Wireless markets across the world are witnessing growing demand for data services, and Southeast Asia (SEA) is no exception. The introduction of next-generation services has been beneficial for customers, but has posed challenges for operators to meet the increasing demand for high-bandwidth services. Networks in the region have been clogged due to huge traffic volumes, which is driving operators to turn to technology options that offer cost efficiencies.
Steps taken by operators to decongest networks include scaling up of networks, offloading data to micro networks, and deploying solutions to optimise network performance. Key telecom markets in the region ? Singapore, Malaysia, Thailand, and the Philippines ? are already benefiting from a mix of these technological approaches. Other countries in the region are likely to follow suit.
Transition towards packet-switched networks
As data traffic volumes increase to unprecedented levels, operators are facing a pressing need to revamp their traditional time division multiplexing (TDM)-based networks (built primarily to support voice-based services) with technologies that can support next-generation data services. Consequently, they are moving to Ethernet or all IP-based packet-switched technologies to deliver quality services, reduce user churn, and introduce new offerings. This transition is crucial for optimal performance and improvement in cost efficiencies in the long run.
Currently, the majority of cell sites support bandwidth in the 100 Mbps-1 Gbps range; however, operators would require infrastructure which can support bandwidth of 1-10 Gbps and higher in the future. IP and Ethernet technologies offer flexibility and scalability for operator networks, as they have a flatter architecture with fewer elements. Moreover, they can be easily transitioned to accommodate the continuously changing customer needs. For instance, bandwidth upgradation from 1G to 10G can be facilitated without an overhaul or replacement of on-site equipment. Further, the embedded generation and reflection capabilities of these networks allow operators to undertake remote testing from a central location with only a few on-site service technicians, which should result in significant operational and cost benefits.
Ethernet-based services and networks have found global acceptance ? by end-2015, over 75 per cent of cell towers across the world will deploy Ethernet-based backhaul. In line with this trend, operators in the SEA region have been undertaking major overhaul of their core, access and backhaul networks to deploy both Ethernet and IP/MPLS backhaul technologies.
In July 2012, Cambodia-based Emaxx deployed BTI Systems? integrated packet optical platform ? a single, unified platform that supports several of the company?s service offerings and caters to the transport requirements for a mobile backhaul. The platform allows Emaxx to provide quality Ethernet business line services, besides being a cost-effective and scalable solution.
In November 2012, Singapore Telecommunications (SingTel) deployed Cisco?s MPLS-transport profile carrier packet technologies for next-generation networks. The new platform is being used to deliver electronic bandwidth-on-demand and dedicated point-to-multipoint services to ConnectPlus E-Line customers. The network can provide speeds of up to 10 Gbps to accommodate high-bandwidth applications.
In April 2013, Singapore-based M1 Limited selected Nokia Solutions and Networks to upgrade its core infrastructure to an IP-based network, which would help M1 to minimise the impact of service disruption when some parts of the network malfunction. In September 2012, M1 had selected Ericsson to upgrade its TDM-based transmission network with IP-enabled microwave and fibre optic equipment. The network upgradation was primarily undertaken to support M1?s 4G long term evolution (LTE) services that were launched in the same month. The upgraded network allows the operator to meet major bandwidth requirements and offer quality services.
Mobile data offloading technologies
As operators? main wireless networks become increasingly congested, it is important for them to offload some volume of data to complementary networks. Thus, operators are deploying micro network technologies such as femtocells and Wi-Fi to optimise the use of their main wireless networks, enhance network resource allocation, and provide higher bandwidth to end-consumers.
Micro networks have been an efficient, flexible and cost-effective solution for providing indoor coverage. Based on a recent report published by UK-based Juniper Research, around 50 per cent of global mobile data traffic will be offloaded to Wi-Fi and other local networks in 2013.
With over 60 per cent of mobile usage in the region taking place indoors, operators are increasingly adopting small cell technology to drive capacity and coverage. Small cells such as femtocells are typically low radio frequency-powered base stations, which are deployed to enhance indoor reception. Further, as these are generally self-organising networks, they have a high degree of automation, which reduces costs.
In May 2013, Singapore?s M1 selected Alcatel-Lucent to deploy a small cell/femtocell solution to improve the indoor capacity and coverage of the operator?s 3G network. Singapore-based StarHub has been utilising femtocell technology since November 2008. Globe Telecom in the Philippines is also deploying femtocells to provide customised solutions for improving connectivity in suburban areas. The operator currently has about 50 residential subscribers using femtocell technology in Manila. It is also working towards making this technology available to small businesses and enterprises in the future.
While femtocells are gaining prominence as a cost-effective means of indoor usage, one of their limitations is that they operate within specific bands. Thus, Wi-Fi continues to be a popular choice for offloading mobile data traffic. It is an open spectrum technology which supports most smartphones and tablets. Further, Wi-Fi services use unlicensed bands, and, therefore, there are no major issues related to spectrum acquisition and pricing.
Over the years, Wi-Fi technology has helped operators in offloading data and video traffic from congested 2G and 3G networks. This has helped operators to achieve cost efficiencies, besides improving the service quality on their networks. According to industry estimates, offloading 3G traffic to Wi-Fi results in cost savings of up to 60 per cent, as the cost of deploying Wi-Fi is far lower than augmenting 3G capacity through the addition of new sites. Also, the Wi-Fi space is witnessing technological evolution, which would allow it to move from being a mere hotspot technology to providing coverage in large areas and outdoors. The new 802.11ac standard will improve the coverage, speed and range of Wi-Fi-enabled devices, thereby making Wi-Fi an effective tool for data offloading.
The SEA region, which is reporting strong data growth, has witnessed Wi-Fi deployments both as a means of offloading 3G/4G data and a medium for providing public access to data services. The Philippines Long Distance Telephone Company (PLDT) has partnered with Alvarion for its nationwide Wi-Fi Zone Project, which involves the provision of high speed Wi-Fi access in public areas across key cities. In Thailand, private and state-owned operators have joined hands to install a combined base of 250,000 Wi-Fi hotspots by end-2013; they plan to increase this base to around 400,000 by 2015.
Among the various countries in the region, Indonesia is likely to witness significant Wi-Fi deployments ? operators have set ambitious Wi-Fi roll-out targets for 2013. Indonesia?s PT Indosat plans to significantly increase the number of Wi-Fi hotspots. It has already established about 3,500 Wi-Fi hotspots under the ?Super Wi-Fi? programme, which was launched in September 2012. Meanwhile, PT Telekomunikasi Indonesia (Telkom) has launched a similar Wi-Fi roll-out programme to deploy 100,000 points of Wi-Fi access across the country. On completion, Telkom would become the telecom provider with the largest base of Wi-Fi hotspots in Asia. This network will primarily serve areas that generate high data traffic ? schools, shopping malls, public places, convention centres and hotels ? while decongesting Telkom?s main cellular networks. The operator plans to deploy 1 million Wi-Fi access points in Indonesia by end-2013.
Other optimisation technologies and tools
Operators in the region are deploying optimisation solutions to make their networks future ready, while deriving cost efficiencies in the long term. StarHub has implemented Mobixell?s mobile data traffic management platform and the Seamless Access solution to generate cost savings, and ensure fast and smooth introduction of next-generation services such as content filtering, video optimisation and personalised advertising.
Meanwhile, PLDT has deployed US-based Ciena?s 5410 Packet-Optical Reconfigurable Switch System and OneConnect Intelligent Control Plane software across its global network. The company will use these solutions to create a mesh switching network to ensure network resilience and efficiency. This will help it meet service level agreement requirements and respond swiftly to the changing network demand.
Malaysia-based Maxis Berhad has selected Ireland-based Altobridge?s solutions to deliver affordable 3G services to rural communities in the country. The agreement between the companies involves the deployment of over 300 new mobile broadband sites. Altobridge?s optimisation feature, Data-at-the-Edge, will help in minimising network roll-out costs. The feature adds to intelligence at the radio base station level and reduces the cost of data transmission between an operator?s core network and the radio base station.
Going forward
The exponential growth in data usage will continue in the coming years; hence, the need for upgrading networks, introduction of new media to support data growth, and deployment of optimisation solutions to manage and monitor this growth will become increasingly critical. A single solution will not be adequate and operators will need to consider combinations of several technologies to ensure quality user experience at sustainable costs. It is noteworthy that the deployment of these technologies will have positive cost implications in the long run, even if it does not generate immediate cost savings.
Going forward, most operators in the region have earmarked a capex of about $9 billion for 2013?14, the majority of which will be used for upgrading their networks and preparing them to support next-generation services. Operators in Singapore, Indonesia and Malaysia are planning to increase their capex by at least 10 per cent in 2013?14 as compared to that in 2012?13, as they roll out 4G services and invest in technologies to cater to the growing data demand.
