Competitive Positioning of 5GHz FWA systems WAG Meeting 6 th May 2003.
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Transcript of Competitive Positioning of 5GHz FWA systems WAG Meeting 6 th May 2003.
Competitive Positioning of Competitive Positioning of 5GHz FWA systems 5GHz FWA systems
WAG MeetingWAG Meeting
66thth May 2003 May 2003
Presentation StructurePresentation StructurePresentation StructurePresentation Structure
Main potential markets: school connectivity, NHS, SME and community networks
Market driversProcurement / business modelsKey criteria for technology choiceProspects for 5GHz FWA
Main potential markets: school connectivity, NHS, SME and community networks
Market driversProcurement / business modelsKey criteria for technology choiceProspects for 5GHz FWA
School connectivity: market driversSchool connectivity: market driversSchool connectivity: market driversSchool connectivity: market drivers
Broadband connectivity policy for schools: 2Mbps primary; 8Mbps secondary by 2006
Funds: – £71m (2003-04), £287m (2004-06) England– £204m Northern Ireland (incl. ICT)– £10m Wales (local access)
Content development initiatives: £50m e-Learning credits; £150m for digital content development
Future bandwidth requirements:– Video conferencing– Video streaming (subject teaching)– Interactive materials (subject teaching)
Improving ICT competence amongst teachers
Broadband connectivity policy for schools: 2Mbps primary; 8Mbps secondary by 2006
Funds: – £71m (2003-04), £287m (2004-06) England– £204m Northern Ireland (incl. ICT)– £10m Wales (local access)
Content development initiatives: £50m e-Learning credits; £150m for digital content development
Future bandwidth requirements:– Video conferencing– Video streaming (subject teaching)– Interactive materials (subject teaching)
Improving ICT competence amongst teachers
Procurement models (1)Procurement models (1)Procurement models (1)Procurement models (1)
RBC/LEAs own the school network: – Low cost connection– Sustainable broadband provision– Control over the network– Cost-effective solutions sought (wireless)– ‘Hidden costs’– Customer response/customer care?– Direct competitors to commercial operators?– Interconnect to SuperJANET?
RBC/LEAs own the school network: – Low cost connection– Sustainable broadband provision– Control over the network– Cost-effective solutions sought (wireless)– ‘Hidden costs’– Customer response/customer care?– Direct competitors to commercial operators?– Interconnect to SuperJANET?
Procurement models (2)Procurement models (2)Procurement models (2)Procurement models (2)
Leasing broadband capacity from a commercial operator + managed service– Defined performance criteria– RBC/LEA avoids ownership of network
and associated costs– Sustainability beyond 2006?– …BT main provider, but wireless
technologies being considered
Leasing broadband capacity from a commercial operator + managed service– Defined performance criteria– RBC/LEA avoids ownership of network
and associated costs– Sustainability beyond 2006?– …BT main provider, but wireless
technologies being considered
Major wireless deploymentsMajor wireless deploymentsMajor wireless deploymentsMajor wireless deployments
CLEOWarwickshireSomersetMilton KeynesCheshireNorth Yorkshire
Fixed links + 2.4GHz
CLEOWarwickshireSomersetMilton KeynesCheshireNorth Yorkshire
Fixed links + 2.4GHz
Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology
Cost of deploymentOn-going costsActual data throughputGuaranteed QoSSpeed of deploymentScalabilitySustainability of broadband provision
Cost of deploymentOn-going costsActual data throughputGuaranteed QoSSpeed of deploymentScalabilitySustainability of broadband provision
Prospects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWA
Current capacity insufficient in 2-3 years (PTP or PMP over 2.4GHz)
More cost-effective solutions sought Separate frequencies for access and WLANs Plans to migrate 2.4GHz connections to 3.4 or
5GHz Extend networks to other public sector and
SMEs At least 10% of school connections over
wireless by 2006 (up to 15% incl. other public sector and SMEs)
Current capacity insufficient in 2-3 years (PTP or PMP over 2.4GHz)
More cost-effective solutions sought Separate frequencies for access and WLANs Plans to migrate 2.4GHz connections to 3.4 or
5GHz Extend networks to other public sector and
SMEs At least 10% of school connections over
wireless by 2006 (up to 15% incl. other public sector and SMEs)
The NHS: market drivers (1)The NHS: market drivers (1)The NHS: market drivers (1)The NHS: market drivers (1)
Re-procurement of NHSnet (N3)- £2.3billion (2003 – 2005); infrastructure and ICT– N3: min 2Mbps between trusts, min 256Kbps GP
practices– Best value for money– 10 year contract to 5 SPs– Frequent local contract re-competition over 10
years
Wales - Dawn 2 NI, Scotland – part of overall public sector
aggregation model
Re-procurement of NHSnet (N3)- £2.3billion (2003 – 2005); infrastructure and ICT– N3: min 2Mbps between trusts, min 256Kbps GP
practices– Best value for money– 10 year contract to 5 SPs– Frequent local contract re-competition over 10
years
Wales - Dawn 2 NI, Scotland – part of overall public sector
aggregation model
The NHS: market drivers (2)The NHS: market drivers (2)The NHS: market drivers (2)The NHS: market drivers (2)
Increase in bandwidth requirements in the next 2-3 years:– Integrated Care Record Services (electronic
patient records, prescription transfer and appointment booking)
– PACS (storing, archiving and transfer of clinical images)
Increase in bandwidth requirements in the next 2-3 years:– Integrated Care Record Services (electronic
patient records, prescription transfer and appointment booking)
– PACS (storing, archiving and transfer of clinical images)
Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology
SecurityCost/value for moneyGuaranteed QoSSpeed of deploymentCredibility of service provider
SecurityCost/value for moneyGuaranteed QoSSpeed of deploymentCredibility of service provider
Prospects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWA
Bluetooth - common mechanism for connecting medical devices
Reluctance to use 2.4GHz for access (interference; less secure)
2.4GHz as an interim local solution 5GHz or 3.4GHz preferred10-20% of GP practices in England will
be connected via wireless
Bluetooth - common mechanism for connecting medical devices
Reluctance to use 2.4GHz for access (interference; less secure)
2.4GHz as an interim local solution 5GHz or 3.4GHz preferred10-20% of GP practices in England will
be connected via wireless
Community and SME networks: market Community and SME networks: market driversdriversCommunity and SME networks: market Community and SME networks: market driversdrivers
Lack of broadband infrastructure Government’s broadband policy objectives Availability of public funds: DTI Broadband
fund, Wired-Up Communities
20-30 community projects using FWA (2.4GHz + licensed fixed links)
Most use subsidies 3-4 to 30 nodes; 10 to 100+ users
Lack of broadband infrastructure Government’s broadband policy objectives Availability of public funds: DTI Broadband
fund, Wired-Up Communities
20-30 community projects using FWA (2.4GHz + licensed fixed links)
Most use subsidies 3-4 to 30 nodes; 10 to 100+ users
Business models (1)Business models (1)Business models (1)Business models (1)
Community-owned networks:– Driven by availability of funds– Sustainability? Will users pay £25-40 p.m.?– Cost of backhaul – Backhaul to school networks and
SuperJANET
Community-owned networks:– Driven by availability of funds– Sustainability? Will users pay £25-40 p.m.?– Cost of backhaul – Backhaul to school networks and
SuperJANET
Business models (2)Business models (2)Business models (2)Business models (2)
Operator-driven networks:– Integrated network + service provision– Wholesale broadband capacity provider
+ ISP– Operator bears commercial risk
Operator-driven networks:– Integrated network + service provision– Wholesale broadband capacity provider
+ ISP– Operator bears commercial risk
Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology
CostCapacity versus demandSpeed of rollout / immediate access
to spectrum
CostCapacity versus demandSpeed of rollout / immediate access
to spectrum
Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)
Significant interest from operators deploying unsubsidised networks for SMEs
PMP and PTP (leased line alternative)5GHz for backhaul
No immediate perceived demand to migrate from current 2.4GHz links in community-run networks
Significant interest from operators deploying unsubsidised networks for SMEs
PMP and PTP (leased line alternative)5GHz for backhaul
No immediate perceived demand to migrate from current 2.4GHz links in community-run networks
Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)
Broadband take up:
13% of households with Internet access (7% of UK households)
19% of SMEs with Internet access (12% of UK SMEs)
20-27% of households and businesses will have no access to ADSL/cable (c.20% at town edges and in rural areas)
Broadband take up:
13% of households with Internet access (7% of UK households)
19% of SMEs with Internet access (12% of UK SMEs)
20-27% of households and businesses will have no access to ADSL/cable (c.20% at town edges and in rural areas)
Conclusions and common themes (1)Conclusions and common themes (1)Conclusions and common themes (1)Conclusions and common themes (1)
FWA over 2.4GHz seen as an interim solution for broadband connectivity to schools, NHS, SMEs (replacement within 5 years)
FWA have typically much lower on-going costs than BT leased line products (esp. in rural and remote areas)
Choice of wireless - trade-offs between:– capacity– cost of equipment– QoS– availability and ease of access to spectrum– risk of interference… for each specific market
FWA over 2.4GHz seen as an interim solution for broadband connectivity to schools, NHS, SMEs (replacement within 5 years)
FWA have typically much lower on-going costs than BT leased line products (esp. in rural and remote areas)
Choice of wireless - trade-offs between:– capacity– cost of equipment– QoS– availability and ease of access to spectrum– risk of interference… for each specific market
Conclusions and common themes (2)Conclusions and common themes (2)Conclusions and common themes (2)Conclusions and common themes (2)
Access to 3.4GHz uncertain; higher equipment costs
Immediate demand for access to Band C by professional operators:– Timescales driven by government targets– Most contracts to be finalised in early 2004– Separate frequencies for access and WLANs– Most cost-effective alternative for SMEs given less
certain demand and limited ability of operators to raise funds
Access to 3.4GHz uncertain; higher equipment costs
Immediate demand for access to Band C by professional operators:– Timescales driven by government targets– Most contracts to be finalised in early 2004– Separate frequencies for access and WLANs– Most cost-effective alternative for SMEs given less
certain demand and limited ability of operators to raise funds