Cellular and Satellite:

together to serve a fast

growing market
Didier Verhulst
Presentation at COMSYS VSAT 2009
London,18th September 2009

Page 1
How to get the best from
cellular and satellite
technologies together ?

September 2009 Page 2

Cellular growth worldwide (1/2)

Today more than 4 Billions cellular users in the world

4 000 000

3 000 000 GSM 3G - 3G+

2 000 000 GSM 2G - 2,5G

Other Cellular
1 000 000

0
1992 1996 2000 2004 2008

. and only about 1,6 Billions Internet users !

September 2009 Page 3

 Cellular growth worldwide (2/2)

But still many areas uncovered

2G 3G Source GSM Association, beg. 2009

September 2009 Page 4

 Cellular growth in Africa
Today 400 Millions cellular subs in Africa, growing fast

400 000

300 000

200 000

100 000

0
2000 2004 2008

GSM 3G - 3G+
GSM 2G - 2,5G
Other Cellular

Source GSM Association, beg. 2009

but still a lot to do: only about 70 % population & 20% area covered
September 2009 Page 5
 Looking for low cost cellular coverage

A challenge for mobile operators is to serve remote rural

villages with low income subscribers
Monthly Average Revenue Per User (ARPU) less than $10 in villages
It is therefore essential to reduce CAPEX as well as OPEX
Both for cellular and for transmission equipment

September 2009 Page 6

Satellite is often the only available transmission solution

GSM extension Scattered extension

Urban area Via Satellite
(Microwaves)
User density

September 2009 Page 7

But satellite transmission is considered costly !

Today: satellite links are mainly used to connect remote

but large cities
Using dedicated satellite resource and SCPC modems
Often without the most advanced optimization
Satellite being perceived as a mandatory but expensive
solution . waiting for a terrestrial transmission replacement
(microwave, fiber)
Satellite backhaul in Africa is still constrained by the lack of
satellites coverage
The cost of leasing transponders remains very high
There is therefore a growing demand for optimized satellite
cellular backhaul solutions !

September 2009 Page 8

Ongoing progress in satellite backhaul transmission

Optimization of satellite modems

High density modulation
Link adaptive coding, Carrier-in-carrier channeling
C band, but also Ku and soon Ka band as well
GSM interface compressors
Taking advantage of silence in speech, signaling and data to
reduce throughput
Dedicated and shared resources
Shared forward link: e.g. DVB-S2 with TDM
Demand Assigned Multiple Access for return links
Star, meshed, or mixed star - meshed configurations
New broadband IP VSAT technologies

September 2009 Page 9

GSM backhaul over broadband IP VSAT

E1
BTS IP Mux VSAT
IP Mux

E1
BSC
BTS IP Mux VSAT IP

Cell & Sat

Hub Optimiser
E1
IP Mux
BTS VSAT
Shared satellite resource
=> cost is per Erlang,
E1
BTS IP Mux VSAT ideal for low traffic BTS
September 2009 Page 10
New GSM solutions for rural

Low CAPEX BTS equipment

More and more software than hardware based
With a strong competition between vendors !
Main costs are today in shelters, site installation, antennas
New all-in-one" compact rural GSM base stations are proposed
With high power / sensitivity BTS to reduce antenna mast height:
from 30 m down to 15 pm or less

OPEX savings
Migration from TDM towards IP based links
Outside the electricity grid: energy based on solar cells rather
than fuel
Optimization functions: BTS concentrators, local switching,
energy saving features (idle mode), etc

September 2009 Page 11

 New solutions for satellite GSM backhaul (1/2)

The GSM system includes functionalities to utilize its cellular

radio frequencies very efficiently
Adapting to fast variations of the radio links
Managing mobility of users
Controlling evolution of overall traffic
Optimizing various types of services: speech, messaging, high
speed data, etc
Interpreting the GSM signaling is a very powerful tool to
optimize the satellite radio frequencies as well !
Traditional GSM backhaul provides a transparent pipe to
transport GSM traffic data and signaling
Optimized backhaul can provide the minimum satellite
resource required for the actual GSM traffic

September 2009 Page 12

 New solutions for satellite GSM backhaul (2/2)

Optimized cellular backhaul

Developed by Cell & Sat in partnership with Memotec
Adaptable to any TDM or IP satellite links
Compatible with any GSM infrastructure
CSM

O&M

IP
IP
IP Mux Sat Sat IP Mux
BTS Terminal Hub Gateway BSC
Terminal

CSO: Cell & Sat Optimizer,

CSM: Cell & Sat Manager CSO
GSM signaling analysis, backhaul optimization

September 2009 Page 13

 Key features (1/2)
Optimized routing of speech
Local switching of speech information whenever possible
100 % transparent to GSM control & signaling
Saving of satellite resources
Improving perceived QoS (latency) Local Switching

Intra CXT

E1 Sat terminal
IP
CXT HUB
BTS Inter CXT
(future, with meshed satellite)

E1 Sat terminal
BTS CXT
CSO
33% local calls 50 % satellite savings
September 2009 Page 14
 Key features (2/2)
Control of satellite resources allocation
Information on GSM calls used to optimize satellite resources
allocation
With an interface between the CSO and Satellite resource controller
Optimum loading of shared (DAMA) satellite frequencies
Avoiding degradation of GSM calls under satellite congestion

Adaptation to new cellular architectures

Same principles can be applied to new IP based cellular networks
No more requirement for TDM - IP multiplexers
But adaptation needed to specific IP based BTS BSC interface
This backhaul architecture valid also for broadband cellular
Migration from GSM 2G to 3G, 3G+

Optimized integrated rural cellular +satellite solution

Developed in partnership with cellular and satellite vendors

September 2009 Page 15

 Status

Local Switching function

Fully integrated with Memotec CX product
Extensive validation performed with a major GSM vendor
Without any adaptation to existing cellular equipment
Compatible with all services as well as legal interception

Pilot networks in 2009

With GSM network equipment from several vendors
To optimize existing satellite backhaul
Or to provide GSM coverage in new rural areas
Ongoing development of the Cell & Sat solution
New functions taking benefit of the cellular signaling analysis
Adaptation to IP based cellular architectures

September 2009 Page 16

Business benefits

Cell & Sat performed detailed business evaluations of the

rural GSM potential in developing countries
Case studies in various African countries (consultancy work)
Business planning for satellite operator and cellular operator
Typical GSM operator profitability example below (with ARPU= $9)
Traditional satellite backhaul Optimized satellite backhaul

3% 20%
21% 21%

39%

19%

36% 39%

Network costs Transmission costs Other operator costs Margin

September 2009 Page 17

Our vision

Cellular and Satellite operators - manufacturers

working together to reach new horizons

www.cell-sat.com
September 2009 Page 18