Preparing for 5G: The vital role wireless backhaul technologies will play in supporting next-generation connectivity
These will arise partly as a result of the Internet of Things (IoT), which looks set to dramatically impact the industry’s approach to 5G. Cisco have predicted that there could be as many as 50 billion connected devices by 2020, and demands from these applications will be very different to the handset/smartphone-oriented experience gained in 3G and 4G. As such, these requirements are not currently well-understood, making it vital that the industry develops a greater understanding of the anticipated 5G ecosystem before its introduction. Only by gaining this insight will it be able to ensure it is developing the backhaul technology and business models to support its success.
Introducing next-generation capabilities to existing backhaul networks
Current operator networks, built for voice and data transport, are already creaking under the weight of mobile data traffic. This is set to be compounded by the surge in connected devices, which will put further strain on already struggling networks. However, despite this strain, operators are unlikely to invest in wholly new networks to carry IoT traffic. The revenue stream created by this multitude of low power, low cost devices—while attractive—will not justify such an investment.
Finding a way to re-use and extend existing network and backhaul capabilities to ensure every bit of data can be delivered at the lowest possible cost, will therefore hold the key for operators looking to roll out 5G networks. To achieve this, operators must not only ensure their backhaul is meeting capacity demands, but lowering total cost of ownership (TCO) to create a profitable business case.
We’ve seen through our own work, in providing backhaul for seven of the world’s top ten largest operators, that efficiency and performance is of paramount importance; 5G will be no different. Although fibre backhaul is the logical choice for certain use cases, wireless is still the world’s most common—and most cost-effective—backhaul technology. Greater cost efficiency, faster deployment times and increasing capacity will see wireless maintain this position, so it will be vital 5G can integrate seamlessly into this existing infrastructure.
The most common wireless networking paradigm overall has become point-to-multipoint (PMP) due to its ability to provide very cost-effective coverage. For example, mobile base stations aggregate traffic from multiple consumers to a single base station radio; similarly a single Wi-Fi hot-spot is shared amongst multiple terminal devices; both are examples of multipoint systems. The increased number of base stations and hot-spots needed to support 5G, and the smaller footprint each will serve, make PMP more attractive not just for the access network but also in the microwave backhaul segment. PMP is therefore forecast to further gain market share from point-to-point for this application.
A single PMP microwave hub provides multiple sectors of coverage that can each backhaul multiple base stations and hot-spots, meaning it offers a more cost-effective and scalable strategy. Operators using PMP microwave can make significant cost savings on equipment and installation compared to PTP or fibre, whilst quickly rolling out the high capacity services demanded by 5G across a wide area. This innovative approach not only creates TCO savings of up to 50 percent compared to fibre or PTP, providing the ability to maintain profitability in an increasingly competitive market, but also makes the network more flexible and extensible.
Outdoor small cells to play a role
A key component of the growing landscape of 5G looks likely to be outdoor small cells. While there have been limited deployments to date, outdoor small cells will play an important role in providing cost-effective capacity for traffic ‘hot spots’, or those ‘not spots’ that suffer limited or no coverage.
CBNL has seen, in our previous role as Chair of the Backhaul Group for the Small Cell Forum, that the challenges of small cell backhaul have become much better understood and the industry has made great strides in removing barriers to adoption, including advances in technology.
Operators say that two key criteria for small cell backhaul are the ability to integrate with the existing macro layer, and the ability to support rapid deployment. PMP microwave, like CBNL’s VectaStar platform, scores well on these criteria because a small cell’s backhaul can leverage infrastructure already in place to serve existing macro sites. In such a case not only can the backhaul be provisioned very quickly, but the business case is very appealing, because the small cell backhaul runs as a virtual network ‘hosted’ by the macro backhaul network. The latest VectaStar platform offers up to 14.4Gb/s per hub site and can easily accommodate small cells in existing macro backhaul sectors. Simple, scalable and cost-effective approaches such as this will become essential elements to successful 5G backhaul strategies.
Although the pace of adoption for outdoor small cells has been slower than initially anticipated, 5G is expected to build their momentum. In fact, a recent report from ABI Research predicted a 43 percent compound annual growth rate for the outdoor small cell market from now until 2020.
Unlocking networks’ full potential
Despite only being a few years away, much uncertainty still surrounds 5G. What is clear, however, is that the 5G ecosystem will differ from 3G and 4G before it, and operators will need to quickly adapt their business models and strategies to succeed. To achieve this, innovative backhaul solutions such as PMP microwave will be key—not only to address the technical challenges but to also create more scalable and profitable business cases. By combining these benefits with an exceptionally fast time to market, operators can unlock the full potential of their networks and secure future revenues for their business.
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