Q3 2012 Advance the smart mobile Internet

KEEPING CONNECTIVITY IN FOCUS

How Tellabs solutions help powerOconee County, South Carolina’sFOCUS project

Q3 2012 Advance the smart mobile Internet

LEADING EDGERoger Heinz, Tellabs executive vice president, globalsales and services, discusses how Tellabs solutions increase intelligence in operators’ networks, makingthem smarter and simpler.

UPLOADU.S. wireless data traffic increased 123% over 2010and 2011. Smartphone shipments are forecast toreach 1.1 billion by 2016. And more.By Joan Engebretson

ADDING VALUE TO THE TV EVERYWHERE ECOSYSTEMTargeted ad-insertion technology enables serviceproviders to generate new revenues based on users’ interests. With the right strategy, operators can become major players in the online video market.By M.J. Richter

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KEEPING CONNECTIVITY IN FOCUSA suite of Tellabs products — including the Tellabs®

7100 Nano™ Optical Transport System — will powerOconee County, South Carolina’s effort to spread broadband and increase economic development.By M.J. Richter

BACKHAUL IN THE PUBLIC ACCESS SMALL CELL ERAPublic access small cells will become increasingly important in mobile networks. They will create a “new edge” of the network, with a variety of new technology and operational requirements. By Patrick Donegan

NETWORK MANAGEMENT FOR NOW AND LATERNew enhancements to the Tellabs® 8000 IntelligentNetwork Manager enable operators to plan and deployLTE and packet optical network improvements.By Karen Lien Miller

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One Tellabs Center1415 West Diehl RoadNaperville, IL 60563 USAPhone: +1.630.798.8800Fax: +1.630.798.2525www.tellabs.com

President and CEODaniel P. Kelly

Editorial BoardGeorge StenitzerTom Lynch

EditorTom Lynch

Editorial ContributorsJoan EngebretsonM.J. Richter

DesignHerring Design

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LEADING EDGE Guiding customers to success

Every day, our customers face growing challenges in their networks. How can you makeyour networks smarter and simpler? How do you maximize revenue and stay energyefficient? The unprecedented growth in mobile data around the world forces us to askthese crucial questions.

Tellabs solutions increase intelligence in operators’ networks, which enables prof-itable growth and improves user experiences. As we expand our reach around the globe,our evolving go-to-market strategy includes the help of channel partners — partnerswho enable our customers’ success.

In Oconee County, South Carolina, local officials were faced with the challenge ofoffering broadband connectivity to help boost economic growth. Here’s what they dis-covered: By announcing widespread broadband availability, they can keep current busi-nesses in place and even attract new businesses that create jobs. Tellabs solutions arehelping (page 16).

Tellabs was able to offer to Oconee Country a “one-stop shop” solution because ofour strong partnership with AFL Telecommunications. AFL and Tellabs have enjoyed along-standing relationship, dating back to 2004. Partners are an integral part of Tellabs’business strategy, with revenue through partners growing annually over the last 3 years.Tellabs continues to invest in the programs and training to enable our partners to solvecustomer challenges. Today, Tellabs works with over 120 partners globally.

Partners are engaged in working with Tellabs to create solutions for our customersin new technology areas. For example, as people stream more and more over-the-top

Insight Q3 2012 4

Roger J. HeinzExecutive Vice President,Global Sales and Services

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LEADING EDGE (OTT) video through their TVs, laptops, tablets and smartphones, targeted ad-insertiontechnology can enable operators to generate revenue from OTT content. When you’reable to deliver ads to users based on their own interests, the TV Everywhere ecosystemwill be in for a boom (page 10).

Patrick Donegan, senior analyst for Heavy Reading, believes public access smallcells will become an increasingly important part of the mix of cell-site types in mobilenetworks soon. In fact, as operators roll out public access small cells, they will createa “new edge” of the mobile network. Patrick’s article focuses on how operators will address small cells in backhaul networks (page 22).

As networks constantly evolve to meet the growing demand for bandwidth, our customers need a network manager that can address needs now and in the future. Newenhancements to the Tellabs® 8000 Intelligent Network Manager ease the evolution tonew technologies — which can ease operators’ minds as well (page 27).

With every great challenge comes great opportunity. Tellabs solutions help you winwith a smarter, simpler network that will keep your users happy. As the future bringsnew technologies and more user demands, we’re here, along with our global partners,to be your trusted advisor and work with you to achieve success.

Sincerely,

Roger J. HeinzExecutive Vice President, Global Sales and Services

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UPLOADBy Joan Engebretson

Everybody’s going mobileWireless data traffic in the U.S. more than doubled over 2010 and 2011, increasing awhopping 123%, according to CTIA-The Wireless Association. Total U.S. wireless datatraffic for 2011 was 866.7 billion megabytes.

Fueling this growth was a 43% increase in smartphone and wireless-enabled PDA ownership, which climbed to 111.5 million in 2011, along with a 49% increasein wireless-enabled tablets, laptops and modems, which reached 20.2 million in 2011.

Research from network management company Sandvine offers further insight intothe huge wireless data traffic increase. In North America, video and audio streamingmake up more than half of mobile data traffic, led by YouTube, Pandora and Netflix,Sandvine reports. By late 2014, Sandvine predicts that audio and video streaming willexceed 60% of North America’s mobile data.

As a result of early 4G deployments, the U.S. is ahead of some other world regions inwireless data traffic growth. Nevertheless, climbing mobile data speeds is a global trend.

Worldwide, the average maximum mobile download speed now exceeds 14megabytes per second and is expected to approach 20 megabytes per second by theend of 2012, according to Strategy Analytics’ Mobile Broadband Price Bench-marking Service. The research firm found that average mobile download speedsjumped 20% in the first quarter of 2012, compared withthe fourth quarter of 2011.

PDA: Personal Digital Assistant

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UPLOAD Cisco Cloud Survey: The network is keyThe network is one of the top focus areas for information technology decision-makersas they migrate applications to the cloud, according to the 2012 Cisco Global CloudNetworking Survey.

Nearly 1,300 IT decision-makers in 13 countries participated in the survey, com-missioned by Cisco and distributed by Insight Express. More than one-third (37%) ofrespondents said a cloud-ready network was the biggest infrastructure element requiredfor further cloud deployments — making the network more important than a virtualizeddata center or a service-level agreement from a cloud service provider, cited by 28%and 21% of respondents respectively.

Applications that organizations are most likely to have moved or are planning tomove to the cloud include email and web services, cited by 77% of respondents,followed by storage (74%) and collaboration solutionssuch as web conferencing and instant messaging(72%).

In an interesting irony, one-quarter of respon-dents said they turned to cloud service providersfor information about cloud services, making thecloud service providers the most commonlycited information source, followed by industryanalysts (16%), industry peers (15%) and infrastructure vendors (14%). Yet 39% of respon-dents said they would not trust their own personalinformation — such as medical records or social securitynumbers — to their current cloud provider.

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UPLOAD Smartphones to drive global handset growthDespite their higher cost, smartphones are poised to be the dominant mobile handsettype worldwide within 4 years, according to ABI Research. The research firm predictsthat smartphones will be the primary driver of overall handset growth of 29% between2012 and 2016.

The research firm forecasts global smartphone sales of 643 million for 2012, representing 38% of a 1.7-billion-handset market. But smartphone shipments areforecast to reach 1.1 billion by 2016, when they will represent half of 2.2 billiontotal handset shipments.

Other types of mobile handsets will see relatively slow growth between2012 and 2016, rising from a level of 1.08 billion shipments in 2012 to1.09 billion in 2016, ABI said. By 2016, total smartphone shipments willexceed those of ultra-low-cost, low-cost and feature phones combined, according to ABI.

On the supply side, the growth in smartphone shipments will be driven, inpart, by manufacturers of low-cost handsets shifting toward smartphones, therebydriving growth and innovation in the sub-$150 smartphone segment.

On the demand side, the rise of the smartphone is likely driven by users who seethem as an alternative to a traditional computer, particularly in developing nations. And as smartphones begin to dominate the global handset marketplace, more and morenetwork operators will likely see the same surging data demand that operators in themost developed nations already have experienced.

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UPLOADUPLOAD

38%

Global smartphonesales for 2012 are 38% of a 1.7-billion-handset market.

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UPLOAD

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Visit Tellabs at these upcoming events:

TechNet Land Forces EastAugust 14-16Booth 1162Baltimore Convention CenterBaltimore, Maryland

FTTH 2012September 23-27Booth 544Hilton AnatoleDallas, Texas

Light Reading Next-Generation Packet Transport NetworksSeptember 4Mumbai, IndiaSeptember 6New Delhi, India

“Richard, we need to talk. I’ll E-mail you.”

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ADDING VALUE TOTHE TV EVERYWHEREECOSYSTEM

ADDING VALUE TOTHE TV EVERYWHEREECOSYSTEM With targeted ad-insertion technology, service providers

can grow profits based on users’ interests By M.J. Richter

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AD-INSERTION TECHNOLOGY

TV Everywhere (TVE), or the delivery of video content to multiple screens, is beginningto play a huge role in subscribers’ lives. Night and day, no matter where they are, millions of subscribers now stream movies, TV programs and other video content acrosstheir smartphones, laptops, tablets and connected-TV screens.

According to Parks Associates, a Dallas-based market research and consulting firm,about one-third of U.S. broadband households watch Internet video on a television setor computer, and about one-fourth of them use tablets and mobile devices to watch online video.

In a recent column for FierceOnlineVideo.com, Brett Sappington, the company’sdirector of research, wrote that the amount of time subscribers spend viewing video ontheir tablets and computers has doubled over the past year and has tripled for mobile-phone viewing. That trend, he added, “will accelerate as the quality and quantity of mobile improve.”

New market opportunity for network operatorsAs TVE continues to gain traction, network-based video service providers see a grow-

ing opportunity to become big stars in the TVE value chain — and generate new revenues in the process.

“By investing in network assets that enable them to capture online video streamsand insert ads targeted to viewers’ interests, network-based video service providers canmove higher in the ad-value chain,” says Pankaj Shroff, Tellabs director of strategy. “Inother words, if they deploy the necessary software capabilities, they can do much morethan simply provide ‘dumb pipes’ — they can add value to the TVE ecosystem.”

They also can strengthen their own long-term profitability. Equipped with the required network assets, network-based video service providers can partner with advertisers, just as traditional TV broadcasters have done for decades. Such a strategy

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AD-INSERTION TECHNOLOGY

positions them to become major players in the online video market, which promises tobecome an even bigger and increasingly lucrative segment.

Big advertising market expected to grow even biggerAccording to Advertising Forecasts: U.S. Market Trends & Data for All Major Media,

a report by SNL Kagan, the value of the overall U.S. advertising market will rise by 15%over the next 5 years, from $210.5 billion to $241 billion, with the mobile and Internetsectors leading the way.

When it comes to spending for online advertising, eMarketer predicts that segmentwill jump from $32.03 billion in 2011 to $39.5 billion this year.

Further, an April 2012 report by BusinessInsider.com forecasts that online videoad revenue will top $9 billion by 2016. That's a 5-year compound annual growth rateof 35% from the $2 billion in revenues reported for 2011.

Requirements for network-based advertising The term “network-based advertising” refers to the advertising business model in

the traditional TV environment. To apply that same model to a multi-screen environment,Shroff says network-based video service providers must be able to do 3 things.

First, they have to be able to intercept the video stream that’s flowing to a deviceso they can insert an ad. Second, they must be able to fulfill the “ad avails,” or advertising opportunities.

“A network-based video service provider must be able to insert a certain ad into aspecific show at a specific time,” Shroff explains. “In order to know which ad to insert,the provider must be able to sell that opportunity through sales channels, and all ofthat requires routing and placement-management capabilities.”

Finally, the provider must be able to address the ad — meaning, to target individualsubscribers with ads that are relevant to their interests.

When it comes tospending for online advertising, eMarketerpredicts that segmentwill jump from $32.03billion in 2011 to$39.5 billion this year.

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AD-INSERTION TECHNOLOGY

Software opens the door to opportunity To capture a share of burgeoning ad revenues in the TVE market, network-based

service providers need a software platform that gives them 3 interconnected capabilities:• Digital media manipulation — to capture the video stream, detect the ad markers

encoded within that video stream (for example, a TV show) and dynamically insert adsin the appropriate spaces

• Ad mediation — a means to route ad-placement opportunities to advertisers,that is, to third-party systems that manage ad campaigns

• Intelligent analytics — to categorize a given subscriber's interests, based on thatsubscriber's web-browsing history, and then share that information with ad-campaignmanagers who make the ad-targeting decision.

“Let’s say a subscriber is using her tablet and chooses a movie from a storefrontsuch as Netflix,” Shroff says. “The process of selecting that movie basically triggers a

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Smartphone

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Ad 3

Ad 2

Ad 1

VIDEO AD-INSERTION DEMONSTRATION

CONTENTDELIVERYNETWORK

VIDEOCONTENT

MOBILEOR FIXEDNETWORK

Ad 3 Ad 2 Ad 1

TELLABSMOBILE

ADINSERT

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AD-INSERTION TECHNOLOGY

series of client/server-type communications among those 3 pieces of software and thecontent delivery network database.

“The whole idea,” Pankaj says, “is to bring together the subscriber’s interests withavailable ads that are relevant to her interests and then stitch those targeted ads intothe video stream she has selected.”

He adds that it is critical that the intelligent-analytics capability protect the privacyof video subscribers and their web-browsing habits. The software solution should lookonly at certain “tokens,” or words, which are embedded in the web-page content, andthen consolidate a given subscriber’s web use into categories.

“The intelligent-analytics program should create anonymous, unique identificationwhich cannot be mapped back to the subscriber’s personally identifiable information,”Shroff says.

He emphasizes that network-based video service providers have to offer subscribersa mechanism by which they can opt out of the information-gathering process.

Standards are importantAs with any networking solution, an ad-insertion platform should comply with rele-

vant standards. Specifically, the ad mediation component, which translates protocolsand routes requests for ads, should be based on the Society of Cable Television Engineers(SCTE) 130-3 standard for ad decision servers (ADSs). It also should comply with theInternet Advertising Bureau (IAB) standard for the video ad serving template (VAST 2.0).

“The SCTE standards body defines the architecture and protocols for TV operatorsto be able to do this for households with cable TV service, IPTV service and digital broad-cast satellite service,” Shroff says. “As more and more content moves to multiple screens,that same architecture should define the functionality for TVE. However, the actual abilityto capture streaming video and insert ads depends on having TVE-oriented software.”

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IPTV: Internet Protocol Television

“The whole idea is tobring together the subscriber’s interestswith available ads thatare relevant to her in-terests and then stitchthose targeted ads intothe video stream shehas selected.”

— Pankaj Shroff Director of Strategy,Tellabs

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AD-INSERTION TECHNOLOGY

Entering the market must be cost-effective and comprehensive Network-based video service providers that want to compete in this emerging

market clearly need a solution that is both cost-effective and capable of addressing theentire video-streaming segment.

Ideally, they want a software platform that works with general-purpose hardware intheir data centers. For example, they can deploy such a solution in a virtualized, cloud-based data center, if they choose. However they deploy it, Shroff says the platformshould allow network-based video service providers to leverage their existing hardwareinvestments and thus minimize the CapEx costs required to enter this booming market.

Finally, the ideal ad-insertion solution should support all 3 video-streaming formats— Adobe Flash Media, Apple TV and Microsoft Smooth Streaming, plus any future for-mats like MPEG-DASH, or others. To succeed, network-based video service providersmust be able to address the entire market with ads.

Service providers can position themselves to winNetwork-based video service providers — mobile, cable TV, satellite, etc. — face

growing competitive pressure in the video-delivery arena from over-the-top providerssuch as Amazon, Google and Netflix. However, equipped with the right ad-insertion solution, they can expand their existing relationships in the TV-advertising world intothe TVE world, differentiate themselves from the competition and enhance their long-term profitability. �

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KEEPING CONNECTIVITY IN FOCUS

KEEPING CONNECTIVITY IN FOCUS

Tellabs solutions help power Oconee County, South Carolina’sFOCUS project

By M.J. Richter

PHOTO: ROGER BALL

FIBER OPTICS No one has a silver bullet when it comes to solving today’s tough economic problems.However, state and local governments know that broadband connectivity can play a bigpart in their efforts to boost economic growth and create jobs.

Sometimes just announcing that broadband is coming is enough to retain existingbusinesses and attract new ones, as officials in Oconee County, South Carolina, havediscovered.

Situated in the northwestern tip of the state, Oconee County is in the process ofbuilding a 270-mile fiber-optic network called Fiber Optics Creating Unified Solutions(FOCUS). Despite the fact that the project won't be completed until next spring at theearliest, the promise of broadband access has already persuaded one company to remainin Oconee County rather than relocate to Georgia, and possibly even to expand its local operations.

Mike Powell, the county’s director of IT, says still another company was trying todecide whether to locate in a bordering state or come to Oconee County.

“The decision factor ended up being the FOCUS project,” he says. “So that’s already 2 examples, before we even really have turned our network up. The impact [ofthe network] for economic development is going to be huge.”

A self-sustaining middle-mile networkThe FOCUS network is a “middle-mile” project, or extension of the Internet back-

bone. Internet Service Providers (ISPs) will connect to the network so they can providelast-mile access to Oconee County business and residential customers.

Powell says that 4 ISPs have already signed up to provide last-mile service, oncethe FOCUS network is up and running, and county officials are talking with 3 more.

Currently, one ISP predominately serves Oconee County, providing DSL-based con-nections at speeds of 1.5 Mbps to 6 Mbps — but only to one-third of county residents.

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DSL: Digital Subscriber LineMbps: Megabits Per Second

“The impact of the network for economic development in OconeeCounty is going to behuge.”

— Mike Powell Director of IT, Oconee County

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FIBER OPTICS

“Right now, it’s a monopoly,” Powell says, “and if we can bring fair competition to anopen-access network, we will have the ability to drive the price down and the quality up.”

Maximizing competition among ISPs is one critical goal in the county’s plans. Another is to generate additional revenues by leasing dark fiber to service providers,cell-tower operators and even neighboring counties.

“Due to demographics and geographic limitations, like mountains and lakes, othercounties are isolated,” Powell says, “so they don't have connectivity. We’re a natural fitto provide it for them.”

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“Due to demographics andgeographic limitations,like mountains and lakes, other counties areisolated, so they don'thave connectivity. We’re a natural fit to provide it for them.”

— Mike Powell Director of IT, Oconee County

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FIBER OPTICS Although some service providers have expressed interest in leasing dark fiber, Powell says Oconee County also hopes to persuade some of them, along with cell-tower operators, to obtain lit-fiber transport from the county as well.

To fund the $14.3-million FOCUS project, Oconee County is relying in part on afederal broadband-stimulus award of $9.6 million. The remaining $4.7 million willcome from transport fees paid by other counties, ISPs and cell-tower operators.

“We’re not going to be making money off it,” Powell explains. “The business modelis not developed around the taxpayers or the residents. Our goal is to leverage cell towersand transport through other counties to pay back the citizens of Oconee County, insteadof having to raise rates.”

Ring around the countyTo be deployed in a concentric-ring topology, the FOCUS network features a core

ring with 3 proposed points of Internet connectivity to other carriers. Several sub-ringswill link to the core ring, with Ethernet concentrators providing IP connectivity. The sub-rings may use dedicated fiber back to network operations centers (NOCs) or a sharedaggregation fiber, depending on location and traffic volume.

The 4-node backbone, anchored by the Tellabs® 7100 Nano™ Optical TransportSystem with built-in ROADM technology, will link NOCs in Walhalla, Seneca and Westminster, with the fourth node at Clemson University in Clemson, SC.

Powell notes that the Clemson node will not only promote economic developmentbut will also function as a peering facility for ISPs, one which he hopes will generateeven more revenue for Oconee County.

“There are 5 different carriers that terminate inside Clemson University. Basically,that’s a POP. Our goal is to put a box there, do some provisioning and then offer servicesto other ISPs in our area. This is where the Tellabs ROADM comes in — those will be

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POP: Point of PresenceROADM: Reconfigurable OpticalAdd/Drop Multiplexer

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FIBER OPTICS different wavelengths and capabilities that will provide light back to them.“We can get light all the way down to...Atlanta, or we can go up to Charlotte, NC,”

he says. “Some of these ISPs are really hungry for lots of bandwidth. If we can givethem a hop down to Atlanta, they’ll end up paying a fraction of the current per-MbpsDSL-grade connections that are currently in Oconee.”

FOCUS will also deploy the Tellabs® 7300 Metro Ethernet Switching Series and the Tellabs® 1100 Multiservice Access Platform with GPON OLT modules at the 4 aggregation hubs throughout the county.

The Tellabs 7300 platform will support 1-Gbps metro Ethernet services for countybusinesses and schools, while the Tellabs 1100 platform will provide GPON-basedbroadband service, at speeds of 20 Mbps to 40 Mbps, to residential customers.

One-stop shopping for a complex projectTellabs’ ability to supply a ROADM-designed network, a metro Ethernet solution

and a GPON platform enabled Oconee County officials to streamline the procurementprocess.

Jeff Barton, Tellabs sales director, points out that federal broadband-stimulus projects require the award recipients to go out for bid.

“We were able to demonstrate that there was no other single vendor that could provide all 3 aspects of the network. Otherwise, the county would have had to deal withmultiple vendors.

“In concert with our channel partner, AFL Telecommunications of Duncan, SC, wewere able to deliver a joint solution,” Barton says. “Together, we could provide OconeeCounty with a one-stop shop, plus AFL could provide everything in terms of installationand ancillary equipment.”

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GPON: Gigabit Passive OpticalNetworkOLT: Optical Line Terminal

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FIBER OPTICS

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Phasing in the network construction Powell says the county is building the 270-mile network in 3 phases and, as of

early May, had completed about 116 miles of conduit and installed roughly 85 milesof fiber. The goal is to finish construction by February or March of next year.

Although Oconee County does not plan to use the Tellabs 7100 platform’s ROADMcapability right away, Powell wanted to future-proof the FOCUS network, in terms offlexible wavelength provisioning.

“As we grow, we’re limited in the amount of fiber connections between each NOCand Clemson. So doing 88 channels per fiber, that is a lot of flexibility. Out of the gate,we’re probably not going to need it, but,” he adds, “if economic development contin-ues, I really think within the next 2 to 3 years we’re going to utilize that.”

When completed, the network will cover 90% of the county and interconnect withadjacent cities and states. Linking all county facilities, schools, a medical center, a tech-nical college, libraries, public-safety locations and more than 150 “anchor institutions,”the FOCUS network also will pass about 27,800 households and 2,400 businesses.

County residents and businesses are clearly enthusiastic about getting access tothe coming broadband network. In fact, Powell says it's “actually turning out to be a little bit of a fight as to who goes first — which is a good thing. It reaffirms our assessmentof why we did this project, because there's a big, strong need in our community.” �

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BACKHAUL IN THEPUBLIC ACCESSSMALL CELL ERA

BACKHAUL IN THEPUBLIC ACCESSSMALL CELL ERA

By Patrick Donegan

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ANALYST COLUMN Public Access Small Cells — products operators deploy as an integrated and managedpart of their RAN, accessible to all subscribers — are gaining a lot of industry attention.Heavy Reading forecasts around half a million of these products will be in commercialservice by the end of 2015. But with small cell backhaul liable to cost as much as —if not more than — the tiny small cell equipment itself, this key element in the smallcell network deserves at least as much focus on the part of the mobile operator.

In one sense, the introduction of public access small cells represents “business asusual” from a backhaul perspective. For example, the existing backhaul aggregationnetwork typically has enough headroom in the form of additional ports to easily absorb the first wave of these new small cells.

Most operators will also want coordination between their macro and small cell layersto optimize network resources and the user experience. They will look to extend the capabilities of existing high-end management systems from the macro to the small celldomain. And they will look for network management roadmaps that support small cell-focused features, such as the ability to automatically power down small cells duringoff-peak hours.

In other respects, however, the small cell era heralds a profound transformation atthe edge of the mobile network. Site acquisition, the RF environment and local munic-ipal planning regulations are fundamentally different at the street level, public accesssmall cell layer compared with the macro layer.

Going against the normDepending on the specific use case, many operators will make a radical break with

convention on availability requirements with public access small cells. Whereas an outage at a macrocell constitutes a major disruption to customer service that operatorsneed to avoid at all costs, an outage at 1 of 6 public access small cells deployed beneath

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Patrick Donegan Senior Analyst,Heavy Reading

“The small cell eraheralds a profoundtransformation at theedge of the mobilenetwork.”

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RAN: Radio Access Network

ANALYST COLUMN a macrocell will more typically reduce the total bandwidth available. Hence operators shouldn’t fear an outage of a public access small

cell in the same way as at a macrocell. As a result, operators may, for ex-ample, only require that their small cells be available during hours of peakusage, allowing cost savings when they power them down. Or they mayuse the small cell layer as a data-only layer for offload.

Focused on innovationIn addition to leveraging their existing backhaul network assets to the

maximum, operators are also driving significant innovation in backhaulsolutions. As the volume of public access small cells in the network scalesup, operators need to focus on the unique cost and performance require-ments of the backhaul.

Despite their small form factor and near-heroic contribution to mod-ernizing the macrocellular backhaul network, cell-site gateway products have tremen-dous potential to further optimize cost and form factor in the public access small cellenvironment. Because public access small cells will only support an Ethernet interface,small cell aggregation routers will require a markedly smaller, cheaper protocol stack.That will forego all the legacy interfaces that even the smallest cell site gateways onthe market typically support today. With each small cell often supporting no more than20 to 30 subscribers — as compared with 150-200 in the case of a macro cell — anoptimized gateway device will need to support much less capacity as well.

Reducing size and costConsider the impact of these 2 factors on both cost and form factor, and then the

resulting reduction in power requirements, it’s clear that there is tremendous scope to

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EuropeCALA North America Asia Pacific

Middle East/Africa

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“As the volume ofpublic access smallcells in the networkscales up, operatorsfocus on the uniquecost and perform-ance requirements.”

Public Access Small Cell Forecast

ANALYST COLUMN reduce the size and cost of these devices to much less than half or one-third of the small-est present-day cell site gateway devices that are in service in the macro-cellular domain.

The operator will need to build out a new “last 100 meters” to reach these newsmall cells. Operators will need lower-cost wireless backhaul products with new char-acteristics. Fiber can’t reach every lamppost cost-effectively in many markets. Existingmicrowave frequencies in the 6 - 42 GHz band can’t support discrete antennas of thekind typically required at street level. Operators are considering new frequency bands— including the 3.5GHz and 60GHz bands — for wireless backhaul of public accesssmall cell traffic.

Operators also need near and Non Line of Sight (NLOS) propagation characteristicsso that wireless backhaul links can have good availability notwithstanding street-levelradio challenges. These challenges include seasonal foliage, moving buses and the like.For the first time many operators will be willing to use unlicensed radio frequency spec-trum — such as 5GHz WiFi as well as 60GHz — on a large scale. It’s consistent with anew readiness to make some compromises with respect to availability of public accesssmall cells.

A public access small cell environment can’t replicate the typical model of demar-cation operators deploy in today’s backhaul network. Today’s 1RU standalone demarca-tion devices are too expensive. When operators need to co-locate the demarcationfunction at the small cell itself — on the side of a building or on a lamppost — they arealso physically too big.

Many of today’s cell site gateways support demarcation functionality and can serveas a means of monitoring performance of small cell traffic. While they can monitor performance from a first point of concentration back to the core, they won’t performthat function for the last 100 meters.

Innovation will occur in the demarcation space according to one of several possible

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“The operator willneed to build out a new ‘last 100 meters’ to reachthese new smallcells.”

ANALYST COLUMN models. One of those models will integrate stripped-down demarcation functions intothe same roadmap as the cost-optimized cell site gateway products.

Based on the roadmaps of a number of vendors, Heavy Reading expects that theproliferation of public access small cells will lead over time to the development of anew line of integrated products for the small cell backhaul network. We anticipate anumber of product variants combining 2, 3 or even 4 from a 3GPP access radio, a WiFiradio, a dedicated backhaul radio, a cell site gateway switch or router, and demarcationfunctionality. �

For more of Patrick's thoughts on public access small cells, read this new white paper.

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“Heavy Readingexpects that the proliferation of publicaccess small cellswill lead over time tothe development of anew line of integratedproducts for thesmall cell backhaulnetwork.”

Insight Q3 2012 27

NETWORK MANAGEMENT FORNOW AND LATER

NETWORK MANAGEMENT FORNOW AND LATERHow the Tellabs® 8000 Intelligent Network Manager helps operators adapt to new technologiesBy Karen Lien Miller

How the Tellabs® 8000 Intelligent Network Manager helps operators adapt to new technologiesBy Karen Lien Miller

NETWORK MANAGEMENT

The only constant when it comes to networks is change. Growing customer demand formore bandwidth and service reliability puts operators on a continual path of technologyevolution and system refreshes. While the move to LTE/LTE-Advanced and packet opticalsolutions helps operators add capacity and increase operational efficiencies, the realchallenge is managing the ever-changing network.

Traditionally, network operation centers (NOCs) charged with controlling specificparts of operators’ networks have the responsibility for network management. As net-works become more dynamic and packet-based, a growing trend is to converge networkmanagement into a system that provides visibility across the entire network.

But, even as operators push forward with new technologies, existing network investments will continue to be important for the foreseeable future. The challenge isto be able to easily adapt to network architecture changes, while maintaining optimalnetwork performance.

“As operators evolve to LTE and packet optical solu-tions, we see lots of opportunity for network management tobecome a strategic advantage when it’s considered an inte-gral part of the network solution,” said Seppo Borenius, di-rector of engineering, management systems organization forTellabs.

“With an intelligent management system in place, thereis a view across the entire network to predict and avoid bottlenecks, speed troubleshooting and increase customersatisfaction.”

The ability to ease technology evolutions is at the heartof new enhancements to the Tellabs® 8000 Intelligent Network Manager (INM). The Tellabs 8000 INM combines the best of element management systems with the

Insight Q3 2012 28

LTE: Long Term Evolution

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New enhancements to the Tellabs 8000INM enable operatorsto plan and deploy LTE and packet optical network improvements.

NETWORK MANAGEMENT

capabilities of a network management system. Included in the latest feature pack release are new enhancements that enable operators to plan and deploy LTE and packetoptical network improvements.

Boosting mobile backhaul performanceMost mobile networks employ some combination of 2G, 3G and 4G technologies

with tens of thousands of network elements in various parts of the network, from cellsites to the evolved packet core. Technology advances hold the promise of increasedspeed and capacity, but the transition doesn’t happen overnight.

The Tellabs 8000 INM manages mobile networks during the transition to LTE andLTE-Advanced. Operators gain efficiencies because the tools used to manage 2G/3Gtraffic work seamlessly with LTE and LTE-Advanced technologies.

95% of service providers that deploy the Tellabs mobile backhaul solution use theTellabs 8000 INM — that’s more than 200 networks. The systemprovides the specialized tools to efficiently monitor, provision andtroubleshoot mobile networks.

More than 200 service providers already use the Tellabs®

8000 INM for a clear window into what’s happening throughouttheir networks.

“Support for IP VPNs is critical for LTE and LTE-Advancednetworks,” said Borenius. “The Tellabs 8000 INM includes pur-pose-built tools to simplify provisioning of IP VPN networks.”

Other enhancements include: Synchronization/Timing Tools – LTE requires a new approach

to monitoring the quality of synchronization signals, but no new

Insight Q3 2012 29

2G: Second Generation3G: Third Generation4G: Fourth GenerationIP VPN: Internet Protocol VirtualPrivate Network

Operators using theTellabs mobile back-haul solution can usethe Tellabs 8000 INMto configure, measureand visualize sync performance.

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NETWORK MANAGEMENT

hardware or changes to elements with the Tellabs 8000 INM. Operators already usingthe Tellabs mobile backhaul solution can use the Tellabs 8000 INM to configure, meas-ure and visualize sync performance throughout the network. It’s like having built-inmeasurement tools at every cell site.

Cell Site Wizards – The Tellabs 8000 INM simplifies the turn up of new cell siteswith a purpose-built wizard. The wizard automates the process for the network techni-cian to quickly create, configure and test the connections.

One service provider reports it is 5 times faster to provision a cell site with theTellabs 8000 INM versus using a different solution.

Cell Site Re-parenting Tool – Operators continually need to reconfigure the networkarchitecture to support changing network demands. The process can be complex andtime consuming. With the Tellabs 8000 INM, a re-parenting wizard automates recon-figuration of endpoints between interfaces. It automatically disconnects and deletesthe original connections and reconnects them to the new destination interfaces. Theprocess is fast and reduces manual provisioning errors.

Management of VPLS – The Tellabs 8000 INM enables management of VPLS-based services offered by service providers in business service and Fixed Mobile Convergence (FMC) networks. The Tellabs 8000 INM facilitates provisioning of the VPLSinfrastructure and services as well as end-to-end monitoring and troubleshooting.

Getting more from packet optical“For many operators, packet optical networks are key to being able to offer prof-

itable high-bandwidth services to customers,” notes Borenius. “Many of our customersuse the Tellabs Packet Optical Solution to maximize service delivery at the lowest costper bit, turn up new services, rapidly add bandwidth where needed and recover quicklyfrom natural disasters.”

Insight Q3 2012 30

VPLS: Virtual Private LANService

One service provider reports it is 5 timesfaster to provision acell site with theTellabs 8000 INM versus using a different solution.

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NETWORK MANAGEMENT

The Tellabs 8000 INM drives more performance out of the Tellabs Packet OpticalSolution. The system manages integrated optical and packet solutions in one over-arching solution for better operational efficiency and network functioning. Specializedtools are integrated in the system for specific requirements of packet optical networks, including:

Packet Loop Test – The packet loop test tool contains a comprehensive set of testsfor packet networks including: ping, trace route, delay, delay variation, throughput andpacket loss. Devices are tested automatically without requiring expensive truck rolls, asignificant operating expense savings.

Integration with Planning Tools – The Tellabs 8000 INM simplifies network plan-ning, as operators can add new services on a “point-and-click” basis for rapid servicerollout and the quick addition of new revenue streams. Using the Tellabs® 7196 OpticalSubnet Planner, the Tellabs 8000 INM can plan and implement both initial networkdesign and future additions of new services.

Optical Power Monitoring Tool – The Tellabs 8000 INM has a graphical tool thatshows power levels at each hub on the optical path. It’s easy to monitor if the powerlevel goes outside acceptable levels — high or low.

Control Plane Management and Monitoring – The control plane on the Tellabs®

7100 Optical Transport System automatically creates connectivity between two points,determining the best path. The Tellabs 8000 INM monitors the control plan and assistsin selecting and provisioning the best optical path.

Advanced monitoring Some network management capabilities are critical no matter what services are

offered. The Tellabs 8000 INM provides strategic analysis and monitoring of networkelements and traffic flows in a number of ways.

Insight Q3 2012 31

TDM: Time Division MultiplexingVLAN: Virtual Local Area Network

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NETWORK MANAGEMENT

Service Fault Monitoring – The Tellabs 8000 INM monitorsservice levels for customers by their specific assigned services.Rather than keeping tabs only on network elements, the Tellabs8000 INM provides a comprehensive view of performance levelsfor categories, customers or services. Operators can identify andrespond quickly to faults with real-time supervision of IP VPNs,pseudowires, TDM circuits and VLAN VPNs assigned to a customer. There are no restrictions on how to group networkconnections into services.

Utilization Threshold Alarms – Operators can set usage thresholds for each inter-face based on service-level agreements or expected bandwidth needs. If a utilizationthreshold is crossed, the Tellabs 8000 INM creates a network fault to manage the issuebefore there’s a problem.

Link Utilization Reports – Preempt outages by monitoring network pipes and nodes.A graphical view shows where traffic is flowing in the network and how bandwidth isbeing used. Operators can plan ahead to provision more bandwidth or re-route traffic.

Trending – The Tellabs 8000 INM provides a view into emerging trends regardinghow the network is being utilized. Trend reports help predict when links may becomecongested and solve problems before they occur.

Ready for network evolutionNetworks that operate efficiently are more profitable and produce happier cus-

tomers. Putting the right network management tools in place now puts operators a stepahead for the transition to LTE/LTE-Advanced and packet optical technology. The Tellabs8000 INM gives operators the end-to-end view of their networks to boost performance,easily provision new services and reduce overall operating costs. �

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The Tellabs 8000 INMprovides a compre-hensive view of per-formance levels for categories, customersor services.

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To stay competitive, service providers must offer high-bandwidthservices to customers fast. That requires an efficient network

that can turn up service in hours, not days.

That’s why the world’s leading service providers rely onTellabs® Packet Optical Solutions.

Learn more about the solution ranked #1 fornext-generation P-OTS by Infonetics Research*

tellabs.com/solutions/packetoptical*Infonetics Research “Optical Network Hardware” report, 11/23/2011

How do other service providers turn upnew services in hours, but you take days?