. To extend the site lease, operators are obliged to accept higher rent and often must take on additional costs related to site integration or camouflage. To alleviate this problem, mobile operators are trying to negotiate generic agreements with public municipalities in order to avoid costly site-by-site discussions. Often, the municipality is confronted with criticism from the public about lack of coverage or low data speed, and therefore is open to discussions with mobile operators, provided that the deployment of new sites respects certain urbanism requirements.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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3. Breaking the Limits of TCO Reduction using Technology Innovation


3.1 Mobile Network Deployment Challenges Fiber optic or coaxial cables between the base stations and the radio antennas pose significant limitations to the growth and upgrade of networks, making infrastructure deployment and expansion an arduous task. Mobile operators are scouting for ways to eliminate coaxial and fiber optic cables from base station deployment in order to reduce site acquisition time, save on civil work costs, and obtain maximum flexibility in terms of antenna location (either for better radio performance or to reduce site rental costs). A plethora of network modernization solutions are available to mobile operators for offloading traffic and increasing network coverage and capacity. Remote radio heads, active antennas, site sharing, distributed architecture and small-cells solutions are particularly attractive, as they offer various advantages in terms of reduced CAPEX, OPEX and enhanced deployment flexibility. In spite of their benefits, significant challenges persist:

Source: Frost & Sullivan

3.2 The Wireless Technology will Break Todays Limits of TCO Reduction Until now, the deployment process for mobile operators has consisted in calculating the number of cell sites needed for coverage and capacity expansion, pre-designing and searching for sites that match the radio engineers requirements, and only then negotiating with site owners. As a result, deployment projects often end in a waste of time or a deadlock. To address the challenges posed by the 3 curves dilemma, Frost & Sullivan believes that it is imperative for mobile operators to adopt new technologies and methods to overcome the rising number of obstacles in cell site deployment. Keys to ensuring a successful expansion and upgrade of the mobile network infrastructure include reverse engineering methods, coupled with the use of flexible and environment-friendly solutions that will allow mobile operators to break the existing limits to significantly lower CAPEX and OPEX. Among all the technologies studied, Frost & Sullivan has discovered that one of the most effective solutions to break todays barriers faced by mobile operators is to build the wireless technology into the base station and the antenna. It creates a paradigm shift because the wireless technology eliminates the need for coaxial cables or fiber optics between the base station/network access point and the radio heads/antennas.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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Figure 7: Using Wireless Technology to Connect the Base Station to the Antenna

Source: Frost & Sullivan

The wireless technology brings a new value proposition to the site deployment of mobile networks as it greatly simplifies site acquisition and site construction, hence translating into cost savings and shorter deployment lead times. 3.3 The Benefits of the Wireless Technology for Site Acquisition and Site Construction With the wireless technology, mobile operators can design and deploy cell sites differently, faster, and at a lower cost, while meeting the requirements of landlords and local authorities in terms of urban integration. The elimination of optical fiber and/or coaxial cables considerably improves the odds of success in acquiring and deploying new cell sites in urban and suburban areas. With the wireless technology, antennas can be installed in locations previously impractical or impossible due to the high cost of civil works or the unwillingness of a site owner for aesthetic reasons. Figure 8: Simplifying Site Acquisition and Site Construction with the Wireless Technology

Source: Frost & Sullivan

The wireless technology considerably facilitates the process of small-cells deployment, as mobile operators do not have to connect the base station and the antenna through optical fiber or coaxial cables. Also, the use of the wireless technology is more appealing to site owners, as it is invisible to passers-by and requires few, if any, modifications to the physical layout of the buildings.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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For a deployment based on distributed base stations architecture, laying down optical fiber from the network access point all the way up to the antennas is often a challenge and consequently imposes significant limitations for the positioning of the antennas close to an optical fiber access point. Thanks to the use of the wireless technology, it is possible to overcome the last meters gap where optical fiber connection is not available and where the cost of installing it would be a costly and lengthy administrative process. Figure 9: Using Wireless Technology in Non-distributed and in a Distributed Architecture
Non -Distributed Architecture Distributed Architecture

Base Station Hotel

Source: Frost & Sullivan

In deciding whether to employ traditional fiber technology or to use the wireless technology, mobile operators should assess the complexity of the site, taking into account the different factors that have already been mentioned: the cost of civil works, the difficulty of laying down optical fiber and/or coaxial cables, the willingness of site owners to allow a cell installation, and environmental and aesthetic considerations. The more complex the site, the more attractive the use of the wireless technology, because it simply tackles all challenges that may exist on a given site. Figure 10: The Wireless Technology Generates New Site Possibilities at Affordable Costs

Site acquisition and construction costs have increased over time due to negotiation issues or civil work complexity.

New site typologies, previously discarded due to site acquisition issues or unreasonable civil works costs, are now becoming available at an affordable cost.

Source: Frost & Sullivan

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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The wireless technology reduces time-to-market, site CAPEX and site OPEX. It minimizes the time spent on site acquisition and installation, and maximizes the flexibility of radio antenna deployments. Moreover, it overcomes most of the operational drawbacks of distributed network architecture and of small-cell deployment.

3.4 A Practical Implementation: E-Blinks Wireless RRH Frost & Sullivan has researched companies that have successfully developed and implemented products using the wireless technology, and has identified E-Blink solution as an innovative approach that enables mobile operators to rapidly expand and upgrade the network infrastructure by removing the limitations associated with coaxial cables or optic fiber. E-Blinks patented Wireless RRH technology consists of a wireless link currently operating in license- free bands (and, if needed, in licensed frequency bands) that connects the antenna to any base station supporting 2G, 3G and LTE. The solution is in commercial service in several mobile networks in Europe. Figure 11: E-Blink Wireless RRH Solution

Source: Frost & Sullivan

E-Blinks Wireless RRH stands out in terms of product performance, market readiness and record of successful deployments. It is a highly scalable and flexible solution, which enables mobile operators to smoothly expand their network coverage and capacity. In terms of QoS, E-Blinks Wireless RRH performs just as well as traditional fiber RRH. The solution is fieldproven and has demonstrated radio KPIs similar to fiber RRH. Compared to traditional mobile backhaul solutions, E-Blinks Wireless RRH has an outstanding performance, since it isnt subject to the capacity limitation of digital microwave transmission. E-Blink technology can be used as a standalone product or can be integrated into the base station and the antenna. It provides mobile operators with a competitive edge: It reduces both CAPEX/OPEX of the network infrastructure. As the complexity of the sites increase, so do the savings. It is a non-intrusive solution. It respects the environment, is invisible to passers-by and, therefore, has a greater public acceptance.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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It eliminates the need for fiber or coaxial cables, reducing civil works to a minimum. This not only reduces construction costs, but increases site owners approval for the site construction. With Wireless RRH, any location becomes a potential deployment site. Complex building infrastructures or reluctant site owners are no longer obstacles in deploying a new cell site or upgrading an existing site. Time spent on site searches, zoning, negotiation and installation is sharply reduced, which ultimately translates into cost savings. This is particularly true in urban and suburban areas, where, with existing technologies, the number of candidate sites is decreasing. It delivers a faster ROI, as radio sites are on air more rapidly and deployment costs are considerably reduced.

3.5. Examples of Sites Built with E-Blinks Wireless RRH The Wireless RRH solution has been installed on sites ranging from simple rooftop or pylon, to more complex sites such as historical or religious monuments. Below are a few examples of sites where the Wireless RRH solution is in commercial service.

antenna

wireless link

base station

The site was blocked for years. The proposal to use E-Blinks Wireless RRH resolved the negotiation issues and the site was on air a few weeks after.

Negotiation issue on a historical monument

antenna

wireless link

base station

Due to radio mask, the antenna had to be moved to the adjacent building. E-Blinks Wireless RRH was the only available solution to build the site.

Rooftop to rooftop connection

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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antenna

wireless link

base station

The site owner wanted to remove the cable tray previously installed on the building. EBlinks Wireless RRH allowed the operator to keep the site on air.

Site integration was a mustno cable allowed

antenna

wireless link

Heavy civil works were required to connect the base station to the antenna. With E-Blinks Wireless RRH, the operator reduced construction cost. significantly.

2 base station

Avoiding heavy and costly civil works

antenna

wireless link

Expensive pylon reinforcement was required due to the wind load on coaxial feeders. The use of E-Blinks Wireless RRH significantly reduced the site. construction cost.

base station

Avoiding expensive pylon reinforcement


Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011 18

Earlier this year, E-Blink introduced to the market a version of its products integrated into a light pole. This pre-packaged solution can be installed with minimum civil works and is ideal for deployment in suburban areas. Mobile operators are very supportive of the solution because it is easy and cost-effective to find light pole sites for deployment. Municipalities are also favorable, as the solution meets with environmental and urbanism constraints. Figure 12: Turning a Light Pole into a Stealth Radio Site

Source: Frost & Sullivan

With E-Blinks Wireless RRH, it is now possible to deploy mobile sites that meet the demands of mobile operators, while respecting the requirements of local communities and municipalities.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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Conclusion
The mobile communications industry is undergoing a shift from a voice-centric industry to a data-centric industry. This new scenario, and the resulting 3 curves dilemma, is driving radical changes in mobile operators strategies. Mobile operators are confronted with the challenge of rapidly adapting and modernizing their network infrastructure to support the high demand for data traffic while keeping CAPEX and OPEX under control. To improve network performance and reach higher cost-efficiency, mobile operators are introducing a new generation of radio technologies. However, these technologies have proven insufficient to break the existing TCO reduction limits related to site acquisition, site construction and civil works. Frost & Sullivan recognizes that the emergence of the wireless technology represents a shift that will allow mobile operators to overcome these operational challenges and break todays TCO reduction limits.

Figure 13: Unlike the Fiber Technology, the Wireless Technology Breaks the Limits of TCO Reduction

Source: Frost & Sullivan

Frost & Sullivan believes that the mobile operators that today leverage the wireless technology as part of their site acquisition and site construction processes are taking a step ahead of their competitors that continue to design and build networks based on traditional coaxial cables of fiber technology. Indeed, the benefits of the wireless technology will prove to be decisive in the race between operators to secure sites for 4G and smallcells deployment in urban and suburban environments. Frost & Sullivan also considers that the wireless technology is an opportunity for telecom equipment vendors to build back value into radio infrastructure products, such as base stations or antennas, and counter the price erosion deeply affecting their profitability. Indeed, the wireless technology is a way to move mobile operators CAPEX spending away from civil works and back into telecom products. The wireless technology is the missing link that allows mobile operators to break the TCO reduction limits and cost-effectively deploy, evolve and modernize their network infrastructure to meet the spectacular demand for data services.

Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks Frost & Sullivan, 2011

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