Broadband Technology Roadmap for Rural Areas in the Andes and Amazon Regions in Peru
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1 Broadband Technology Roadmap for Rural Areas in the Andes and Amazon Regions in Peru PhD Candidate: David Espinoza Research Advisor: David Reed Interdisciplinary Telecommunications Program University of Colorado at Boulder 1
2 Agenda 1. Introduction 2. Research methodology 3. Technical analysis results 4. Engineering cost analysis results 5. Policy implications & technology roadmap 6. Conclusions 2
3 1. Introduction 3
4 Research Question Research Question What is the technology roadmap for introducing broadband services to underserved and unserved areas in the Andes and Amazon Regions of Peru? 4
5 Research Hypotheses Hypothesis 1 Deploying wireless access networks in the Andes and Amazon regions of Peru using the Wi-Fi technology and unlicensed spectrum has the lowest deployment and operating cost in a 10- year period. Hypothesis 2 Wireless access networks using stratospheric platforms in the Andes and Amazon regions of Peru has the lowest deployment and operating cost for the initial years but are not able to scale for a 10-year period to serve forecasted customer and speed growth. Hypothesis 3 Spectrum management and regulation have a quantifiable technology and economic impact in the deployment and operation of wireless access networks in the Andes and Amazon regions of Peru and are important to define the best technology fit to introduce broadband services in these regions. 5
6 2. Research Methodology 6
7 Research Methodology Analyzed Technologies Technology LTE WiFi IEEE n WiMAX IEEE d/e TVWS IEEE LTE Band 1.7/2.1GHz (AWS) Technical Analysis Network 2.4GHz Design & Simulations 3.5GHz MHz MHz 1.7/2.1GHz (AWS) Access Network Terrestrial Terrestrial Terrestrial Terrestrial Stratospheric Balloons Max Rate 75Mbps (2Sx10MHz) Engineering Cost Analysis 150Mbps Deployment & Operations (2Sx20MHz) 75Mbps (2Sx10MHz) 16Mbps (1Sx6MHz) 75Mbps (2Sx10MHz) Eff. DL CH Capacity 50-54Mbps 45-51Mbps 45-51Mbps 10-11Mbps 50-54Mbps 7
8 Research Methodology Residential Penetration (% of Households Penetration (%)households) Residential Internet Penetration Fixed Broadband Demand Penetration Pampahuasi Town agency s design specifications Palmapampa for Town FITEL or universal service the Users Study 45.0 Yauli County Samugari County Network Areasnetworks: access Operation Channel Available Regulatory Technology (Andes Region) (Amazon Region) Cap Cost Frequency Width Channels Customer CPE Demand Network service availability (at least 98% per year) 30.0 Cost /2.1GHz 20+20MHz 1368 Speed LTE 10+10MHz 2 2.9%of 2Mbps) Demand Broadband speed per(aws) user (minimum Users 25.0 per operator Tower 20.0 Technical Engineering Cost Cost Analysis Terrain Analysis Type of nodesusers (district, intermediate and terminal) 15.0 WiFi 2.7% Network Design & 20MHzDeployment Data & GHz Civ.- Eng. IEEE g/n Simulations Operations 10.0 system equipment Cost RF Energy (equipment and specs) 10.0 Tech Specs 5.0 Energy 50MHz per 5.0 CivilWiMAX engineering and node construction and tower specifications 10MHz Users 3.5GHz Cost IEEE d/e operator FITEL Specs with Interconnection 3.0 the fiber 4.0 optic backbone Operating 9.0 Samugari Internet Monthly Cost 35.2 TVWS9.127 Towns MHz 29 Towns % (Monthly Rate/Average Income) 6MHz 15 Spectrum Yauli IEEE MHz 8
9 Stratospheric Balloons: Project Loon Project Loon (Google X): Delivering wireless Internet services using super-pressure balloons traveling in the lower stratosphere (65,000ft to 80,000 ft). Super-pressure balloons: Envelope size (49ftx39ft), longevity (up to 6 months). Active payload systems (from U.S. Patent Balloon Power Sources with a Buoyancy Trade-off): Computational: Processor and on-board data storage. Energy: Solar panels, rechargeable battery, fuel cells. Navigation: Station-keeping or move to a position. Telecommunications: FSO and RF (LTE for customer access). Sensing: Video cameras, motion & environmental data sensors. Source: Altitude control: Components to vary the buoyancy of the vehicle. 9
10 Stratospheric Balloons: Project Loon Estimated cost per balloon system Computational Subsystem $ Solar Energy Subsystem $6, Navigation subsystem $8, Sensing Subsystem $ Altitude Control Subsystem $ Payload case $ Envelope, Gas & Parachute $9, Other Accessories (15%) $3, Telecom Subsystem 2: RF Access Link To Client Devices (approx. 10Mbps) $23, Telecom Subsystem 3: RF Access Link To Backbone (approx. 10Mbps) $3, UAS Assembly & Integration (15%) $8,565 Total Cost $65,
11 Flight Configuration: Single Balloon 11
12 Flight Configuration: Balloon Constellation 12
13 Balloons Flight Patterns 13
14 3. Technical Analysis Results 14
15 Yauli Area (Andes Region) LTE Technology Year 1 to Year 3 2Mbps 15
16 Yauli Area (Andes Region) LTE Technology Year 1 to Year 3 2Mbps 16
17 17
18 Yauli Area (Andes Region) LTE Technology Year 4 to Year 7 4Mbps 18
19 Yauli Area (Andes Region) LTE Technology Year 8 to Year 9 8Mbps 19
20 Yauli Area (Andes Region) LTE Technology Year 10 12Mbps 20
21 Yauli Area (Andes Region) Balloons-LTE Year 1 to Year 3 2Mbps 21
22 Y1 2Mbps Y4 4Mbps Wi-Fi WiMAX TVWS LTE Balloons Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Y8 8Mbps Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Nodes and Towers Y10 12Mbps Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment
23 Samugari Area (Amazon Region) LTE Technology Year 1 to Year 7 2Mbps and 4Mbps 23
24 Samugari Area (Amazon Region) LTE Technology Year 8 to Year 9 8Mbps 24
25 Samugari Area (Amazon Region) LTE Technology Year 10 12Mbps 25
26 Samugari Area (Amazon Region) Ballooons-LTE Year 1 to Year 3 2Mbps 26
27 Y1 2Mbps Y4 4Mbps Y8 8Mbps Y10 12Mbps Wi-Fi WiMAX TVWS LTE Balloons Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment Nodes and Towers Base Stations/Access Points Backhaul Radio Links Customer Premise Equipment
28 4. Engineering Cost Analysis Results 28
29 3.7M 900K 29
30 30
31 Yauli (Andes Region) & Samugari (Amazon Region) CAPEX+OPEX NPV 72% 71% 48% 58% $4,000,000 17% Yauli Area Samugari 14% Area 12% $3,500,000 CAPEX + OPEX NPV (USD) $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 61% 35% 14% 21% 66% 67% 68% 67% 67% 69% 69% $0 WiFi WiMAX TVWS LTE WiFi WiMAX TVWS LTE OPEX $718,377 $724,389 $832,960 $731,365 $1,056,1 $1,181,4 $1,167,1 $1,115,5 CAPEX $1,143,5 $1,396,4 $1,686,3 $1,521,1 $2,137,1 $2,445,1 $2,557,3 $2,449,7 31
32 32
33 33
34 NPV WiMAX $230.0 LTE $231.6 TVWS $242.0 WiFi $
35 NPV LTE $289.1 TVWS $293.5 WiMAX $299.1 WiFi $
36 NPV TVWS $76.09 LTE $77.43 WiMAX $77.89 WiFi $
37 NPV TVWS $96.6 LTE $99.8 WiMAX $102.3 WiFi $
38 5. Policy Implications & Broadband Technology Roadmap 38
39 Policy Implications LTE Spectrum 1.7/2.1GHz Band (AWS) LTE spectrum cap: 20MHz+20MHz Allowing 40MHz+40MHz spectrum per operator: Less expensive than Wi-Fi (NPV reduction 6% in Yauli and 11% In Samugari) Less expensive than LTE (NPV reduction 22% in Yauli and 20% In Samugari) 39
40 Overbooking Analysis Current regulator recommendation for residential service in rural areas is an overbooking of 10:1. Variations in the overbooking in rural areas have significant impact on cost: Overbooking 5:1 (LTE NPV increase 54% in Yauli and 24% In Samugari) Overbooking 20:1 (LTE NPV decrease 25% in Yauli and 29% In Samugari) 40
41 Broadband Technology Roadmap 1 st Step: Use technical and engineering cost analyses results of current wireless technologies and new stratospheric platforms. Stratospheric balloons have lowest cost for first 3 years. WiFi has the lowest cost among current wireless options. LTE 40+40MHz has lower costs than WiFi. 2 nd Step: Combine best technical features and cost efficiencies into an innovative roadmap solution. Use stratospheric balloons for first few years. Complementary Wi-Fi or LTE 40MHz terrestrial networks. 41
42 42
43 43
44 44
45 Broadband Technology Roadmap The two selected roadmap solutions: Stratospheric constellation balloons (LTE 20MHz) complemented with terrestrial LTE 40MHz. Stratospheric constellation balloons (LTE 40MHz) complemented with terrestrial LTE 40MHz. 45
46 6. Conclusions 46
47 Research Hypotheses Hypothesis 1 Deploying wireless access networks in the Andes and Amazon regions of Peru using the Wi-Fi technology and unlicensed spectrum has the lowest deployment and operating cost in a 10-yearperiod. This hypothesis is true Andes Region (Yauli): Lowest NPV (WiMAX, LTE and TVWS are 14%, 21% and 35% more expensive). Amazon Region (Samugari): Lowest NPV (LTE, WiMAX and TVWS are 12%, 14% and 17% more expensive). 47
48 Research Hypotheses Hypothesis 2 Wireless access networks using stratospheric platforms in the Andes and Amazon regions of Peru has the lowest deployment and operating cost for the initial years but are not able to scale for a 10-year period to serve forecasted customer and speed growth. This hypothesis is true Under current spectrum regulations, balloons can provide service for first 3 years at the lowest cost. Allowing LTE 40+40MHz, balloons can provide service for 4 years in Yauli and for 6 years in Samugari. 48
49 Research Hypotheses Hypothesis 3 Spectrum management and regulation have a quantifiable technology and economic impact in the deployment and operation of wireless access networks in the Andes and Amazon regions of Peru and are important to define the best technology fit to introduce broadband services in these regions. This hypothesis is true Spectrum regulations have an impact on the available spectrum resources used in the technical analysis. Technical design has a direct impact of the network costs. Lifting the LTE spectrum cap allows LTE to become the lowest cost option. 49
50 Research Question Research Question What is the technology roadmap for introducing broadband services to underserved and unserved areas in the Andes and Amazon Regions of Peru? The two broadband roadmap selected solutions: Stratospheric constellation balloons (LTE 20MHz) complemented with terrestrial LTE 40MHz. Stratospheric constellation balloons (LTE 40MHz) complemented with terrestrial LTE 40MHz. 50
51 Acknowledgements Dr. David Reed Dissertation committee Dr. Harvey Gates FITEL Google and ITP My wife Sarah, family and friends 51
52 Thank you! Q & A 52
53 Subsidy Analysis Cost per user per month in Yauli (USD) Subsidy per user per month in Huancavelica (USD) Wi-Fi $ 31.6 $ 44.3 WiMAX $ 36.0 $ 44.3 TVWS $ 42.8 $ 44.3 LTE $ 38.2 $ 44.3 Cost per user per month in Samugari (USD) Subsidy per user per month in Ayacucho (USD) Wi-Fi $ 38.8 $ 27.2 WiMAX $ 44.0 $ 27.2 TVWS $ 45.2 $ 27.2 LTE $ 43.3 $
54 Network Radio Links Summary Average Distance from Towns to Nodes (km) Average Number of Towns per Nodes Average Backhaul Radio Link Distances YAULI SAMUGARI WiFi WiMAX TVWS LTE WiFi WiMAX TVWS LTE Year Year Year Year Year Year Year Year Year Year Year Year
55 Yauli County (Andes) Samugari County (Amazon) 8 mi 18 mi 8 mi 13 mi 27 towns and 3,511 households Fixed BB demand: 4.7% of households (2.7% annual increase) Customers: 205 (Y1) to 1368 (Y10) 29 towns and 3,884 households Fixed BB demand: 9.1% of households (2.9% annual increase) Customers: 413 (Y1) to 1675 (Y10) 55
56 Customer Demand - Yauli FITEL Towns Gov Customers Additional Towns Gov Customers Residential Penetration (%) FITEL Towns Residential Customers Additional Towns Residential Customers Total Demand Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= %
57 Customer Demand - Samugari FITEL Towns Gov Customers Additional Towns Gov Customers Residential Penetration (%) FITEL Towns Residential Customers Additional Towns Residential Customers Total Demand Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= % Y= %
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