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3G and 4G cellular services, which require very low latency and packet-based switching, place additional burdens on existing infrastructure, taxing copper backhaul solutions to their lim

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ADC Backhaul Solutions

Breaking the Wireless Backhaul Bottleneck

Breaking the Wireless Backhaul Bottleneck with

ADC Backhaul Solutions

Executive Summary

Continued cellular market penetration, burgeoning consumer demand for wireless rich media, and the promise of even more data-intensive applications continue to drive bandwidth consumption, fueling an estimated 100 percent increase in the global number of cellular base stations by 2009 3G and 4G cellular services, which require very low latency and packet-based switching, place additional burdens on existing infrastructure, taxing copper backhaul solutions to their limits As a result, the cost of leased lines, which currently accounts for approximately 15 percent or more of operational expenditures (OPEX), will increasingly burden service providers who continue to expand aging architecture to meet their expanding backhaul needs

To address these increasing demands and cost pressures, wireless carriers need

to evaluate their existing assets, identify the ideal solutions to meet future needs, and implement cost-effective technologies to migrate their existing architectures

to their ideal design over time ADC, a world leader in providing global network infrastructure products and services, offers a portfolio of backhaul solutions that can assist mobile operators in meeting their wireless backhaul challenges

Background

Increasing Need for Wireless Backhaul Solutions

Cellular subscription growth remains strong Infonetics Research estimates that global cellular subscriptions will reach 3 billion in 2009,1 a one-half increase from

2005 levels (2 billion) This expanding subscriber base will continue to generate

a sharp, linear rise in cellular traffic, prompting service providers to construct additional base stations U.S carriers are adding to the current domestic total

of 140,000 base stations by 6 percent annually, while foreign carriers ramp

up even faster According to an article by Yankee Group’s Phil Marshall, the global number of cellular base stations will double from 1.8 million in 2005,

to 3.6 million in 2009,2 in large part due to a continuing upswing in cellular subscriptions Developing nations with very little existing backhaul architecture

in place will account for many of these installations

An equally important driver of network consumption is the expansion of cellular services beyond traditional voice and text messaging Increasingly, cellular offerings encompass a more full-featured blend of voice, data, video, and other rich media Industry observers expect continued growth in mobile broadband access with users demanding the same types of content provided

by home broadband connections Emerging 3G handsets will deliver similar content to cell phones and PDAs As mobile users become more accustomed

to accessing data-rich content via portable devices, and newer markets (e.g., the U.S and South America) roll out 3G services, carriers recognize the need for substantially more bandwidth—and with more packet traffic efficiency —than current infrastructures allow In fact, wireless carriers estimate that leased line backhaul costs will increase to greater than

25 percent of wireless carrier operational expenditure (OPEX) with the rollout of new data services.3 Any future migrations to 4G standards, with the potential of 100 Mbits per mobile connection, will only further expand the need for even greater backhaul capabilities

Breaking the Wireless Backhaul Bottleneck with ADC Backhaul Solutions

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Costs of Traditional Backhaul Infrastructure

Typical North American backhaul solutions use

leased copper T1 and DS-3 lines These Time Division

Multiplexed (TDM) access and transport solutions are

inefficient conduits for data-intensive applications, and

are becoming increasingly expensive to scale Yankee

Group estimates that, with monthly charges of $400 to

$600 for each T1 line, leased lines currently account for

roughly 15 percent of OPEX

One reason for this high scaling cost stems from the

TDM circuit’s inability to statistically multiplex and take

advantage of the peakedness of data traffic types that do

not require constant bit rate delivery Since TDM facilities

assign equal priority to all types of traffic, whether

it consists of text messages, streaming video, or voice calls, service providers must ensure adequate bandwidth

to handle peak backhaul demand at all times, rather than simply delivering lower-priority data during throughput lulls

The most common form of cell site backhaul internationally is TDM microwave While the wireless carrier may avoid the expensive lease line charges

by deploying their own microwave they are still left with an inefficient TDM facility for transport of bursty data applications

To reduce backhaul OPEX to manageable levels and build

truly 3G- and 4G-compliant networks, mobile carriers can

choose from solution portfolios that include a range of

products, utilizing fiber transport solutions or emerging

RF wireless protocols such as millimeter wave or WiMAX

As a first step, carriers should project near-term and

long-term bandwidth and class of service demands

based on business goals and market conditions After

determining these targets, providers should audit and

catalog their existing resources, including any planned

decommissions With a solid understanding of their

business direction and a firm grasp of their current

capabilities, carriers can then make educated technology

selections to meet their future needs cost effectively

Professional services organizations with relevant

experience can often provide helpful evaluation

frameworks and cost-saving advice during the

planning stage For example, by projecting a legacy

backhaul architecture’s rising percentage of OPEX over

time, carriers can find the point at which the capital

expenditure (CAPEX) of new higher bandwidth backhaul

solutions would begin to show a positive ROI

In markets with existing copper or fiber infrastructures, carriers may benefit by optimizing existing networks

as much as possible with new higher bandwidth solutions In these applications, products that intelligently aggregate, deploy, and manage network backhaul traffic can provide cost-effective alternatives to continued purchase or lease of additional T1 TDM bandwidth For new installations (e.g., greenfield applications),

or areas where cable or fiber are either absent or impractical, wireless technologies, such as WiMAX or millimeter wave, offer economical yet efficient backhaul solutions With proper planning, wireless backhaul links can provide reliable, high quality transport throughput without the expense of installing new lines Wireless transmission also allows service providers to retain end-to-end control of their data, without the risk or uncertainty of leasing through a third party Carriers should also look to extend the efficiency of these investments through cross-connectivity hardware that intelligently routes traffic between devices and provides performance and reliability statistics allowing carriers to assess their hardware needs as proactively as possible

Addressing Wireless Backhaul Challenges

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The ADC Wireless Backhaul

Portfolio: Flexibility, Economy, and Scalability

Figure 1: Through efficient aggregation and transport of legacy TDM services and 2.5/3G data services, the LoopStar SONET platform

eliminates the need for dedicated, point-to-point leased connections to each cell site.

Radio Cell Site

Cell Site Tower

Ethernet TDM

Network

DS1 DS3 SONET OC-3/12

Data Network

Moble Switching Telephone Office OC-3/12 SONET

Radio

LoopStar 800

Cell Site

Cell Site Tower

Analog/Digital

3G

GPS/EDGE

LoopStar 800

SONET OC-3/12

DS1s

4

LoopStar 800

The LoopStar Synchronous Optical Network (SONET)

multi-service transmission platform enables service

providers to easily and economically provide Ethernet and

TDM backhaul at bandwidths above current DS1 or DS3

speeds (OC3 through OC192) The platform optimizes

fiber infrastructures for backhaul transport, allowing

carriers to aggregate, deploy, and manage 2.5G/3G

services and legacy TDM services at a substantial cost

savings One major carrier realized 30 percent first

cost savings by implementing LoopStar 800 and 1600 series units at a new MSC (Mobile Switching Center)

in the southeastern U.S Because the LoopStar 800 family features compact form factors and low power consumption, it occupies little real estate in already crowded cell sites or remote cabinet environments Easily scalable, the LoopStar 800 family can be supplemented

by additional units over time as carriers need additional backhaul capacity

Solutions Overview

Serving customers in more than 130 countries worldwide,

ADC offers an industry-leading portfolio of network

infrastructure solutions and services to ensure a smooth

transition as carriers transform traditional TDM circuit

switched voice networks to competitive broadband, video

and IP networks and create the backhaul systems needed

to support these services effectively By implementing

a comprehensive product plan, optimizing existing backhaul traffic, and building out copper-free transport, carriers can reduce their dependence on third parties and build a reliable, expandable, cost-effective backhaul solution designed for the future

Breaking the Wireless Backhaul Bottleneck with ADC Backhaul Solutions

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LoopStar ® 700

Since a service provider’s biggest asset is its existing

network, it makes economic sense to optimize that

network to the extent practicable The LoopStar 700

product family is a next generation Ethernet Acccess

and Transport Solution optimized for converged packet

access at the edge over any type of available facility The

LoopStar 700 family provides T1/E1 circuit emulation

functionality that can operate with a mix of fiber, cable,

radio or NxT1 systems Ethernet packet access for 3G/4G

cellular services can be easily and cost effectively added

over N T1/E1 copper facilities using MLPPP with

the LoopStar 714/718 Where fiber exists or access to Ethernet leased lines or WIMAX facilities are available, the LoopStar 780/722 can cost effectively provide converged access for T1/E1 TDM via circuit emulation and Ethernet over the same facility The LoopStar 700 provides bandwidth efficiency to minimize transport costs and Ethernet layer 2 quality of service functionality to meet service providers’ requirements for class-of-service SLA flexibility The LoopStar 700 family enables wireless carriers to migrate toward an all Ethernet/IP transport network

Mobile Switching Office

Cell Site 1 2G/2.5G BTS

MSC

RNC

3G BTS

100/100TX/GigE

100/100TX/GigE

100/100TX/GigE

Ethernet TDM

(4) 10/100 or 100FX

LS 780

Ethernet Backahaul Cell Site 2 2G/2.5G BTS

3G BTS

LS 780

Cell Site 3-N 2G/2.5G BTS

3G BTS

LS 780

Figure 2: Illustrates cell site backhaul using the LoopStar 780 to provide T1 TDM and Ethernet packet access over the same

Ethernet transport facility.

The LoopStar SONET platform comes in four form

factors, each tailored to a specific infrastructure need

For instance, the 800/810 series offers capabilities

for smaller applications, while the 1600 and 3600

series provide robust functionality for high density

applications or metro rings, such as the application

being implemented by Open Access, a metropolitan area

network provider in the Long Island and New York City

area The company is utilizing LoopStar 1600 and 810 devices in a network overlay design for wireless backhaul Says Robert Mavretich, president and co-founder of Open Access, “We selected ADC’s LoopStar platform for our optical network because it is a cost-effective and scalable TDM delivery solution that best fits…the needs of our business customers.”4

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A point-to-point millimeter wave transmission system,

FlexWave Millimeter Wave (MMW) provides fast,

reliable line-of-sight (LOS) backhaul communications

without the complications and expense of running fiber

FlexWave provides secure, native Ethernet connections

and fiber-quality speeds with 99.999% reliability over

short (e.g., 1 – 10 mile) distances FlexWave MMW is

an ideal solution for new cell tower construction and

an excellent supplement to existing fiber or copper solutions for carriers seeking greater control of their backhaul network

University

Hospital

Office Building Financial

Institution

Hotel Bank

Multiple Dwelling Unit

Metro Fiber Ring

MMW Link

ISP - Network Point of Presence

Another RF wireless solution, FlexWave WMX WiMax

enables next generation, all IP wireless backhaul

capabilities Using the 802.16 WiMAX standard, ADC’s

WMX product family offers high capacity,

point-to-multipoint transmission operating in the 1.7GHz to

6GHz range Quick to install, FlexWave WMX WiMax ensures carrier-grade reliability at low cost for backhaul over short distances WMX is suitable for greenfield applications, especially in developing countries where wired infrastructure may be cost-prohibitive

Internet

PSTN

Network Operation and Switching Centers

WiMAX Network

SS

Cell Site

Cell Site SS

Cellphones

Cellphones MS

Figure 3: WiMAX provides low-cost, quick-to-install, robust backhaul capabilities over short, 1-10 mile distances.

Breaking the Wireless Backhaul Bottleneck with ADC Backhaul Solutions

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Connectivity Solutions for Wireless Networks

The reality of today’s marketplace dictates that service

provider networks change to remain competitive New

modulation techniques, faster metro optical fiber rings,

voice, high-speed data and multimedia services are

deployed closer than ever to the edge of the network

These changes are largely upgrades and reconfigurations

designed to improve reliability, availability, accuracy

and breadth of services Establishing a solid network

foundation rooted in connectivity has already proven

successful as networks transitioned from analog to digital

and from copper to fiber, and as service providers joined

networks together through collocation and consolidation

As service providers approach the convergence of voice,

data and video with IP-based services, a foundation of

connectivity remains just as essential

Moving to more complex network models incorporating

a connectivity foundation delivers multiple proven benefits:

• Minimize operational costs

The capital allocated to purchase new electronics,

software and connectivity pales in comparison to

the multi-year, ongoing cost of labor to manage and

maintain the network With a connectivity foundation,

labor costs for everything from initial installation, to

provisioning, to upgrades and reconfigurations, to

maintenance is reduced Minimizing operational costs

contributes to the bottom line just as strongly as new

revenue sources

• Increase network reliability

More and more, 99.99% availability pertains to more

than just voice services With ILECs, MSOs, wireless

service providers and others vying for the same

customers, quality of service measures and service level

agreements will soon pertain to voice, data and video

services Connectivity delivers reliability by providing

termination, test access, and cable management

strategies that ensure maximum service availability

• Maximize revenue

The competition is positioning to earn new revenues

from broadband services and take away annuity

business from others in the marketplace A solid

connectivity foundation speeds service provisioning

while, at the same time, lowers the cost of

provisioning With faster turn-up of services—and

associated acceleration of revenue—service

providers wield an attractive weapon in competing

for customers

ADC offers an unrivaled breadth of low- to high-density

solutions that offer superior cable management and

modular, flexible platforms These solutions reduce

maintenance cost and ensure network reliability

This family of field-proven products augments the

connection into the Loopstar solution, integrating

seamlessly with the current infrastructure and setting

the stage for next generation network plans

These innovative solutions include:

• Digital Cross-Connect Products (DSX-1 and DSX-3)

Proven performers that have set the industry standard, providing a centralized point for cross-connecting digital signals The digital cross-connect panels provide efficient connectivity to migrate service and traffic to the Next Generation Network

• Ethernet Patch Cords – Category 5e, Category 6 and 10 Gigabit

Patch cord plugs are designed with integrated strain relievers and exceed all performance requirements

• Fiber Optic Panels

Provide fiber termination, splice and/or slack storage and excellent cable management in a high-density, discrete panel solution

ADC is the market leader in the deployment of connectivity solutions for copper, fiber and wireless networks around the world With hundreds of millions

of ports in service worldwide, over 600 patents, and connectivity solutions that touch the majority of worldwide voice, video, and data communications traffic, ADC has the products, services, and experience to make the inevitable work of network transitions cost effective and profitable for service providers

Professional Services

Poor planning bears as much responsibility for current backhaul bottlenecks as technology limitations Every technology choice has benefits, drawbacks, and costs Before beginning any network buildout, service providers should understand the root causes of their current problems and create scalable solutions that will remain viable in the face of future challenges Every successful project needs an accurate inventory and audit of available assets, an honest assessment of business needs, and a properly structured development plan

Deployment is every bit as important as planning

To complete functional services on time and under budget, carriers must be able to address multiple issues simultaneously, including project management, equipment installation and integration, material services, power services, and decommissioning and removal of legacy equipment

After deployment, service providers must continue

to maintain their network Preventive and routine maintenance, emergency maintenance and replacement procedures, scheduled decommissioning and gradual upgrade paths all contribute to optimal performance and ROI

networks throughout the United States and Europe Unique experience in vendor,

multi-technology, multi-service solutions makes ADC the ideal choice for projects that require an in-depth, hands-on understanding of simple to complex network environments

Conclusion

As increasing numbers of cellular users demand access to more bandwidth-intensive content, existing backhaul infrastructures require new solutions To remain competitive as 3G and 4G applications arrive, carriers should optimize their existing networks and begin to migrate toward alternative backhaul strategies capable of handling tomorrow’s higher-volume IP-based traffic while maintaining their current TDM investments Trusted partners, such as ADC with its comprehensive product portfolio and global experience in multi-vendor, multi-technology, multi-service networks, can help carriers identify and implement cost-effective, quick-to-market wireless backhaul solutions

References:

1 Buckley, Sean April 30, 2007 Wireless Backhaul’s New Savior: Ethernet

http://www.telecommagazine.com/search/article.asp?HH_ID=AR_3138

(accessed May 23, 2007).

2 Marshall, Phil October 1, 2005 Bringing Brains to Wireless Backhaul

http://www.telecommagazine.com/search/article.asp?Id=AR_1179

(accessed May 23, 2007).

3 ADC Telecommunications, Inc September, 2006 LoopStar® SONET Access System: Cell Site Backhaul Aggregation and Transport.

4 Open Access Deploys ADC LoopStar Systems to Deliver TDM Services to Mobile Carriers in Long Island and New York City; LoopStar 1600 and 810 Systems Provide Cost-Effective and Scalable Solution

www.adc.com/investorrelations/newsandcommunications/newsreleases/show.jsp?RELEASEID=193122 (accessed May 25, 2007).

Website: www.adc.com

From North America, Call Toll Free: 1-800-366-3891 • Outside of North America: +1-952-938-8080 Fax: +1-952-917-3237 • For a listing of ADC’s global sales office locations, please refer to our website.

ADC Telecommunications, Inc., P.O Box 1101, Minneapolis, Minnesota USA 55440-1101 Specifications published here are current as of the date of publication of this document Because we are continuously improving our products, ADC reserves the right to change specifications without prior notice At any time, you may verify product specifications by contacting our headquarters office in Minneapolis ADC Telecommunications, Inc views its patent portfolio as an important corporate asset and vigorously enforces its patents Products or features contained herein may be covered by one or more U.S or foreign patents An Equal Opportunity Employer

105034E 9/07 Original © 2007 ADC Telecommunications, Inc All Rights Reserved