Competitive Positioning of Competitive Positioning of 5GHz FWA systems 5GHz FWA systems

WAG MeetingWAG Meeting

66thth May 2003 May 2003

Presentation StructurePresentation StructurePresentation StructurePresentation Structure

Main potential markets: school connectivity, NHS, SME and community networks

Market driversProcurement / business modelsKey criteria for technology choiceProspects for 5GHz FWA

Main potential markets: school connectivity, NHS, SME and community networks

Market driversProcurement / business modelsKey criteria for technology choiceProspects for 5GHz FWA

School connectivity: market driversSchool connectivity: market driversSchool connectivity: market driversSchool connectivity: market drivers

Broadband connectivity policy for schools: 2Mbps primary; 8Mbps secondary by 2006

Funds: – £71m (2003-04), £287m (2004-06) England– £204m Northern Ireland (incl. ICT)– £10m Wales (local access)

Content development initiatives: £50m e-Learning credits; £150m for digital content development

Future bandwidth requirements:– Video conferencing– Video streaming (subject teaching)– Interactive materials (subject teaching)

Improving ICT competence amongst teachers

Broadband connectivity policy for schools: 2Mbps primary; 8Mbps secondary by 2006

Funds: – £71m (2003-04), £287m (2004-06) England– £204m Northern Ireland (incl. ICT)– £10m Wales (local access)

Content development initiatives: £50m e-Learning credits; £150m for digital content development

Future bandwidth requirements:– Video conferencing– Video streaming (subject teaching)– Interactive materials (subject teaching)

Improving ICT competence amongst teachers

Procurement models (1)Procurement models (1)Procurement models (1)Procurement models (1)

RBC/LEAs own the school network: – Low cost connection– Sustainable broadband provision– Control over the network– Cost-effective solutions sought (wireless)– ‘Hidden costs’– Customer response/customer care?– Direct competitors to commercial operators?– Interconnect to SuperJANET?

RBC/LEAs own the school network: – Low cost connection– Sustainable broadband provision– Control over the network– Cost-effective solutions sought (wireless)– ‘Hidden costs’– Customer response/customer care?– Direct competitors to commercial operators?– Interconnect to SuperJANET?

Procurement models (2)Procurement models (2)Procurement models (2)Procurement models (2)

Leasing broadband capacity from a commercial operator + managed service– Defined performance criteria– RBC/LEA avoids ownership of network

and associated costs– Sustainability beyond 2006?– …BT main provider, but wireless

technologies being considered

Leasing broadband capacity from a commercial operator + managed service– Defined performance criteria– RBC/LEA avoids ownership of network

and associated costs– Sustainability beyond 2006?– …BT main provider, but wireless

technologies being considered

Major wireless deploymentsMajor wireless deploymentsMajor wireless deploymentsMajor wireless deployments

CLEOWarwickshireSomersetMilton KeynesCheshireNorth Yorkshire

Fixed links + 2.4GHz

CLEOWarwickshireSomersetMilton KeynesCheshireNorth Yorkshire

Fixed links + 2.4GHz

Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology

Cost of deploymentOn-going costsActual data throughputGuaranteed QoSSpeed of deploymentScalabilitySustainability of broadband provision

Cost of deploymentOn-going costsActual data throughputGuaranteed QoSSpeed of deploymentScalabilitySustainability of broadband provision

Prospects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWA

Current capacity insufficient in 2-3 years (PTP or PMP over 2.4GHz)

More cost-effective solutions sought Separate frequencies for access and WLANs Plans to migrate 2.4GHz connections to 3.4 or

5GHz Extend networks to other public sector and

SMEs At least 10% of school connections over

wireless by 2006 (up to 15% incl. other public sector and SMEs)

Current capacity insufficient in 2-3 years (PTP or PMP over 2.4GHz)

More cost-effective solutions sought Separate frequencies for access and WLANs Plans to migrate 2.4GHz connections to 3.4 or

5GHz Extend networks to other public sector and

SMEs At least 10% of school connections over

wireless by 2006 (up to 15% incl. other public sector and SMEs)

The NHS: market drivers (1)The NHS: market drivers (1)The NHS: market drivers (1)The NHS: market drivers (1)

Re-procurement of NHSnet (N3)- £2.3billion (2003 – 2005); infrastructure and ICT– N3: min 2Mbps between trusts, min 256Kbps GP

practices– Best value for money– 10 year contract to 5 SPs– Frequent local contract re-competition over 10

years

Wales - Dawn 2 NI, Scotland – part of overall public sector

aggregation model

Re-procurement of NHSnet (N3)- £2.3billion (2003 – 2005); infrastructure and ICT– N3: min 2Mbps between trusts, min 256Kbps GP

practices– Best value for money– 10 year contract to 5 SPs– Frequent local contract re-competition over 10

years

Wales - Dawn 2 NI, Scotland – part of overall public sector

aggregation model

The NHS: market drivers (2)The NHS: market drivers (2)The NHS: market drivers (2)The NHS: market drivers (2)

Increase in bandwidth requirements in the next 2-3 years:– Integrated Care Record Services (electronic

patient records, prescription transfer and appointment booking)

– PACS (storing, archiving and transfer of clinical images)

Increase in bandwidth requirements in the next 2-3 years:– Integrated Care Record Services (electronic

patient records, prescription transfer and appointment booking)

– PACS (storing, archiving and transfer of clinical images)

Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology

SecurityCost/value for moneyGuaranteed QoSSpeed of deploymentCredibility of service provider

SecurityCost/value for moneyGuaranteed QoSSpeed of deploymentCredibility of service provider

Prospects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWAProspects for 5GHz FWA

Bluetooth - common mechanism for connecting medical devices

Reluctance to use 2.4GHz for access (interference; less secure)

2.4GHz as an interim local solution 5GHz or 3.4GHz preferred10-20% of GP practices in England will

be connected via wireless

Bluetooth - common mechanism for connecting medical devices

Reluctance to use 2.4GHz for access (interference; less secure)

2.4GHz as an interim local solution 5GHz or 3.4GHz preferred10-20% of GP practices in England will

be connected via wireless

Community and SME networks: market Community and SME networks: market driversdriversCommunity and SME networks: market Community and SME networks: market driversdrivers

Lack of broadband infrastructure Government’s broadband policy objectives Availability of public funds: DTI Broadband

fund, Wired-Up Communities

20-30 community projects using FWA (2.4GHz + licensed fixed links)

Most use subsidies 3-4 to 30 nodes; 10 to 100+ users

Lack of broadband infrastructure Government’s broadband policy objectives Availability of public funds: DTI Broadband

fund, Wired-Up Communities

20-30 community projects using FWA (2.4GHz + licensed fixed links)

Most use subsidies 3-4 to 30 nodes; 10 to 100+ users

Business models (1)Business models (1)Business models (1)Business models (1)

Community-owned networks:– Driven by availability of funds– Sustainability? Will users pay £25-40 p.m.?– Cost of backhaul – Backhaul to school networks and

SuperJANET

Community-owned networks:– Driven by availability of funds– Sustainability? Will users pay £25-40 p.m.?– Cost of backhaul – Backhaul to school networks and

SuperJANET

Business models (2)Business models (2)Business models (2)Business models (2)

Operator-driven networks:– Integrated network + service provision– Wholesale broadband capacity provider

+ ISP– Operator bears commercial risk

Operator-driven networks:– Integrated network + service provision– Wholesale broadband capacity provider

+ ISP– Operator bears commercial risk

Criteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technologyCriteria driving the choice of technology

CostCapacity versus demandSpeed of rollout / immediate access

to spectrum

CostCapacity versus demandSpeed of rollout / immediate access

to spectrum

Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)Prospects for 5GHz FWA (1)

Significant interest from operators deploying unsubsidised networks for SMEs

PMP and PTP (leased line alternative)5GHz for backhaul

No immediate perceived demand to migrate from current 2.4GHz links in community-run networks

Significant interest from operators deploying unsubsidised networks for SMEs

PMP and PTP (leased line alternative)5GHz for backhaul

No immediate perceived demand to migrate from current 2.4GHz links in community-run networks

Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)Prospects for 5GHz FWA (2)

Broadband take up:

13% of households with Internet access (7% of UK households)

19% of SMEs with Internet access (12% of UK SMEs)

20-27% of households and businesses will have no access to ADSL/cable (c.20% at town edges and in rural areas)

Broadband take up:

13% of households with Internet access (7% of UK households)

19% of SMEs with Internet access (12% of UK SMEs)

20-27% of households and businesses will have no access to ADSL/cable (c.20% at town edges and in rural areas)

Conclusions and common themes (1)Conclusions and common themes (1)Conclusions and common themes (1)Conclusions and common themes (1)

FWA over 2.4GHz seen as an interim solution for broadband connectivity to schools, NHS, SMEs (replacement within 5 years)

FWA have typically much lower on-going costs than BT leased line products (esp. in rural and remote areas)

Choice of wireless - trade-offs between:– capacity– cost of equipment– QoS– availability and ease of access to spectrum– risk of interference… for each specific market

FWA over 2.4GHz seen as an interim solution for broadband connectivity to schools, NHS, SMEs (replacement within 5 years)

FWA have typically much lower on-going costs than BT leased line products (esp. in rural and remote areas)

Choice of wireless - trade-offs between:– capacity– cost of equipment– QoS– availability and ease of access to spectrum– risk of interference… for each specific market

Conclusions and common themes (2)Conclusions and common themes (2)Conclusions and common themes (2)Conclusions and common themes (2)

Access to 3.4GHz uncertain; higher equipment costs

Immediate demand for access to Band C by professional operators:– Timescales driven by government targets– Most contracts to be finalised in early 2004– Separate frequencies for access and WLANs– Most cost-effective alternative for SMEs given less

certain demand and limited ability of operators to raise funds

Access to 3.4GHz uncertain; higher equipment costs

Immediate demand for access to Band C by professional operators:– Timescales driven by government targets– Most contracts to be finalised in early 2004– Separate frequencies for access and WLANs– Most cost-effective alternative for SMEs given less

certain demand and limited ability of operators to raise funds