Cellular and Satellite: together to serve a fast growing market

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1 Cellular and Satellite: together to serve a fast growing market Didier Verhulst Presentation at COMSYS VSAT 2009 London,18 th Page 1

2 How to get the best from cellular and satellite technologies together? Page 2

3 Cellular growth worldwide (1/2) Today more than 4 Billions cellular users in the world GSM 3G - 3G+ GSM 2G - 2,5G Other Cellular and only about 1,6 Billions Internet users! Page 3

4 Cellular growth worldwide (2/2) But still many areas uncovered 2G 3G Source GSM Association, beg Page 4

Cellular growth in Africa Today 400 Millions cellular subs in Africa, growing fast 400 000 300 000 200 000 100 000 0 2000 2004 2008 GSM 3G -

5 Cellular growth in Africa Today 400 Millions cellular subs in Africa, growing fast GSM 3G - 3G+ GSM 2G - 2,5G Other Cellular Source GSM Association, beg but still a lot to do: only about 70 % population & 20% area covered Page 5

Revenue Per User (ARPU) less than $10 in villages It is therefore essential to

6 Looking for low cost cellular coverage A challenge for mobile operators is to serve remote rural villages with low income subscribers Monthly Average Revenue Per User (ARPU) less than $10 in villages It is therefore essential to reduce CAPEX as well as OPEX Both for cellular and for transmission equipment Page 6

7 Satellite is often the only available transmission solution Urban area Scattered extension Via Satellite GSM extension (Microwaves) User density Page 7

8 But satellite transmission is considered costly! Today: satellite links are mainly used to connect remote but large cities Using dedicated satellite resource and SCPC modems Often without the most advanced optimization Satellite being perceived as a mandatory but expensive solution. waiting for a terrestrial transmission replacement (microwave, fiber) Satellite backhaul in Africa is still constrained by the lack of satellites coverage The cost of leasing transponders remains very high There is therefore a growing demand for optimized satellite cellular backhaul solutions! Page 8

9 Ongoing progress in satellite backhaul transmission Optimization of satellite modems High density modulation Link adaptive coding, Carrier-in-carrier channeling C band, but also Ku and soon Ka band as well GSM interface compressors Taking advantage of silence in speech, signaling and data to reduce throughput Dedicated and shared resources Shared forward link: e.g. DVB-S2 with TDM Demand Assigned Multiple Access for return links Star, meshed, or mixed star - meshed configurations New broadband IP VSAT technologies Page 9

10 GSM backhaul over broadband IP VSAT BTS E1 IP Mux VSAT IP Mux BTS E1 IP Mux VSAT I P BSC BTS E1 BTS IP Mux E1 IP Mux VSAT VSAT Hub Cell & Sat Optimiser Shared satellite resource => cost is per Erlang, ideal for low traffic BTS Page 10

11 New GSM solutions for rural Low CAPEX BTS equipment More and more software than hardware based With a strong competition between vendors! Main costs are today in shelters, site installation, antennas New all-in-one" compact rural GSM base stations are proposed With high power / sensitivity BTS to reduce antenna mast height: from 30 m down to 15 pm or less OPEX savings Migration from TDM towards IP based links Outside the electricity grid: energy based on solar cells rather than fuel Optimization functions: BTS concentrators, local switching, energy saving features (idle mode), etc Page 11

12 New solutions for satellite GSM backhaul (1/2) The GSM system includes functionalities to utilize its cellular radio frequencies very efficiently Adapting to fast variations of the radio links Managing mobility of users Controlling evolution of overall traffic Optimizing various types of services: speech, messaging, high speed data, etc Interpreting the GSM signaling is a very powerful tool to optimize the satellite radio frequencies as well! Traditional GSM backhaul provides a transparent pipe to transport GSM traffic data and signaling Optimized backhaul can provide the minimum satellite resource required for the actual GSM traffic Page 12

13 New solutions for satellite GSM backhaul (2/2) Optimized cellular backhaul Developed by Cell & Sat in partnership with Memotec Adaptable to any TDM or IP satellite links Compatible with any GSM infrastructure O&M CSM BTS IP Mux Terminal Sat Terminal Sat Hub IP I P IP Mux Gateway BSC CSO: Cell & Sat Optimizer, CSM: Cell & Sat Manager CSO GSM signaling analysis, backhaul optimization Page 13

14 Key features (1/2) Optimized routing of speech Local switching of speech information whenever possible 100 % transparent to GSM control & signaling Saving of satellite resources Improving perceived QoS (latency) Local Switching Intra CXT BTS E1 CXT Sat terminal HUB Inter CXT (future, with meshed satellite) I P BTS E1 Sat terminal CXT CSO 33% local calls 50 % satellite savings Page 14

15 Key features (2/2) Control of satellite resources allocation Information on GSM calls used to optimize satellite resources allocation With an interface between the CSO and Satellite resource controller Optimum loading of shared (DAMA) satellite frequencies Avoiding degradation of GSM calls under satellite congestion Adaptation to new cellular architectures Same principles can be applied to new IP based cellular networks No more requirement for TDM - IP multiplexers But adaptation needed to specific IP based BTS BSC interface This backhaul architecture valid also for broadband cellular Migration from GSM 2G to 3G, 3G+ Optimized integrated rural cellular +satellite solution Developed in partnership with cellular and satellite vendors Page 15

16 Status Local Switching function Fully integrated with Memotec CX product Extensive validation performed with a major GSM vendor Without any adaptation to existing cellular equipment Compatible with all services as well as legal interception Pilot networks in 2009 With GSM network equipment from several vendors To optimize existing satellite backhaul Or to provide GSM coverage in new rural areas Ongoing development of the Cell & Sat solution New functions taking benefit of the cellular signaling analysis Adaptation to IP based cellular architectures Page 16

17 Business benefits Cell & Sat performed detailed business evaluations of the rural GSM potential in developing countries Case studies in various African countries (consultancy work) Business planning for satellite operator and cellular operator Typical GSM operator profitability example below (with ARPU= $9) Traditional satellite backhaul Optimized satellite backhaul 3% 21% 20% 21% 39% 19% 36% 39% Network costs Transmission costs Other operator costs Margin Page 17

18 Our vision Cellular and Satellite operators - manufacturers working together to reach new horizons Page 18

Eight Essentials to Implementing Backhaul over Satellite for Mobile Operators. June 2009

Eight Essentials to Implementing Backhaul over Satellite for Mobile Operators June 2009 Introduction: For cellular operators one of the biggest challenges is finding the appropriate resources and technologies