Posts Tagged ‘Verizon’

LTE Transport Cost 1/3 to 1/2 That of 3G

Friday, May 28th, 2010
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The cost of carrying one megabyte of data over its LTE network would be half to one third the cost of carrying the same data over the company’s current 3G network, Lowell McAdam, Verizon Wireless’ CEO, says. That is going to be good news both for users and mobile services providers.
Bandwidth services providers universally need to improve the efficiency of their networks, since increased data consumption typically involves non-linear revenue effects. In other words, providers earn less money, on a revenue-per-bit basis, the higher the amount of bandwidth they provide.
And though consumers will not likely appreciate a gradual shift to buckets of usage, so long as the plans, pricing and consumption patterns are relatively closely matched, people can adapt. People are used to buckets of voice and text messaging, for example.
But key to crafting such plans is that they are viewed as fair. A lower cost, higher capacity network that works better for key applications such as voice and video is a likely prerequisite.
User patterns also are changing. Unlimited plans work quite well for users and providers when consumption is low. But most users consume more bandwidth over time, driven especially by video use, which requires an order of magnitude to two orders of magnitude more capacity than voice, for example.
Verizon’s coming shift to buckets of usage for multiple devices also makes sense. As users shift to use of broadband for multiple devices, they will not prefer paying for access to each discrete device. Also, usage profiles vary by device.
Cameras and e-book readers will not typically demand much bandwidth. Nor will voice applications. Smartphone web browsing will consume more, but smartphone data consumption typically is far less than from a PC. Blending usage from a range of devices, and allowing consumers to pay once, for access on all the devices, will save users money and provide more value while at the same time allowing service providers to offer service on terms that are sustainable.
http://ipcarrier.blogspot.com/2010/05/lte-is-about-cost-of-providing-service.html?utm_source=twitterfeed&utm_medium=twitter

The cost of carrying one megabyte of data over its LTE network would be half to one third the cost of carrying the same data over the company’s current 3G network, Lowell McAdam, Verizon Wireless’ CEO, says. That is going to be good news both for users and mobile services providers.

Bandwidth services providers universally need to improve the efficiency of their networks, since increased data consumption typically involves non-linear revenue effects. In other words, providers earn less money, on a revenue-per-bit basis, the higher the amount of bandwidth they provide.

And though consumers will not likely appreciate a gradual shift to buckets of usage, so long as the plans, pricing and consumption patterns are relatively closely matched, people can adapt. People are used to buckets of voice and text messaging, for example.

But key to crafting such plans is that they are viewed as fair. A lower cost, higher capacity network that works better for key applications such as voice and video is a likely prerequisite.

User patterns also are changing. Unlimited plans work quite well for users and providers when consumption is low. But most users consume more bandwidth over time, driven especially by video use, which requires an order of magnitude to two orders of magnitude more capacity than voice, for example.

Verizon’s coming shift to buckets of usage for multiple devices also makes sense. As users shift to use of broadband for multiple devices, they will not prefer paying for access to each discrete device. Also, usage profiles vary by device.

Cameras and e-book readers will not typically demand much bandwidth. Nor will voice applications. Smartphone web browsing will consume more, but smartphone data consumption typically is far less than from a PC. Blending usage from a range of devices, and allowing consumers to pay once, for access on all the devices, will save users money and provide more value while at the same time allowing service providers to offer service on terms that are sustainable.

http://ipcarrier.blogspot.com/2010/05/lte-is-about-cost-of-providing-service.html?utm_source=twitterfeed&utm_medium=twitter


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Sprint Accelerates 4G Build

Tuesday, March 23rd, 2010
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Sprint has accelerated its previously-announced timetable for adding new 4G cities in 2010, adding Los Angeles and Miami to the list of cities it will activate this year.
Newly announced markets that will see 4G in 2010 are Cincinnati, Cleveland, Los Angeles, Miami, Pittsburgh, Salt Lake City and St. Louis.
Earlier this year Sprint announced that it planned to launch 4G in Boston, Denver, Kansas City, Houston, Minneapolis, New York, San Francisco and Washington, D.C., in 2010.
Sprint argues that its 4G WiMAX network operates up to 10 times faster than a 3G network, based on typical download speeds of 600 kbps for a 3G network compared to a 4G network’s 6 Mbps download speed.
Recent studies suggest typical performance of a 3G network ranges from  600 kbps to 1.7 Mbps while 4G average speeds run between 3 Mbps and 6 Mbps.
Separately, Verizon Wireless has accelerated its own timetable for 4G deployment, aiming to activate its Long Term Evolution in at least 25 cities, potentially reaching 100 million people, by the end of 2010.
That would be a stunningly quick deployment of a new nework, given the fact that Sprint has been building out its 4G network for a couple of years.
AT&T plans to start activating its 4G network in 2012.
By some estimates, the number of U.S. mobile tower sites will grow from about 228,000 (2008 base) to as many as 300,000 as a result of all the activity.
In 2008 the U.S. had 228,000 cell sites feeding a backhaul network. These sites were each served by between 5 Mbps and 10 Mbps of backhaul capacity on average. This added up to mobile operators in the U.S. spending $6.2 billion on backhaul services. Globally, service providers spent more than $24 billion in 2008 on backhaul services.
In a case study Yankee Group conducted with one of the tier one mobile operators in 2009,  more than 50 percent of data traffic was coming from desktop or laptop computers using aircards or dongles.
Approximately 24 percent was coming from screen phones and a little more than 20 percent was coming from smartphones (iPhones, BlackBerries). If the traffic trends continue, by 2012 more than 55 percent of the traffic will be coming from the smartphone “advanced OS” category, i.e., more than half of the mobile data traffic will be generated by truly mobile, instead of nomadic, users sending large amounts of data, voice or video traffic.
The backhaul implications are fairly simple, in terms of backhaul bandwidth requirements. A 2G voice network can get by with two T1 links. A 2.5 G EDGE network requires 4 T1s. A 3G HSPA network requires at least 10 T1s. Coming 4G networks might need as much as 10 times that much bandwidth.
By 2012 Yankee Group expects more than 300,000 cell sites in the United States, each supporting between 50 Mbps and 100 Mbps in backhaul capacity. In general, leasing a T1 costs about $300 per month, per mile. Seven T1s, adding up to a backhaul capacity of just more than 10 Mbps, will cost a U.S.-based provider about $2,100 per month per mile.
If we were to keep throwing T1s at the problem, this would result in a backhaul bill of $82 billion by 2012 and the monthly average cost per site would be about $23,000 compared to today’s average of $2,100 per mile.  That’s not an option.
Performance requirements also are growing. Network architects as asking for one-way jitter of 1 to 3 milliseconds and one-way latency of 3 to 5 ms.

Sprint has accelerated its previously-announced timetable for adding new 4G cities in 2010, adding Los Angeles and Miami to the list of cities it will activate this year.

Newly announced markets that will see 4G in 2010 are Cincinnati, Cleveland, Los Angeles, Miami, Pittsburgh, Salt Lake City and St. Louis.

Earlier this year Sprint announced that it planned to launch 4G in Boston, Denver, Kansas City, Houston, Minneapolis, New York, San Francisco and Washington, D.C., in 2010.

Sprint argues that its 4G WiMAX network operates up to 10 times faster than a 3G network, based on typical download speeds of 600 kbps for a 3G network compared to a 4G network’s 6 Mbps download speed.

Recent studies suggest typical performance of a 3G network ranges from  600 kbps to 1.7 Mbps while 4G average speeds run between 3 Mbps and 6 Mbps.

Separately, Verizon Wireless has accelerated its own timetable for 4G deployment, aiming to activate its Long Term Evolution in at least 25 cities, potentially reaching 100 million people, by the end of 2010.

That would be a stunningly quick deployment of a new nework, given the fact that Sprint has been building out its 4G network for a couple of years.

AT&T plans to start activating its 4G network in 2012.

By some estimates, the number of U.S. mobile tower sites will grow from about 228,000 (2008 base) to as many as 300,000 as a result of all the activity.

In 2008 the U.S. had 228,000 cell sites feeding a backhaul network. These sites were each served by between 5 Mbps and 10 Mbps of backhaul capacity on average. This added up to mobile operators in the U.S. spending $6.2 billion on backhaul services. Globally, service providers spent more than $24 billion in 2008 on backhaul services.

In a case study Yankee Group conducted with one of the tier one mobile operators in 2009,  more than 50 percent of data traffic was coming from desktop or laptop computers using aircards or dongles.

Approximately 24 percent was coming from screen phones and a little more than 20 percent was coming from smartphones (iPhones, BlackBerries). If the traffic trends continue, by 2012 more than 55 percent of the traffic will be coming from the smartphone “advanced OS” category, i.e., more than half of the mobile data traffic will be generated by truly mobile, instead of nomadic, users sending large amounts of data, voice or video traffic.

The backhaul implications are fairly simple, in terms of backhaul bandwidth requirements. A 2G voice network can get by with two T1 links. A 2.5 G EDGE network requires 4 T1s. A 3G HSPA network requires at least 10 T1s. Coming 4G networks might need as much as 10 times that much bandwidth.

By 2012 Yankee Group expects more than 300,000 cell sites in the United States, each supporting between 50 Mbps and 100 Mbps in backhaul capacity. In general, leasing a T1 costs about $300 per month, per mile. Seven T1s, adding up to a backhaul capacity of just more than 10 Mbps, will cost a U.S.-based provider about $2,100 per month per mile.

If we were to keep throwing T1s at the problem, this would result in a backhaul bill of $82 billion by 2012 and the monthly average cost per site would be about $23,000 compared to today’s average of $2,100 per mile.  That’s not an option.

Performance requirements also are growing. Network architects as asking for one-way jitter of 1 to 3 milliseconds and one-way latency of 3 to 5 ms.


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Capacity Shortages for Metro Ethernet services?

Wednesday, February 3rd, 2010
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Carrier Ethernet services now are in some cases straining carrier backbone networks, says Vertical Systems Group Principal Rick Malone.  ”The rate of installation is actually at a nice clip in 2009, even for weak economic times,” Malone says.

That’s generally good news for buyers, but apparently is causing capacity issues in some cases.  ”We are seeing improved cycle times in terms of getting people installed, and that has resulted in capacity shortages, and that is something we haven’t seen before in the core,” he adds.

For service providers and buyers more accustomed to issues in the access loop, that is a bit of a surprise.  At least in part, that appears to be the result of better operational processes. There now is enough volume that service providers have developed better and more-standardized procedures for turning up Ethernet circuits.

Bandwidth demand also jumped, moving up faster in the past six months than in previous periods between the biannual reports.  ”That is something we want to watch,” Malone says.

Orange, Colt,Verizon and AT&T top global provider rankings, he says. In the U.S. market, tw telecom, Cox Communications, Qwest Communications International, XO Communications, Time Warner Cable, Cogent Communications Group and Level 3 Communications were among the top-10 providers.

http://www.verticalsystems.com/


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