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Broadband Access Solutions And Economics For Rural Areas : Broadband Access Solutions And Economics For Rural Areas 15.12.2003 Peter.Vetter@alcatel.be


Outline : Outline Introduction BB access solutions Selecting the most cost effective solution Open service platform MUSE Recommendations (Abbreviations)


BB access for rural areasIntroduction : BB access for rural areas Introduction Approaches for (sub)urban areas are not suited for rural areas High speed internet: 1 Mbps (ADSL < 5 km) Multi media streaming: 3 Mbps (ADSL < 3 km) HDTV, Video distribution, multiple users/home: 10-100 Mbps Different solutions possible Premises 1 user Access node 5-75 users Aggregation node 1000 - 10000 users 0-5 km 10-30 km with terrestrial solutions No limits with the satellite ADSL Wireless Satellite Fibre Leased lines E1 Wireless Satellite Fibre Access Backhauling


DSL in rural areas : DSL in rural areas DSLAM Remote DSLAM 10 Mb/s 5.5 Mb/s 3.5 Mb/s 1 Mb/s 7.5 Mb/s 10 Mb/s 5.5 Mb/s 3.5 Mb/s 1 Mb/s 7.5 Mb/s Remote DSLAM Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Coverage Increasing loop length Remote Unit Lowest cost Investments scale linear (large choice of remote DSLAM with different modularity) Suited for clustered rural users Limited reach Combination with backhauling feeder needed


DSL bonding as backhauling : DSL bonding as backhauling n x 2 Mbps (n=1,2,4,8) SHDSL Active repeater per 2.5 km ADSL Low cable infrastructure cost Low cost equipment Limited reach for backhauling Limited bandwidth Active repeater points needed (operational cost)


Wireless solutions for rural access : Wireless solutions for rural access WiFi WLAN (2.5 GHz) 2 Mbps / 3-5 km Wireless IP = "Wireless DSL" (<10 GHz) 1 Mbps / 15 km No wireline infrastructure required Fast roll-out possible Solutions available for access and backhauling Limited BW/reach for non line of sight radio technology (<10 GHz) High BW solutions (28-40 GHz) are line of sight and high cost PTP micro wave <100 Mbps / 10 km


2-way satellite access : Satellite Hub 2-way satellite access Bi-directional 64kbps/2Mbps Standard interface : DVB-RCS Unlimited reach, quick and easy deployment Direct access and backhauling Robust in times of crisis High bandwidth Satellite downstream + terrestrial upstream possible Large initial investment (but shared between numerous actors) Latency (e.g. gaming)


Optical fibre : Optical fibre Long reach, highest BW Future safe Robust, low maintenance cost Today mainly for backhauling High civil works cost BPON (622/155 Mbit/s) GPON (1.25/1.25 Gbit/s) SDH Ethernet FTTH 1:32


End to End combinations : End to End combinations - Fiber : ATM/IP Operator/ISP 100-1000 Km Internet Aggregation CPE Access


Selecting the most cost-effective solutions : Selecting the most cost-effective solutions Capex estimation (Capital Expenditure): CPE cost Network costs: short term amortisation 3 to 5 years (3 y. in study) Active network equipment (access nodes, aggregation, …) Network costs: long term amortisation 15 to 20 years (20 y. in study) Civil works (Laying fibre, Building radio tower) Opex estimation (Operational Expenditure): Equipment maintenance, renting (space/energy), … are included. Network operations costs are not included. Comparison of monthly cost per user (reference Urban DSL=1)


Cost comparison solutions for rural areas : Cost comparison solutions for rural areas (Access + backhauling technology) (Study for 2003, relative cost Urban DSL =1)


Survey end-to-end cost (2003) : Survey end-to-end cost (2003) 1 10 30 50 1 5 30 50 100 1000 Wifi or DS L + Liaisons Louées Wifi or DS L + Liaisons Louées 70 80€ 30€ WIP or WiFi + Satellite WIP or WiFi + Satellite 70€ Herzien ELLITE 2way Satellite Average Micro village Large Village 1 5 30 Urban Urban DSL Urban Ref. Price x1 x2 50 100 1000 Wi-Fi or DS L + Leased + Lines x6 x2.5 WIP or Wi-Fi + Satellite x5 Backhauling distance (km) # connected users First technology listed is the access technology, while the second one is the backhauling technology 15 E2E Wireless IP x4,5 Wi-Fi or DSL + Wireless IP x3 x2,5... x2,5 x2... x2,5…x4


Main conclusions cost comparison : Main conclusions cost comparison Compared to DSL in urban areas, broadband access is 2 to 6 times more expensive in under-served areas Scattered users and small villages (about 10/20 users) Medium villages (30-50 users): Large villages (70 users): Satellite is best solution (Cost  50% by 2005) Wireless (WiFi/WIP) or Wired (DSL + Fibre/radio) (Cost  30% by 2005) Wired (DSL + Fibre/microwave) (Cost  20% by 2005)


How to improve the economics in rural areas ? : How to improve the economics in rural areas ? Subsidies from local authorities to bridge the added cost prevent the digital divide of under-served areas Finance R&D techno breakthroughs to drop hardware costs Exploration of new business models with utility companies sharing infrastructure and civil works New revenues through open service enabling platform allows access provider to provide added value and to tap on the revenue stream incentive for access provider to invest in better infrastructure


Cost improvements for Satellite : Cost improvements for Satellite


A competitive broadband services environment with multiple actors across the value chain requires open and interoperable industry standards : A competitive broadband services environment with multiple actors across the value chain requires open and interoperable industry standards Multiple Platforms Multiple Services Home Networking Modem STB & TV set PC Wi-Fi Interoperable and open standards will ensure: Home networking devices independent of services Content can be provided over different access infrastructures A level playing field for all market participants Consumers should be able to: Store content on multiple sites in the home and on the network Add devices to their home network from multiple manufacturers Enjoy content on multiple devices Wired Networks Wireless Solutions Mobile Networks Cable Networks


Multi Service access Everywhere : Multi Service access Everywhere EU FP6 Research project Objective: Low cost, full service edge and access network for ubiquitous delivery of broadband services to all European users Consensus about the future access network and open service platform by major operators and vendors in Europe. Pre-standardisation work and joint position in standardisation bodies. MUSE aims to re-do the success story of GSM, by elaborating and promoting a “GSB – Global System for Broadband”. Evaluation in lab trials.


MUSE Consortium : MUSE Consortium System vendors SME Aarhus BB society Robotiker Operators MUSE Component vendors Phase I: 2004-2005 Phase II: 2006-2007 34 partners 110 PY/year


Recommendations : Recommendations  A combination of different available technologies can offer the best solution for broadband access in rural areas and prevent the digital divide  Open service platforms are needed to increase the revenues on these networks  In addition to FP6, research should be extended in Eureka programme CELTIC to obtain short term results  Incentives for broadband in rural areas from local authorities will pay back directly by revenues from services indirectly by increased productivity and other macro economic returns


Abbreviations : Abbreviations