Posted: 02/1999
It Takes More Than Equipment to Run a Broadband Wireless Network
By Volker Tegtmeyer
For carriers just entering the highly competitive local exchange market, one of the most significant challenges is delivering broadband services over the "last mile" to the customer premise. Because incumbent carriers control the vital local loop, competitive local exchange carriers (CLECs) hoping to capture market share obviously need an alternative way to provision services--particularly high-speed data/Internet access--quickly and cost-effectively. Furthermore, if they intend to expand beyond their initial footholds in the local exchange, these new market entrants need service-provisioning technologies that scale easily as the customer base grows.
| The inherent flexibility of wireless broadband enables a competitive local exchange carrier (CLEC) to deliver service precisely where and when each customer requires it, simply by deploying infrastructure quickly to targeted customer sites. |
More and more CLECs are betting that wireless broadband systems are the most effective way to penetrate the market and sustain growth. That appears to be a fairly safe bet. However, exploiting the full potential of wireless broadband, both to satisfy end-user requirements and obtain a competitive edge in the market, requires a lot more than simply deploying radio equipment and rooftop antennas. Many CLECs that have opted to deploy wireless broadband networks are looking to their equipment vendors to supply not only the "boxes" but a lot of added value as well, particularly systems-integration expertise.
A Double Challenge
Wireless broadband technology enables CLECs to meet challenges on both the end-user and operational sides of the equation. On the customer side, business organizations require a greater mix of services than ever before, especially when it comes to high-speed data communications and Internet access. Not only do they want more, better and faster services, they also want those services to be available when and where they need them, for branch offices as well as headquarters. Furthermore, because of their own budgetary constraints, customer organizations demand competitively priced, reliable switching and transport of their applications.
On the operational side, CLECs know they must deploy a broadband infrastructure that can support a complete portfolio of data, video and voice services. Second, that infrastructure must be future-proof, one that not only scales easily for incremental growth, but also allows for cost-effective integration of new technologies. Third, the broadband infrastructure must enable CLECs to minimize their operational costs; in today's ultracompetitive market, the most successful service providers are the low-cost service providers.
Wireless broadband technology is suited ideally to both customer and CLEC requirements. Using radio equipment operating in the 28 gigahertz (GHz) and 38GHz frequencies and rooftop antennas, CLECs can respond quickly, easily and cost-effectively to customer needs. The inherent flexibility of wireless broadband enables a CLEC to deliver service precisely where and when each customer requires it, simply by deploying infrastructure quickly to targeted customer sites.
In addition, customers receive the same quality and reliability from wireless broadband that they receive from fiber optic technology. Operating at fractional T1 speeds up to OC-3 (155 megabits per second [mbps]), wireless broadband supports everything from high-speed Internet access and data transport to voice and video applications. Furthermore, unlike such competing technologies as 56 kilobits per second (kbps) modems, cable modems and asymmetric digital subscriber line (ADSL) technology, wireless broadband systems operate at symmetrical speeds, assuring customers high speeds both upstream and downstream.
Finally, wireless broadband enables customers to control their communications costs better. Because a CLEC using wireless broadband asynchronous transfer mode (ATM) technology can provision bandwidth on demand, customers pay only for the bandwidth they need, rather than having expensive bandwidth sitting idle during off-peak hours.
Reduced Costs, Faster Return
From the CLECs' operational perspective, wireless broadband, compared with fiber optic systems, requires a smaller upfront expenditure--the rooftop units and a single switching hub that serves multiple customers. In addition to not wasting the CLECs' investment, wireless broadband can deliver a rapid return.
Consequently, a CLEC can enter the market quickly, provide service precisely tailored to customer needs and easily configure the network for low- and high-capacity areas. This kind of cost control and flexibility contrasts starkly with the time and money required to dig up streets and install fiber optic systems, all in the hope that enough customers will sign up to deliver an eventual return on that investment.
As the customer base grows, the CLEC can install remote switching units to accommodate increases in traffic volumes. In addition, a wireless broadband system configured for point-to-multipoint service offers the CLEC further economies of scale. Rather than dedicating hub equipment to a single customer--a requirement in point-to-point configurations--the CLEC can serve multiple customers through common hub-site equipment. Such configurations also enable the CLEC to respond even more cost-effectively to multiple customers' bandwidth requirements.
In addition to flexibility and scalability, wireless broadband systems feature lower network maintenance, management and operating costs than other types of technology. The combined characteristics of wireless broadband enable the CLEC to position itself as a value-added and cost-effective service provider right from the outset.
Beyond the Box
Many CLECs understand that deriving the maximum benefits of wireless broadband for their customers and themselves depends on vendors' ability to deliver added value. More and more CLECs are evaluating potential vendors not only for the quality and reliability of their wireless broadband product portfolios, but also for their expertise and resources in other areas. In addition to radio frequency (RF)-engineering and site-evaluation capabilities, many vendors offer systems-integration expertise and knowledge of international standards and regulations.
By relying on the vendor's expertise rather than outsourcing such activities to a third party, the CLEC can simplify system installation and integration. Further, such added value from the vendor gives the CLEC even more cost control.
Graph: Wireless Broadband Point-to-Multipoint Solution
Given that the wireless broadband system comprises only the access portion of the customer's network, a CLEC should expect the vendor's help in interfacing that system with the interexchange carrier's (IXC's) backbone network. The vendor also should be able to help integrate the wireless broadband system with the CLEC's legacy back-office systems, including provisioning, accounting and billing. Despite the fact that IXCs and back-office system vendors use standard specifications, there are different ways to implement every standard.
As a result, a CLEC should make sure its wireless broadband vendor can develop test plans, based on the CLEC's actual network, to isolate potential failures and determine the source of the problem--whether it is the IXC's equipment, a switch, a multiplexer or even a legacy application.
Speaking of applications, a CLEC should expect help from the vendor in integrating those as well--and that means vendor experience not just in wireless technology but in voice, data and video. If, for example, the CLEC wants to offer voice service over ATM, the vendor should be able to assist in making sure the voice equipment works with the ATM equipment. The vendor also should be able to help choose the appropriate parameters, such as quality of service (QoS), on the ATM switches.
Eventually most CLECs will at least touch, if not participate directly in, international markets. Certainly many of their customers will have overseas facilities that require international voice and data services. Thus, CLECs deploying wireless broadband networks should expect added value from their vendors in this area, too.
For one thing, the vendor should be familiar with variations between standards as defined by the Amer-ican National Standards Institute (ANSI) and the European Telecom-munications Standards Institute (ETSI)--and have experience in implementing both.
By capitalizing on the vendor's in-place support structure and regulatory knowledge, a CLEC can shorten its learning curve, maintain cost controls and ensure that wireless broadband technology can satisfy customers' domestic and international communications requirements.
Volker Tegtmeyer is senior market development consultant, Siemens Information and Communication Networks Inc., Boca Raton, Fla. He can be reached by phone at +1 561 955 6145, or by e-mail at volker.tegtmeyer@icn.siemens.com.
