Comparative TCO of microwave backhaul systems
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This document compares the total cost of ownership (TCO) of point-to-multipoint (PMP) microwave backhaul systems versus point-to-point (PTP) microwave systems. It finds that PMP systems have lower TCO than PTP systems for backhauling multiple sites due to shared equipment and installation costs at hub sites in PMP networks. A sample TCO calculation shows equipment, installation, site rental and power costs are lower to backhaul 5 sites using PMP versus PTP microwave. The document concludes that PMP microwave can offer significant TCO savings compared to PTP for dense, last mile backhaul networks.
Comparative TCO of microwave backhaul systems
- 1. www.cbnl.com Total cost of ownership in modern backhaul Comparative TCO of microwave backhaul systems John Naylon, CTO August 2013
- 2. About CBNL and VectaStar CBNL is the global market leader in point-to-multipoint (PMP) microwave backhaul and access solutions We have a single product family – VectaStar – that has been under continuous development for over 10 years www.cbnl.com Commercial in confidence 2 Wireless Backhaul from Intermodal Perspective (2013) 50% market share PtMP Wireless Market for Small Cells and LTE (2013)
- 3. A simple TCO model for wireless backhaul www.cbnl.com 3 This model encompasses the ―big ticket‖ items; numerous other factors could be included, but the final total is unlikely to be significantly affected
- 4. PMP and PTP are complementary technologies www.cbnl.com 4 Multipoint microwave Point-to-point microwave/mm-wave
- 5. TCO comparison: multipoint versus point-to-point www.cbnl.com 5 Multipoint microwave Point-to-point microwave/mm-wave Bandwidth dynamically shared between links Statically provisioned bandwidth for each link At hub, shared radio and antenna for all links At hub, dedicated radios and antennas for each link
- 6. Compare TCO backhauling 5 sites: equipment www.cbnl.com 6 Remote Hub Remote Remote Remote Remote Assume hub is 2× price of remote end Each additional site needs only the remote end of the link 7 cost Unit of cost = 1 radio transceiver. Assumes PMP and PTP radios are equally priced, which is valid for microwave comparison. Millimetre wave radios are currently ~2× price of microwave radios. Source: Maravedis-Rethink, Wireless Backhaul Market from an Intermodal Perspective, April 2013 Remote Remote Hub Remote Hub Remote Hub Hub Remote Hub Each additional site needs equipment at both ends of the link (for either star or chain configurations) Each end of the link is the same price in PTP 10 cost Multipoint microwave Point-to-point microwave 3 4 5 6 2 4 8 6
- 7. Compare TCO backhauling 5 sites: installation www.cbnl.com 7 Remote Hub Remote Remote Remote Remote Assume hub install is 2× price of remote terminal install Each additional site needs only the remote terminal install 7 cost Each link to a site needs two teams and simultaneous access to each end of the link for alignment Assume this is 3× price of sending one team to one site 15 cost Link Link Link Link Link Unit of cost = 1 site installation Point-to-point microwave Multipoint microwave 3 4 5 6 3 6 9 12
- 8. Compare TCO backhauling 5 sites: site rental and power www.cbnl.com 8 Remote Hub Remote Remote Remote Remote Hub site may have higher rental or power consumption than remote site Single antenna rental and unit of power consumption added per site 7 cost Remote Remote Hub Remote Hub Remote Hub Hub Remote Hub Rent is per antenna, and power consumption per radio, so each additional link incurs another two units Each end of the link comprises a radio and antenna 10 cost Point-to-point microwave 3 4 5 6 2 4 8 6 Unit of cost = 1 year’s site rental and power Multipoint microwave
- 9. Compare TCO backhauling 5 sites: spectrum www.cbnl.com 9 Point-to-point microwave Multipoint microwave Example: spectrum costs vary widely but PMP bands are often relatively under-utilised, hence spectrum affordable
- 10. - 20,000 40,000 60,000 80,000 100,000 120,000 0 1 2 3 4 5 6 7 8 9 10 5yearTCO,NPV Sites per backhaul hub Bottom line: PMP drives down backhaul capex and opex www.cbnl.com Commercial in confidence 10 Typical average number of sites per backhaul hub is between 4 and 6 PTP millimetre wave PTP microwave Multipoint microwave Conclusion — Microwave PMP can offer very significant TCO savings versus microwave or (especially) millimetre wave PTP for last mile links in dense backhaul networks; PTP is better suited to the middle mile, trunking applications and long range links
- 11. www.cbnl.com Thank you for your time John Naylon, CTO August 2013 Comparative TCO of microwave backhaul systems
Editor's Notes
- #4: Big ticket items