Positioning Your Network for 4G/LTE with Fiber and Wi-Fi

Offload Kevin Morgan

Director - Marketing ADTRAN

T-301-I

Global Market Trends Broadband / Ethernet Access

– Exponential growth in bandwidth access – IP traffic will increase 4x over next five years – VoIP proven and continues significant growth

Mobility – Mobile data demand growing 15-25x over next

three years – Users have growing number of end-points

3 to 5 devices per person Smartphone, iPad, laptop, machine-to-machine

Cloud Services & Applications – Shift to cloud computing drives demand for

Enterprise and SMB connectivity

Virtualization – Applications running on virtual machines increase efficiency, reduce space

and carbon footprint

New Devices and Applications • New Mobile Devices

– iPad, tablets, smart phones, etc.. • New Applications

– Video, gaming, etc.. – Cloud services – Voice over Wi-Fi

• Major Usage Changes – Netflix is now 30% of Internet

traffic – Over 50% of the 800M Facebook

users are active daily – Over 350M users access Facebook

on their mobile device – Two-way video chat

• Skype • Apple’s Facetime

Mobility Demand is Exploding

5B Mobile Phones Globally Smart phones are Pervasive True Mobility is no Longer a

Convenience – Voice over Wi-Fi, Facetime

New Devices Rely on Wireless Connectivity – iPads

Mobile Data Traffic is Growing Exponentially

Wi-Fi Data Offload to Fixed Network is Necessary

Source: FCC

Cloud is the Future

• IDC estimates the market for public cloud products and services will grow to $56 billion by 2014

• Amazon’s S3 Cloud Storage Service skyrocketed from 262 billion in 2010 to over 566 billion in 2011 – Over 370,000 requests per second

• Small business public cloud computing spending is estimated to reach $6 billion by 2014

– (Source: In-Stat - December 2010)

Cloud services level the playing field for businesses of all sizes and deliver global scalability

It’s a video-centric world In 2015, the Exabyte equivalent of

all movies ever made will cross the global IP network

every five minutes. Source: Cisco VNI Report 2011

Multiple Drivers for Edge Transformation All Segments Services are Scaling

Business Services

Metro Ethernet Services

100Mbps – 10Gbps

Mobile

Backhaul 4G/LTE Backhaul Ethernet

over Fiber

Residential Broadband

FCC Mandate for 100Mbps per Home

Residential Broadband: History and Trends

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1980 1985 1990 1995 2000 2005 2010 2015 2020

Year

bps

Speed

Usage

Peak Speed1 Gbps

AvePeak Usage:1 - 5 Mbps

Headed Toward 1 Gbps

But Usage only 1-5 Mbps (0.1 - 0.5 %)

• Internet traffic data – Cisco VNI, Procera,

Sandvine, other sources – Reported as aggregate totals

(e.g., Petabytes per month per region)

Access Network Traffic Projections

0

50

100

150

200

250

300

350

Cisco Procera Sandvine

Traf

fic (k

bps)

Web/email/data File sharing Gaming Video/VoIP Internet video Other

314 kbps287 kbps

172 kbps

236 kbps (service provider data)

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016

Dow

nstr

eam

traf

fic (k

bps)

Internet video Web, email, data File sharing Gaming Video/VoIP

Extracts per-subscriber traffic – Upstream and downstream Busy

Hour traffic (BHOL) – Enables sizing of access networks

0.10.20.40.81.63.16.3

12.525.050.0

100.0200.0400.0800.0

1,600.0

1 Mbps 5 Mbps 10 Mbps 20 Mbps

Me

gab

its

pe

r se

con

d

FTTN-VDSL2 10G DOCSIS 3.0 -8ch DOCSIS 3.0 - 24ch

Ethernet FTTH FTTH- GPON

• Both GPON and Ethernet FTTH can provide 1 Gbps speeds – Good for 10+ years

• DOCSIS performance drops as load increases above projection

• FTTN-VDSL2 has plenty of capacity, but is limited by peak speed – Need to address top

speed limit

Realized Speeds from Broadband Access Systems

Realized Speed

Load per subscriber

2020 Projection

Mobile Video and Tablets

Mobile video traffic exceeded 50 percent for the first time in 2011.

Mobile network connection speeds will increase 9-fold to 2.9Mbps by 2016.

Source: Cisco VNI 1012

Drivers for Packet Optical Market Market Demand for Broadband • FCC Vision for 100M Squared

– 100M to 100 Million Households by 2020

• 4G/LTE enabling 100Mbps+ – 250,000 cell sites in U.S. – Launching in 2011-14

• Business Ethernet Services – Demand for Higher rate

1 & 10Gbps services rising – Replacing Lower rate Fractional

T1 (< 1M) services

All Segments Services are Scaling

Drivers for Edge Transformation All Segments Services are Scaling

Business Services

Metro Ethernet Services

100Mbps – 10Gbps

Mobile

Backhaul 4G/LTE Backhaul Ethernet

over Fiber

Residential Broadband

FCC Mandate for 100Mbps per Home

A good backhaul solution… • Maintains a reliable, low cost connection

between cell sites and mobile exchange • Assures compliance to

service level agreements (SLAs) via the use of performance monitoring customer web-portal

• Provides a scalable architecture supporting future growth in service, customer, and network size

• Supports both legacy and next generation service (including synchronization) delivery and transport

• Minimizes the operational costs associated with end to end service activation, assurance and diagnostics.

Reliable, Low Cost: Sooner and Later • Reliable, Low Cost

– Quality and Availability

• Building a Strong Reputation – Define, Deliver,

Demonstrate, Develop • Maintaining Reliability in

the Presence of Growth – Delivering Scalable Reliability

Reliable, Low Cost High QoE, High Availability, Simple

• Always-on – Service Availability via Network Resiliency

• Quality of Experience (QoE) – Low latency <5ms one-way delay – Predicates fiber; home-run point to point – Limited switch points and router hops

• Prioritizes Real-time applications – Hierarchical QoS mechanisms – Policing, Queuing, Scheduling, Shaping – MEF compliant traffic management

• Low-cost, simplified network – Ethernet access/aggregation – Minimal re-architecting

SLA Attribute

SLA Requirement

Max 1-way frame delay < 5ms Max frame delay variation +/- 1ms Bit Error Rate (BER) < 1E10-9 Frame Error Rate (FER) or Frame Loss Ratio (FLR)

< 1E10-6

Typical Mobile Backhaul SLA

Building a Strong Reputation Supporting SLA Monitoring and Reporting

• Understanding SLAs

• Meeting stringent demands of Applications

• Performance measurement and monitoring

• Proving compliance in near real-time

Circuit-based

Because All Packet Networks are not Created Equal

Packet-based

Traffic Management

Performance Monitoring

Customer Viewable Web Portal Proving SLA Compliance in Real-time

Creates a Precarious Situation

Collect/ Store Stats

Measure Accurately to <1ms

Compare against SLA

Present Compliance (Infractions)

Reliability in the Presence of Growth Delivering Scalable Reliability

• Scalable architecture

• Accelerating service delivery

• Lowering network complexity

• Preserving QoE through the explosion

Now what? More Fiber trenching? 40G or 100G upgrade?

Low Cost, Low Latency … Low Scale?

Layer 1 & 2 Layer 2 & 2.5

Layer 3 (IP-connection)

Aggregation

Backhaul Network Backhaul Optimization

Backhaul Optimization

Mobile Network

Mobile Network

Mobile App

Client

Mobile App

Server

Metro Access Mobile Core

4G IP/Ethernet

2G DS0/1/T1

3G ML-PPP/T1 or ATM IMA/T1

Internet

EPC IMS

MME

SGW Router

DCS

EPC

MME

SGW

IMS

Router

Router

MNO 1

MNO 2

CSU

M13 or ADM

CSR

GigE

SLA Assurance & Sync Delivery

10 GigE

10 GigE

Scalability Through Packet Optical Being Ready for Ethernet Services Growth

Layer 1 & 2 Layer 2 & 2.5

Layer 3 (IP-connection)

Aggregation

Backhaul Network Backhaul Optimization

Backhaul Optimization

Mobile Network

Mobile Network

Mobile App

Client

Mobile App

Server

Metro Access Mobile Core

4G IP/Ethernet

2G DS0/1/T1

Internet

EPC IMS

MME

SGW Router

DCS

EPC

MME

SGW

IMS

Router

Router

MNO 1

MNO 2

CSU

M13 or ADM

CSR

Backhaul Network

10G λ

Ethernet or OTN

ROADM

EoF

GigE

3G ML-PPP/T1 or ATM IMA/T1

SLA Assurance & Sync Delivery

EoF

EoF

Dual Homing

Optical Network Edge Transformation

SONET

WDM

ROADM + Ethernet

OTN

OPTI series

ONE series

Voice-centric solutions limit packet services success

Voice Centric Video Centric

Traditional Packet Optical Solutions

7 ft

Designed for Traditional Applications

• Long Haul/Core transport

• Optimized for high port and wavelength counts

• Very high throughput

• Dedicated NMS & OSS integration

• High start-up cost & complexity

Right Sized Packet Optical Solution

• Cost effective at low port counts

• Edge optimized performance

• Shared NMS/OSS with existing access system

• Low start-up cost and simple to operate

• Converged access & transport

• Long Haul/Core transport

• Optimized for high port and wavelength counts

• Very high throughput

• Dedicated NMS & OSS integration

• High start-up cost & complexity

7 ft

1 ½ ft

Focusing on the Packet Optical Edge

Packet Optical Market Dynamic

Edge-Optimized Innovators

New Market Entrants

First Movers

•Dynamic, Flexible networking applications

• Focused on Metro, Edge and Access network

•Right-sized, Rural U.S. focused platform

•Ethernet services component

•High Capacity, Static transport applications

• Focused on Core and Metro network

•Mid-sized, cost-effective platforms

•Added Ethernet services component

•High Capacity, Static transport applications

• Focused on Long Haul and Core network

• Large, high density platforms • Limited or non-existence service

delivery

Core/Long-haul Metro Edge/Access

Ethernet Access Synergy Delivering on Every Broadband Initiative

Business Services

Mobile Backhaul

Residential Broadband

Broad Ethernet Market Applicability Cost-effective; Time-to-Market Sensitive

OR

LTE Backhaul Applicable

Any Ethernet Service Applicable – NOW or FUTURE

• Dedicated facilities per MNO or Service

– N x 1 or 10Gig WDM increments – Wavelength separation; fiber preservation – Resilient ring protection (<50ms)

• Dedicated switch fabric per MNO or Service

– N x System on a blade architecture – Physically isolated traffic paths

• Service Flexibility/Applicability – Ethernet or OTN (SONET/SDH) services

Scalable Service Separation Hierarchical QoS to the Nth degree

Speed of Light, Uninterrupted, Uncongested

Low latency Optical switching (Transponding) to limited the number of

Switching points or Router hops

Highly Scalable, Resilient, Flexible Multi-Node Ring…

is really just a group of simple P2P links per customer, per service which uses…

IP/MPLS Core

N x 10Gig λ Ethernet or OTN

Ethernet Aggregation

Platform MNO C

MNO B

MNO A

IP/MPLS Core

Typical Capacity Requirement (>10G) 10G services drive need for Packet Optical Service Type Bandwidth

per Type Service Quantity

Bandwidth Sub-Total

Client λ allocated

Network λ allocated

Mobile Backhaul (4G)

300Mbps 3 MNO per cell site x 5 sites

4.5Gbps (1.5 G per MNO)

λ1, λ2, λ3 (1 Gig per MNO)

λ1, λ2, λ3 (10 Gig per MNO)

Mobile Backhaul (2/3G)

30Mbps 3 MNO per cell site x 5 sites

0.5Gbps (3 x OC-3/MNO)

n/a λ5 (1 Gig ODU0)

FTTH (GPON) 2.5 Gbps 1 Deployment 2.5 Gbps n/a λ6

Metro Ethernet 1 Gbps 2 Enterprises 2 Gbps n/a λ6

2.5 GigE GigE

3 x GigE λ

MNO C

MNO B MNO A

FTTH Deployment

Metro Ethernet Services

GigE

Total >10 Gbps

Ethernet, xOADM and OTN

MNO – Mobile Network Operator

Typical Service Expansion (>10G) 10G services drive need for Packet Optical

IP/MPLS Core

2.5 GigE GigE

3 x GigE λ

MNO C

MNO B MNO A

FTTH Deployment

Metro Ethernet Services

GigE

Ethernet, xOADM and OTN

MNO – Mobile Network Operator

Thank you

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