With Verizon Wireless announcing their first 5G trials will take place in 2016, momentum is building for the next generation of connectivity. Industry commentary highlights that U.S. operators are determined to be the first to market with 5G, as they were with 4G. However, we are still undertaking initial research, which will continue until the 3GPP complete their phase one specification in the second half of 2018. This research is essential before operators can truly pick up the 5G mantle.
Much of the uncertainty stems from the Internet of Things (IoT), which we know will play a central role in 5G, but remains an unknown entity. With no clear indication on the number of connected devices which will enter the marketplace, it’s difficult for operators to build a reliable forecast of what 5G traffic patterns will look like and what the backhaul requirements will be.
However, we can be certain that the aggregate data demand from the IoT will be in stark contrast to the smartphone-oriented experience of 3G and 4G. It is safe to say that capacity demands will grow and more base stations (whether macro or small cell) will be deployed to achieve the seamless quality of service (QoS) that it essential for IoT to be successful.
Operators’ networks are already under severe strain from the sheer volume of 4G traffic; a trend set to grow in the 5G era. Although the revenues created by masses of low cost devices will be attractive, they are unlikely to justify investment for wholly new 5G networks. The industry therefore must embrace more flexible, scalable and cost effective backhaul strategies to support their success.
The business case for wireless backhaul
As we move into a world of data dominated networks, it’s essential operators deliver every bit of data in the most cost effective way to build a business case for wide-scale investment. 5G will be no different.
Through CBNL’s own work in providing backhaul for seven of the world’s top ten largest operators, we have seen that efficiency and performance are essential, but not mutually exclusive. While fiber backhaul undoubtedly makes sense for some use cases, wireless remains the most common backhaul technology in use today. Because of its cost-efficiency, speed of deployment and recent advances in capacity, wireless backhaul is set to play a central role for 5G.
One technology growing in popularity is licensed point-to-multipoint (PMP). With licensed PMP, an operator has guaranteed QoS and the ability to build a 14.4 gbps hub site that aggregates backhaul traffic from multiple base stations. Because the number of base stations is likely to increase further with 5G, the business case for licensed PMP (which becomes more profitable as more base stations connect to a single hub) will appeal to more operators.
High capacity wireless backhaul was once the exclusive domain of point-to-point (PTP). However, this is no longer the case as the latest licensed PMP offers up to 1.2 gbps per sector, alongside total cost of ownership (TCO) savings of up to 50 percent compared to fiber or PTP. These TCO savings (driven by cost reductions on equipment and spectrum) sit alongside a fast time to market, making a highly attractive solution to support evolving LTE and future 5G services. Additionally, a PMP approach gives operators exciting new options for leveraging their spectrum assets; for example, a microwave PMP network supporting predominantly a traditional backhaul application can run additional virtual networks as well, for access, IoT and vertical-specific applications. This can even extend to the network shifting emphasis and reallocating resources during the day/night cycle, for instance placing greater priority on machine type communication (MTC) at night when there is less demand for mobile broadband data.
The role of outdoor small cells
A key component of the 5G landscape is likely to be outdoor small cells. While there have been limited deployments to date, ABI Research recently predicted a 43 percent compound annual growth rate from now until 2020, highlighting that momentum may start to build. This will be compounded by 5G, where outdoor small cells will play an important role in providing cost-effective capacity for traffic ‘hot spots’, or those locations that suffer from limited or no coverage.
Two key criteria for small cell backhaul are to offer a fast time to market and the ability to integrate with the existing macro layer, providing an incrementally low-cost means of adding small cells to the network. PMP microwave, like CBNL’s VectaStar portfolio, is one such solution. For example, the latest VectaStar platform offers up to 14.4 gbps per hub site and can easily scale to accommodate small cells in the existing macro backhaul sector. Simple, scalable and cost effective approaches such as this will become essential elements to successful 5G backhaul strategies.
Reaping the full benefits of 5G networks
While 5G is less than five years away, much uncertainty still surrounds it. What is clear, however, is that the 5G ecosystem will differ from the 3G and 4G before it, and operators will need to evolve their backhaul strategies in order to create more effective and financially viable business models.
More efficient innovative wireless technologies, such as licensed PMP, together outdoor small cells will therefore play an important role in 5G success. These solutions will address the technical challenges posed by 5G and create a more scalable and profitable business case for operators to deploy next generation connectivity. As a result, they will enable operators to truly unlock the full potential of 5G and secure future for their business.
John Naylon is CTO and founder of Cambridge Broadband Networks (CBNL), a provider of carrier-class, multipoint microwave backhaul and access solutions.
