Russia’s Transport Transformation “There is a strategic network change that needs to


happen if operators want to be competitive and react quickly to customer demands.” said Petri Markkanen, vice president, Russia & CIS region at Tellabs. “They have to re-adjust their backhaul cost structure.”


Up to 93% Savings The change in backhaul also creates a significant advantage for operators looking to deploy 4G networks alongside their 3G networks. Operators are allocating significant capital to HSPA


rollouts today, but new competitors with 4G licenses are expected to roll out all-IP LTE networks by 2011, said Pyramid’s Radcenko. Russia’s 5 largest operators — MTS, VimpelCom, MegaFon, Tele2 and Svyazinvest — all plan to conduct LTE trials in various regions and spectrum allocations. “The beauty of the Tellabs


Mobile data revenue in Russia will grow more than 50% this year, estimates Pyramid Research.


8600 system is that once operators move to Ethernet as their transport layer, they can use it to backhaul 2G, 3G and LTE traffic,” said Tellabs’ Markkanen.


“That means operators can effectively double their radio capacity in the radio access network with little to no impact on OpEx.” Analysts estimate that each LTE base station must be


capable of handling bandwidth in the range of 100 Mbps to 300 Mbps. As demand skyrockets, that number could reach 1 Gbps or more, yet operators won’t see an impact in terms of ongoing costs. Tellabs’ estimates, gleaned from working with


some 100 operators that have deployed the Tellabs 8600 system, show potential savings of 63% to 93% in the evolution from 3G to 4G. For example, in a 30,000-cell-site network employing Tellabs’ Ethernet backhaul, an operator can save up to $78 million in CapEx and $876 million in OpEx over 5 years. With Russia covering one-eighth of the Earth’s inhabited land area and facing an upsurge of data traffic, those numbers make compelling reading. n


2G: Second Generation 3G: Third Generation 4G: Fourth Generation ARPU: Average Revenue Per User CapEx: Capital Expenses HSPA: High-Speed Packet Access IP: Internet Protocol


IPTV: Internet Protocol Television LTE: Long-Term Evolution


MPLS: Multiprotocol Label Switching OpEx: Operating Expenses TDM: Time Division Multiplexing


Woodstock Goes


All Out with Fiber Minnesota operator uses Tellabs GPON solutions for an aggressive upgrade. By M.J. Richter


In rural Minnesota, Ken Knuth divides his time between raising horses and delivering advanced communications services to area residents and businesses. On one recent morning, he helped a mare get through a difficult delivery and then turned to another complex task: continuing the buildout of a FTTH network that can deliver access speeds of up to 75 Mbps. Woodstock Telephone Co., where Knuth is owner and


president, decided that FTTH was essential for staying ahead of both his customers’ bandwidth needs and the competition. With 1,300 access lines serving an operating territory of 450 square miles in southwestern Minnesota, the independent operating company provides Internet and voice services to subscribers in 5 neighboring communities and the surrounding rural areas. Knuth said many of his customers are farmers who use


the Internet for applications such as checking commodity prices, buying equipment, plowing their fields along GPS- defined grids and using software to measure crop yields in real time.


From the Node to the Home Woodstock initially responded to the bandwidth demand by deploying FTTN in some exchanges, “putting in a couple cabinets a year, burying 5 to 8 miles of fiber here and there,” Knuth said. Although that shortened the copper loops, they still


couldn’t muster more than 512 Kbps. Worse, a lot of that copper, which Woodstock had installed in 1976, was near exhaustion. The piecemeal FTTN strategy wasn’t working, and it wasn’t economical. “The copper had all gotten wet anyway,” Knuth said. About 3 years ago, Knuth decided to shift to a FTTH


architecture. At the time, Woodstock’s network consisted of a 5E switch in Ruthton, Minn., with fiber links to Tellabs® 1000 Multiservice Access Series DLCs in the towns of Garvin, Holland, Russell and Woodstock. Copper loops ran from the DLCs to customer premises. Until very recently, Woodstock’s fiber backbone was an


ATM-based SONET OC-12 ring serving 4 of the 5 towns, with Garvin tied in via DS1/DS3 connections leased from Qwest Communications.


TELLABS INSIGHT Q3 14


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