Creating the UK’s first LTE network in 800MHz...Delivering Broadband For All: The UK’s first LTE...

Creating the UK’s first LTE network

in 800MHz

Delivering Broadband For All: The UK’s first LTE network in 800MHz

a. Background

b. Technology Economics

c. The Business Model and Opportunity

d. What Preseli Tells Us

e. Case Study: Pembrokeshire

f. Scaling to a National Level

g How and When

Contents


There are currently 2

million homes in the

UK that cannot

receive basic

broadband

Up to 250,000 small

and medium

enterprise are also

currently unable to

obtain service

Wireless offers the

best economics in

delivering

connectivity to the

final 10%

Additional benefits of

increased mobile

coverage

Broadband for all

before 2015

Broadband for all

homes increases

GDP by £8.7bn

(+0.6%)

Connection of SMEs

could increase GDP

by a further £7.9bn

(+0.55%)

Potential for an

overall >1% increase

UK Background - Broadband For All

1 2 3


Delivering the Vision

Single Point of

Interconnection

ensuring:

Multiple providers

of retail services,

ISPs and MNOs

Access for new

entrants

Minimal integration

costs

Maximisation of

accessible market

Competitive Service

Layer enabling end

users to:

Choose the

optimum service

provider

Benefit from

providers bundling

offers

Obtain access to

innovative services

and offerings

The Challenge

Deliver a model which:

Minimises costs and

associated subsidy

Maximises economic

benefit

Ensures competition

Delivers universality

Dovetails with other

solution roll out


The Neutral Host

Neutral Host makes total rural coverage economically viable, minimises

subsidy requirements and delivers a competitive market

Single Shared InfrastructureSingle Point of Interconnect Competitive Service Layer

MNOs

ISPs

New Entrants

Core Network Aggregation Sites and Active ElectronicsPeering Points

E2E Monitoring and Optimisation


The Preseli Network

HD Touch screen

The Demonstrations

Demonstration System2 × 0dBi

iPhone4

WiFi Bridge

3G Femto

+23dBm800MHz Modem

2x30 Watt10MHz channel

800 MHz

The eNode B

2dB coax loss

Core + Internet

17dB gainDowntilt of 8o

2 × 11dBi gain

Realising the Vision


Technology Economics

Current BT FTTC ProgrammeLikely Fixed Reach with

Matched Subsidy

c.18m c.24m 27m

66% 10 - 15%19 - 24%

National View1

0

No SolutionFTTC

c.90% to 100%2

90% 94%

BET

96% 100%

Technical feasibility of fixed technology Economics of Different Technologies

Wireless Fixed Satellite

£500

£2,500

£2,000

£1,500

£1,000

Total Costs 2011 to 2020 per subscriber


Technology Economics

Fibre Hub Model2Macro Deployment1

Fibre PoP

Higher short range frequencies such as 3.5 and

5.8 GHz

Streetwork deployment within local communities

at multiple locations

Harder to engineer an end to end wholesale

solution and ensure quality of service across

the network

Path to NGA less certain, may involve

extending fibre reach

Low long range frequencies are ideal

Macro site deployment utilising existing

infrastructure

Microwave connection to fibre for backhaul

Integrated end to end network with single

wholesale interface to multiple consumers

Path to NGA based on additional sites and

further spectrum (e.g. 2.6 GHz)

Macro Site

Macro Site

Macro Site

Fibre PoP


The Business Model

Sizing the Market1

Residential

Government reports indicate that 2

million (7.5%) homes cannot currently

get broadband

Our analysis shows 1.3m homes are

located more than 3km away from a BT

exchange

There are a range of technical (e.g. line

length) and individual (e.g. in home

wiring) reasons why people cannot

receive service

Total number of potential connection is between 1.4m and 2.25m

Small and Medium Enterprises

There are 4.8m SMEs in the UK

1.1m employ more than 1 person

30% are located in rural areas

The current unaddressed market is

between 100,000 (CLA) and 257,000

(FoSB) connections

A weighted average indicates a market

of c.190,000 organisations

a b


The Business Model

Valuing the Market2

Access to a

market worth

up to £450m

per annum

Consumer

Market of

c£360m per

annum

SME Market

of £90m per

annum

Total Addressable Market of 2.0m homes

UK Broadband Penetration is 71%

Market size of circa 1.4m over time

Revenue of £21 per month

Total Addressable Market of 190,000

91% of UK SMEs use broadband

Market size of circa 174,000 over time

Revenue of £45 per month


What Preseli Tells Us

2,216 addresses are

within 10km of Preseli

within Pembrokeshire

1,587 addresses are

more than 3km from an

exchange

This is equates to circa

70% of households

Homes within 3km of an

exchange may also have

line lengths greater than

3km due to layout

Therefore the market size

may be greater


What Preseli Tells Us

Post Code Premises Sam Knows Speed Checker

Locations Outside of 3km

SA66 7SB 8

<0.512 Mbps

0.25 – 1. 5 Mbps

SA66 7XN 10 0.25 – 1.5 Mbps

SA66 7SH 1 0.25 – 1.5 Mbps

SA66 7SG 2 0.25 – 1.5 Mbps

SA66 7XJ 23 0.25 – 1.25 Mbps

SA66 7RY 22 0.5 – 4 Mbps

SA66 7RU 16 0.25 – 1.25 Mbps

SA66 7RT 4 0.25 – 1.5 Mbps

SA66 7RX 4 0.25 – 1.25 Mbps

SA66 7SF 1 0.25 – 1.25 Mbps

SA66 7JP 6 0.25 – 1.5 Mbps

SA66 7SE 16 1.5 – 6.5 Mbps

SA66 7SN 8 0.25 – 1.5 Mbps

Location Within 3km

SA66 7SA

>2 Mbps

1 – 5 Mbps

SA41 2QW 1.5 – 6.5 Mbps

SA41 3QT 1.5 – 6.5 Mbps

SA34 0YN 1 – 5 Mbps

SA34 0XS 1.5 – 6.5 Mbps

SA34 0XR 2.4 – 8 Mbps

Not Spot

Postcodes

Analysed

50 and 4 Mbps peak downlink throughputs achieved close to the site and at

cell edge respectively

As part of an LTE network, an average sector throughput of around 80Mbps

would be achievable assuming 2x30MHz and a fixed directional antenna

With the above rate and number of not spots identified, average user rate of

c.625 kbps forecast, with a 3:1 contention ratio over air with 2Mbps minimum


Case Study: Pembrokeshire

Arqiva worked with Ofcom to evaluate the feasibility of delivering 2 Mbps to each household pre DSO

The study assumed:

– an external directive antenna mounted 10 meters above ground level

– 30 MHz of paired 800 MHz spectrum

– Use of TV transmitter sites to minimise the risk of interference, using the same antennas (Omni pattern)

Land Area: 1,644 Sq Km

Premises in Area: 58,213

Premises >3km from Exchange: 7,953

Proportion >3km: 14%


Case Study: Pembrokeshire

St David’s

Trefin

Newport Bay

St Dogmaels

Haverfordwest

Broad Haven

Pembroke Dock

Greenhill

Tenby

Fishguard

Results

90 percent of delivery points >3

km from exchanges covered by

10 existing relay sites

The study concluded at 50%

user penetration an average

rate of 150Kbps is delivered

Key Points to Note

Sites had the TV antenna only,

therefore no sectorisation

Additional sites and network

optimisation would provide total

coverage and increase average

user throughput


Nationwide DeploymentMulti Site User Trial

Scaling to a National Level

Preseli

Until January 2011 Spectrum Selection Dependant

Single Site Demonstration

Proof of technology and

translation of radio planning

to physical deployment

Multiple sites enabling end

user participation

Location TBC

Delivered via a partnership of

fixed, ISPs and MNOs

Up to 2,500 sites in 800 MHz

Collaborative roll out by partnership

Alignment to procurement process

Dependency on spectrum access


Delivery of Broadband for All is possible before 2015

Spectrum DeploymentPartnerships

Realisation of the vision is reliant on the right partnerships forming, accessing suitable spectrum and ensuring

scale deployment to drive efficiency:

All stakeholders need to work

together to minimise cost and

maximise delivery

Approach to procurement will

dictate delivery timescales

A nationwide rural sub 1 GHz

macro deployment would

require up to 2,500 sites

This is deliverable within a

2.5 year period

Smaller scale deployments

will follow individual

trajectories

Infrastructure

Provider

Service

Providers

Backhaul

and Core

GovRDAs

BIS Ofcom

Key variable in determining

when broadband for all can be

delivered

Sub 1 GHz Bands: 2013

Higher bands: Now via

partnership arrangements

Unlicensed Bands: Now but

present end to end QoS issues

Requires joined procurement

and regulatory regime


What We Can Deliver

▌ Proven LTE RAN, ePC and IMS technology

selected by Verizon Wireless in USA for

2010 network commercial launch

▌ Leading provider to the worlds Service

Providers with Number 2 Market share in IP

edge routing

▌ Expertise in designing, building and

managing increasingly complex networks

helps customers deliver converged services

across a variety of networks and devices

▌ The UK’s largest independent provide of

radio sites - 8,000 operational and 13,000

Marketable sites

▌ Provider of network managed services for

entire UK television and radio industry

▌ Extensive network deployment expertise

▌ 24/7 operations and maintenance services:

350 field operations engineers

▌ Backed major infrastructure shareholders

TechnologyNeutral Host

PlatformImplementation

Infrastructure

Consulting

Integration

Capital

Operations

IT Systems


Conclusion

Shared infrastructure makes a rural service viable1

Universal access could increase GDP >1%2

Neutral host provides competitive service to 2.25m users3

Wireless is the optimal technology in the final 10%4

Nationwide deployment delivers universality within 3 years5

Q&A Session

Appendix


Economic Benefit of Broadband

Direct

Benefits

Immediate Value Creation from direct

investment in networks

Multiplier effects from impact of broadband

investment on suppliers, content providers

etc….

Indirect

Benefits

Foreign direct investment as a result of

good ICT infrastructure

Productivity increases from more efficient

business processes

Human capital formation due to increase in

knowledge and skills

0.6%

1.2%

1.3%

0.6%

0.9%

McKinsey OECD World Bank Allen Average

Benefits of increased broadband penetration1 Impact of a 10% increase in broadband on GDP2

Creating the UK’s first LTE network in 800MHz...Delivering Broadband For All: The UK’s first LTE...

Documents

Transcript of Creating the UK’s first LTE network in 800MHz...Delivering Broadband For All: The UK’s first LTE...