Use cases and business models - QoSMOS

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Mar 22, 2013 ... Dynamic Spectrum Sharing Seminar,. Microsoft ... Cognitive femtocell. Cognitive ad hoc network. Dynamic Spectrum Sharing Seminar,.
Quality of Service and MObility driven cognitive radio Systems

Use cases and business models Per H. Lehne, Ole Grøndalen, Richard MacKenzie Telenor, Norway

BT, UK

‘The research leading to these results was derived from the European Community’s Seventh Framework Programme (FP7) under Grant Agreement number 248454 (QoSMOS)’.

Topics QoSMOS use cases • Criteria • Context

Business case evaluation • Economic benefit • Deployment scenario and assumptions • Highlight risks/barriers Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Criteria for selecting use cases In which context can we use CR?

Are selected frequency bands feasible?

• Benefit from CR technology

• Regulatory constraints

• Benefit for the actors

• Power limits

• Technical feasibility

• Interference limits

• Economic feasibility

• Range and coverage

• Regulatory feasibility • Ecosystem feasibility

• Benefit for the society

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Context: TV whitespace +6dBi directive antenna (36 dBm)

470-790 MHz

Channel in use by incumbent

30 dBm

Fixed devices not allowed in adjacent bands

20 dBm

17 dBm without geolocation capability

16 dBm

WSD emission limits according to the FCC (US)

8 MHz Personal Portable Device (PPD) limits

Fixed Device (FD) limits

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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QoSMOS use cases for cognitive radio Cellular extension in whitespace

Offloading of LTE networks • Increased operational bandwidths • Peak hour traffic offloading • Improved link quality • More flexible services

Cognitive femtocell

Cognitive ad hoc network

Rural broadband

Cognitive femtocell

M2M in whitespace

• High QoS requirements • Low mobility • Isolated village with little or no Internet connectivity

• Private wireless access • Public hot spots • Indoor femtocells to provide outdoor coverage

• Many small devices • Small amounts of data • Relaxed real-time demands • Transportation • Smart metering • eHealth

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Deployment scenario • ‘‘Typical’’ western European city – 200 km2 – 1 million inhabitants

• Downtown: – 50 km2 - 0.5 million inhabitants

• Urban/suburban: – 150 km2 - 0.5 million inhabitants Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Offloading of LTE networks Business case definition Digital TV transmissions

A mobile network operator to increase its LTE capacity • A cost-comparative study – ‘‘TVWS solution vs. buy extra 800MHz license’’ • Reuse existing sites • Study period: 2015 – 2020 • Geo-location and spectrum database

TVWS being used

E.g. 800 MHz LTE spectrum (licensed)

Example spectrum usage chart

TV tower

Cellular BS with cognitive capabilities

Possible coverage extension using WS only

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

Capacity extension to a single user

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Offloading of LTE networks Business case analysis Parameter

Base case assumption (2015)

Number of sites required (ISD 0.75 km in downtown/urban, 1.0 km in suburban)

277

Cost of acquiring Digital Dividend 2 spectrum

8.8m USD

Cost of making a conventional eNB support DD2 spectrum

5.2k USD

Cost of making an eNB cognitive LTE capable

9.1k USD

Cognitive Manager – Spectrum Management (CM-SM)

225k USD CAPEX, 31.5k USD/year OPEX

Adaptation Layer

13k USD

Cost difference between “cognitive LTE” capable terminals and terminals supporting Digital Dividend 2 (DD2) spectrum

39 USD

Spectrum (geo-location) database fee

6.5 USD/subscriber/year

Conversion used: 1 euro = 1.3 USD

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

DNPV = 3.9m USD in favour of cognitive LTE

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Offloading of LTE networks



Cognitive LTE terminal cost



eNB upgrade cost



Spectrum database fee

Base case: 8.8m USD

Moderate risk

DD2 spectrum license cost

Low risk



High risk

Sensitivity analysis

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Cognitive femtocell Business case definition Digital TV transmissions

A fixed network operator to offer mobile broadband service • TV Whitespace (470-790 MHz) • Backhaul using existing infrastructure (DSL, fibre,..) • Roaming or MVNO agreement with existing mobile operators • Study period: 2015 – 2020 • Geo-location and spectrum database

TVWS being used

Example spectrum usage chart

Femtocell using TVWS

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

TV tower

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Cognitive femtocell Business case analysis Parameter

Base case assumption (2015)

Number of femtocells for 90% outdoor coverage

6 750 in downtown/urban, 14 200 in suburban

Average revenue per user

26 USD/Month/customer

Cost of a cognitive femtocell

290 USD

Cognitive femtocell installation costs

0 USD

Cognitive manager for spectrum management (CM-SM)

225k USD CAPEX, 31.5k USD/year OPEX

Adaptation Layer (AL)

13k USD

Cost of mobile core network components

260k USD

Cost of cognitive capabilities in terminal

39 USD

General OPEX per customer

13 USD/Month/customer Marketing cost: 1 million € the two first years

Spectrum (geo-location) database fee

Conversion used: 1 euro = 1.3 USD

6.5 USD/subscriber/year Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

NPV=5.9m USD

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Cognitive femtocell

• • •

Cognitive terminal cost Femtocell coverage radius Femtocell installation cost

• •

Mobile core network Spectrum database fee

Base case: 26 USD/month

Moderate risk

ARPU Cognitive femtocell cost General OPEX cost

Low risk

• • •

High risk

Sensitivity analysis

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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QoSMOS use cases for cognitive radio Cellular extension in whitespace

Offloading of LTE networks • Increased operational bandwidths • Peak hour traffic offloading • Improved link quality • More flexible services

Cognitive femtocell

Cognitive ad hoc network

Rural broadband

Cognitive femtocell

M2M in whitespace

• High QoS requirements • Low mobility • Isolated village with little or no Internet connectivity

• Private wireless access • Public hot spots • Indoor femtocells to provide outdoor coverage

• Many small devices • Small amounts of data • Relaxed real-time demands • Transportation • Smart metering • eHealth

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Deployment scenario • National or wide-area deployment scenarios • UK – Rural broadband for not-spots in UK – M2M for close to 100% coverage of UK

Image ref: S. Kawade (BT) “Is wireless broadband provision in to rural communities in TV whitespaces viable? a UK case study”, DySPAN 2013

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Rural Broadband Business case definition For a fixed network operator to provide broadband to rural not-spots • TV Whitespace (470-790 MHz) • Not-spots ( 11.7 Mbit/s in 50% of the area • > 5.7 Mb/s in 90% of the area In a single 8 MHz channel

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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Cognitive femtocell Technical evaluation Femtocell range

Outdoor coverage

ITU-R P.1411 630 MHz TVWS DL EIRP: 20 dBm TVWS UL Tx power: 17 dBm

Building penetration loss: 11 dB

UE antenna gain: -7dBi

City suburban

1.5 m

City downtown 75 m urban

90 m suburban

Outdoor coverage is obtained by randomly deployed indoor femtocells

90% outdoor coverage can be obtained by: • 6 750 femtocells in downtown/urban • 14 200 femtocells in suburban < 10% of households (4 persons/hh)

Dynamic Spectrum Sharing Seminar, Microsoft Innovation and Policy Center, Washington D.C., 22 March 2013

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