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VoIP over Mobile WiMAX
How to Transform a Promising Technology
in a Real Business
Osservatorio ANFoV – Personal Broadband
Milano, 3 Marzo 2008
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Claudio Adriani
CTO, WiTech
WiTech
Who We Are
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WiTech – At a Glance
Since its foundation in 2003, focused on the WBA Market
Partnerships with key technology providers, analysts, operators
Member of the WiMAX Forum, TeleManagement Forum, ANFoV
Market Leader in WiMAX Planning Services
CONSULTING
• Business Strategy
• Market Analysis
• Reports
• Capex & Opex Estimation
• RFI, RFQ
• Technology Scouting
ENGINEERING
• RF Engineering
• Network Design
• Executive Project
• Drive Test
• Quality Assurance
• Optimization
PLATFORMS
• AAA
• Rating
• NMS
• Telco Web GIS
TOOLS
• Radio-Planning
• EMF Impact Analysis
• Geo-Marketing
• TEA (TechnicalEconomic Analysis)
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Despite All Evolutions
Voice Remains the Killer Application
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201x, Where Are We Headed?
A world where any type of digital content, information, and
service can be affordably accessed and shared without regard
to time, location, or device
ANYTIME
ANYWHERE
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Br Per
oa so
db na
an l
d
Mobility
Personal Broadband is the Enabler
Bandwidth
A new generation of personal
broadband services is emerging that
will enable subscribers to take their
broadband connection with them
anytime, anywhere and extend their
mobile services to broadband
speeds
Personal broadband is always-on,
high-speed and all-IP, providing
direct access to the Mobile Internet
and creating an open market for
many service and application
providers
Personal Broadband is
naturally wireless
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The Wireless Scenario
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Mobile WiMAX (802.16e)
Mobile WiMAX is well suited to support Personal Broadband
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Mobile WiMAX Network Architecture
• All-IP
• Flat, Low cost,
Architecture
• No Legacy
Circuit
Source: WiMAX Forum
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education
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The Advantages of Mobile WiMAX
Compared to 3G+ (HSPA & EVDO)
Higher spectral efficiency
Scale to work in different channelizations
Higher data rate
End-to-end IP-based QoS
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Mobile WiMAX Business Scenario
Source: ZTE
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The WiMAX Timeline
Source: Senzafili Consulting
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WiMAX Market Forecast
Source: Senzafili Consulting
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The Importance of VoIP (1)
• Growth of VoIP in recent years
• Initially on wireline -> First driver of a Voice/Data
convergence strategy
• Then on wireless -> First step towards a converged all-IP
strategy
• Even in the Personal Broadband scenario, voice is and will
remain a key driver in operators’ business.
“VoIP is rated as the single most important driving app in
2007-9 by almost 40% of operators planning to deploy WiMAX
in that timeframe. By 2009 we will see at least 65% of
operator aiming to offer sophisticated VoIP.”
Source: RETHINK, “VoIP over WiMAX: Market drivers and vendor opportunities”, May 2007
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The Importance of VoIP (2)
Summary of opinions of operators planning to deploy WiMAX in 2007-9
Source: Rethink Research survey. May 2007
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The Importance of VoIP (3)
Summary of opinions of operators planning to deploy WiMAX in 2007-9
Source: Rethink Research survey. May 2007
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Mobile VoIP – Key Requirements
Service
Availability
Reliability
Security
IP platform
Mobile VoIP
Mobility and
Roaming
QoS
Interoperability
Portability
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Regulatory
Compliance
How Mobile WiMAX best supports VoIP
Best-in-class,
advanced security
features
Native mobility and
roaming support,
with low handover
latency (< 50 ms)
All-IP native
platform and Mobile
IP support
Built-in QoS supports
multiple traffic flows
and service tiers
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State-of-the-Art
VoIP-Enabled Mobile WiMAX Devices
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Customer Premises Equipment
Motorola CPEi 300 Series
2 VoIP Ports
ZyXEL MAX-200 series
1 VoIP Port
CPE BM625
2 VoIP Ports
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Smartphones
Samsung SPH-M8100
Motorola MotoWi4
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LG KS20
VoIP over WiMAX is Already a Reality
Some Case Studies
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WiMAX Telecom
WiMAX Telecom first in the world to market telephony
via WiMAX technology
Vienna, Austria – 20 February 2006
WiMAX Telecom Group, the only multinational WiMAX
service provider in Europe, is the first in the world to
offer telephony via WiMAX technology. "WiMAX FON"
is the cheapest comprehensive last-mile connectivity
solution in Austria. Its offers the sound quality of a
fixed network and works with ordinary telephone
handsets. Thanks to number portability, customers can
simply take their existing telephone number with them
when switching to WiMAX FON.
Source: www.wimax-telecom.net
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Clearwire
Clearwire launches VoIP in the US
USA - 25 January 2008
Clearwire, the US internet service provider, is to
launch its first VoIP service on its own
infrastructure.
Clearwire is deploying Nortel’s Application Server
5200 and Communication Server 2000 in its data
centers to add the first in-house voice services to
its portfolio. The company currently markets VoIP
services in partnership with a number of carriers.
Clearwire has wireless broadband networks
operating in 46 markets in 16 states and is
currently deploying mobile WiMAX technology
across the USA.
Source: www.voip-news.co.uk
www.clearwire.com
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Neckarcom Telekommunikation
Source: http://www.motorola.com
http://mobilebroadbandnews.com/
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Deploying Mobile WiMAX and Mobile VoIP
Making It Real
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WiTech Consulting & Engineering - The Approach
People
New
Operating
Vision for
Upbeat
Solutions
Processes
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Technologies
Technologies
WiTech - People
Analysts
Engineers
Developers
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WiTech - Processes
PRACTICES
PHASES
Consolidating the
experience of
successful projects
into effective
best practices
Initial
Initial
Const
Const Const
Const Tran #1 Tran #2
Const Const
Elab
Elab #2
#2
Elab #1
#1 Elab
Tran #1 Tran #2
#1
#n
#2
#1
#n
#2
ITERATIONS
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WiTech - Technologies
TEA
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WiTech – TEA Tool
TEA - Technical and Economic Analysis
The first tool for integrated technical and economic
analysis for BWA in the world
A
Service Types
SU Class
Average Traffic
% User Number /
Service Scenario
User Number
Capacity Demand
Service Class
Tariff (t)
Roll-out
Function (t)
Coverage Area /
Service Scenario
Site Number
Equipment and
Service Price (t)
Opex
B
Frequency Band
Cell Area
% SU Class /
Service ScenarioService Class
Revenue
Broadband
Wireless
Technology
Radio Propation
Model
Service Class
Penetration
Function (t)
Service Scenario
Capex
Economic Results
A
Market Model
B
Technical Model
C
Economic Model
Time Evaluation
C
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Start With a Good Business Plan (1)
Evaluation of the Potential Market
Setting the Revenue (and Cost) base:
Performing a reliable short-medium term forecast based on a
comprehensive and proven top-down model
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Start With a Good Business Plan (2)
Preliminary Dimensioning of the Access and Transport Network
Defining a key piece the Cost base:
Access Network
Meeting Coverage & Capacity
requirements within the service
scenario
Matching the physical limits of the
technology within the operative
scenario
Fulfilling spectral regulation
constraints
Transport Network
Taking into account existing
Backbone Infrastructure
Meeting Aggregated Capacity
requirements
Choosing the appropriate
backhauling technology
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Start With a Good Business Plan (3)
CAPEX and OPEX
Completing the cost estimation:
Issuing RFI/RFP to Vendors, Service Providers, System Integrators
Performing a TCO Analysis by means of an accurate economic model
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Start With a Good Business Plan (4)
Analysis of Economic and Financial Projections
Completing the Plan:
Validating expenses and turnover forecasts
Estimating the key financial indicators (NPV, IRR, PBP, CAGR, ROI)
Performing a Sensitivity Analysis to identify critical factors on the
investment profitability
€ 1,500,000.00
€ 1,500,000.00
€ 1,000,000.00
€ 1,000,000.00
€ 500,000.00
€ 500,000.00
€ 0.00
€ 0.00
1° Year
2° Year
3° Year
4° Year
5° Year
6° Year
7° Year
-€ 500,000.00
8° Year
-€ 500,000.00
-€ 1,000,000.00
-€ 1,000,000.00
-€ 1,500,000.00
-€ 1,500,000.00
Revenues
OPEX
EBITDA
CAPEX
CF
Cumulative CF
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Net Present Value
Start With a Good Business Plan (5)
Sensitivity Analysis
Fine-tuning the Plan:
Carrying out a real-time Sensitivity Analysis with TEA interactive
dashboard
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Make an Accurate Network Planning ….
RF Planning and Link Validation
Dimensioning the actual Network Infrastructure:
On the basis of coverage areas and services to be delivered (e.g., VoIP)
Including wireless backhaul links
Voip
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…. and an Accurate Network Design
Network Planning
Defining the actual Network Infrastructure:
Defining the composition and logical functions of Access Layer,
Transport Layer and Network Operator Center
Setting out the IP addressing plan
Network Design
High Level Design
How the new network fits the
existing network
•
•
•
Physical Design
Hardware, ports, cables, etc..
Logical Design
•
•
Network Diagram
Security Configuration
Network Management Plan
definition
Initial parameters configuration
Pre-launch optimization: load
balancing and routing policy for
initial deployment
VLAN, IP addressing, etc..
Routing
Modular approach
(using templates)
Routing protocol, static routes
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Check the Network Implementation (1)
Site Survey and Test Drive
Verifying the conformance to the specs
Measuring link quality and traffic, on the road, by means of hardware
and software analyzers
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Check the Network Implementation (2)
Quality and Assurance
Checking the outcome of the project
Checking set project objectives by means of executive test activities
Hardware
and
Software
Quality
requirements
(coverage and
capacity)
Quality
and
Assurance
Access and
transport
network
configuration
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Plant
Engineering
Never Underestimate Security
Voice Fraud Protection
Implementing robust mechanisms
at each one of the four layers of
VoIP security
Configuration
Signaling
Voice
Data
… to cover all critical aspects of
Reliability
Privacy
Integrity
Authentication
Non-repudiation
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Integrate It Effectively into the OSS/BSS
NOC (Network Operation Center) and Customer Life Cycle
Monitoring, Managing, Troubleshooting, Provisioning, …..
Ensuring that growth and profitable service creation will be
accommodated
Taking care of the accounting and metering of VoIP services, mixed
with other IP traffic in the network
Services and
Applications
Infrastructure
Provisioning
Monitoring
Rating
Management
Billing
Assurance
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WROP (WiTech Radius Operator Platform)
Carrier-class Access & Service
Management solution for fast
moving Operators
Scalable
Modular
Secure
Reliable
Affordable
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WROP – Integration and Consolidation
Application Servers
Easy integration into new
and existing environments
Reducing OSS/BSS
complexity
Efficient Support of
Customer Life Cycle
Broadband Access Network
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WROP – Architecture and Specifications
Rating
•Flat
•Time
•Traffic
•Bonus
Database
•PostgreSQL
•User data
•Location data
•Traffic data
User
•On-line
•Credit
Status
Admin
•Retail (Account)
•Wholesale
CDR Export Format
•XLS
•CSV
NMS
•RMI interface
•SNMP Traps
•XML based
•PDF reporting
Report
•User
•Network
•Billing
WiFi
•WISPr (WiFi
•802.1x
Alliance)
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Authentication
Radius RFC 2865&2138
Accounting
Radius FC 2866&2139
A Jump in the Near Future
A Not-So-Fictitious Case Study
VoIP over Mobile WiMAX in Lisbon
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VoIP over Mobile WiMAX in Lisbon (1)
Territorial Assumptions
Geographical Area
Total
84 sqkm
Urbanized 55 sqkm
Population
Total
Target
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509,751
458,776
VoIP over Mobile WiMAX in Lisbon (2)
Service and Technological Assumptions
Personal
Broadband
Mobile WiMAX 802.16e
WiMAX Forum
Certification Profile 5B
Activation
Fee
€ 150
Voice
ARPU
€ 39.90
Data
2 Mbps
1 Mbps
64 Kbps
DL UL
PIR
DL UL
CIR
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VoIP over Mobile WiMAX in Lisbon (3)
Access sites Roll-out
80
70
60
50
40
30
20
10
0
1° Year
2° Year
3° Year
4° Year
5° Year
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6° Year
7° Year
8° Year
VoIP over Mobile WiMAX in Lisbon (4)
Personal Broadband Penetration
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
1° Year
2° Year
3° Year
4° Year
5° Year
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6° Year
7° Year
8° Year
VoIP over Mobile WiMAX in Lisbon (5)
Personal Broadband Users
25000
20000
15000
10000
5000
0
1° Year
2° Year
3° Year
4° Year
5° Year
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6° Year
7° Year
8° Year
VoIP over Mobile WiMAX in Lisbon (6)
Millions
Revenues Breakdown
€ 12.00
€ 10.00
€ 8.00
€ 6.00
€ 4.00
€ 2.00
€ 0.00
1° Year
2° Year
ARPU
3° Year
4° Year
Activation Fee
5° Year
6° Year
User Terminal Lease Fee
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7° Year
8° Year
VoIP over Mobile WiMAX in Lisbon (7)
CAPEX Breakdown
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VoIP over Mobile WiMAX in Lisbon (8)
OPEX Breakdown
Breakdown OPEX
€ 3,500,000.00
€ 3,000,000.00
€ 2,500,000.00
€ 2,000,000.00
€ 1,500,000.00
€ 1,000,000.00
€ 500,000.00
€ 0.00
1° Year
2°Year
Access Network
User Terminal
3°Year
ASN
CSN
4°Year
Marketing
5° Year
Sales
7° Year
General and Administrative
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6° Year
8°Year
Connectivity
VoIP over Mobile WiMAX in Lisbon (9)
Economic and Financial Projections
€ 10,000,000.00
€ 10,000,000.00
€ 8,000,000.00
€ 8,000,000.00
€ 6,000,000.00
€ 6,000,000.00
€ 4,000,000.00
€ 4,000,000.00
€ 2,000,000.00
€ 2,000,000.00
€ 0.00
€ 0.00
1°Year
2°Year
3°Year
4°Year
5°Year
6°Year
7°Year
8°Year
-€ 2,000,000.00
-€ 2,000,000.00
-€ 4,000,000.00
-€ 4,000,000.00
-€ 6,000,000.00
-€ 6,000,000.00
Revenues
OPEX
EBITDA
CAPEX
CF
Cumulative CF
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Net Present Value
VoIP over Mobile WiMAX in Lisbon (10)
TEA Interactive Dashboard
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VoIP over Mobile WiMAX in Lisbon (11)
Technical Data: DTM and Building Model
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VoIP over Mobile WiMAX in Lisbon (12)
Maximum Received Power
Integration with Google Maps – 2D view
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VoIP over Mobile WiMAX in Lisbon (13)
Maximum Received Power
Integration with Google Maps – 3D view
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VoIP over Mobile WiMAX in Lisbon (14)
Down Link Data Rate
Integration with Google Maps – 2D view
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VoIP over Mobile WiMAX in Lisbon (15)
Down Link Data Rate
Integration with Google Maps – 3D view
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Thank You for Your Attention
Claudio Adriani
[email protected]
WiTech Srl
Polo Tecnologico di Navacchio
Via Giuntini 25
56023 Navacchio di Cascina (Pisa)
Italy
www.witech.it
Phone: +39 050 75 47 20
Fax: +39 050 75 47 22
E-mail: [email protected]
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