Broadband Wireless Communications Business

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3 Broadband Wireless Communications Business

5 Broadband Wireless Communications Business An Introduction to the Costs and Benefits of New Technologies Riaz Esmailzadeh IPMobile Inc., Japan

6 Copyright 2006 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) (for orders and customer service enquiries): Visit our Home Page on All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or ed to permreq@wiley.co.uk, or faxed to (+44) Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The Publisher is not associated with any product or vendor mentioned in this book. All trademarks referred to in the text of this publication are the property of their respective owners. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Other Wiley Editorial Offices John Wiley & Sons Inc., 111 River Street, Hoboken, NJ 07030, USA Jossey-Bass, 989 Market Street, San Francisco, CA , USA Wiley-VCH Verlag GmbH, Boschstr. 12, D Weinheim, Germany John Wiley & Sons Australia Ltd, 42 McDougall Street, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01, Jin Xing Distripark, Singapore John Wiley & Sons Canada Ltd, 22 Worcester Road, Etobicoke, Ontario, Canada M9W 1L1 Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Esmailzadeh, Riaz. Broadband wireless communications business : an introduction to the costs and benefits of new technologies / Riaz Esmailzadeh. p. cm. Includes bibliographical references and index. ISBN-13: ISBN-10: Information technology Economic aspects. 2. Telecommunication Economic aspects. 3. Broadband communication systems. 4. Wireless communication systems. I. Title. HC E dc22 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN (HB) ISBN (HB) Typeset in 10/12pt Times by Laserwords Private Limited, Chennai, India. Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire. This book is printed on acid-free paper responsibly manufactured from sustainable forestry in which at least two trees are planted for each one used for paper production.

7 To Izumi, Amin Asad, and Kian

9 Contents List of Figures List of Tables Preface Acknowledgements xiii xvii xxi xxv 1 Background Fixed-line Data Communications Mobile Communications Wireless Data Communications Broadband Wireless Edholm s Law Duplex Modes Voice to Data Voice-over internet protocol Traffic Profiles Access Technologies Frequency division multiple access Time division multiple access Code division multiple access Channel sense multiple access Telecommunications Operator Business From pipe to content provider Flat rate Further Reading Wireless Communications Signal Fading Why fading? Modulation Signal constellation Equalisation Time domain equalisation

10 viii CONTENTS Frequency domain equalisation Code/multi-user domain equalisation Single Carrier and Multi Carrier Spread spectrum Orthogonal frequency division multiplexing Orthogonal frequency-code division multiplexing Transmission power fluctuation Diversity Reception Diversity combining methods Selection combining Maximum ratio combining Channel Coding Turbo codes LDPC codes Coding rate From Circuit Switched to Packet Switched Shared channels Packet scheduling Header compression Wireless VoIP Quality of service System Capacity Shannon theorem Trunking efficiency Coverage Link budget Multi-hop Further Reading Enhancing Technologies Frequency Reuse Noise limited Interference limited Capacity Limit Capacity in the presence of interference Signal and Interference Downlink Uplink Advanced Antennas Directional antennas Adaptive array antennas Coverage Extension Coverage extension using adaptive array antennas Interference Reduction Interference cancellation Joint detection

11 CONTENTS Interference avoidance Hybrid ARQ Chase combining Incremental redundancy MIMO Antennas Voice Coding Further Reading Cellular Topologies Cell Structure Macro-cell Micro-cell Pico-cell Umbrella structure Repeaters Distributed antenna systems Wireless LAN Cellular Structure Distributed Base Stations Uplink distributed base stations Downlink distributed base stations Public-private multi-hop Mini-cell Structure Handover Ad hoc Networking Further Reading Cost of Spectrum Voice Systems FDMA systems TDMA systems CDMA systems Data Systems Peak throughput Average throughput Minimum throughput Data Throughput Efficiency WCDMA HSDPA WCDMA uplink TD-CDMA HSDPA WiMAX DoCoMo test system Wireless LAN throughput Spectrum Cost Cost per subscriber Further Reading ix

12 x CONTENTS 6 Cost of Equipment Base Station Structure RF module Baseband module Transport module Control software Clock and power supply module Device volume Repeaters Base station supply chain IEEE Wireless LAN Access Point Network Nodes Costs Radio network controller SGSN and GGSN HLR Total costs End-user Equipment RF module Antennas Baseband module Control software Clock and power supply module Peripherals Total costs Device volume Further Reading Network Design and Operation Network Design and Planning Stages in network design Technologies for increasing capacity Site Cost Rooftops and towers Micro/pico base station sites Installation Tuning Maintenance Backbone Fixed Connection Physical connections Networking Based on Access Points Access points and antennas Maintenance Fixed network connection Customer Costs Customer acquisition Customer service and billing

13 CONTENTS 7.6 Other Operating Costs Power consumption Spectrum fees Human resources Wholesale Operators Network-less Operators Further Reading Services Revenue Flow Value Chain Nonportal content aggregations and creators Nonportal application platforms Portal content aggregations Third party billing Portal access End-user billing IP network access Mobile network access Service Classifications Mobile internet access Mobile intranet/extranet access Customised infotainment Multimedia messaging service (MMS) Location-based services Rich voice and simple voice Total Revenue Forecast Flat rate Further Reading Scenarios Technologies WCDMA solution TD-CDMA solution WiMAX solution WLAN solution Market Size Japanese market Chinese market Services and Revenues Simple voice Rich voice Wireless DSL, urban Wireless DSL, rural Customised infotainment Mobile intranet/extranet Multimedia messaging service consumer xi

14 xii CONTENTS Multimedia messaging service machine-to-machine Location-based services Service Classification Traffic per service Subscriber density and offered traffic Subscriber numbers Costs Cost of spectrum Cost of equipment Operating costs Cash Flow Scenarios Scenarios in Japan Scenarios in China Further Reading Glossary 209 Index 219

15 List of Figures 1.1 Interfaces for access to the internet DSL rates versus distance. Reproduced by permission of DSL Forum Subscriber growth in Japan. Reproduced by permission of Japanese Ministry of Internal Affairs and Communications (MIC) Three generations of mobile communications technologies ARPU trend in Japan. Reproduced by permission of Japanese Ministry of InternalAffairsandCommunications(MIC) Edholm s Law: fixed and wireless transmission rate trends. Reproduced by permission of IEEE Spectrum Magazine, July Possible spectrum for broadband wireless FDD and TDD modes Downlink/Uplink slot allocation in TD-CDMA standard: one frame is 10 ms and is divided into 15 slots that can be allocated to either downlink or uplink Voice and data traffic. Reproduced by permission of IEEE Frequency division multiple access Time division multiple access Code division multiple access Wide-band spread signals and narrow-band desired signal after de-spreading Channel sense multiple access A wireless communications system A flat fading pattern Multi-path signal arrivals and their vector summation Bit error rates (BER) in flat-fading and constant channels Frequency-selective fading in time and frequency domains. Reproduced by permission of Professor Fumiyuki Adachi Delay spread BPSK, QPSK, and 16-QAM modulation patterns in the in-phase (I) and quadrature (Q) constellation Fading equalisation by power control Spreading and de-spreading Orthogonal frequency division multiplexing OFDM symbol length and guard time in one implementation Orthogonal frequency-code division multiplexing Power amplifier characteristics

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