Examining The C-RAN Business Case For Mobile Operators. RAN & Backhaul Networks, Berlin May 20, 2015
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1 Examining The C-RAN Business Case For Mobile Operators RAN & Backhaul Networks, Berlin May 20, 2015
2 Cloud RAN Defined Stage 1 Stage 2 Centralization Virtualization Distributed RAN Baseband processing in data center or at macrocell hub Remote radio at antenna on site High-capacity connectivity (fronthaul) Opex benefits Implemented in Japan & Korea Cloud RAN Virtual RAN General purpose processors platform Opex & capex benefits (leverage IT infrastructure economics) Under development Field tests & trials 2
3 Cloud RAN: Baseband Virtualization Distributed architecture Centralized, virtualized architecture Aggregating baseband improves implementation of CoMP that enhances network performance 3
4 Baseband Virtualization BTS GSM NodeB RTOS HSPA Core enodeb RTOS LTE Core RTOS Migration to new technology Base station consolidation Applications at the edge Core Decouple software from hardware 4
5 Evolution to Cloud RAN BBU2 BBUn BBU1 Site BBU1 BH Aggregation Center RRH2 RRHn RRH1 BBU2 BBUn RRHn CPRI Switch DU (GPP/Acceleration) BH Aggregation Center RRH2 Fiber RRH1 Fiber RRHn Fiber RRH2 Fiber RRH1 BBU pooling & virtualization BBU pooling Fiber Std. BTS with remote BBU Fiber Std. BTS Center Backhaul Backhaul Backhaul Phase 1 Clustered RAN Phase 2 Centralized RAN Phase 3 Cloud RAN Implemented centralized topology (Phase 1) RAN virtualization R&D 5
6 Cons Pros Cost ($) Benefits & Fundamental Challenge in C-RAN Fronthaul requirements How to reduce fronthaul requirements to maintain advantages of C-RAN while reducing cost of deployment? 6
7 Solution 1: Virtualization Architecture Where to split? Core Network Base Station Backhaul MAC PHY RF MAC PHY RF PHY RF Core Network Lower CoMP capacity gain Layer 3 MAC Layer 3 MAC Higher line rate requirements Layer 3 Core Network PHY Core Network RRH Layer 3 MAC PHY RF CPRI 7
8 Solution 2: Deployment Topology Scenario 1 Homogeneous network with intra-site CoMP Scenario 2 Homogeneous network with inter-site CoMP Scenario 3 Heterogeneous network with low power RRHs within the macrocell coverage (Virtualized macrocell) (a. Virtualized macrocell hub; b. baseband in data center) (a. Virtualized macrocell hub; b. baseband in data center) 8
9 Case Study: Business Case for Asian Operator Macro cell deployment 3 sectored cell sites Dark fiber is available to cell sites PTP star topology from fiber center; 50 sites per center TDD LTE (Config 1); 20 MHz channel; 4:1 DL/UL traffic ratio 104 Mbps peak capacity; 27 Mbps average capacity CoMP gain: 16% DL; 20% UL average cell area gain Pooled & virtualized base station resources in data center 9
10 8-Year Total Cost of Ownership 27% Reduction in TCO -26 % Opex -28 % Capex 10
11 Capex Analysis 28% Reduction Additional spend on fronthaul offset by reduction in site buildout and RAN equipment cost 11
12 Opex Analysis 26% Reduction Reduction in energy, site rental and O&M costs 12
13 Statistical & Sensitivity Analysis Monte Carlo Analysis 2% std. deviation Cost reduction drivers Site rental expense Site buildout Operation & maintenance Power consumption 13
14 Cost of Capacity ($/Mbps) 36% Reduction in $/Mbps 14
15 HetNet Deployment Key Assumptions Three scenarios Small cells with backhaul to a macro cell Limited coordination of baseband resources LP RRH with wireless fronthaul to a macro cell Full coordination capabilities LP RRH with fiber fronthaul to a macro cell Full coordination capabilities Macrocell capex is the same whether or not it is virtualized 6 Remote cells per macrocell site (2 per sector) Cost of fiber to small cell/lp RRH site is $500/m Wireless fronthaul or backhaul is based on V-band (60 GHz): LOS is achieved in one hop 15
16 HetNet Deployment TCO Key Takeaways 75 m breakeven distance for remote site between wireless and fiber case assumption dependent but in general it holds that the breakeven point is a few tens of meters Advantage of CRAN w. fiber fronthaul is where remote sites are close to the macrocell and have high utilization Capacity gain alone is not a sufficient driver for implementing CRAN at the macrocell (scenario 3). There has to be another driver to prompt CRAN architecture at the macro cell (hint: mobile edge applications) 16
17 A Word About Xona Partners A Boutique Advisory Specialized in Technology Businesses Incubation Multi-layer technology expertise Services offering Published C-RAN market report in collaboration with Mobile Experts (2nd edition, Jan 2015) Infrastructure, OS, application ecosystem business verticals Telco, Cloud Migration/Data Center, Data Sciences focus New business incubation & growth strategies Due diligence & lifecycle management 17
18 X O N A PARTNERS I n n o v a t e. E n a b l e. Frank Rayal, Partner frank@xonapartners.com Web: Blog: San Francisco Singapore Dubai Paris
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