APPLICATION NOTE - DNX VS.

M13
Optimization of the Radio Access Networks
as Mobile Carriers Migrate to 3G
A White Paper
 APPLICATION NOTE - DNX VS. M13
Table of Contents

Executive Summary ............................................................................................................................. 3

Introduction ....................................................................................................................................... 3

Mobile Industry and Challenges .......................................................................................................... 4

Market Trends .................................................................................................................................... 4

Increased Traffic and the Need for More Capacity .................................................................................... 4

Moving to 3G – A Multi-Phase Process ................................................................................................. 4

Lack of Remote Management and Monitoring .......................................................................................... 5

Radio Access Network – A Critical Cost Component .............................................................................. 5

3G Deployment and Architecture .......................................................................................................... 5

Unused Bandwidth ............................................................................................................................. 6

Lack of “Groom and Fill” Capabilities ................................................................................................... 6

Backhaul Links and Physical Ports at the MSO from Multi-Generation Networks ............................................. 6
Inventory Management and Tracking of Backhaul Circuits .......................................................................... 6

BSAG – Revolutionary Mobile Access Solution ........................................................................................ 7

Major Savings Using Eastern Research’s BSAG Solution ......................................................................... 7

Conclusion ........................................................................................................................................ 8

Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G 2


Executive Summary
The wireless and mobile computing segment has
shown modest growth and continues to make news
despite the recent economic downturn in the telecom
and Internet industry. Third Generation (3G) mobile
networks seem to be the “holy grail” that everyone
from consumers to carriers to applications vendors is
pursuing in terms of the mobility, “always on” and
access to any application - anytime, anywhere.
While wireless operators are getting ready to deploy
next generation networks (2.5G and 3G) in these
difficult times, they are cautious about new capital
spending. The ROI for new capital investments,
leveraging and sharing existing infrastructure and
personnel, and reducing operational costs without
sacrificing the quality of service are issues of concern.
However, most of the focus has been on new capital
spending, and not necessarily on optimizing the key
operational cost components of the network.
This white paper examines several challenges faced by
the mobile industry as it transitions from 2G to 2.5G
to 3G networks. These challenges are common to all
carriers, regardless of their adopted network standards
Introduction
Wireless Internet, mobile commerce and related
technologies continue to dominate the headlines of
the industry trade press in 2002. In spite of the
current economic downturn in the telecom and
Internet industry, it appears that wireless and mobile
computing advances have emerged as one of this
decade’s hottest technologies.
Third Generation (3G) mobile networks are rapidly
becoming a reality and, for most carriers, the road to
3G is a journey worth taking. New multimedia
phones and the convergence of new applications
Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G
APPLICATION NOTE - DNX VS. M13
(GSM, TDMA, CDMA or iDEN) or the direction they
are taking in terms of their future networks (2.5G or
3G). One area of significant operational costs that is
often ignored is in the radio access networks, where
transmission facilities are used for backhauling traffic
from the base stations to a central location.
Eastern Research has developed a variety of mobile
wireless solutions that focus on the optimization of
the wireless networks of today and tomorrow at the
base station locations, as well as at the mobile
switching centers. These solutions from Eastern
Research pay for themselves within months, as the
wireless carriers realize immediate cost savings by:
• Optimizing radio access network backhaul
transmission facilities
• Managing and better utilizing the existing leased
transmission facilities
• Eliminating costly truck-rolls through remote
system management
• Reducing capital expenses as new network
elements are deployed.
represent huge and exciting potential. Not surpris-
ingly though, technology’s promise is as significant as
the enormity of its technical problems and business/
financial challenges.
While preparing for 3G and the onslaught of new
applications, wireless operators are cautious about
new capital spending. The return on investment
(ROI) for new capital investments, leveraging and
sharing existing infrastructure and personnel, and
reducing operational costs without sacrificing the
quality of service (QoS) are issues of concern.
3

Mobile Industry and Challenges
Market Trends
According to the Strategies Group, there will be
one billion wireless subscribers worldwide on 3G
networks by 2010. As of January 1, 2000, the
worldwide penetration of wireless service was
approximately 7½%. Penetration will exceed 32% on
a global basis in the first decade of the new millen-
nium1. The Universal Mobile Telecommunications
System (UMTS) Forum, the industry consortium
striving for common standards for 3G networks,
predicts that over the long term, services enabled by
3G technologies will represent a substantial market
opportunity of $320 billion in 2010. Of that amount,
$233 billion will be generated by new 3G services as
shown in Figure 1.
$350,000
Simple Voice
300,000 Rich Voice
Location-Based Services
Service Revenues ($M)
250,000
Mobile Internet Access
Multimedia Messaging Service
200,000
Mobile Intranet/Extranet Access
Customised Infotainment
150,000
100,000
50,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Figure 1. Worldwide Demand for 3G Services by Revenue
Increased Traffic and the Need
for More Capacity
To accommodate the tremendous growth in subscrib-
ers and traffic, mobile wireless operators worldwide
have invested billions of dollars into improving
network coverage, quality of service, and the
delivery of new wireless data services. Despite this
increased spending, these operators are rapidly
exhausting the capacity on their existing networks.
Not only must they offer new services, increase
average revenue per unit (ARPU), and increase the
capacity of their networks in order to remain
competitive, but they must upgrade to 3G networks
from their existing second generation and, in some
cases, even first generation mobile networks. To
accomplish this, operators have a choice of strategies.
They can either upgrade and adapt their networks
utilizing existing infrastructure and radio frequencies,
or deploy new technology and add to their current
network infrastructure.
Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G
APPLICATION NOTE - DNX VS. M13
Moving to 3G – A Multi-Phase Process
Where 3G networks are late to arrive, as in the
United States, GSM and TDMA operators are
considering deploying General Packet Radio Service
(GPRS) or Enhanced Data for Global Evolution
(EDGE). This technology, referred to as 2.5G, acts as a
stepping-stone towards the 3G networks and offers
higher data speed for wireless Internet and enterprise
applications over existing networks with a few
modifications. Similarly, CDMA operators are
deploying CDMA 1x RTT2 before migrating fully to
CDMA 2000 (3G standard). When compared to the
costly investment required for full 3G network
deployment, 2.5G network upgrading requires only a
minimal investment and allows reuse of the 2.5G
equipment when migration to 3G occurs.
Multiple Standards and Mixed Networks
Today, most carriers around the world manage
increasingly complex network architectures consist-
ing of a variety of standards and multi-vendor
equipment. For many carriers, overlay networks are
common, or a collage of diverse networks that have
been inherited through past mergers or acquisitions.
To realize operational efficiencies and revenue
savings, these carriers must aggregate or combine their
networks and optimize their operations.
More Base Stations
to Cover Existing Footprint
3G technologies use higher frequency than the 2G
networks to transmit and receive information.
Consequently, each base station has a much shorter
range or smaller coverage area. It is generally agreed
that 3G networks require four to five times as many
base stations to get the same coverage as the 2nd
Generation networks. Also, the greater the
number of subscribers and higher the data rate, even
more base stations are needed to cover the same
geographical area.
1 Cahners In-Stat Group
2 Broadband term for the initial phase of 3G for CDMA; uses existing CDMA
protocols, but incorporates faster signal processing to get more bits over the
air; this results in speeds of 144 Kbps using the same 1.25 MHz channel.
4

Lack of Remote Management
and Monitoring
With network expansion and overlay networks, there
are many more new network elements that increase
the complexity of monitoring and managing them.
Also, there are many non-network elements, such as
access doors, air-conditioning equipment, temperature
and humidity control, and lighting at the tower/base
station, that typically lack central alarm reporting and
remote management capabilities. In most cases,
problem identification would require technicians to
be physically present at the base station/tower.
Radio Access Network – A Critical Cost Component
3G Deployment and Architecture
According to a recent Yankee Group report, European
carriers are expected to spend approximately $274
billion in the next five years to upgrade their net-
works for 3G services. In the United States it is
expected that 2.5G and 3G upgrade expenditures may
exceed $100 Billion; in Asia, $50 Billion. The report
also predicts that adoption of 2.5 GPRS services will
increase by the end of 2002 and that 3G services will
be widespread in Europe and North America by the
end of 2004.
Telecom Media Networks, the industry practice of
Cap Gemini Ernst & Young, estimates that a signifi-
UTRAN and
Access Transmission
5
0
% 2
5
%
Core Network and
Service platforms
NEW ENTRANTS
UTRAN and
Access Transmission 40
% the RAN portion is a new base station component
40
20 % called the Node B, which performs the same function
%
Core Network and
Radio and site
Service platforms
Figure 2. Breakdown of 3G Deployment Costs
Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G
APPLICATION NOTE - DNX VS. M13
Network Optimization
Since network expansion and its accompanying
upgrades is very capital intensive, operators are
compelled to find new cost-saving measures to reduce
both capital and operational expenses. Most of these
measures are focused on leveraging existing
equipment and optimization of the frequency
spectrum to increase capacity and coverage.
Backhaul transmission costs are usually the most
expensive component in the Radio Access Networks
(RAN). These costs are recurring in nature and are
charged on a monthly basis. More backhaul facilities
are added to accommodate increasing traffic at the
existing cell locations and at the new base station
locations. In seeking cost-saving solutions, the RAN
portion traditionally has been ignored.
cant portion of these deployment costs is for the
access transmission and related UTRAN equipment.
This can be as much as 50 percent for the incumbents
and 40 percent for the new 3G entrants. The cost
breakdown of 3G deployments is shown in Figure 2.
Two areas where significant operational savings can
be achieved are:
(i) Optimization of the radio access network, or
back-haul transmission facilities between the
base station and the BSC/MSC complex
(ii) Remote monitoring and management of the
equipment at the base station to reduce “truck
rolls”
To better understand the technical challenges and
economics associated with the proposed measures
INCUMBENTS
requires an explanation of the radio access network
and its transition to 3rd Generation.
5
%
Radio and site
3G network architecture is very similar to that of 2G
networks, except for a few new network elements in
the core network to accommodate the packet data. In
as the Base Station Transceiver (BTS). The Remote
Network Controller (RNC) replaces the Base Station
Controller (BSC). The traffic from the BTS to the
5

BSC/MSC in the 2.X generation networks is typically
carried over TDM-based circuits. With the 3G
networks, the traffic from the Node B to RNCs is
ATM-based (with UMTS R99 specifications) or IP-
based (with R4/R5 specifications). For both 2.XG and
3G, these backhaul circuits are usually T1 or E1 lines
leased for a monthly fee from the local exchange
carrier (LEC), or the mobile operators’ own micro-
wave facilities.
Early and short term 3G implementation collocates
3G Node Bs with 2G base stations (BTS) at the same
cell location or the tower. In some cases, there may
also be the BTS from the 1st Generation (analog)
network at this site. This may result in three distinct
and separate backhaul networks to carry traffic from
each generation of the network. This situation
presents the operators with a few economical
opportunities.
Unused Bandwidth
Most of the T1 or E1 backhaul circuits from the base
stations are not fully utilized and the TDM-based
backhaul circuits for both 1G and 2.XG networks lack
the statistical multiplexing capabilities inherent in
data networks like ATM or IP. Also, TDM-based
circuits do not allow for any sort of over-subscription
to handle the burstiness of data traffic.
Lack of “groom and fill” capabilities
Most base station equipment, including 3G Node Bs,
does not have any type of “groom and fill” feature
(typically found in digital cross connect products)
which would splice different DS0s from different
T1s or E1s and pack them into fewer T1s or E1s.
Backhaul Links and Physical
Ports at the MSO
With the worldwide mobile subscriber base growing
and the use of bandwidth intensive data applications
increasing, more and more T1 and E1 circuits will be
required to backhaul the traffic from 3G Node B base
stations. A high number of lightly loaded T1 or E1
backhaul circuits is not only cost-prohibitive, but also
consumes an enormous number of T1 or E1 ports on
the Base Station Controller or the RNC. These are not
only very expensive, but require large amounts of
physical space (footprint) at the MSO or central sites.
Therefore, aggregating and optimizing these backhaul
circuits to higher speed T3/E3 or OC-3/STM-1
circuits may result in significant savings.
Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G
APPLICATION NOTE - DNX VS. M13
Backhaul Links from Multi-generation
and Multi-standard Networks
Most operators realize that multiple overlay networks
will likely coexist for several years in order to provide
adequate coverage as new networks are deployed and
to recoup investments made in the previous genera-
tion networks.
In the midst of migration to 3G networks, many
operators are considering a full swap out of their
networks from one standard to another prior to the
deployment of 3G networks. Recently, AT&T
Wireless and Cingular announced their intentions to
fully transition their TDMA network assets to GSM
networks, prior to the deployment of GPRS/EDGE
(2.5G) and ultimately to UMTS 3G networks.
According to AT&T Wireless, its network is an
overlay GSM/GPRS on top of its TDMA footprint.
GSM/GPRS was deployed in markets representing 45
percent of its POPs by the end 2001. More TDMA
carriers in the world may follow Cingular and AT&T
Wireless in their quest for 3G networks.
These overlay networks exacerbate the backhaul
situation as discussed earlier. Operators have to
maintain lightly loaded T1/E1s from as many as three,
sometimes four, distinct types of base station
equipment. The need to optimize the backhaul
networks is more critical than ever before.
Inventory Management
and Tracking of Backhaul Circuits
A wireless operator, who typically has thousands of
cell sites, faces an operational challenge of managing
multiple T1/E1 circuits leased from the LEC or the
PTT. The carriers’ Network Operations groups have
the daunting task of ordering, managing, tracking and
reconciling these circuits for billing purposes. In
many cases, a small portion of the T1/E1s that get
ordered and provisioned are never connected to any
base station equipment. As a result, carriers have no
mechanism to automatically track what these
provisioned circuits are connected to and compare
that to the billings received from the LECs.
6

BSAG – Revolutionary Mobile Access Solution
To address the challenges faced by the mobile service
operators with their radio access network, Eastern
Research has developed a scalable Base Station Access
Gateway (BSAG) solution.
The DNX Series of products from Eastern Research
combines the capabilities of a 3:1 DACS, 1:0 DACS
and an Integrated Access Device, all in a scalable and
highly reliable NEBS-compliant platform. The DNX
Series can be cost-effectively deployed from the
smaller cell sites to larger hub sites and MSOs to
enable a wireless service provider to simplify
operations management, decrease circuit-provisioning
time, and reduce costly backhaul charges. The DNX
can be configured to support from up to 8 T1/E1s at
smaller locations to as many as 88 T1/E1s, simply by
adding application modules to the chassis. It can scale
to over 600 T1s or 500 E1s by stacking units in a
rack. The DNX also supports multiple DS-3 or E3, and
OC-3 or STM-1 interfaces.
Eastern Research’s BSAG solution is agnostic to the
wireless standards used in the 2nd Generation
networks such as TDMA, GSM, or CDMA, or the
2.5G overlay technologies such as CDMA 1x RTT,
GPRS and EDGE, or the 3rd Generation using UMTS
or CDMA 2000 standards. With the BSAG solution,
wireless operators can merge traffic from different
backhaul access circuits on to a single, higher speed
backhaul connection as shown in Figure 3.
1
Primary and
1 Redundant Links
X-
DN
O T1/E1
MS -4
DNX
T1/E1
T1/E1 or T3/E3 or OC3
T1/E1
Figure 3. Multi-stage Aggregation using Eastern Research’s BSAG Solution
Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G
APPLICATION NOTE - DNX VS. M13
The DNX product line provides benefits to wireless
operators in the following applications.
• Both the existing and newer 2.5G or 3G networks
must reside side-by-side until all the customers
can be transitioned. Consequently, the wireless
provider must backhaul two or three different
networks to the MSO. With the DNX Series 1:0
and 3:1 grooming function, multiple services can
be backhauled on a lesser number of circuits or on
to a higher speed circuit.
• Using the DNX Series, at the central hub sites
traffic from multiple remote BSAGs is aggregated
and handed off to the switch at the MSO. This
not only reduces the cost of backhaul trunks, but
also eliminates a large number of lower-speed
physical ports on the switch, which are expensive
and consume rack space.
• The DNX architecture is virtually future-proof
through its interchangeable software to support
TDM, ATM or IP for different generations of the
networks that may coexist for years to come.
• The DNX can integrate other applications at the
cell site such as Cellular Digital Packet Data
(CDPD) and RF fingerprinting. CDPD is a legacy
wireless data service and RF fingerprinting is used
for authentication and to block fraud. They are
typically backhauled on separate backhaul
circuits. The DNX BSAG solution can aggregate
and groom these circuits along with the base
station traffic.
1 u CELL SITE
X- Base Station
DN
T1/E1
T1/E1
T1/E1
CELL SITE
CELL SITE
Base Station
Base Station
CELL SITE
T1/E1 Base Station
CELL SITE
Base Station
CELL SITE
Base Station
7
 APPLICATION NOTE - DNX VS. M13
• For those cell sites that have upgraded to Ethernet
LANs to more efficiently transport data traffic, or
to manage different network elements located at
the cell site, the DNX provides visibility and CELL SITE
access to those elements for management T1/E1
Base Station

purposes through its router hub module set. BSC/RNC/MSC

CELL SITE
Base Station
• Building equipment and alarms (such as access
1u
door, air-conditioning, lighting, etc.) at the O X-
MS DN T1/E1
base station can also be monitored via
the alarm sensors on the DNX Series. Alarm
Sensors
SNMP alarms are generated from N
Ethernet
IO
Network RF AT
these alarm contacts, which can be ST
Data
Management E911

easily integrated into broader

Console
SE
BA
network management systems, as
Figure 4. Remote Management of Base Station System
shown in Figure 4.

Major Savings Using Eastern Research’s BSAG Solution

Below are examples of the savings that wireless
operators can realize by installing Eastern’s BSAG
solution.
Backhaul Savings
Assumptions: A typical cell site has two or three
generations of base station equipment, as well as
some legacy equipment such as a CDPD switch, from
which traffic is backhauled on separate circuits. On
an average, 1 T1/E1 may be used for analog networks;
1 to 2 T1/E1s for 2G; another 2 to 3 T1s for 2.5XG or
3G; and a few DS0 circuits for CDPD and other
applications at the cell site.
Most of these circuits are lightly loaded. By using the
BSAG solution, in most cases the traffic can be
groomed onto 3 or 4 T1/E1 circuits, instead of 4 to 6.
This saves at least one T1/E1 circuit, possibly more.
The annual savings on the leased circuits could range
from $6,000 to $12,000 per cell station.
Physical Port Savings at the MSO
Assumptions: Based on the previous example, to
terminate all of the traffic from two or three genera-
tions of base station equipment may take as many as
6 physical T1 or E1 ports on the switch at the MSO.
Using the DNX Series solution, traffic from multiple
BSAGs at the cell sites can be aggregated to a higher
speed DS-3 or OC-3 speed connection. The capital
savings on the BSC/RNC/MSC can amount to as
much as $2,800 per cell site supported, by capping the
expansion of lower speed ports and using higher speed
physical ports. These capital savings, combined with
the monthly savings on the leased facilities, pay for
Eastern’s BSAG solution from day one.
Operational Management Savings
Assumptions: Using the DNX Series, mobile operators
can minimize the need for the technicians to physi-
cally travel to cellular base stations in the event of a
problem. There are many situations where certain
service-affecting problems can be attended to by
remotely accessing the system elements at the cell
station and not having to dispatch a technician.
Based on the metric of one such problem each month
for each cell site, savings of as much as $4,200 per
year per cell site location can be realized factoring in
the truck-roll, travel time, and miscellaneous costs
associated with dispatching a technician.
These are hard savings and do not include other “soft
savings” such as lost revenue minutes incurred while
the technician is traveling to the cell site during a
service outage. Nor does it include lost revenue from
a churned, dissatisfied customer.

Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G 8


Inventory Tracking and Billing Reconciliation
Assumptions: Assume that a wireless carrier has
10,000 cell sites. A typical cell site may have two or
three generations of base station equipment and may
use an average of 4 to 6 T1/E1s per cell site location.
This amounts to 40,000 to 60,000 T1/E1s that need
to be managed, tracked and reconciled for billing
purposes. Assume that 2% of these T1/E1 circuits
become “orphans” in the network without ever
getting connected to the base station equipment.
APPLICATION NOTE - DNX VS. M13
Based on an average monthly fee of $500 per circuit,
the savings for the operator could be as much as $4.8
Million. Conversely, these costs could be eliminated if
determined that the “orphans” are not needed.
Using Eastern Research’s BSAG solution, every
backhaul circuit can be tracked centrally providing
accurate records for reconciling the billings from the
Telco.

Conclusion
Using Eastern Research’s BSAG solution to aggregate
all traffic from different base stations to the BSC/
RNC/MSC sites over a higher speed connection,
mobile operators can match the backhaul circuit to
the traffic load.
At the BSC/RNC/MSC locations, without the BSAG
solution, these low-speed backhaul circuits consume
expensive BSC/RNC ports at T1 or E1 level. Aggregat-
ing multiple T1/E1 circuits on to high speed DS-3 or
OC-3 connections is much more cost-effective than
adding new blades or expanding the common
equipment in the BSC/RNC/MSC.
By combining multiple T1/E1s on to a single connec-
tion, service providers can achieve operational
simplicity in terms of managing one versus many
connections. With the added capabilities of remote
monitoring and management, wireless operators can
eliminate truck rolls thereby minimizing the opera-
tional costs.

Eastern Research Inc.

225 Executive Drive, Moorestown, NJ 08057 USA
tel: 856-273-6622, fax: 856-273-1847
info@erinc.com, www.erinc.com

About Eastern Research

Eastern Research Inc., an ISO 9001 certified company, designs, manufactures, markets, and supports the DNX Series
of Multiservice Access Concentrators and Base Station Access Gateways, the TAS line of Test Access Systems, and a
broad line of Internetworking and Tech Control products. Eastern’s carrier-class solutions enable service providers
worldwide to reduce operational infrastructure costs while increasing network reliability and service.
The company’s mission is to become the leading global supplier of Access Concentration, Grooming and Test Access
technology to incumbent and emerging wireline and wireless service providers.
© 2002 Eastern Research Inc.

Optimization of the Radio Access Networks as Mobile Carriers Migrate to 3G 9