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For Defense Embedded Systems 2012
July 2012
High capacity microwave communications
Yoav Mor
Product Manager
Proprietary and Confidential2
The #1 Wireless Backhaul Specialist
>500,000 Radios since
2004
US $445.3MIn 2011
Field Proven Experience
1200 Professionals
Innovation Experience Commitment
Proprietary and Confidential
What we do
3
Ceragon provides high-capacity, point-to-point wireless communication for backhauling advanced voice & data services
Short Haul100Mb/s-1Gb/s
Indoor Unit
Long Haul> 1Gb/s
RF Unit
All OutdoorAll Indoor
Proprietary and Confidential
Company History
4
• 1996: Founded as Giganet
• 2000: Renamed Ceragon Networks
• 2000: IPO on NASDAQ and ticker CRNT
• 2007: Secondary offering
• 2009: Reaches #1 specialist position in radio link shipments
• 2011: Acquires Nera Networks Merged company is #1 wireless backhaul specialist, offering:
• long haul solutions• short haul solutions• full turnkey services offering
Proprietary and Confidential
We Know Our Business
5
Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-120
20
40
60
80
100
120
140
47.255.2 58.1 56.8
43.9 42.2 44.753.4
59.7 60.9 62.366.9
100.3110.3
116.1 118.5 117.8
Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12
-2
-1
0
1
2
3
4
5
6
7
4.9 4.94.2
3.3
1 1
1.8
3.44
4.6
5.56.1
-0.8
-1.6
0.6
2.31.7
9.8% operating margin
Revenues ($mm)
Non-GAAP Net Income($mm)
Proprietary and Confidential
Main microwave requirements for defense applications
7
Reliability from a network that can withstand harsh environments
Availability and network robustness
Low latency for Network Enabled Capabilities
Secure links and encryption Portable/compact solutions High power ODU Scalability and flexibility
Proprietary and Confidential
Trends in defense
8
Warfare is not network centric. It's commander centric. And that commander is enabled by networks. US General David Petraeus, Commander, U.S. Forces Afghanistan
Proprietary and Confidential
Secure and reliable telecommunication infrastructure
• Digital Microwave communication offers a reliable and secure transmission of sensitive information
• Reliable• No physical media which could be
affected by physical factors like ice, flood or street excavation.
• Secure• The microwave signal in licensed
frequency bands are very difficult to intercept
• Extremely narrow “beam” making interception difficult
Microwave beam
Parabolicantenna
Parabolicantenna
Interceptorantenna
α
distance
angle
Proprietary and Confidential
Tactical Applications
• Rugged – with tailored enclosure
• Rapid field deployment using tripod direct mounting for the ODU and antenna
• Low power consumption (optional power backup)
• Light weight
• Designed to withstand extreme temperatures, vibrations, and more
Proprietary and Confidential
Strategic Applications
• Challenge:• Build an army military grade long microwave
backbone• Connecting the Philippines islands with many over
the water links with distances of up to 100km• Cost-effective voice, data, and video conferencing
services to satisfy command and control requirements
• Solutions• 36 hops 1+1 all indoor• 7 GHz• Link Interface: STM-1
• Why Ceragon?• High power split configuration 1+1• Integrated offering through a channel with
networking, terminal and support
Defense
Proprietary and Confidential
US Army Corps of EngineersHurricane Katrina Recovery
Interfaces: FE+NxT1
Capacity: 50 Mbps over 10 MHz
Modulation: 64 QAM
Frequency: 11 GHz
Configuration: 1+1 Hot Standby
17th Street South
17th Street North
Orleans Ave North London Canal North
London Canal South
Orleans Ave South
3.8 km
2.3 km
4.2 km
2.6 km
3.3 km
New Orleans, Louisiana
Proprietary and Confidential
Market Drivers – Bandwidth Hunger is Ever Increasing
15
Everything can be mobile - We expect wireline experience from the wireless networks
Video
Video applications are the key drivers
Cloud Computing
From local to remote IT infrastructure – taking the office with you
M-2-M
M-2-M will hit $12B in 2020
Mobile Data is Exploding
Source: Cisco VNI 2012
Proprietary and Confidential
Capacity Demands 2012 - 2018
Tail AggregationDownlink: 135Mbps peak, 86Mbps busy time meanUplink: 51Mbps peak, 89Mbps busy time mean
Available channel bandwidth
135 Mbps
1 Gbps
1.5 Gbps
10Gbps
Dimensioning guidelines (Max {peak, N x busy time mean})
Considering extreme scenario (N ≤ 20)
2012
LTE
2018*
LTE-A 2012
LTE
2018*
LTE-A
16
TriCells (Macro sites)
* LTE-A numbers
LTE is already here – demands are knonwn, LTE-A numbers are more speculative
Available channel bandwidth
Maintaining LTE’s tail %
agg’Practical View
300MbpsPractical View
3 – 4Gbps
Proprietary and Confidential
Increase Capacity in Microwave Links: 5 Steps
17
SpectrumSpectral efficiency
Spatial efficiency
Traffic Boosting
Network Utilization
Proprietary and Confidential18
Use more spectrum, efficiently
56MHz
56MHz
112MHz
28MHz
N x 28MHz bonded
112MHz
28
250 MHz
250 MHz in E-Band
More channel bandwidth, and channel bonding
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
28 28 28….
New Spectrum:• 26, 28, 31, 42 GHz• 70-80 GHz
Proprietary and Confidential19
Efficient Carrier Bonding Techniques (MC-ABC)
P1P3
Incoming Packet Flow – GBE port
P2P4
45 3 2 16745 3 2 16789
Bytes of P1Bytes of P2
45 3 2 1678
Bytes of P3
6
5
2
16
7
2
36
5
2
1
370Mbps@512QAM per carrier
P1P3
Outgoing Packet Flow – GBE port
P2P4
45 3 2 16745 3 2 16789
Bytes of P1Bytes of P2
45 3 2 1678
Bytes of P3
7 38
5
4
198
7
4
3
4
Ch1
Ch2
Ch3
Ch4
4x40 MHz: aggr. 1.48 Gbps
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Multi-Carrier Adaptive Bandwidth Control
20
Proprietary and Confidential21
Integration trendsSpectral
efficiencySpatial
EfficiencyTraffic
BoostingNetwork
UtilizationMore
Spectrum
1998 Next Gen.20082005
Additional reduction of form-factor &
cost
SoC lead to fully functional integrated multi carrier radios
Proprietary and Confidential22
Physics 101: More bits per symbolSpectral
efficiencySpatial
EfficiencyTraffic
BoostingNetwork
UtilizationMore
Spectrum
1024QAM constallation
2048, 4096,....
16QAM,... 256QAM...
BPSK, QPSK
Proprietary and Confidential23
Meeting the practical limits of physics
• Increasing modulation complexity meets natural limits
• From 256 to 1024 QAM, capacity increase is theoretical 25% (assuming no additional coding)
• System gain penalty about 7dB
• Requires “interference free” environment - can it work in field?
8QAM
16Q
AM
32Q
AM
64Q
AM
128Q
AM
256Q
AM
512Q
AM
1024
QAM
10%
210%
410%
610%
810%
1010%
1210% 0
5
10
15
20
25
30
35
40
45Delta capacity (Mb/s)
C/I
C/I *[dB]
CapacityIncrease [%]
*: typical figures for 1dB threshold degradation
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential24
ACM – Adaptive Coding and Modulation
Radio Type Ant. Diameter Length Modulation Capacity
Standard Power 1.80 m 30 Km 16QAM 32 x E1s
Standard Power 1.80 m 21 Km 128QAM STM-1
Standard Power 3.00 m 30 Km 128QAM STM-1
High Power 1.80 m 30 km 128QAM STM-1
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential25
ACM with Adaptive Power vs. Plain ACM
Adaptive Power ACM vs. common (fixed Tx power) ACM example displayed for 18-23 GHz link
Transmit OutputPower
Modulation256 QAM QPSK64 QAM
18 dBm
22 dBm
Adaptive Power
Typical other Vendors’ ACM
Adaptive
Adaptive Adaptive
Standard (fixed power)
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential26
Use Spectrum Where Needed
Asymmetrical channel within FDD frequency plan
Tail site Upstream
Aggregation/ Hub site
Downstream
AggregationNetwork
Aggregating channels
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential27
Use Spectrum Where NeededSpectral
efficiencySpatial
EfficiencyTraffic
BoostingNetwork
UtilizationMore
Spectrum
Proprietary and Confidential28
Use Spectrum Where Needed
7MHz x 16 = 112MHz
7MHz x 8 = 56MHzNote: Each block is a 7MHz channel
DL
UL
f1 f2
f1’ f2’UL
DL
f3’
f4f3
f4’ f6f5 f7 f8
f5’ f6’ f7’ f8’
DL
UL
f1 f2
f1’UL
DL
f4
f3 f2’ f3’ f4’
Symmetrical links
Asymmetrical
150Mbps link, usually needs 2 x 28MHz channels (FDD)
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential29
XPIC
Transmit More Than Once on the Same Carrier
v
h
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential30
Line-of-Sight (LOS) MIMO
• Using the a single channel to quadruple the capacity
• 2 x Dual Carrier units at each site• Each unit has a small form factor
• Simple direct mount installation
SITE 2
SITE 1
f1
f1
f1'
f1'
VH
V
H
4 x Capacity of the same Channel
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential31
Focus on the important bits….
PayloadHeader
CPCH
PayloadHeader
CPCH
CPCH CPCH
CH = Compressed HeaderCP = Compressed Payload
Site A Site B
IPv6 adds more packet headers and overheads
• Multi-Layer Header Compression
• Payload compression
Spectral efficiency
Spatial Efficiency
Traffic Boosting
Network Utilization
More Spectrum
Proprietary and Confidential32
Transmit the payload Spectral
efficiencySpatial
EfficiencyTraffic
BoostingNetwork
UtilizationMore
Spectrum
Proprietary and Confidential33
Efficient Use of Capacity Spectral
efficiencySpatial
EfficiencyTraffic
BoostingNetwork
UtilizationMore
Spectrum
Proprietary and Confidential34
Major Takeaways
MoreSpectrum
Spectral efficiency
Spatial efficiency
Traffic Boosting
Network Utilization
• Capacity requirements increase
• Rapid wireless technology evolution – Access and backhaul
• Ceragon is a key player in wireless backhaul innovation