Wireless Broadband Access:

A Telecommunications and Technology Research Group“Give Your Company the Competitive Edge”

National Communications Forum: Session PCS 10

Wireless Broadband AccessSession: PCS 10

Tuesday, October 17

Judith Hellerstein, PresidentHellerstein & Associates2400 Virginia Avenue NW, Suite 1023C

Washington, DC 20037Phone: (202) 333-6517 Fax: (509) 355-9792

[email protected] www.jhellerstein.com


OUTLINE

Demand drivers for broadband access What is fixed broadband wireless access? Four types of access technologies

MMDS LMDS DEMS 38 GHz

Benefits and challenges Target markets and market deployment


Market Size

Services Two Analyst views

Strategis: 2003 – $9.6BPioneer: 2007 – $14B

Major Investments Sprint MMDS acquisitions Apr/99 for $870M MCI MMDS acquisitions Apr/99 for $805.6M Significant equipment R&D investments


Demand Drivers for Broadband Access

Internet growing at exponential rates. By 2002, data will account for 99% of all traffic through the network

By 2003, more than 50% of all Internet access will be through broadband: DSL, Cable and Wireless

More than half of all broadband access will be through DSL One in four users will be in smaller markets Strong demand in small, midsize and semi-rural markets Data traffic demand is driving access market to provide high-capacity

transport Limitations of Fiber/DSL technology are driving the broadband wireless

industry


Bandwidth/Voice Supply & Demand

3,1375,405

16,721

28,789

44,497

63,222

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1999 2000 2001 2002 2003 2004

Global Bandwidth DemandGbps

Source: Morgan Stanley Dean Witter Research


Estimated Growth in Consumer Broadband Access

1,7504,600

9,200

14,100

19,900

25,800

31,400

36,900

42,500

0

10,000

20,000

30,000

40,000

50,000

1999 2000 2001 2002 2003 2004 2005 2006 2007

# o

f H

ou

seh

old

s



Broadband is Changing the Shape of Business Access

$6,083

$5,261

$751

$8,335

$4,864

$971

$11,452

$5,822

$1,168

$11,556

$6,754

$2,200

$1,303

$14,422

$7,153

$3,701

$2,657$1,343

$17,120

$7,094

$5,440

$4,235

$1,290

$18,669

$6,252

$7,043

$5,765

$1,125

$0

$10,000

$20,000

$30,000

$40,000

$50,000

1998 1999 2000 2001 2002 2003 2004

Dial-up & ISDN

Fixed Wireless

DSL

Copper T1

Fiber $114

$161

$957$893

$1,339

$19

Rev

enu

es $

Mill

ion

s

Business Access Revenue Forecasts



Bandwidth Requirements for Broadband Applications

Business Applications Bandwidth Required

Telecommuting/SOHO .014-6 Mbs

Internet .500-1.5 Mbs

Desktop Video Conferencing .128-1.5 Mbs

Local Website Hosting .5-6 Mbs

Computer Telephony Integration .300-1.5 Mbs

Consumer Applications Bandwidth Required

Internet .500-1.5 Mbs

Education .5-6 Mbs

Video on Demand 3-7 Mbs

Shopping .500-1.5 Mbs

Interactive Video Games .300-1.5 Mbs


What is Broadband Wireless Access?

Wireless broadband access uses radio spectrum rather than copper or fiber optic cable as a medium for transporting telecommunications and data traffic Uses spectrum from24 GHz to 42 GHz Value of spectrum depends on the frequency selected Targeted deployment Interface supports voice, data,a nd video services Bandwidth is shared among users in a cell.

Wireless infrastructure: Mobile: unable to provide broadband services Fixed: able to overcome the bottleneck in the first or last mile


Fixed Broadband Wireless Technology

Technology used to deliver wireless access: Point-to-point Point-to-multipoint

Allows high speed, high capacity two way multimedia service to be delivered quickly to consumer.

Fixed wireless access uses spectrum between 24-42 GHz ATM air interface supports voice, data, and video services Bandwidth shared among users in a cell

Bandwidth applications from 64K to 155 Mb


Microwave

Licensed and unlicensedLicensed, MMDS, LMDS, DEMS, 38-39

GHZUnlicensed 900-904 MHz, 2.4 GHz- 5.7

GHz


Frequencies

Frequencies available for delivering broadband Spectrum used is typically above 2 GHz

Lower frequencies are often used for mobile applications, while higher frequencies are used for fixed wireless access

Fixed Wireless technologies include: LMDS, MMDS, and DEMS Fixed wireless spectrum lies between 24-42 GHz

Both Licensed and unlicensed bands are available Unlicensed bands include 2.5, 5, 18, and 60 GHz bands (ex. Metricom’s

Ricochet) Licensed bands include 2.6, 24-26, 28-30, and 38-40 GHz bands

In the US, about 100 MHz is available in the MMDS band near 2.6 GHz and 1.3 MHz is available in the LMDS band near 30 GHz and 1.4 GHz is available near 40 GHz


Fixed Wireless Systems Architectures

Point -to-PointPoint-to-MultipointPoint to Consecutive point


Fixed Wireless Systems

Point -to-Point Network Architecture consists of a single link between two

points, typically two rooftop antennas

Line of sight connection is needed between the two antennas Each point must be within 1-3 miles of the system’s hub site

Base Station

Single Customer


Point-to-Point (contined)

The hub aggregates the traffic from multiple radios and then the traffic is backhauled to the company’s switch


Benefits of Point-to-Point Architecture

Much less expensive than building a fiber network.

Additional links added as need arisesEase of additional provisioningHighly flexible and easy to control


Equipment

The major providers are: Digital Microwave Harris Corporation Wavespan Glenayre


Point-to-Multipoint Systems are comprised of four main elements

Hubs Radios Customer premise equipment (CPE), and Network management systems

Customers access the network by sending voice and data traffic over the local network to a central hub-site as a radio signal. At the hub-site, the signal is converted back into voice and/or data traffic


Point-to-Multipoint (continued)

Operates as a “hub and spoke” linking a single radio hub with multiple rooftop antennas

Since each hub site serves several buildings, this type of technology enables service providers to offer faster, cheaper, and more comprehensive serivces

Multiple radios can then be combined to offer 100% coverage.

Base Station

Up to several thousand customers


Point-to-Multipoint (continued)

Enables costs to be spread out more evenly among customers

Uses spectrum more efficiently than point-to-point systems Difficulty in adding additional spectrum because of FCC

imposed spectrum caps Enables bandwidth on demand on a pay per use basis


Equipment providers

The major providers are Nortel Newbridge Networks Lucent Alcatel Spike Technologies


Point to Consecutive Point

Being deployed by Advanced Radio Telecom using Triton’s technology

The technology is configured as a point-to-point redundant ring architecture capable if providing 100 Mbs of bandwidth in each direction of the ring Ring configuration allows network operators the ability to expand the

geographic area covered by an operator

Capacity can be expanded by deploying additional rings in the area Network is fully redundant Rings are self healing

Architecture is similar to SONET


Four Types of Access Technologies

MMDS (Multichannel Multipoint Distribution Services)

DEMS (Digital Electronic Messaging Service)

LMDS (Local Multipoint Distribution Service)

38-39 GHZ


Wireless DSL Consortium Wireless DSL Consortium formed in July 2000

New group composed of Fixed Broadband Wireless equipment and chip manufacturers, system integrators, and service providers whose goals are:

To define, develop, and implement a set of open interfaces for MMDS products.

Enable quality of service control to the end-user Improve Wireless broadband coverage to non line-of-sight customers Create protocol specifications, interoperability standards, and validation

methods for testing of new standard. Members include, ADC Telecommunications, Conexant Systems, Gigabit

Wireless, Intel, Nortel Networks, Nucentrix, Sprint, Vyyo, and Worldcom


Standards-based Fixed Broadband Wireless

Allows service providers to mass deploy Fixed Broadband Wireless equipment and service

Lack of standards leads to market fragmentation, low volumes, and high cost Promotes interoperability of technologies and leads to increased

customer choice Allows the market to provide more product and supplier alternatives than

possible without a standard Helps focus industry on resolving other challenges necessary to reach

mass deployment Lowers costs to suppliers and to consumers

Increases choice of providers and greater selection of products


MMDS

Frequency Band: 2.5 GHz Formerly a one-way service, but in September 1998 FCC rules allowed

for the commencement of two-way service In August 2000, the FCC began accepting applications by carriers wishing

to convert their one-way MMDS spectrum into two-way spectrum

Data rates: 128 Kbit/s ~ 1.544 Mbit/s Originally designed for the delivery of cable TV signals Supercell approach Market players: Sprint & MCI WorldCom have the potential to cover

60% of US households


DEMS

Frequency Band:24 GHzRequires a cell radius of 2~3 miles Data rates: 1.54 Mbit/sMarket player: Teligent holds between 80

and 400 MHz of spectrum in 74 markets Only commercial carrier in the market


LMDS

Frequency band: 28-31 GHzLargest block of spectrum ever authorized by the

FCCCapability:

multichannel video programming two-way voice and data services

Data Rates: 64 Kbps ~ 155 MbpsMarket player: Nextlink


Typical LMDS User Equipment

RF UnitRF Unit(Outdoor Unit)(Outdoor Unit)

NetworkNetworkInterface UnitInterface Unit(Indoor Unit)(Indoor Unit)

UserTerminal

1-10 Mbps

Roof Antenna/TransceiverRoof Antenna/Transceiver

Rx

Tx

Power Ethernet User Interface

Prime AC Power

Indoor UnitIndoor Unit


Total Annual Service Revenue

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1999 2000 2001 2002 2003 2004

Year

Revenue US$ Millions

Projected World Market LMDS Service Revenue


38 GHz

FCC recently auctioned off spectrumPreviously licensing of companies had been

done on a case-by-case basisMarket players:

Winstar Advanced Radio Telecom (ART) AT&T


Target Markets

Target Markets SOHO Small Business Medium Business Residential

Demand for high speed access over the past two years has resulted in 35-40% growth rates


Benefits of Fixed Broadband Wireless

Provides bandwidth and access speeds equal or greater than ADSL or cable modems

Offers quick installation as compared to wired systems Can extend the reach of fiber or coax by providing the “last mile” of the

network Fast market entry for service providers as compared to wired systems Low startup and entry costs

Pay as you go approach: carriers only required to add equipment as the number of users grow

Operator control over facilities Flexibility of deployment, especially in medium--high population densities

where penetration rates are initially low


Services

High speed data bursting as high as 20 MbsLocal Exchange and Long DistanceVideo ConferencingTraining and Distance LearningRemote medical diagnosticsVirtual Private Networks


Benefits and Comparison

WirelessWireless

LMDSLMDS MMDSMMDSWire-lineWire-line

Time toDeploy

Months Hours

Cost ofInfrastructure

$150K/mile $15K/mile $1.5K/mile

DeploymentCharacteristics

Fixed Coverage,Most Expensivefor Small Users

EnvironmentallyChallenged,

Small CoverageArea

EnvironmentallyAdvantaged,

Wide coverage


Alternative High-speed Access Technologies

Cable modemDSLBroadband SatelliteFiberMobile- 3G service


Challenges

Overcoming line-of-sight limitations, such as terrain and tree foliage Weather related signal loss Broadband wireless technology is not as well understood as broadband

wired technologies Although spectrum is available, equipment is not readily available Technology for the higher frequencies is just now coming to market

Lack of any high volume production of equipment needed 155 Mb modems are only produced in low-volume, high-cost production Technology for low-cost, high speed burst modems is available but systems

have not been produced.


Conclusion

Fixed BWA will provide alternatives to ADSL, T1 lines and HFC systems to deliver broadband services to both business and residential customers.

Fixed BWA will complement, not replace wired systems. Fixed BWA systems will be used to extend the connectivity

to fiber optic networks.


Questions, Comments, Suggestions?

Judith Hellerstein, PresidentHellerstein & Associates

2400 Virginia Avenue NW Washington, DC 20037Phone: (202) 333-6517 Fax: (509) 355-9792

[email protected] www.jhellerstein.com

Thank You

Documents

Wireless Broadband Access: