MTS: The Ethernet Backhaul Difference

population had mobile broadband, compared to 38% in Western Europe. MTS is projecting strong penetration for its mobile broadband service due to the comparatively low fixed broadband penetration in its serving area. To achieve that goal, the company must offer service that is

comparable with fixed offerings. MTS chose to deploy HSPA+ because it was impressed by the technology’s strong track record and support from other mobile operators. MTS saw HSPA+ as the next step in the evolution of the globally trusted GSM technology. As MTS planned its transition from earlier-generation

mobile technology based on GPRS and EDGE, it faced a decision on how to evolve its backhaul network as well. That 2G network used TDM and ATM technology for backhaul, but it was expensive, and costs would only increase further as more traffic traversed the new 3G network. MTS needed a new approach to backhaul. Tellabs had previously supplied SDH and PDH equipment

to MTS. But when it came to the MTS 3G backhaul network, Tellabs proposed MTS to move toward transport based on IP and Ethernet. “They explained how we

could save operating expenses and capital expenses at the same time,” recalls Larionov. The main driver behind these savings, Larionov says, was the ability of IP to multiplex traffic, thereby maximizing the amount of data that the backhaul network could carry. Moving forward, MTS

Both Intracom Svyaz and Tellabs went the extra mile in one

of the initial rollout cities, where the backhaul network had to be deployed from scratch in a very short time frame. “Tellabs and Intracom Svyaz did a great job—they met

all the deadlines and brought all of the equipment on line on time,” says Larionov. “The focus of the organizations helped us meet our deadline.” The MTS 3G backhaul network was planned in 3 phases.

The first of these is now complete, and the second phase is roughly 75% complete. The entire project should be finished by the end of 2012. When fully deployed, the network will include thousands of Tellabs 8600 nodes. Based on MTS’s experience to date, the company expects to see significant operational savings from using the Tellabs 8600 system. “We gain operational flexibility,” says Sergey Y. Zlobin,

head of section for the transport network department at MTS. “The Tellabs 8600 system is versatile and provides good link utilization and flexibility with regard to different traffic types.” Larionov estimates that MTS has reduced its cost-

“The Tellabs 8600 provides flexibility [to handle] different traffic types.”

— Sergey Y. Zlobin, head of section for the transport network department at MTS

expects to see substantial traffic growth on its 3G network—an increase of more than 120% by 2015. Customers are expected to increasingly use the network to support bandwidth-intensive applications such as video and web applications, Larionov explains. “More flexible, less expensive mobile backhaul bandwidth

is needed to meet that demand,” he adds. MTS has a policy against using only a single vendor to

supply a specific type of equipment. Accordingly, Tellabs was one of several vendors chosen to support the MTS 3G backhaul network. Tellabs equipment will comprise approximately one-third of that network.

Deploying the Network MTS enlisted Intracom Svyaz, an international telecommunications systems vendor, to manage the deployment of the Tellabs 8600 system. MTS, Intracom Svyaz and Tellabs worked together closely on the deployment.

per-bit by at least 40% by moving to the Tellabs 8600 platform compared with previous approaches. But although the move from

SDH to IP/Ethernet was a big one in terms of network efficiency, it did not create substantial new training requirements for operations personnel. The reason: the Tellabs 8600 system is managed by the Tellabs®

8000 Intelligent Network

Manager, a system with which MTS operations personnel were already familiar, after having managed

Tellabs SDH equipment. “When personnel are educated on traditional equipment,

it takes time to move,” says Larionov. “Because the Tellabs 8600 platform is based on the Tellabs management system, the migration path was easier.” MTS expects to see further operational savings beginning

next year, when it plans to begin using the Tellabs 8600 backhaul network to also support the company’s fixed line business. Larionov believes this will allow MTS’s cost-per- bit to decline even further, halving costs in comparison to a traditional network approach based on TDM. Reducing network costs while keeping operational expenses in check places MTS in a strong position to win new broadband business across its many markets. 

ATM: Asynchronous Transfer Mode EDGE: Enhanced Data Rates for GSM Evolution GPRS: General Packet Radio Service GSM: Global System for Mobile Communications

HSPA: High-Speed Packet Access PDH: Plesiochronous Digital Hierarchy SDH: Synchronous Digital Hierarchy TDM: Time Division Multiplexing

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