Spectrum Buzz

By John Celentano, Strategic Marketing, TESSCO Technologies

Seems like radio frequency (RF) spectrum, or lack of it, is a hot topic these days.

Consider the recent buzz on spectrum in the industry.

• AT&T, in addition to owning a large block of 700 MHz spectrum along with its 850/1900 MHz holdings for its cellular network, is willing to plunk down $39 billion to buy T-Mobile USA, ostensibly to gain access to T-Mobile USA’s extensive spectrum holdings across the country. If the deal goes through, AT&T gains T-Mobile USA’s existing 1900 MHz spectrum and more importantly, the 120 licenses of AWS (1.7/2.1 GHz) 20 MHz spectrum for which T-Mobile USA paid $4 billion in the 2006 auction.

• Right behind that, AT&T has offered to buy 22 700 MHz licenses from a rural service provider that operates in parts of Minnesota and Wisconsin.

• Verizon already has started its LTE build-out in the 700 MHz band as an overlay to its existing CDMA 1900 MHz network. The company just announced LTE build-outs in 21 new markets starting in June 2011.

• Sprint with its Network Vision architecture intends to recast its customer access to available spectrum by consolidating its holdings across the 800/900, 1900 and 2500 MHz bands.

• On May 20, 2011, the FCC issued a Public Notice inviting technical input on how to maximize the 2 GHz band for fixed/mobile applications.

• WCAI itself has been vocal in calling for channel allocations that are both wider and contiguous in certain bands such as 2.5 GHz. Such adoption by regulators would make use of this spectrum more “effective and efficient.”

Spectrum translates into bandwidth. More bandwidth means wider channels for carrying information. Wider channels mean faster download speeds that can support a greater array of services: high-speed Internet access, mobile voice, and increasingly, video. And more services simply means greater revenues for the service providers.

Where is all this demand for more spectrum coming from? Quite simply, it comes from the surge in usage of data-intensive smartphones, tablets, and mobile-enabled laptops that is driving demand for any speed, anywhere, any media services. If the carriers are going to deliver, they will need access to more spectrum wherever it can be made available.

Consider what happened when AT&T first released the Apple iPhone. In the beginning, the company was pleasantly surprised at the customer take-rates despite the iPhone’s high purchase price. But then, with literally millions of iPhones coming online in major markets in a matter of months, AT&T began to see its network suddenly bog down as all those data-rich devices tried to get a high-speed connection. Clearly, the company was unprepared for the surge in data traffic usage that iPhones generated. Needless to say, iPhone users were not very happy with AT&T’s performance. So the company embarked on a rapid network upgrade program to expand capacity in both the access network between customers and cell sites, and in the backhaul network that connects cell sites to switching centers. AT&T’s current motivation in scooping up more spectrum likely has as much to do with avoiding future network congestion as it does for providing new data-rich services. In this context, all wireless service providers, whether in metro or rural markets, are facing similar capacity issues.

This situation begs the question: how much investment will be needed to build the network that can handle all this traffic?

Two main factors drive wireless capital expenditures (capex) – the number of wireless devices connected to the network, and the minutes of use (MOUs-voice & data) that each device generates. The number of devices is proliferating when you count smartphones, tablets, mobile-enabled laptops, and growing volume of machine-to-machine (M2M) connections for a host of industrial and commercial applications. And each device is churning out ever-increasing megabits per second of information. Taken together, the data traffic load on the network is expected to grow at high double-digit rates annually with no foreseeable deadline. This means that wireless carriers will book, for some time, significant capex as they expand area coverage and increase data-handling capacity, while beefing up the backhaul network throughput.

In the end, this capex pace and duration will be gated by the amount of spectrum being freed up over the next several years. That will create even more buzz!

WCAI 4G Caucus Kicks Off with Discussions on Spectrum, AT&T/T-Mobile Merger, 4G Migration Strategies

Gerry Salemme, Partner at Eagle River, kicked off the WCAI 4G Caucus this morning with a fireside chat keynote led by WCAI President Fred Campbell. In a lively discussion of the future of mobile technologies Mr. Salemme spoke about the growing data demand and spectrum issues, the AT&T/T-Mobile merger and the chances of its approval, the gaining momentum of LTE and its potential impact on Clearwire and regional players in the 2.5 GHz band, as well as the economy and the availability of investment capital affecting 4G network deployment in the U.S. Mr. Salemme, who is an advisor to the Clearwire CEO on business and spectrum strategy, also clarified the relationship between Clearwire and Sprint, saying that it’s “more cooperative than people expect.”

The opening keynote was followed by a panel on 4G network migration strategies led by one of the most distinguished industry analysts Berge Ayvazian of Heavy Reading. During the panel, experts from Sprint, AT&T, FiberTower and Tessco discussed their views on the transition from 3G to 4G networks, key challenges of the migration the industry faces, and how policy management solutions can help manage the transition.

Still ahead is the day packed with lively discussions and networking opportunities. Iyad Tarazi, Vice President, Network Development and Engineering at Sprint, will speak about how Sprint’s Network Vision is expected to consolidate multiple network technologies into one, seamless network. Following his keynote presentation, Mr. Campbell of WCAI will lead the discussion on adapting regulations to the new realities of 4G technologies. The panel will feature FCC Wireless Bureau Chief Ruth Milkman, along with regulatory experts from AT&T, Sprint, Clearwire and Wilkinson Barket Knauer.

Other program highlights include a keynote from Sybase an SAP Company on real-time actionable intelligence strategies for 4G operators; a keynote from Alvarion on building 4G smart grid, as well as panel discussions on broadband spectrum options for smart grid applications and on fixed wireless innovations.

Wrapping up the first day of the event will be the popular WCAI Networking Dinner at Ruth’s Chris, one of the best steak houses in town.

So if you are not already here, come join us for the exciting day of discussions and networking!

Broadband Stimulus Post-Game Recap

By John M. Celentano, Market Development Manager, TESSCO

Reprinted from Connected Planet

Well, folks, the clock has run out and the Broadband Stimulus Bowl is over. This contest is one for the history books. The Recovery Act set a prize of $7.2 billion for this event with $2.5 billion in the Rural Utilities Service (RUS) Broadband Initiative Program (BIP) and $4.7 billion in the NTIA’s Broadband Technology Opportunity Program (BTOP). BIP funds are intended for broadband access (last mile) network deployments in poorly served or unserved areas. BTOP grants are intended to support comprehensive community infrastructure (middle mile) inter-city, inter-building, and public safety facilities; public computer centers (community entities-schools, libraries and municipal facilities); and sustainable broadband adoption (broadband education and training programs).

Why wasn’t more money allocated to wireless infrastructure? Wireless systems can extend broadband to subscribers over many miles at much lower deployment costs, around $1,500 per subscriber for the access portion (base station and subscriber units). Moreover, wireless systems are easier and faster to deploy than trenching fiber cable over long distances. It appears to be a matter of numbers or maybe less familiarity among the reviewers with wireless broadband, even with many wireless products on the RUS LOM.

BIP budgeted $10,000 per subscriber for FTTH deployments. Most of these projects are in rural areas with lots of wide-open spaces, so deployment costs will be higher than if FTTH were deployed in denser-populated areas. Still, that figure is probably 2-3 times what can actually be done to extend fiber into rural markets.

Comprehensive community infrastructure (CCI)/middle mile BTOP projects are adding significant dark fiber capacity to the national network. While there is a "build it and they will come" feel to some of these projects, if the demand for broadband services continues, that capacity should be burned off at a steady pace. Still, it behooves players on both the last mile and CCI squads to team up to make end-to-end broadband a winner.

Overall, $9.4 billion was designated for 653 projects with $6.6 billion in grants, $1.3 billion in loans, and another $1.5 billion in matching funds. Infrastructure projects took 434 awards, with $5.8 billion in grants and $1.3 billion in loans.

The first half--Round One--was a free-for-all with seasoned veterans almost overrun by a pack of undisciplined, freewheeling walk-ons and free agents scrambling to score a piece of the action. Those that couldn’t demonstrate viable performance were cut almost immediately.

Second half action in Round Two was much more orderly with applicants showing more disciplined approaches and greater technical and economic feasibility.

Team BIP Highlights: A total of nearly $4.0 billion, well above the original appropriation, was awarded in grants, loans, and matching funds to 310 BIP players that include 294 last mile, 12 middle mile, four Satellite Broadband projects and one Technical Assistance grant.

The vast majority, 79% last-mile projects went to wireline plays, either fiber-to-the-home (FTTH) or digital subscriber line (DSL) over copper. A total of 50% of all BIP projects were for FTTH. Another 19% of the plays went to a mix of wireless or hybrid wireless/fiber projects. Wireless-only projects accounted for just 15% of the BIP awards, up from around 5% in Round One.

Team BTOP Highlights: The term “middle mile” was used until Round Two when CCI came into the game, presumably because it applies to projects that involve more than just intercity backbones. CCI applies to backhaul facilities between towns and cities, and interconnecting major institutional buildings and campuses. Over $4.4 billion was awarded to middle mile/CCI projects alone, including $973 million in matching funds. As expected, the majority (83%) of these projects went for fiber technology that is a proven reliable high-capacity technology for inter-city and long-haul applications. Wireless accounted for 10% of BTOP projects along with another 7% that went for hybrid fiber-wireless combos.

A couple of points to note:

First, the referees (reviewers) faced a monumental task in sorting out projects that had merit from those that did not; they did a commendable job.

Second, most BIP awards went to established companies that have a history of borrowing, and repaying, RUS funds. Scores of BIP applicants were turned down flat because they had no track record or because their proposals were not feasible.

Third, fiber projects far outweighed wireless alternatives. This is, in part, because more wireline companies (independent telcos, ISPs, small cablecos) applied for funds. Fiber systems are the safe bet; the technology is stable and the players are established. Fiber equipment manufacturers are well-known, reliable, and have a good performance record. Plus, most of the FTTH products picked for these projects already are on the RUS List of Materials (LOM).

Planning Your 4G Broadband Wireless Network

by John Celentano, Market Development Manager, TESSCO Technologies

There is much to consider when planning a 4G broadband wireless network.

Begin your planning by considering your customer, and asking yourself a few key questions. Who are your target customers -- residences or businesses? What services do you plan to offer to these customers?

With 4G broadband wireless technologies, whether WiMAX or Long Term Evolution (LTE), a service provider can offer a range of Internet Protocol (IP)-based services over very high-speed connections that are not possible with currently available 3G wireless technologies.


Consider the possibilities -- high-speed Internet access for homes and businesses alike, Voice over IP (VoIP), remote video surveillance, public safety and first responders’ unified communications, distance learning with video instruction, medical diagnostics at sites remote from hospitals, and other IP-based applications still to be developed. Will services be delivered to customers in a fixed location, or are they mobile? Fixed or mobile services determine the type of equipment that the customer will need to access the services.

Next, determine the size of your network. How big an area or territory do you plan to cover? How many customers, either homes or businesses, will you cover within this operating area?

To ensure reliable service, the base station transceivers (BTS) must be located to achieve maximum radio frequency (RF) signal coverage. Eradiated power levels and antenna heights determine the transmission quality. Antenna height must be sufficient to clear obstructions, and that height is determined by the terrain. Is it flat with few obstructions, or is it hilly, or even mountainous? Are there many trees and buildings in the way? These days, overcoming obstructions means mounting antennas on wireless towers or other heights such as rooftops, water or utility towers, even steeples.

Locating the BTS and calculating antenna heights are determined through RF propagation and interference studies that take into account terrain, transmit levels, and other radios operating in the same area. On what frequencies will you be transmitting? Are these in licensed or unlicensed bands? Are you going with WiMAX now, or waiting for LTE? This is important. Frequency and technology determine the RF propagation and interference characteristics, as well as data handling capabilities. Licensed or unlicensed operation also impacts the capital investment needed to build the network. Such studies generally are conducted by RF engineering and consulting firms.

Once the BTS sites are located, how will the antennas be mounted? Is there an existing tower or other suitable mounting point nearby that can be leased for the antennas and radio equipment? Or, do you need to construct your own tower? Online tools are available to calculate the necessary type and size of towers to support the antennas. Building a tower, however, means you must also buy land, apply for licenses, and obtain zoning approvals.

The other important consideration is how to “haul” customers’ connections from the BTS “back” to the network switching point. Backhaul circuits can be carried over either copper or fiber cable facilities leased from local wireline service providers. At the same time, owning your own point-to-point microwave systems for backhaul has become a cost-effective alternative to leased wireline circuits.

Once the BTS sites are established, the construction can begin. You will need to buy antennas, broadband wireless radios, cables to connect the radios to the antennas, microwave radios for backhaul, mounting hardware, DC power and backup batteries, and equipment cabinets along with tools and test sets. All of this equipment can be purchased from a variety of vendors, or through a single source provider such as TESSCO. You will need a professional contractor or construction company to do the actual installation.

The final step is to prove the system works as designed. After the BTS sites are activated, RF propagation and interference tests can be performed with spectrum analyzers. Signal quality and strength can be tested at selected locations around the entire coverage area.

Once the network is operational, your task is to market and sell the broadband services that it can support. Certainly, a sound network plan and design will yield profitable revenue streams for years to come.

Featured in The Wireless Journal, January/February 2010. Reprinted with permission from TESSCO Technologies. www.TESSCO.com

Editor’s Note: WCAI members who would like to be featured in the WCAI Member Spotlight section should contact Susan Polyakova at susan@wcai.com.

WCAI Summer Summit Wraps Up with 4G Facility Tours, Internal Meetings

The WCAI Summer Summit wrapped up Thursday with special tours of the Clearwire 4G lab and DigitalBridge Network Operations Center. Officials from both companies met with Summit attendees to share experience with testing network and end-user devices, as well as deploying and operating next-generation networks.

The tours were followed by a semi-annual meeting of the WCAI’s Emerging Markets Committee – a valuable forum for operators to share tips for success and discuss what works and what doesn’t when it comes to running a wireless broadband business. Led by Committee Chair Joel Brick of Sioux Valley Wireless, the meeting featured John Celentano of WCAI member Tessco as a speaker. Also at the meeting, Mary O’Connor and Bob Primosch of Wilkinson Barker Knauer provided a regulatory update on what operators should keep an eye on in the next six months.

“The WCAI Summit provided a great opportunity for our members to reconnect, learn from each other’s experience, and build relationships with potential new partners,” said WCAI President Fred Campbell. “I couldn’t be more pleased with the attendance and the quality of discussions our members had during open sessions and internal meetings. I look forward to seeing everyone again at the WCAI’s International Symposium, which will be co-located with 4G World on October 18-20 in Chicago.”