Motorola Reach - Marketing for Entrepreneurs Ltd

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Motorola Reach
Achieving highly effective coverage in GSM Networks
In a number of countries the volume
of wireless connection lines surpass
the number of fixed lines.
REACH NEW SUBSCRIBERS
Motorola is strongly focused on delivering
solutions that will enable service providers
to connect the next billion mobile
subscribers. We know that with the
increasing saturation of mature markets,
further growth in the global mobile market
will be driven by sales in emerging markets.
Currently growth in the number of
subscribers in developing countries is twice
that in developed markets. In Pakistan
alone, between June 2004 and December
2005, subscriber numbers grew by 450%.
On the African continent mobiles now
account for 75% of all phone connections in
19 of the poorest countries and subscriber
growth across Africa is recorded at more
than 150% per annum.
Significantly, the rapid adoption of telephony
services has been spurred by the
liberalization of domestic markets and in a
number of countries this has seen the
volume of wireless connection lines surpass
the number of fixed lines.
Also subscribers in emerging and developed
markets now look at mobile communication
as a necessity not a luxury. In service driven
economies mobile telephony has the
potential to increase business productivity
considerably. For example tradesmen can call and be contacted by customers via
their mobile phone, ensuring optimum of use of work time while avoiding
unnecessary travel costs and missed job opportunities.
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And yet, the proportion of people with mobile phones is still very low - around 5% in
India and Sub-Saharan Africa. GSM is forecast to grow from 1.79 Bn subs today to
around 2.1Bn by 2010 (Source: WCIS), so there’s plenty of room for exponential
growth in places like Asia, Africa and South America and there’s more than enough
momentum in individual demand.
So how can service providers achieve flexible and cost effective mobile network
coverage and take advantage of this huge subscriber customer growth potential?
REACH OUT WITH EFFECTIVE COVERAGE SOLUTIONS
Developing markets are characterized by high cost of capital, low disposable
income and low fixed line penetration. Given the volatility of financial markets in
some developing economies, service providers often need to deploy extensive
coverage at minimum capital costs. Network infrastructure has to deliver costeffective coverage that minimizes service provider outlays in terms of both capital
and operational cost. Solutions also need to allow service providers to have
maximum choice and flexibility on where cell sites can be located and where
possible take advantage of local resources to keep costs low.
Coverage solutions are not just about provisioning voice services either. Having a
combined service offering of voice and data services to protect overall revenue
margins has proved an effective strategy for developed market service providers.
Having a varied service portfolio is also an equally valid tactic for emerging markets.
In fact markets where there is no alternative source of Internet connection, e.g. DSL
connections, have shown very strong demand for mobile data connections (even
over GPRS) in both urban and rural environments. It is therefore not the case that
all the next billion mobile subscribers need is basic voice services. Both emerging
and developed market service providers also need to be able to provision data
services with effective
and scaleable coverage
solutions.
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REACH BEYOND THE CHALLENGES
Service providers face a number of key challenges when
rolling out their network coverage to subscribers;
Radio coverage is the highest cost element of
the overall network – radio network coverage is
typically about 70% of the total network build cost
(including cell site ancillaries). Therefore even a
small percentage reduction in coverage costs can
have a correspondingly large reduction on overall
network rollout costs.
• Operational license parameters – As markets have
developed the lower GSM frequency bands, such as
GSM 900, which inherently provide a wider
coverage, are often fully allocated so that new
service providers need to operate their networks in
the higher frequencies, such as 1800 which require
more cell sites to achieve the same coverage area.
Also frequency license agreements from the national
regulator often dictate a minimum coverage
requirement so that service providers cannot simply
build their cell sites where the maximum number of
subscribers is likely to be located, e.g. urban areas.
Instead service providers often have to commit to a
certain level of combined population and geographical coverage. Therefore a
requirement is set for wide coverage low density cell sites and data enabled
coverage may also be part of this as the market evolves.
• Service quality (or coverage reliability) - in theory, the needs of consumers in
emerging economies are more ‘basic’ – with their primary requirement being
low-cost service connectivity, Some view points see service availability and
quality not featuring as key priorities. Motorola’s experience in developing
economies has however shown that service quality matters enormously. When
subscriber’s disposable income is less than US$10 dollars a month, investment
in even a “cheap” mobile service is a far larger financial consideration than it is
for someone earning a higher wage - and the expectations of the service are
comparatively greater. Subscribers expect handset durability, service availability
24/7 and a service that delivers stable quality voice and data calls – because
they’re paying out precious money for air time. Therefore solutions that suggest
that costs can be cut by reducing service availability, say at peak times, or
overall service quality are fundamentally flawed.
•
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• Quick return on investment delivered by fast network rollout and launch
are also extremely important to a service provider’s business success. Solutions
that reduce the technical complexity of site installation, assist rapid rollout, and
use local content where applicable, are very valuable as they enable reduced
overall cost and ensure capital investment is earning revenue quickly.
Obviously as a result of these issues a strong focus for service providers
considering network rollout is to reduce the number of overall cell sites required
without impacting quality service provision, especially when implementing wide area
coverage. Though the number of sites required for initial coverage is dependent on
a range of factors, such as which spectrum is allocated by the regulator and license
regulations on coverage, the impact of choosing solutions that deliver high
performance coverage; that reduce the number of sites required and positively
influence the overall cost of mobile network implementation is critical.
IMPORTANCE OF LINK BALANCE WHEN SETTING UP COVERAGE
Generally in areas of high subscriber density, such as urban environments, the
number of sites required is dependent on the capacity requirements. However
where subscriber densities are low, such as in rural environments, the required
quantity of sites is driven by the link budget between the cell site and the handset.
The link budget describes the maximum amount of signal extension or attenuation
that can be tolerated while maintaining a communication link between the
transmitting and receiving devices during a mobile call. If the link budget can be
extended this can improve call performance over a wider range as RF signal loss is
reduced, increasing the probability of good signal acquisition by the receiving device
and for the mobile handset considerable improvements in battery life.
MOTOROLA REACH HIGH PERFORMING GSM COVERAGE
SOLUTIONS
Motorola’s Reach solutions for GSM deliver low entry cost scaleable solutions to
build out coverage for both voice and data service delivery. There are a number of
key elements to the Motorola Reach solutions that specifically target coverage and
link budget improvement:
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Reach Trio and the rest of the Reach BTS family
Motorola Reach Trio is a high power base station configuration that enables trisector wide area coverage delivery, particularly effective for fast rollout in rural or
lower population subscriber density areas. It has a minimum footprint based on a
Horizon II mini / micro combination delivering a macro type performance. Typical
configurations could be 20W 2/2/2 or high power 63W 1/1/1 in 900MHz.
Motorola’s overall range of flexible high power output BTS in macro, mini and micro
formats provide increased deployment flexibility. Motorola’s Horizon II basestations
address issues, such as achieving lower cost-per-subscriber, serving both dense
and sparsely-populated areas, and maintaining consistent service quality. Reduced
power consumption (up to 15% improvement on previous generation) and lower
maintenance requirements, due to fewer field replaceable units are just two of the
features that result in sustained lower operating costs. All Horizon II basestations
are data capable including support of EDGE.
Tower Mounted Small Basestations
Mounting small basestations close to an RF
antenna at the cell site location can improve
mobile service performance by eliminating RF
cable losses. The minimization of cable losses
can also mean that Tower Mounted Amplifiers
(TMA) can be avoided and hence reduce site
installation CapEx. Furthermore, the resulting
improvement in both the uplink and downlink
paths extends the link budget, thus potentially
reducing the number of sites required for
coverage.
In the Motorola BTS portfolio, this requirement can be met using the Motorola
Reach Trio configuration deployed for example in a 2/2/2. Motorola’s high power
micro is ideal for this type of deployment as its compact nature facilitates mounting
on the antenna tower.
Alternatively remote RF heads can be used to minimize cable losses; however, the
cost of deploying such RF heads may be prohibitive, due to the high RF power
amplification requirements in coverage applications.
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Tower Mounted Amplifiers (TMA)
TMAs enhance the basestation receiver performance by reducing the effects of
antenna cable loss. The resulting improvement in the uplink path extends the link
budget and hence increases the cell coverage area. Nonetheless when using TMAs
careful consideration needs to be given to the cell site design because certain RF
characteristics can counteract the benefit and therefore overall coverage
performance.
Adaptive Multi-Rate (AMR)
AMR employs speech codecs which are more resilient to interference and can
enable an improvement in cell coverage area by as much as 27%1. AMR
associated improvements in cell coverage are achieved in environments where
interference is the limiting factor. There will also need to be a high penetration of
AMR capable mobile devices to realize the cell coverage gains.
Multi sector – 6 sector
Multi sector high gain antenna configurations can achieve about 2dB improvement
in the link budget. The resulting coverage improvements can yield up to 20%
reduction in the number of sites required. Multi sector benefits, especially the higher
sector configurations, will need to be balanced against potential increase in site
installation costs due to the increase in the number of antennas required at the site.
The resulting increase in tower loading may necessitate the use of more expensive
antenna masts.
4x Diversity / High power mode
4 branch receive diversity feature combines signals from 4 receive antennas to
achieve gains of 4-5dB in the uplink signal path. In order to fully exploit these uplink
gains from 4-branch receive diversity, transceivers are configured in high power
mode which delivers up to 4dB improvement in the downlink transmit power. The
combination of High Power mode and 4-branch receive diversity can deliver up to
50% reduction in the number of cell sites required.
1
See Motorola BSS Equipment Planning (Document Ref. 68P02900W21-P)
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Potential increases in site installation costs, due to the doubling in the number of
antennas required at the site, need to be considered and again tower loading may
necessitate the use of more robust antenna masts.
4 Branch Diversity and Coverage
4 Branch Diversity with enhanced Sensitivity feature can save 50% of sites
required in rural deployments. In practice, savings of 15-20% of sites required
are achievable.
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Extended Range Cell (ERC)
Where RF propagations conditions are favorable, the extended range cell feature
permits cell ranges of up to 120km (GSM 900Mhz). This feature can therefore be
effective for extending voice and data service coverage and thereby reducing the
required number of cell sites.
This feature is enabled by permitting timing advances for the mobile handset
transmission of more than 63 bit periods. As the Figure below indicates, this
increased timing advance requirement has the effect of reducing the traffic carrying
timeslot capacity of the transceiver.
Maximum benefits of ERC can only be realized where RF propagation conditions
are favorable e.g. coastal or open rural areas.
Motorola Leadership cell radius of up to 120 KM
Effective planning and optimization
Network services and deployment - Motorola offers considerable experience in
network design, rollout and optimization across developed and emerging
economies. Motorola considers the overall service performance – we have delivered
leadership in multi-vendor optimization across the RAN network but also in E2E
data service optimization where throughput issues can surface in either the RAN or
the Core network elements.
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CREATIVE STRATEGY SOLUTIONS TO ASSIST SERVICE COVERAGE
Facilitating solutions that assist service providers
with easier coverage rollout, making it more cost
effective or driving subscriber take-up are also
important aspects of the coverage discussion.
Motorola is driving a number of strategies in terms
of localized solutions, alternative power for cell
sites and service facilitators for lower income
subscribers in emerging markets
Localized Solutions
Motorola is working hard to bring the cost benefits
of localized solutions into its overall GSM
solutions proposition. Motorola Reach Strongbox
is a good example of this. The background for the
solution was the need from the Indian Market to
have a basic cost effective outdoor enclosure.
Working with the local operations of an
international engineering company the Motorola
Reach Strongbox specification has been created.
Once commercially launched the specification will
be evolved further for other markets, for example
China where the temperature range requirements
are different, again using in country support.
Motorola Reach Strong-box
is an example of a local
sourcing approach
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Flexible power options
Utilizing the full range of modern methods for powering cell sites increases the
flexibility that service providers have on where the cell site is located and provides
sustainable cost effective power sources for the site. Issues, such as high grid
connection costs and the unreliability of commercial power mean that well designed
alternatives with battery backup, diesel/bio-diesel, LPG, solar and wind are all
flexible options. It is worth noting that in some markets a high proportion of sites are
autonomously powered from a generator. This drives the business case for highly
fuel efficient cell site solutions. The combination of solar and wind is very promising,
an integrated design of renewable power could enable the system to charge reserve
batteries and also provide active power to drive the cell site during daylight hours.
Transmission options
Motorola can offer a range of transmission backhaul options for cellular networks
depending on local requirements including Motorola Canopy™, microwave and IP
satellite. The very cost effective Motorola Canopy solution has now been deployed
as GSM backhaul and tested successfully. Motorola Canopy backhaul solution can
support point to point transmission with capacity equivalent to 4 E1 connections. It
can provide cost savings of up to 30% for the service provider compared to
traditional microwave PDH based transmission.
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The Motorola C113 has all the
features you can depend on,
without putting a dent in your wallet
Shared networks and roaming
One option for service providers looking to minimize rollout costs in the early days of
subscriber development is to do rollout on a regional basis and then have
corresponding network sharing agreements with a service provider strong in another
regional area of the relevant country or market. This sharing can perhaps be most
practically done with a roaming agreement so that subscribers experience extended
coverage but are still billed through a single service provider.
Roaming agreements can also be useful for capturing valuable international call
revenues for users such as business and tourist travelers coming into the country.
Getting the handset right for emerging market growth
Durable low cost handsets which do not require subsidy by the service provider to
meet emerging market subscriber price points are extremely important particularly
for lower income economies. For the last two years Motorola has successfully won
the contract with the GSM Association to manufacture a range of low cost devices.
The 2006 contract for robust sub-$30 handsets meets the specific needs of
emerging markets, such as longer battery life.
Spreading the use of mobile communication
In India and Africa, Motorola has entered an agreement with SharedPhone™, a
company that supplies a SIM card that allows a subscriber’s personal mobile phone
to be used as a payphone – this enables people who cannot afford the entry level
cost of having their own mobile and subscriber service the opportunity to still have
access to mobile communications to contact family, friends and work opportunities.
It also enables the person who owns the SIM card to add up to US$700 to his or her
monthly income. The SIM card enables the owner of the phone to allocate agreed
airtime to the person wanting to make a call and then automatically cuts off the call
when the airtime expires. The owner of the phone makes a profit on each call made
in this way. Over 500,000 Motorola handsets have been shipped to date with this
feature enabled, with Motorola and Shared Phone™ doing joint promotion
campaigns in several key African markets and India.
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Spreading use of mobile communications
Motorola and SharedPhone working across
Africa
SUBSCRIBER GROWTH
Once mobile service coverage is launched and the service provider starts to get
established in the market - attention will soon turn to increasing network capacity so
that increasing numbers of subscribers can be managed and supported. Please
refer to Motorola’s Reach paper – Voice Capacity in GSM networks for further
information on Motorola’s GSM capacity solutions.
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SUMMARY
Motorola continues its GSM solutions strategy to support both developed and
emerging market growth. With the strong combination of the Motorola Reach
platform and software solutions, service providers can achieve major reduction in
the number of cell sites required to deliver competitive yet quality mobile service
coverage.
Motorola Reach solutions deliver maximum deployment flexibility at low cost,
enabling service providers a rapid time-to-market with all the benefits of wireless
service capability.
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Motorola, Inc.
www.motorola.com/networkoperators
MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and
Trademark Office. All other product or service names are the property of their
registered owners. © Motorola, Inc. 2006
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