Transport network strategies at Telekom Austria Group- January 2014

1

June

1CLIENT CONFIDENTIAL

Copyright © Maravedis-Rethink 2014

Towards a Converged NetworkTransport network strategies at

Telekom Austria Group

January 28 2014

Alexander Schneider

Head of transport network

development, Telekom Austria

Caroline Gabriel, Research Director,

Maravedis-Rethink

2

January 2014

Copyright © Maravedis Inc 2013.

Welcome and housekeeping

> Caroline Gabriel, Research Director

Maravedis-Rethink’s research services

> Adlane Fellah, head of customer engagement

Key findings from latest RAN research

> Caroline Gabriel, Research Director

Transport network strategies

> Alexander Schneider, Telekom Austria

Q&A

www.maravedis-bwa.com

Agenda

3

CLIENT CONFIDENTIAL

Copyright © Maravedis-Rethink

2013


3

Methodology

January 2014



Top 40 cellco groupsNumber and profile

of cell sites

Data requirements, location, business model, spectrum,

regulatory

Cell sites required to be added or

upgraded

Equipment and software deployed 2013-2018 + capex

Demand driven forecast

Primary and secondary data + modelling for each operator

Additional detailed survey

Vendor input on shipments and expectations

Forecasts by region, technology, equipment type, mode, spectrum etc

4

CLIENT CONFIDENTIAL


2013


4

Complexity of converged HetNet

January 2014



0

5

10

15

20

25

30

35

New licensedspectrum

LTE upgrades Wi-Fi offload Small cellsinc Wi-Fi

Cloud-RAN Flexiblenetworks,

SON

LTE-Afeatures eg

CoMP

% o

f n

ew

dat

a ca

pac

ity

2013 2018 Over period to 2018 2020

• Operators will use

many tools

• Rising value of

access to LTE

spectrum and fiber

• But many other

tools in play to

achieve capacity

5

CLIENT CONFIDENTIAL


2013


5

Small cells and Cloud-RAN

January 2014



• Modernization vs

build-out, decline in new

primary cells

•New architectures

•Metrocells

•Cloud-RAN

•Super Macro

•To fulfil potential

• Interworking with

other layers

• Flexible spectrum

• SON etc

0

10,000

20,000

30,000

40,000

50,000

60,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016 2017 2018

un

its

AP

AC

un

its

Africa CALA CIS Europe Middle East North America APAC

Cloud-RAN deployment by region

Source: MaRe RAN Service report

6

CLIENT CONFIDENTIAL


2013


6

The need for fiber

January 2014



• Widening gulf between

fiber haves and have-

nots

• Small cell backhaul

• Cloud-RAN fronthaul

• Balance of power

shifts to those with

wirelines

• Pace of innovation in

alternatives

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2013 2014 2015 2016 2017 2018

pri

mar

y si

tes

Fronthaul links total Wireless fronthaul

Fronthaul deployment

Source: MaRe Cloud-Ran report


Wireless Infrastructure Analyst Firm

Since 2002CLIENT CONFIDENTIAL

© Maravedis Inc.CLIENT CONFIDENTIAL

Research Offering

www.maravedis-bwa.com© Maravedis Inc.

CLIENT CONFIDENTIAL

RAN Backhaul

Clearspectrum Core Network

Wireless Watch

Faultline

Consulting

Analyst Team

Customer Engagement Miami

Senior Analyst Video London


CLIENT CONFIDENTIAL

Adlane Fellah

Caroline Gabriel

Research DirectorLondon

Robert Syputa

Peter White

Senior AdvisorSeattle

Claus Hetting

Small Cells & WiFiCopenhagen

Earl Lum

Backhaul & Core AnalystCalifornia

Basharat Ashai

Market Analyst APAC and MEA

India

Luis Reyes

Regulatory ResearchMexico



Expert Analysts.

Carrier

Relationships.

Real Time Value.


Why Maravedis-Rethink?


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What are your objectives?

CLIENT CONFIDENTIAL

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Objective #1: Support Your Strategy and R&D?

Objective #2: Support Your Product Managers?

Objective #3: Support Your sales team?

2014 Research Offering


Service Description Deliverables Lead Analyst

RAN Service • Covers Macro cells, small cells and Carrier WiFi.

• Vendor Profiles & SWOT Analysis• Shipments and Market Forecasts• Carrier expectations & Trends.

2 comprehensive reports per year (PDF and Excel)

6 research notes Analyst Support

Caroline Gabriel

Backhaul Service

• Covers PTP , NLOS and emerging backhaul technologies

• Vendor Profiles & SWOT Analysis• Shipments and Market Forecasts• Carrier expectations & Trends

2 comprehensive reports per year (PDF and Excel)

Analyst Support

Earl Lum

Wireless Watch Assess the impact of events which have happened through the week, in the world of wireless.

48 Weekly Research Issues Caroline Gabriel

2014 RESEARCH OFFERING (CONT.)

Q1

– Global Macrocell BTS Transceiver Market Analysis

– Global Macrocell Base Station Market Analysis

– Global Microcell Base Station Market Analysis

• Q2

– Global PTP Radio Market Analysis

–– Global BTS Antenna Market Analysis

• Q3

– Global DAS Market Analysis

• Q4

– Global Picocell Market Analysis

– Global Fiber Optic Cables/Connector Analysis

– Various DNA-I Teardown Reports, Ex: Ericsson W-CDMA/LTE AIR21 17/2100MHz Semi-Active Antenna Unit to its DesigN Analysis Infrastructure (DNA-I) series of teardown reports.


“”Ceragon subscribes to Maravedis-Rethink’s backhaul research service which provides us

with in-depth analysis of the microwave market. We particularly value their coverage of

emerging trends and their ability to think outside of the box and investigate the newest

disruption in the industry.”

Ran Avital, Vice President Strategic Marketing, Ceragon Networks

"We have been using MOSA for information on the LTE and WiMAX deployments from the

devices availability, operator interviews and spectrum information. The service is very useful

and augments other sources of information that we use for our qualitative research."

Hasan Sharif, Senior Manager Spectrum Strategy, TRA, United Arab Emirates

"Wireless Watch is a great way of keeping in touch with the wireless industry. Caroline's

insights and deep understanding of the industry makes the newsletter something I would

recommend to anyone."

Ronny Haraldsvik, CMO, SpiderCloud Wireless


CLIENT CONFIDENTIAL

What our Clients Have to Say…


Contact Information

© Maravedis Inc.CLIENT CONFIDENTIALBROADBAND WIRELESS INTELLIGENCE


www.linkedin.com/in/adlanefellah

www.twitter.com/maravedis

MaravedisRethink

[email protected]

http://www.maravedis-bwa.comhttp://www.rethinkresearch.biz/

(305) 865-1006

(514) 313-5656

Adlane FellahCustomer Engagement

16

Transport Network Strategy in

Telekom Austria GroupAlexander Schneider,

17

Content Table

1 Group Overview

2 Group Backbone

3 Convergent Network Strategy

4 Transport NW Development a IP/MPLS

b

c

d Small Cell Backhauling

DWDM

Ethernet MW

e Migration to All IP

f

g

h SDN

Security

Synchronization

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Telekom Austria Group: Who We Are

> One of the leading

communication providers in

Central and Eastern Europe

> We operate in eight countries.

> Our almost 17,000

employees deliver

> Products and services of voice

telephony, broadband Internet,

multimedia services, data and IT

solutions, wholesale as well as

m-payment solutions

> For more than 23 million

customers across our markets of

operations.

Home Overview Brand Facts OpCos History Innovation CSR Holding Vodafone

19

TAG International Backbone

20

Convergent Networks

Strategy

20

21

TAG develops it´s companies differentiated based on market

maturity, regulatory conditions and competitive situation

towards full communication providers

TAG MARKET EVOLUTIONARY PATH

Single Brand Multibrand

Mobile

Only

Converg

ent

Segmentation

Mark

et

Appro

ach &

Off

eri

ng

Austria

Slovenia

Bulgaria

Serbia

Croatia

Belarus

Macedonia

Full communication provider to

exploit all growth opportunities

Multibrand strategy to exploit

new mobile market segments

and protect the main brand

• Push operations to achieve

significant size.

• Focus on mobile-only

strategy & screen for

convergence entry

opportunity

21

http://images.google.at/imgres?imgurl=http://gb2007.telekomaustria.com/jart/de/images/logo_vipnet.jpg&imgrefurl=http://gb2007.telekomaustria.com/jart/de/index.jart?show-thema-box=yes&content_id=1205325255883&usg=__AWwoNkhFl_YUOo9vnWvEXc1Ex2w=&h=75&w=190&sz=3&hl=de&start=1&tbnid=Jj2JwwcueYDQUM:&tbnh=41&tbnw=103&prev=/images?q=logo+vipnet&gbv=2&hl=de

http://images.google.at/imgres?imgurl=http://gb2007.telekomaustria.com/jart/de/images/logo_vipnet.jpg&imgrefurl=http://gb2007.telekomaustria.com/jart/de/index.jart?show-thema-box=yes&content_id=1205325255883&usg=__AWwoNkhFl_YUOo9vnWvEXc1Ex2w=&h=75&w=190&sz=3&hl=de&start=1&tbnid=Jj2JwwcueYDQUM:&tbnh=41&tbnw=103&prev=/images?q=logo+vipnet&gbv=2&hl=de

http://images.google.at/imgres?imgurl=http://www.telekomaustria.com/presse/vip-operator.jpg&imgrefurl=http://www.telekomaustria.com/presse/addresses-group.php&usg=__Sh3_IdbrCLlDx5Dhit5PuKt2hc0=&h=104&w=126&sz=6&hl=de&start=6&tbnid=fSbkO0SHsgBumM:&tbnh=74&tbnw=90&prev=/images?q=logo+vip+operator&gbv=2&hl=de&sa=X

http://images.google.at/imgres?imgurl=http://www.telekomaustria.com/presse/vip-operator.jpg&imgrefurl=http://www.telekomaustria.com/presse/addresses-group.php&usg=__Sh3_IdbrCLlDx5Dhit5PuKt2hc0=&h=104&w=126&sz=6&hl=de&start=6&tbnid=fSbkO0SHsgBumM:&tbnh=74&tbnw=90&prev=/images?q=logo+vip+operator&gbv=2&hl=de&sa=X

http://www.mtel.bg/

http://www.mtel.bg/

22

TAG – Fixed Access Footprint

22

Austria / A1: incumbent

>FTTEx/C/B:DSL & Vectoring

>FTTH: GPON

Croatia / Vipnet: Bnetacquired

>HFC (Coax Cable) Network;>Bitstream (ADSL) - Wholesale

Offer>Fiber connections to

corporate customers

Bulgaria / MTEL: Spectrumnet & Megalanacquired

>FTTH (GPON)>Active Ethernet

Slovenia / Si.mobil:

>Bitstream DSL via Wholesale offering of incumbent

23

TAG Fixed Access Networks: Further Goals

23

> Reduction of leased lines

> Faster connection of mobile sites through fiber

> Consolidate the transport network

> Reduce the number of PoP locations and network elements

> Offloading Data traffic from cellular to fixed nw in home environment

24

Transport Network

Development

24

25

IP MPLS for Core and converged Backhaul

Telekom Austria Group issued an RFP in 2011 and selected 2 vendors for the group.

Access Service Edge

Internet

Aggregation

MSAN/DSLAM/

OLT

Core

Video

Voice

Gateway

10GE

GE

Customer Site

FE

E1/

MLPPP/TDM PW

Customer

CPE L2/L3 VPN

VoIP

TV 3-Play

L2/L3 VPN

xDSL/

FTTxMPLS VPN

40/100GE

Mobile

RNC/EPC

PDH (microwave)

chSTM1/MLPPP/

TDM PW

Mobile

BSC/RNC

Core 1

Core 3

Agg 1

Agg 3Agg 2

Acc 1

Acc 2

nxE1

DHCP, Radius

Core 2

S C O P E O F R F P8 Node

Types:

Core1

Core2

Core3

Agg.1

Agg.2

Agg.3

Acc.1

Acc.2

26

Optical Layer

Telekom Austria Group TAG issued an RFP in 2012 for Metro/Access

WDM and selected 2 vendors for the group.

The Core WDM Layer shows 3 vendors in TAG, no RFP last year and

this year because book values still high compared to new

investment.

Cross layer optimization between the optical layer and the IP layer

is done in order to optimize the transport cost.

27

Fiber vs. Microwave Decision Tree

Fiber Invest < x

AND possible to

construct until T ? Build Fiber

MW possible ? Build MW

Copper possible? Build Copper

yes

yes

yes

no

no

no

Fiber BC positive ? Build Fiber

Do nothing

yes

no

Fiber 60% - 70%

MW 30% - 40%

Copper 0% - 1%

x= Microwave TCO

Resulting Technology split for Mobile Backhaul

in A1 (incumbent operator):

28

Ethernet Microwave

Telekom Austria Group TAG issued an RFP in 2009 and selected 1 vendor for the group.

Short Haul only

Telekom Austria Group issued an RFP in 2012 and selected 2 vendors for the group

Short Haul

Long Haul

E Band

Fiber and

Ethernet Microwave

are the main pillars

For Mobile Broadband

1Gbit/s1Gbit/s

Fiber

MW in the last hop for

rapid and cost effective

Roll out of mobile

networks. Fiber Roll out

for converged network.

29

Small Cell Backhauling Concept

29

TAG has defined a concept for Small Cell Backhauling

Depending on the use case (e.g. capacity hot spot or indoor coverage) there

is a toolset of technologies already defined in TAG (E Band MW, Fiber, TDD

LTE, xDSL, Coax, Low Band MW)

Additional focus needs to be put on V Band Microwave (60 GHz)

• Higher attenuation reduces interference and allows frequency reuse of 1

• Wider beam allows fast mounting on lamp post and insensitivity to

misalignment and wind

• Low Cost all outdoor equipment with small footprint

• Low installation cost with “auto alignment” for mass deployment

30

Migration of the Backbones from Legacy to IP

30

• All national Backbones in TAG are IP/MPLS capable

• However in most OpCos SDH is still in place.

• There are no new investments in SDH, new services are

provisioned on the IP/MPLS backbonde, existing services are

migrated from SDH to IP/MPLS whenever possible and as soon as

possible.

• Traffic reduction in the SDH network allows to reuse parts as

spare.

• Timeline SDH Phase out until 2018

31

Migration of the Backhaul from Legacy to IP

31

Hypothetical distribution of Backhaul connections over time if TAG goes to All IP

(only IP) in the Backhaul Network by the end of 2017. The figures below the graph

indicate the year. The distribution shown until 2013 reflects the real situation.

Year

8 9 10 11 12 13 14 15 16 17

# B

ackh

aul C

on

ne

ctio

ns

SRAN IP

4G IP

3G IP

3G ATM

2G TDM

32

Security Strategy for LTE Backhaul

32

3GPP Technical Specification 33.401, recommends the following approach:

“if your are using shared or unsecure transport networks you should

encrypt traffic”.

Transmission of LTE user plane and control plane data should be regarded as

unsecure/untrusted in several cases:

• transport domain/infrastructure (e.g. leased lines) not owned by OpCo

• locations of eNodeBs are not owned by OpCo

• Radio Access Network (RAN) or other network equipment is shared with other

operators

In such a scenario, an operator should deploy a VPN gateway (security gateway) in

order to encrypt the LTE traffic in the backhaul network:

• Backhaul traffic between eNodeBs and mobile core network

• Backhaul traffic between eNodeBs

33

Security Strategy for LTE Backhaul

33

IPSec security gateway overview

34

Synchronization Strategy

34

Investment for synchronisation within TAG is mainly driven by the need to deliver

accurate frequency to the air interfaces of ~20.000 Radio sites especially when

migrating from TDM to IP.

For TDM-based aggregation networks (SDH/E1) every site can derive frequency in

sufficient quality via its network interface.

For base station sites without E1-uplinks (eg. SRAN with GbE-uplink) there are today

two standardised solutions for NodeB synchronisation.

• Synchronous Ethernet - SyncE

• Precision Time Protocol PTP - 1588v2

TAG shall use these two technologies in combination

35

Synchronization Strategy – Frequency

35

Migration from SDH to Synchronous Ethernet requires that all Network Elements in

the chain support Synchronous Ethernet.

36

Synchronization Strategy - Time

36

• PTP 1588v2 will be needed at the point of time when phase- and time of

day (ToD) sync is needed for some LTE_advanced features. SyncE will be

also a backup for 1588 Time synchronization and it will improve the

accuracy/robustness of the 1588 time synchronization.

• Time/Phase source could be taken from national timekeeping

organisations (e.g. for A1 from Austrian “Bundesamt für Eich- und

Vermessungswesen”). This has got the advantage that the government

has to make the strategic decision where to get the time information

from which may affect the national security.

• GPS based Time sources and NTP are not seen to be the future primary

timing reference for TAG Transport Networks.

37

Phasing out legacy technologies

PDH Microwave will be replaced with Ethernet MW in the next years.

Today more Ethernet MW links in operation than PDH MW links.

ATM will be replaced with IP/MPLS in the next years.

Outphasing of SDH in the fixed network will be done later. SDH will

be here to stay for some more years.

Other technologies like Frame Relay, X.25 etc. have been phased out

already.

38

Software Defined Networks SDN

TAG introduces SDN and NFV (Network Function Virtualization) in

the Core and IT (Datacenters) now and will introduce it in the

Transport in the mid term future.

4040www.maravedis-bwa.com Copyright © Maravedis Inc 2014

CLIENT CONFIDENTIAL

Contact Information

www.linkedin.com/in/adlanefellah

www.twitter.com/maravedis

MaravedisRethink

[email protected]

http://www.maravedis-bwa.com

http://www.rethinkresearch.biz/

(305) 865-1006

(514) 313-5656

Adlane Fellah, Customer Engagement

Transport network strategies at Telekom Austria Group- January 2014

Technology

Transcript of Transport network strategies at Telekom Austria Group- January 2014