GSM And Cellular Backhaul: Expanding Networks And Services

GSM and cellular operators require reliable equipment, service level agreements and the ability to use satellite bandwidth most efficiently. For satellite service providers and equipment manufacturers, there are new advancements in providing bandwidth and integration cost reductions, enabling cellular and GSM providers to expand their offerings.

In addition, regions that lack terrestrial or microwave infrastructures have robustly turned to satellite-enabled feeds for their service expansions.

Intelsat, for example, announced that it signed a contract with Millicom International Cellular S.A., a mobile operator in Chad, to provide cellular backhaul services to multiple locations within the country. Millicom won a 10-year license in 2005 to operate a GSM 900 wireless telephony network in Chad.

"We are seeing robust growth in Africa and there is also activity in Asia and Latin America," says George Giagtzolgou, senior director of strategy and planning for Intelsat. "In North America, there is demand for cellular backhaul for disaster recovery and emergency response."

In addition to Africa, Eastern Europe and the Middle East are gaining ground with satellite-enabled GSM services. SES Astra signed an agreement recently with Polish mobile phone operator Polkomtel for delivering broadband Internet access service to the subscribers of Polkomtel’s mobile phone network Plus GSM. Under this contract, Polkomtel uses SES Astra’s satellite-based broadband Internet service in combination with Polkomtel`s existing wireless Internet service IPlus. In the Middle East, Eutelsat signed with ORG Telecom Ltd. to develop the market for cellular coverage via satellite in Afghanistan. Local telecom operator ORG Telecom is building a GSM network in Afghanistan to facilitate mobile telephony in both rural and urban areas found without adequate terrestrial infrastructures.

Loral Skynet also is seeing an increase in its GSM and cellular backhaul business. "GSM continues to play a large role in Loral Skynet’s business plan, which has focused in many global regions, where the standard for wireless and mobile networks has been GSM," says Brian Skimmons, CIO, vice president and general manager with Loral’s IP/SkyReach. "We are supporting a broad range of customers with GSM network requirements and providing customized backhaul solutions such as WiFi/WiMAX and cellular trunking for mobile video and Internet access."

Skimmons adds that Loral has seen that GSM demand has been most prevalent in Eastern Europe, Africa, Latin America and parts of Asia. "In areas of growth where the capital for rapid and expanded build out of costly fiber infrastructure is being controlled and focused in dense areas satellite coverage provides the integrated capability to easily expand that coverage to less dense areas and capture a greater market share," he says.

But one of the major obstacles facing operators today as they attempt network expansion and service delivery is stagnant regulation. "Local regulatory hurdles and price points that cover the cost of the service are the biggest challenges facing business growth," adds Skimmons. "Having a local partner is key to overcoming regulatory challenges as well as a simple pricing structure that can accommodate different cost models for continuity of coverage. One of the advantages of the packet-based support for GSM is the ability to more easily share capacity and lower the overall cost of service."

But Giagtzolgou adds that business growth goes beyond regions. The technology requirements and equipment advancements also has increased the GSM and cellular backhaul market for satellite service providers. "What is interesting is that mobile operators are looking for more coverage and want to enter more countries to provide a competitive offering," he says. "They are also focused on the quality of the capacity and how much throughput they can get. Today they understand the complexity behind the satellite offering and now want to use this service in a more robust way."

In fact, equipment manufacturers are finding that the equipment needs have indeed significantly changed within the past 20 years. Today, cellular carriers are using different coding methods, which are requiring new equipment. Specifically, advanced GSM and Internet Protocol (IP) mediation devices are offering the operator robust bandwidth efficiencies. Satellite hub equipment and package services add to the savings, as satellite bandwidth can be shared among a number of the GSM operator’s base stations by replacing traditional SCPC networks with star and mesh networks.

Likewise, equipment manufacturers also have advanced technological offerings that can save clients overhead costs, in as little as six weeks, some officials say. "Equipment needs have changed because many companies are in need of a more cost-effective model for cellular service and in some cases, the use of satellite instead of microwave can reduce bandwidth costs by as much as 50 percent," says Bob Hansen, senior vice president of global sales and marketing for Comtech EF Data Corp.

"This market is a major development for our equipment distribution, and we are seeing a strong increase not only for upgrades for cellular networks, but also for cellular network expansion into developing and rural areas," adds Hansen. "Now we are witnessing the use of satellite technology as a tool for cellular companies to extend their networks into areas where other transmission options are not available or as robust. We are seeing strong growth among countries that have new licensing regulations in place like Latin America, Africa, China, Russia and India."

Comtech recently won a $2.8 million contract to provide satellite communications equipment to a cellular operator in India. In conjunction with Hughes Network Systems, and Eltel Systems Ltd., the deployment of Comtech’s data and RF equipment will augment a SCPC VSAT network allowing voice and data connectivity. "We are seeing similar trends in other developing regions where cellular operators have installed satellite networks to expand voice and data services," Hansen says.

But one of the most significant market changes that is fueling a resurgence of satellite-enabled backhaul services rests in the content that is today being transmitted. Content has moved beyond voice, encompassing data and, at times, video. With cellular services going to 3G and 4G, the market has created demand for more bandwidth and today’s equipment helps in managing the increasing data rates. Likewise, with advanced header compression, many of the backhaul services are moving toward IP-based delivery, reducing capital and operational expenditures of carriers.

"As we talk to global cellular providers around the world, satellite is last on their minds," says Hansen. "We actually have increased our education of the cellular providers and show them the economics comparing microwave, fiber and satellite against the content they want to deliver. Once they see those models, many realize the economic benefit of incorporating advanced equipment technology into their backhaul platforms."

Cellular service provider Ericsson Inc. has been incorporating satellite since the mid 1990s and has been growing its business ever since. Today, more than 100 customers are using satellite backhaul with Ericsson services, and company executives see this trend growing in the near term, especially in developing countries. "We see satellite backhaul as a nice complement to our microwave portfolio and it works well for time to market deployment," says Richard Swardh, business manager of satellite systems for Ericsson. "In the developing world, we have enabled services over satellite so the GPRS/EDGE protocols will perform well. Currently, we have expanded into the African market and we see continued growth possibilities there."

But Ericsson did not become one of the leading providers without overcoming the technological market challenges found both in the developing and developed world. "Traditionally SCPC has ruled this market, however, it is not the most cost efficient solution in some cases because it is not efficiently using bandwidth," Swardh adds. "We have enabled shared bandwidth type technology for backhaul to base stations and therefore, have been able to reduce transmission cost significantly."

In fact, establishing and maintaining digital satellite data connectivity can be more challenging because latency issues with satellite transmissions can cause problems for customers. "We have worked very hard in incorporating compression technology for our backhaul business, helping meet the expectations in the market place," says Swardh. "Today, our customers do not know if it is coming over satellite or microwave. They just receive the voice and data information they need, and in the end, a transparent service is what counts."

Satellite transmission of communication links is a key advantage to terrestrial service providers and Ericsson has recognized that point, allowing the company to provide service quickly in areas where it is not feasible to reach customers with existing terrestrial technologies. Satellite also provides a secure backup for redundancy against the possibility of terrestrial failures throughout the network. "We can provide GSM, GPRS/EDGE, and CDMA satellite connectivity with either a trailer-based or more permanent containerized radio network," Swardh says. "We have enhanced our portfolio and work closely with various equipment manufacturers to provide a network buildout that is transparent to our customers."

Today, providers such as Ericsson who have satellite-enabled services in place can seamlessly offer emergency call handling, disaster assistance and business realization consulting to more customers with minimal if any disruptions.

"The GSM backhaul market has been and will continue to be an important part of our revenue and product plans," says Norm Larson, vice president and general manager of Arizona- based Radyne Corp.’s Phoenix operation. "We expect that the satellite backhaul market will continue to grow as the GSM, 3G and other wireless markets expand worldwide. It has grown from a niche market opportunity a few years ago into an important market opportunity for satellite equipment manufacturers. The availability of satellite-based backhaul has enabled wireless service providers to deploy new cell sites without being constrained by the near-term availability of wireline backhaul service."

Radyne also is seeing growth opportunities in developing regions. "Most of the GSM operators that use satellite technology for GSM backhaul operate in developing countries. These markets are demanding and cost conscious, and as suppliers, we must have products that allow our customers to win," Larson says.

The overriding customer requirement is to deliver more bandwidth for the same or lower cost. Some of the technologies that are used include Turbo FEC, 8PSK and 16QAM advanced modulation techniques, L-band modem interfaces and block up and down converters. "We are also seeing a desire for higher level of integration between the modem and RF which require the modem to be an outdoor environment," Larson says. "We see this development as similar to the shift a few years ago when the indoor frequency converters integrated with the amplifiers which created the transceiver product. In the future we expect the integration trend to continue."

Focusing On Expansion And Technological Advancements

GSM and cellular backhaul over satellite is a relatively common application in many regions of the world. Flexibility in network planning allows the operator to tailor the satellite solution for the particular needs of each remote site in the mobile network.

GSM over satellite is an important application today and will experience significant growth as networks are pushed into more developing areas. By understanding the technology and efficient techniques, more operators will be able to take advantage of satellite to extend their networks.

Nick Mitsis is the editor of Via Satellite magazine. He also sits on the board of SSPI’s Mid-Atlantic chapter.