March 30, 2011
Based on microwave Total Cost of Ownership (TCO) model posted earlier, the most significant contributor to total cost is ongoing OPEX.
We see an increasing trend of operators making decisions on backhaul solution based mostly (sometimes solely) on price (or initial CAPEX). While initial CAPEX is important, if the goal is lowest cost, this can be problematic approach as initial CAPEX it is not the most significant contributor to total cost. Ongoing OPEX is key.
Perhaps a better approach would be to focus on features most impacting lowering total costs. For instance, adaptive coding and modulation can lower antenna sizes – which can reasonably reduce 10 year TCO by as much as $48,000 (which is 2-3x more than initial CAPEX). Deploying ring architectures with high layer (L2/L3 or packet-based) failure recovery techniques can enable lower per hop reliability and smaller antennas – further lowering costs.
Product Marketing, Aviat Networks
March 16, 2011
When choosing the right backhaul technology, total cost of a microwave system is a critical, often overlooked, consideration. TCO is not widely understood today. Lack of understanding of microwave TCO can lead to poor decisions about choice in backhaul technology and obscure the relative importance of features. Features that lower critical components of TCO are often not given enough attention.
A summary of a TCO model for a mobile operator in North America is shown below. Clearly, ongoing OPEX resulting from tower leases represent largest contributor to total cost. These lease costs include tower space for antennas and cable runs, shelter/cabinet space and power, and ongoing move/add/change fees regularly paid to tower companies. The largest portion of this tower lease is related to the antenna size. Microwave products and features that enable smaller antennas sizes, less indoor space, and fewer cables are most important for operators.
*Note: for private network applications (like state/local governments, public safety organizations, and utilities) who generally own towers, initial CAPEX is often higher, leading to an overall reduction in ongoing OPEX and TCO.
Make sure to check back next week for post #2 ” How Important is Initial CAPEX?” where I breakdown the true costs of initial and ongoing CAPEX.
Product Marketing, Aviat Networks
February 15, 2011
I must have counted nearly 30 vendors during the opening day at Mobile World Congress this year who are promoting some form of wireless backhaul solution. It seems like instead of consolidating the market it continues to expand and fragment like never before. Ten or 15 years ago I thought that the market could not support 20 vendors, but now things are hotter than ever.
There are the big guys (Ericsson, NSN, Huawei, Alcatel Lucent and NEC), the independent point-to-point (PTP) microwave providers like Ceragon (newly merged with Nera) and SIAE from Italy (part of the STM Group), to a myriad of small guys from all over the world. And then there are the other wanna-be backhaul solutions, like point-to-multipoint (PMP), free space optics (FSO), mesh, E-Band, etc.
There are also a slew of new products announced and on display (including two from Aviat Networks), including Ericsson, Ceragon, Trango, Comba and NEC. A lot of these new products are IP based and primarily all-outdoor, reflecting the ongoing trend in the industry for ‘zero footprint’, packet microwave systems for new 4G/LTE base station deployments.
With all of these players and products coming to market each year at Mobile World Congress it’s a must see event and I can’t wait for the next few days to unfold.
Director of Marketing, Aviat Networks
January 26, 2011
Here at Aviat Networks we are focused on everything that is wireless transmission. With so much happening in the wireless industry, we wanted to join in the conversation and share our experiences and insights on the trends, technology, and business.
If you are reading this inaugural blog post it is likely we have a lot in common. While the main purpose of this blog is to talk about wireless transmission, we will also cover topics such as network evolution, software usability, services, and more.
Our initial blog posts will cover topics leading up to Mobile World Congress 2011. Over the course of the next three weeks, we will offer timely coverage and video excerpts from the show to keep you up-to-speed on the latest and greatest.
We encourage you to be part of the conversation since just hearing from us would be like having a conversation with ourselves. New viewpoints and constructive feedback are always welcome and we looking forward to hearing from you!
The Aviat Networks Team