Presentation from Mobile Backhaul Asia 2011. Enabling Broadband in Asia: Creative Approaches. How can network operators cost effectively upgrade their networks with additional expenditure to meet the increasing demand of smart phones and the heavy data volumes?

1. Enabling Mobile Broadband in Asia:
Creative Approaches
Mobile Backhaul Asia
Ran Avital, Vice President of Strategic and Product Marketing
March 16, 2011

2. Agenda
• Understanding capacity requirements and expected traffic patterns in
the Asian market
• Redefining Asian mobile operator's expectations from the backhaul
segment of their networks
• Making Mobile Broadband accessible in Asia with backhaul solutions
that meet mobile broadband growth, capacity and coverage
requirements
• Discovering how to deliver more capacity gain in an HSPA+/LTE
environment
2 Proprietary and Confidential

3. Ceragon and Nera combination creates the
Premier Wireless Backhaul Specialist
Bridging Societies / Making Broadband Accessible
NASDAQ: CRNT
Available Affordable
3 Proprietary and Confidential

4. The Rise of the Tablets
4 Proprietary and Confidential

5. The Soical Networks
5 Proprietary and Confidential

6. The Party Pooper*
*A person who ruins a party by either stopping the fun or not participating in a certain activity. (Urban dictionary)
6 Proprietary and Confidential

7. Asia: Slow adoption of 3G.
Backhaul is usually Microwave based
Heavy Reading's. Ethernet Backhaul
Quarterly Market Tracker Aug 2010
7 Proprietary and Confidential

8. Microwave – Not what you thought
The many uses of Microwave...
Can you hear
me better now?
Proprietary and Confidential

9. Global shift towards all packet
Heavy Reading's. Ethernet Backhaul
Quarterly Market Tracker Aug 2010
9 Proprietary and Confidential

10. The Backhaul Bottleneck
Revenue
Source: Jones The Fone Consulting, Sep 2010
Proprietary and Confidential

11. 3G/4G Service Providers Challenges
Competitive Total
Advantage Cost
Capacity reach Profitable Risk Free Migration
Quality of Experience growth Time to Revenues
Control CAPEX & OPEX
Proprietary and Confidential

12. Making 3G/4G Broadband Profitable
3 simple steps for successful wireless transport design
1. Squeeze maximum capacity from available spectrum
- Maximize return on investment
2. Focus on Quality of Experience
- Differentiated services for differentiated revenues
3. Choose a modular risk-free approach
- Keep revenue generating services
Proprietary and Confidential

13. Rethinking backhaul paradigms
Capacity
S
1
S S
4 5 Fiber site
Wireless S
Native2 1
Ring
S S
3 2
Protection means redundancy Mobile traffic is symmetric
Lossy/Lossless compression All services are created equal
13 Proprietary and Confidential

14. Capacity: Efficiency at All Levels
Capacity
Spectral
• Modulation
• Header compression
• Payload compression
• Latency
link • System gain
•Adaptive Power ACM
• QoS mechanism
Wireless Network • Resiliency (ABR, …)
• Asymmetricity
14 Proprietary and Confidential

15. East-West support
is great,
But our network runs
North to South...

16. Doubling Ring Capacity
Capacity
Ceragon’s ABR (Adaptive Bandwidth Recovery)
Conventional Protection Ceragon ABR Protection
(Based on SNCP 1+1) (Adaptive Bandwidth Recovery)
More bandwidth
for broadband –
Standard Double for free!
capacity capacity
Double the ring capacity - at no extra cost!
16 Proprietary and Confidential

17. Transport is symmetric in nature. Really?
Designed for Voice Type of media in use Ease of traffic Engineering
(Bellheads) (Active Fiberhead) (Netheads)
Broadbandheads  Wireless, copper or fiber go asymmetrical
17 Proprietary and Confidential

18. Asymmetric Bandwidth Capability
Capacity
• Voice communications is symmetric in nature
• 3G/LTE Traffic is Asymmetrical
Download Upload
Aggregation
Symmetric channel within FDD frequency plan Network
BTS Aggregation / Hub
site
18 Proprietary and Confidential

19. Asymmetric Bandwidth Capability
Capacity
• Allocate more capacity to downlink traffic
• Within an existing Point-to-Point FDD frequency planning
environment
Download
Upload
Aggregation
Network
Asymmetric channel within FDD frequency plan
BTS Aggregation / Hub site
50% More Downlink Capacity - at no extra cost!
19 Proprietary and Confidential

20. Enhanced Compression over the Backhaul
Capacity
Evolving traffic mix on HSPA  LTE with IPv6
adds more and more packet headers and overheads
• Multi-Layer Header Compression
• Payload compression
Site A Site B
Header Payload Header Payload
Compressed Compressed
CH CH
Payload Payload
Compressed Compressed
CH CH
Payload Payload
CH = Compressed Header
Up to 150% more capacity - at no extra cost!
20 Proprietary and Confidential

21. 3G backhaul capacity upgrade
Capacity Requirements
• 7 ring sites:
• 3xE1 for 3G (Ethernet)
• 2xE1 for 2G
• 7 spur sites:
• 3xE1 for 3G (Ethernet)
• 1xE1 for 2G
• Overall ring supports:
• 21xE1
• Ethernet capacity of 84MBps.
• Site F is the aggregation site
F
• 3G is all packet, launched in 2010
Upgrade capacity in an • 2G is the bread and butter, all TDM
impossible environment • Backhaul is based mainly on microwave radio
• Limited and expensive backhaul spectrum
21 Proprietary and Confidential

22. Implementing more capacity
Traditional Planning Ethernet capacity per site
Access Aggregation Radio Traffic Traffic
Channel Optimization Model 1 Model 2
28MHz None 26.64 22.23
14MHz None 3.92 3.27
First Mile
Bandwidth recovery Ethernet capacity per site
Radio Traffic Traffic
Channel Optimization Model 1 Model 2
14MHz ABR 11.86 9.9
F Asymmetrical Ethernet capacity per site
Radio Traffic Traffic
Channel Optimization Model 1 Model 2
21MHz ABR 19.31 16.11
Increase capacity by applying all 3 techniques
1. ABR: Adaptive Bandwidth Recovery 7MHz ABR 3.08 2.57
2. Asymmetrical: Bandwidth planning and delivery
3. Compression: Multi layer header compression
Risk free by using 5 times more capacity for broadband
1. Low delay: jitter and transport By-product: better spectrum reuse
2. Synchronization: complete tool kit
* Traffic Models based on specifications in ITU-T G.8261
Proprietary and Confidential

23. Making 3G/4G Broadband Profitable
3 simple steps for successful wireless transport design
1. Squeeze maximum capacity from available spectrum
- Maximize return on investment
2. Focus on Quality of Experience
- Differentiated services for differentiated revenues
3. Choose a modular risk-free approach
- Keep revenue generating services
Proprietary and Confidential

24. Thank You
Contact Details: Ran Avital
VP Product & Strategic Marketing
24