CHALMOT DE LA MESLIERE Alexis GUILLET Yohan KOTOUS Vojtech MARIANNIE Prem TORAMANIAN Viken

REPORT OF THE PROJECT

A3 TELECOM AND WIRELESS NETWORKING

Broadband Wireless Access network for the city of Lyon

Abstract

We are a team of 5 engineers gatherer in a company called LyonTEL. Our goal is to propose a solution to provide the city of Lyon with a Broadband Wireless Access Local Loop Network from the start of 2007 and to study its evolution for five years in order to reach profitability over the period 2007 to 2011.

First we defined our choice for the most adequate technology to meet the demands. We chose to implement a Mobile Wimax (IEEE 802.16e standard) compliant network. We will work at the available frequency of 3.5 GHz and we chose the Time Division Duplex (TDD) method for its reliability efficiency and low-cost for our application. The available 15 MHz frequency band will be divided in two bands on of 5MHz and the other of 7 MHz, both use in downlink and uplink. Then we studied the coverage and planning of our network. Our computations made us choose a plan with 4 frequencies per site with hexagonal cells. Our propagation model and budget link computations made us select the appropriate material on the market. Next, the traffic was predicted on the basis of our coverage and planning. We start with 45 base stations and we are offering a complete coverage of Lyon and enough data and voice capacity from day one. Applications as Telephone over IP, websurfing, visioconferencing will be fully supported in vehicular mobility (60km/h). And we are able to prepare for upgrades as the demand increases. Our Business plan shows that even in a case of low increase of the demand our network will be profitable within five years of exploitation. What’s more the expected profit will allow us to invest appreciably in our network for future upgrades in a constant search for a higher customer satisfaction. So our proposal complies with all the requirement of the tender both technically and financially. Our proposal is a reliable network and the business plan we put together allows our project to reach profitability over five years after the first deployment.

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Broadband Wireless Access network for the city of Lyon

Table of contents:

Introduction

5

I) Request For Information

6

I.1) Service and coverage

6

I.2) Technologies and frequency bands

6

I.3) Other informations

6

II) Choice of technology

7

II.1) WiFi or Wimax 16e

7

II.2) FDD or TDD

9

II.3) Mobility and security

11

II.3.a) Mobility

11

II.3.b) Power Management

11

II.3.c) Handover

11

II.3.d) Security

12

II.4) SOFDMA

12

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Broadband Wireless Access network for the city of Lyon

III) Coverage

13

IV) Choice of materials

23

IV.1) Choice of Base station

23

IV.2) Choice of CPE

24

V) Traffic

25

VI) CAPEX/OPEX and Profitability

29

VI.1) Realistic scenario

29

VI.2) Optimistic scenario

33

Partition of tasks

37

Conclusion

38

Glossary

39

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Broadband Wireless Access network for the city of Lyon

Introduction

Our team goal was to create a wireless network for Lyon, the second most important city in France after the capital Paris. The first step has been to cover all the area and gives to its population the possibility to be connected to internet of course but also benefit of many services everywhere and even with mobility. This new technology will be accessible for all the one million of inhabitants of Lyon. After reminding the requirements for Lyon’s network, our choice of technologies are explained. Then, a study shows how we’ll make the coverage of our network. Next, we justify our choice of materials. Finally, before calculating the different costs for this network’s project, we estimate its traffic.

A lot of information about this project of Lyon’s network are available in the webpage: http://lyontel.free.fr

Lyontel is the name of our team, who study the building of a network for Lyon..

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Broadband Wireless Access network for the city of Lyon

I) Request For Information:

I.1) Service and coverage:

The purpose of our project consists in installing a wireless network in the city of Lyon (coverage zone) in France. Here’s the specific charateristiques of this town: -

population: 1000000 average length for voice communication per subscriber and per day: 120 seconds Mbit transfered per subscriber and per day: 10 Uplink flow min per subscriber: 1M Downlink flow min per subscriber: 1M Simultaneous subscribers: 1000 CPE in LOS: 30% CPE in NLOS: 70% Environment : flat, light tree density: sub-urban (C) Services: websurfing, visioconference and data transfer, telephony over IP, and mobility (D, V, T, M)

I.2) Technologies and frequency bands:

Wimax 16d and Wimax 16e: 3.5 GHz; 3.7 GHz; 5.8 GHz WiFi: 2.4GHz

I.3) Other informations:

Penetration rate of PC within population Expected penetration rate of telephone VoIP within population

2007 30 10

2008 40 15

2009 60 17

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2010 90 19

2011 120 20

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Broadband Wireless Access network for the city of Lyon

II) Choice of technology:

II.1) WiFi or Wimax 16e:

According to the informations described in I.1 about service and coverage of the wireless network, we can choose between Wimax 16e and WiFi. It is disadvised to use both Wimax and WiFi together, for a question of compatibility between them.

To respect the project's requirements, Wimax is more effeciency than wifi, all the more that Wimax has been standardized for mobility with the 802.16e:

- Wifi’s coverage is optimized for indoor environments whereas Wimax has been standardized for outdoor ones; - The WiFi doesn’t allow mobility at all because of the too small reach; it is possible to have a nomadic, a mobility and also a regional roaming with Wimax 16e, under 60 Km/h (no problem as the vehicular’s speed must be less than 50 Km/h in the towns of France); - Contrary to WiFi where the 2.4 GHz frequency is a free one, wavebands for Wimax can be assigned in the 3.5 GHz frequency (only licensed frequency for 802.16e), so that there won’t be any interferences with other personnal wireless networks, especially wifi’s ones;

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Broadband Wireless Access network for the city of Lyon - With the Wimax technology, we assign to our network a bigger capacity and we share all the resources for everybody. In France there exists two kinds of frequency bands: free frequency bands (unlicensed) where everybody can transmit and receive, and the private frequency bands (licensed). To provide the best quality of service we decided to transmit the signal in the private frequency band or to work for a company which rents the licence. The choice of the private channel band gives us a better quality (less interference), a better protection (security), and a total control of our network. We will work around 3,5GHz. Thus we have two bands of 15 MHz for our bandwidth. The frequency bands assigned in the 3.5GHz frequency are: - Frequency band 1: 3465-3480 MHz and duplex 3565-3580 MHz or - Frequency band 2: 3432,5-3447,5 MHz and its duplex 3532,5-3547,5 MHz.

Wimax 802.16e, with two 15 MHz bands on both sides of the 3.5GHz frequency: best technology for Lyon’s network with the expected service and coverage.

Here’s the standards of IEEE 802.16e: -

completed: December 2005 spectrum: < 6GHz bit rate: up to 15 Mbps at 5 MHz channelization modulation: OFDM 256 sub-carriers, QPSK, 16QAM, 64QAM mobility: pedestrian mobility - regional roaming (60Km/h) channel bandwidths: selectable channel bandwidths between 1.25 and 20 MHz, with uplink sub-channels to conserve power. Typical cell radius: 2 to 6 Km.

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Broadband Wireless Access network for the city of Lyon II.2) FDD or TDD:

We have to make a choice between FDD mode and TDD mode. First, the FDD mode appears easier to take into considerations in the sharing of the resources.

At most, we can't use both TDD and FDD together, because of the mobility service we have to deliver in our wimax network. During the handover, the dual mode (TDD and FDD), would generate more latency and more interferences. Moreover the total cost would be more expensive than in a single mode.

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Broadband Wireless Access network for the city of Lyon The possibilitées of widths of channel for TDD (5 MHz, 7 MHz, 10 MHz) allows fewer losses in the 15 MHz band than FDD (3.5GHz), even by considering the roll-off factor. This is an important argument for TDD, all the more that the license is expensive (10 000 000 ecus).

- TDD assures channel reciprocity for better support of link adaptation, MIMO and other closed loop advanced antenna technologies. - We can add that TDD is more efficient in mobility than FDD. - TDD materials are less expensives at the present day. According to the fact that in practise, more data transit in downlink than in uplink, we choose the TDD mode because we make profitable the use of the second band of 15 MHz. · Unlike FDD, which requires a pair of channels, TDD only requires a single channel for both downlink and uplink providing greater flexibility for adaptation to varie global spectrum allocations; so we benefit of two15 MHz single channels with TDD. · TDD enables adjustment of the downlink/uplink ratio to efficiently support asymmetric downlink/uplink traffic, while with FDD, downlink and uplink always have fixed and generally, equal DL and UL bandwidths.

Lyon’s network mode : TDD :

We will see soon why we take 7 MHz and 5 MHz for the sub-bands of the 15 MHz band.

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Broadband Wireless Access network for the city of Lyon II.3) Mobility and security:

As we saw previously, LyonTel has chosen the technology Wimax based on the IEEE 802.16-2004 standard and its latest amendment, 802.16e to support mobility, issued in December 2005. We explain here the different elements we took into account according to the 802.16e standard, concerning Mobility and Security over the air interface.

II.3.a) Mobility:

For mobility, the two main issues addressed by the standard are power saving and handover techniques. The aim is to support mobile station moving at vehicular speed in a regular city, which means 60 km/h speed must be supported by wimax.In the future, as the technology is optimised, we can reach satisfying service at speeds up to 120 km/h.

II.3.b) Power Management:

All Mobile Wimax user terminals support two functional modes that are power-efficient: - The idle mode during which the MS is not reachable in uplink or downlink - The sleep mode during which the MS is in a multi-BS environment but has no serving BS because it is not active. This avoids the need for handover for example

II.3.c) Handover:

Three handover techniques are supported in the standard: - The Hard Handover (mandatory). - The Fast Base Station Switching (FBSS) (optional) - Macro-Diversity HandOver (MDHO) (optional) The Hard Handover is the usual Break-before-Make method. Several techniques have been developed in order to keep the latency and jitter time under 50ms. In the case of FBSS, The MS and its serving BS update a list of potential serving BS called the active set. The MS then choose an anchor BS. All the BS included in the active set receive the data to transmit to the BS in case they are selected. This is when the fast switching operation takes place.

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Broadband Wireless Access network for the city of Lyon The MDHO can be described as a sort of soft handover. Here also both the BS and its serving BS update an active set. But now the MS receives data from two or more BSs at the same time. This accelerates the handover. Our network supports all three handover techniques and their effects are included in the traffic computation.

II.3.d) Security:

Different measures are taken into account in our computation as well as they increase the traffic: - IP tunnelling encapsulates the datagrams during remote connections - Key management and User authentication are based on the Enhanced Authentication Protocol (EAP) - The traffic and control messages encryption uses an AES-based algorithm.

II.4) SOFDMA:

With the OFDMA modulation, the multiplexing in frequency allows to increase the number of sub-carriers in 2048 (instead of 256 in classic Wimax), what reduces the interferences and increases the througtput. With the SOFDMA, wimax 16e brings of flexibility to the OFDMA: the number of subcarriers varies according to the available busy band for the user, allowing a more effective transmission of the signal. Another advantage is the new technique of correction of errors HARQ (hybrid automatic repeat request).

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Broadband Wireless Access network for the city of Lyon

III) Coverage:

Basic pattern:

The basic pattern for our network had to be designed. In fact, previously we had 2, 3 or 4 frequencies with TDD mode (as you can see just before). So we have some other possible configurations: With 2 frequencies per base station:

With 3 frequencies per base station:

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Broadband Wireless Access network for the city of Lyon With 4 frequencies per base station:

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Broadband Wireless Access network for the city of Lyon

C/I

To know what solution of network planning is the best, we compute the CIR of each of the basic patterns.

In this part, the first solution is based on the network planning with 3 frequencies. And the three following ones are taken from the network planing with 4 frequencies.

The first solution corresponds to the second solution of the network planing with 3 frequencies because we can consider “f2+f4” as one frequency. The second solution corresponds to the second solution of the network planing whith 4 frequencies. The third solution corresponds to the first solution of the network planing with 4 frequencies. The Forth solution corresponds to the forth solution of the network planing with 4 frequencies.

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Broadband Wireless Access network for the city of Lyon First solution :

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Broadband Wireless Access network for the city of Lyon Second and third solution : In the second solution, we use f4 jointly with f2 so we can considere that “f2 + f4” is one frequency. In the third solution, we don’t consider the forth frequency for the computing of the C/I. If we consider the forth frequency, we have to reduce the C/I a little.

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Broadband Wireless Access network for the city of Lyon Forth solution :

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Broadband Wireless Access network for the city of Lyon Size of the cell

To know the size of the cell, we have to choose a model of propagation. So, we have some assumptions associated with this model; and we compute the pathloss thanks to the link budget. Finally we can compute the size of the cell.

Assumptions: To compute the pathloss, we take the SUI Model (for urban area in Lyon). Reasons for this choice: - The frequency has to be between 3.4 and 3.6 GHz - The height of the base station must be between 30 and 200 m. - The mobile height (for mobile and portative stations) must be between 1.5 and 10 m. - Finally the distance between an antenna of the BS and the ground has to be between 10m and 80m. The frequency used is 3.5 GHz. The distance between the antenna of BS and the ground is 30 m. This model neglects the ground relief profile between transmitter and receiver, that is to say hills or other obstacles between the transmitter and the receiver are not considered. So we don’t consider the exact topology of the area (buildings, more populated area ...) but only the size of Lyon and the global average of the population. The computation is made with the lowest value for the sensitivity of base stations and handheld/mobile stations. We consider that the handheld/mobile stations are relativly near a window in a building (indoor daylight). The SUI models are divided into three types of terrains1, namely A, B and C. Type A is associated with maximum path loss and is appropriate for hilly terrain with moderate to heavy foliage densities. Type B is characterised with either mostly flat terrains with moderate to heavy tree densities or hilly terrains with light tree density. Type C is associated with minimum path loss and applies to flat terrain with light tree densities. Lyon is a dense area (9 302 hab / km²) but compared to Paris (20 169 hab / km²), it is not a very dense area so we use the model B of the SUI Model.

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Broadband Wireless Access network for the city of Lyon

We have made the computation with the antenna EasySt (by Airspan) for the handheld/mobile stations and rb6418 (by Ericsson) for the base station. We use BPSK for computing to get the best size of cell.

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Broadband Wireless Access network for the city of Lyon

Link budget:

EIRP (Equivalent Isotropic Radiated Power) computation: EIRP (dBm)= Pe (dBm)+ Ge (dBi) – Losses (dB) with Pe the emitted power, Ge the antenna gain and Losses the different losses. Reception Threshold computation: Reception Threshold (dBm) = Sensibility (dBm) – Ge + Losses (dB) Ge is the antenna gain and Losses the different losses. Path Loss Calculation: Aeff (dBm) = EIRP - Reception Threshold Cell radius: Lyon Area (ha)

4787

Area (km²)

47,87

Free-space path loss

12,47

Hata (Km)

0,86

Cost 231 model (Km)

0,31

SUI Model (Km)

0,78

13,06

Hata Model Hata suburban

0,88 0,32

Urban Model Urban B

0,8

Propagation Model Cell Area (Km²)

0,4

SUI Model (Km)

0,32

Nb cells

120,7

150,33

Nb BS

40,23

37,58

Trisector

Quadrisector

(hexagone)

(square)

(Trisector -> power of the antenna = 13dB) (Quadrisector -> power of the antenna = 15.6dB)

So the trisector has the bigger cell area but need more base station.

Finally we have chosen to have 4 frequencies with the second solution. Thus we have the best compromise for coverage, quality and capacity. We have organized the cells in the trisectorial scheme with the forth one in the same direction of one of the three main ones, depending of capacity needed. Isep 2006/2007 - A3 TELECOM AND WIRELESS NETWORKING http://lyontel.free.fr

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Broadband Wireless Access network for the city of Lyon

Roll out of our network:

The goal is to roll out our Wimax network in 6 months. That means 103 reals days. To build our network we have many solutions. First we can pay an agency to make the work. Secondly, we can engage some technicians and commercials. The second solution appears as the less expensive one. So we have to hire some technicians, give them demonstration and to start the installation. We have also to find many buildings and make offer to their owners to rent space to install antennas and nodes. So we will need commercials to negotiate with these owners. When a base station installation is finished, we’ll have to test it. And when all the products would be installed, we have also to test our network and optimize it. That requires human and active action. To organize this job we draw a plan to roll out our network in 6 months.

The big part of our job consists of installing and testing our network. In the installation we include the research of space to fix antennas and space to tidy the rest of block. Thus we will choose this organization to install Lyon’s network. It’s the less expensive solution with time control.

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Broadband Wireless Access network for the city of Lyon

IV) Choice of materials:

Our objective is to cover the maximum area with the minimum of base stations, keeping a good quality of service. Before choosing the types of antennas and base station, we have computed the area of coverage with different material and different configurations (trisector vs quadrisector, transmitter & receiver antennas…). As it’s allowed, we have used the wimax book to have characteristics of the equipments. We have also chosen the technology of the access mode and the size of our different channel bandwidth.

IV.1) Choice of Base station:

We have taken the TDD mode with 2 channels by duplex: 5 MHz + 7 MHz (see the explanation before). According to the TDD mode and the channels size we chose, only one base station suits us: the Ericsson technology RBS 6418. The other equipment can’t transmit a signal in TDD mode in 5MHz and 7MHz.

MacroMax MicroMax HiperMax RBS 6412 RBS 6418 EasyST (CPE) ProST (CPE)

3,5 Mhz ü ü ü ü

FDD 7 MHz

10 MHz

3,5 MHz

TDD 5 MHz 7 MHz

10 MHz

ü ü

ü

ü

ü ü

Information in the 3,5GHz private channel band

The RBS 6418 doesn’t include the integrated antennas. So we have associated this base station with an antenna: European Antennas. Depending of our choice of configuration, we have chosen the 120° sector Antennas. The power is sufficient to cover a good part of area.

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Broadband Wireless Access network for the city of Lyon IV.2) Choice of CPE:

The choice of CPE is only an indicator. The operator will not buy the CPE, but he will need the CPE’s characteristics to compute the EIRP and to check if the CPE equipment is compatible with the Wimax network. For this reason, we choose EasyST and ProSt to compute the EIRP. We have also checked the existence of some compatible CPE we found. The CPE must also support the TDD mode. No equipment in the Wimax book has this configuration. So the customer will use other equipments.We found on the internet for instance some devices from the company Alvarion (http://www.wimaxindustry.com/sp/wcm/avr/avrbm4.htm).

For our network we choose an Ericsson base station and European Antennas. Here are the characteristics: RBS 6418 Technical data Standard Frequency band, Duplexing Method RBS output power Channel Bandwidth Modulation

802.16e – 2005 3,4-3,6 GHz TDD ETSI compliant 40 dBm 5,7, 10 MHz 64 QAM, 16 QAM, QPSK

Installation Data, Main Unit, indoor Mechanics Volume, weight Capacity Input Voltage Size H x W x D Operating temperature range

19” rack mounting 22 liters, 16Kg Up to six carriers -48 V DC or +24 V DC or 100-250 V AC (50/60 HZ) 178 (4U) x 450 (19”) x 270 mm +5°C to +45°C

Other important information: - Low Total Cost of Ownership - No feeder loss, using Main-Remote RBS Concept - WCDMA 3G Platform - Ethernet as transmission technology - High Quality of Service support of voice, data and video services Antennas: Model Name

Model Number

Frequency GHz

Gain dBi

HPBW Az x EI°

Polarisation

Dimensions (mm)

Base station 120° sector

Vector 9313 SA14-120-3.5V

3.30 - 3.80

14.8

120 x 8

Vertical

650x200x100

Base station 120° high gain sector

Vector 9304 SA16-120-3.5V

3.30 - 3.80

16

120 x 5.2

Vertical

1100x200x100

From sector antennas catalogue European Antenna

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Broadband Wireless Access network for the city of Lyon

V) Traffic:

Environment – Suburban 200 = population density < 1000 inhabitants per square kilometre QoS: Services VoIP Websurfing, IP data Video Conferences Mobility

QoS 25% 55% 10% 10%

Traffic 2007 200 000 min/day 3 TBit/day included in Data 300 GBit

Activity 2007 5 hours 2 hours 2 hours 2 hours

QoS is set up by statistical information and it is supposed that it will be optimised for the best performance of our network depending on needs of our customers. In the traffic and activity 2007columns above, we considered mean values. The maximum traffic case is calculated in the table below. Data Prediction: Year

PC users VoIP users

2007 2008 2009 2010 2011

300000 400000 600000 900000 1200000

100000 150000 170000 190000 200000

PC data

VoIP data

3000000 4000000 6000000 9000000 12000000

750000 1125000 1275000 1425000 1500000

Cells (BPSK) 31 42 60 86 112

Cell (16QAM)

BS

7 10 15 21 27

10 14 20 29 37

In column PC & VoIP users are the predicted numbers of potential customers. Next, we find the calculated amount of data and for specific modulation and throughput. The column “Cells” shows the number of cells/base stations that will be necessary in PBSK mode (for good coverage) and in QAM16 mode (for good capacity).

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Broadband Wireless Access network for the city of Lyon However the most important parameter in order to establish the number of cells is the time, during which users remain connected. Time Prediction Optimistic: Year 2007 2008 2009 2010 2011

PC users VoIP users PC hours/user 300000 100000 800 400000 150000 1067 600000 170000 1600 900000 190000 2400 1200000 200000 3200

VoIP hours/user 2000 3000 3400 3800 4000

Cells 117 169 208 258 300

BS 39 56 69 86 100

Efficiency 18,37% 19,68% 23,96% 28,84% 33,07%

VoIP hours/user 700 1050 1190 1330 1400

Cells 41 59 73 90 105

BS 14 20 24 30 35

Efficiency 6,43% 8,57% 12,86% 19,29% 25,72%

Time Prediction Realistic: Year 2007 2008 2009 2010 2011

PC users VoIP users PC hours/user 105000 35000 280 140000 52500 373 210000 59500 560 315000 66500 840 420000 70000 1120

The first columns are the same as in the previous “data” table. Next, there is the calculated time, which is apportioned for one user's "slot", including users who stay connected all day. It is based on 5 hours for VoIP user and 2 hours for others, which are mean values. But that is also calculated based on the QoS, to guarantee all services with percentage reserve. In the next column, the number of cells takes that into account. In the last column, we can see the efficiency of the expected throughput with respect to the final number of cells compared to the number of cell that will be built.

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Broadband Wireless Access network for the city of Lyon For next graphs we used the optimistic scenario for enough capacity of network and financial reserve. At the beginning, the total number of base stations depends on the coverage and later with statistical information we can decide how and where we can upgrade our network to reach figures between both scenarios.

In the first graph, we show the progression of the amount of data. We expect the main part of the total traffic to be occupied by websurfing, videoconference, P2P etc. These activities are called PC data. VoIP data, in lower demand, will be in minority.

The second graph represents the calculation of the number of cell based on the throughput using BPSK or 16QAM modulation, the coverage and the length of connection for simultaneous connected user, which can be recalculated to the number of cell. It is obvious that at the beginning the number of cell depends on the coverage, the initial target, and later on the number of customers. More precisely it depends on the total time of user connection because the traffic is not too heavy as one can see.

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Broadband Wireless Access network for the city of Lyon The next graph represents the efficiency of our network, in other words the maximum expected load compared to the capacity of the network. At the very beginning, one can spot a low efficiency, because there will be more base stations necessary for the coverage of our area, but later, only the traffic and the number of connected users will have effects. It should be stabilized at about 35 to 40 %.

And finally, here is the graph, which represents the deployment and the upgrades of our network. There is also an evolution in the number of customers, which is divided to PC and VoIP user, as we mentioned it before. We present here an optimistic scenario as was mentioned previously. For the realistic scenario, there are no upgrades required in next 5 years as the capacity demanded doesn’t cross the available load.

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Broadband Wireless Access network for the city of Lyon

VI) CAPEX/OPEX and Profitability:

We will now present our estimations of CAPEX, OPEX and profitability for our network, over the period 2007 to 2011. Two predictions are presented a realistic scenario and an optimistic one.

VI.1)Realistic Scenario:

In this scenario, after the first year, all our base stations will be installed. And the whole city will be covered already. So in the following years, we will only optimise the power of transmission on specific sites in order to adjust the traffic. In the table below, we computed the expected investment from 2007 to 2011. It includes the prize of the base stations installation in next five years. We are planning to build only the minimum stations sufficient to cover the whole city of Lyon during the first phase. Then, in accordance with the increasing number of customers in specific areas, we will increase the power of antennas of neighbouring stations to optimise the traffic load. Year

2007 2008 2009 2010 2011

BS install

Time [day]

€ Install

€ BS

45 0 0 0 0

264,375 0 0 0 0

33,75 33,75 33,75 33,75 33,75

63 450 0 0 0 0

Frequency Licence - 10 000 000 Ecus (initial cost) The cost of installation and the maintenance per year are computed considering the following figure: -47h to install a site -100 days to deploy -1 engineer earns 100 ecus/day -1 technician earns 70 ecus/day

CAPEX It is the capital invested for the site installation and the initial frequency fees. We assume that over the five years (2007 to 2011) we will pay one fifth of the frequency fee per year so 500 000 ecus. Isep 2006/2007 - A3 TELECOM AND WIRELESS NETWORKING http://lyontel.free.fr

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Broadband Wireless Access network for the city of Lyon

Year 2007 2008 2009 2010 2011 Total

Total Total investment

CAPEX 47 063 450 2 000 000 2 000 000 2 000 000 2 000 000 55 063 450

55 063 450 ecus 55 500 000 ecus

"Total" is simple calculation of investment, but Total investment is the price of deployment of the network including an expectation of the variable expenses. (Business, more workers including commercials or support etc.)

Maintenance Our maintenance service is generaly calculated with an average of 6 hours of work per base station per year.And one technician is needed per site. The client support is not counted. Here is our prediction for the next five years. Year

Repair [days/year]

2007 2008 2009 2010 2011

33,75 33,75 33,75 33,75 33,75

Maintenance (ecus) 2362,5 2362,5 2362,5 2362,5 2362,5

Licence (ecus) 500 000 500 000 500 000 500 000 500 000

The licence is equal to 5% of the initial frequency fee (10 000 000 ecus) and it is due every year. So it makes 500 000 ecus.

OPEX It represents the operational cost, which means the maintenance cost and the price of the licence fees per year of 500 000 ecus. Here are the results from 2007 to 2011. Year OPEX (ecus) 502 363 2007 502 363 2008 502 363 2009 502 363 2010 502 363 2011 Total 2 511 813

Total

2 511 813 ecus

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Broadband Wireless Access network for the city of Lyon Income Here we made a computation of the income we can gain from a part of the monthly subscription that our operators would offer to the clients. Here is the assumed evolution of the subscription price and our revenue per year considering the operators pays us 40% of its own revenue.

Year 2007 2008 2009 2010 2011

Price per month (ecus) 38 38 35 32 30

Income per year (ecus) 456 456 420 384 360

40% to LyonTEL (ecus) 185 185 166 155 144

Here are the assumptions on the number of clients, the market shares that gives our estimation of revenue. Year 2007 2008 2009 2010 2011 Total

Num Customers 350 000 450 000 650 000 950 000 1 300 000

Total

Market share 10,00% 10,00% 12,00% 14,00% 15,00%

INCOME (ecus) 6 461 538 8 307 692 12 960 000 20 625 231 28 080 000 76 434 462

76 434 462 ecus

Profitability We can now do a synthesis of the previous results. We will now compute the number of years before the LyonTEL network is profitable.

YEAR 2007 2008 2009 2010 2011 Total 2007 to 2011

CAPEX+OPEX (ecus) -47 565 813 -2 502 363 -2 502 363 -2 502 363 -2 502 363

INCOME (ecus) 6 461 538 8 307 692 12 960 000 20 625 231 28 080 000

BALANCE per year (ecus) -41 104 274 5 805 330 10 457 638 18 122 868 25 577 638

-57 575 263

76 434 462

18 859 199

Total Balance after each year (ecus) -41 104 274 -35 298 944 -24 841 307 -6 718 438 18 859 199

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Broadband Wireless Access network for the city of Lyon Here is an illustration of our realistic prediction. CAPEX/OPEX vs INCOME (realistic)

80 000 000 60 000 000 40 000 000 20 000 000 Cost (ecus) 0

CAPEX+OPEX REVENUE

-20 000 000

BALANCE

-40 000 000 -60 000 000 2007

2008

2009

2010

2011

Total 2007 to 2011

Year

We can see here that only the first year we suffer losses due to the massive initial Base stations installation for our yearly activity. After that, we make increasing benefits every year as the number of client increases. We can see here the overall balance after each year of activity. Total balance after each year from 2007 (realistic)

20 000 000 10 000 000 0 -10 000 000 Cost (ecus) -20 000 000

BALANCE per year

-30 000 000 -40 000 000 -50 000 000 1

2

3

4

5

Num ber of Years

We can clearly see that we obtain a positive overall balance after the fifth year of exploitation so in 2011. So it takes us five years to be profitable overall. We lay emphasis on the fact that once the positive figures are attained, we gain remarkable profits on the fifth year. So with this realistic scenario we showed we can implement a strong business plan with great perspectives for the future.

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Broadband Wireless Access network for the city of Lyon VI.2) Optimistic Scenario:

We will now present our optimistic scenario. Here we consider that the second year no upgrades are planned, as we will optimise the network based on the first feedback. Then we will install more base stations to increase the capacity of the network. In the table below, we computed the expected investment from 2007 to 2011. It includes the prize of the base stations installation in next five years. We are planning to build only the minimum stations sufficient to cover the whole city of Lyon during the first phase. Then, in accordance with the increasing number of customers in specific areas, we will install more stations and increase the power of antennas of neighbouring stations to optimise the traffic load. Year

2007 2008 2009 2010 2011

BS install

Time [day]

€ Install

€ BS

45 0 7 13 10

264,375 0 41,125 76,375 58,75

63450 0 9870 18330 14100

45000000 0 7000000 13000000 10000000

Frequency Licence - 10 000 000 Ecus (initial cost) The cost of installation and maintenance per year are computed considering: -47h to install a site -100 days to deploy -1 engineer earns 100 ecus/day -1 technician earns 70 ecus/day

CAPEX It is the capital invested for the site installation and the initial frequency fees. We assume that over the five years (2007 to 2011) we will pay one fifth of the frequency fee per year so 500 000 ecus. Year 2007 2008 2009 2010 2011 Total

Total Total investment

CAPEX 47 063 450 2 000 000 9 009 870 15 018 330 12 014 100 85 105 750

85 105 750 ecus 85 500 000 Ecus

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Broadband Wireless Access network for the city of Lyon "Total" is simple calculation of investment, but Total investment is the price of deployment of the network including an expectation of the variable expenses. (Business, more workers including commercials or support etc.)

Maintenance Our maintenance service is generaly calculated with an average of 6 hours of work per base station per year. And one technician is needed per site. The client support is not counted. Here is our prediction for the next five years. Year

Repair [days/year]

2007 2008 2009 2010 2011

33,75 31,5 39 48,75 56,25

Maintenance (ecus) 2362,5 2205 2730 3412,5 3937,5

Licence (ecus) 500 000 500 000 500 000 500 000 500 000

The licence is equal to 5% of the initial frequency fee (10 000 000 ecus) and it is due every year. So it makes 500 000 ecus.

OPEX It represents the operational cost, which means the maintenance cost and the price of the licence fees per year of 500 000 ecus. Here are the results from 2007 to 2011. Year 2007 2008 2009 2010 2011 Total

Total

OPEX (ecus) 502 363 502 205 502 730 503 413 503 938 2 514 648

2 514 648 ecus

Income Here we made a computation of the revenue we can gain from a part of the montly subscription that our operators would offer to the clients. Here is the assumed evolution of the subscription price and our revenue per year considering the operators pays us 40% of its own revenue. Isep 2006/2007 - A3 TELECOM AND WIRELESS NETWORKING http://lyontel.free.fr

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Broadband Wireless Access network for the city of Lyon

Year 2007 2008 2009 2010 2011

Price per month (ecus) 38 38 35 32 30

Revenue per year 40% to LyonTEL (ecus) (ecus) 456 185 456 185 420 166 384 155 360 144

Here are the assumptions on the number of clients, the market shares that gives our estimation of revenue. Year 2007 2008 2009 2010 2011 Total

Num Customers 350 000 450 000 650 000 950 000 1 300 000

Total

Market share 10% 15% 20% 25% 30%

Income (ecus) 6 461 538 12 461 538 21 600 000 36 830 769 56 160 000 133 513 846

133 513 846 ecus

Profitability We can now do a synthesis of the previous results. We will now compute the number of years before the LyonTEL network is profitable.

YEAR 2007 2008 2009 2010 2011 Total 2007 to 2011

CAPEX+OPEX (ecus) -47 565 813 -2 502 205 -9 512 600 -15 521 743 -12 518 038

INCOME (ecus) 6 461 538 12 461 538 21 600 000 36 830 769 56 160 000

BALANCE per year (ecus) -41 104 274 9 959 333 12 087 400 21 309 027 43 641 963

-87 620 398

133 513 846

45 893 449

Total Balance after each year (ecus) -41 104 274 -31 144 941 -19 057 541 2 251 486 45 893 449

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Broadband Wireless Access network for the city of Lyon Here is an illustration of our optimistic prediction. CAPEX/OPEX vs INCOME (Optim istic)

140 000 000 120 000 000 100 000 000 80 000 000 60 000 000 C o st ( e c us)

40 000 000 CAPEX+OPEX 20 000 000

REVENUE BALANCE

0 - 20 000 000 - 40 000 000 - 60 000 000 2007

2008

2009

2010

2011

Tot al

2007 t o

2011 Ye a r s

We can see here also that only the first year we suffer losses due to the massive initial Base stations installation for our yearly activity. After that we make increasing benefits every year. We can see here the overall balance after each year of activity. Total balance after each year from 2007(optim istic)

50 000 000 40 000 000 30 000 000 20 000 000 10 000 000 Cost (ecus)

0 Balance per year

-10 000 000 -20 000 000 -30 000 000 -40 000 000 -50 000 000 1

2

3

4

5

Num ber of Years

We can clearly see that we obtain a positive overall balance after the forth year of exploitation so in 2010. So it takes us four years to be profitable overall. We lay emphasis on the fact that once the positive figures are attained, we gain remarkable profits on the fifth year. We have strong business plan with even greater perspectives for the future.

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Broadband Wireless Access network for the city of Lyon

Partition of tasks

Prem has worked on: Mobility and CAPEX/OPEX He had to consider the different types of mobilities, services offered, location of user, the authentication, encryption methods and the impact on the traffic. He also did the CAPEX/OPEX computing.

Alexis has worked on: WiFi or WIMAX? TDD FDD? He has found the justifications of the choice of WIMAX and the choice of multiplex method (TDD). He also studied the standards and specifications of the Wimax technology. He also put together the report from the different contributions of the group members.

Vojtech has worked on: Traffic He computed the throughput for all the services. He computed the evolution and prediction through the years. He also computed the human and material cost needed to build the solution over Lyon and the price of the complete implementation (installation, maintenance)

Viken and Yohan have worked on: Coverage and Dimensioning They have done the excel document (Statistical model of propagation, EiRP, PIR, Radio Link Budget). They did research about the network architecture (C/I, cell pattern, choice of antenna).

Viken has managed the choice of our network’s materials.

Viken and Alexis have also done the webpage of the group’s project: http://lyontel.free.fr

We all met weekly (often the Tuesday after the lecture) from the beginning of the project in order to follow the evolution of the project for each member of the group. The minutes of these meeting were sent to all in order to keep track of the issues discussed and the decisions taken. Isep 2006/2007 - A3 TELECOM AND WIRELESS NETWORKING http://lyontel.free.fr

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Broadband Wireless Access network for the city of Lyon

Conclusion

We showed in our proposal that LyonTEL is able to propose a fully operational Mobile Wimax access network for an implementation over the city of Lyon. Our network will offer a full coverage of the zone and will support the expected traffic from day one of the implementation. We made the computation the CAPEX/OPEX and the income over the period 2007 to 2010. With assumptions on the market shares and the price of the rent for our network by an operator, we studied a realistic scenario and a more optimistic one. In both cases, we realized our profit is higher than our CAPEX/OPEX from the second year and we are profitable overall from the forth year (2010) in the best case or from the fifth year (2011) in the worst case. So we are profitable over this period of five years. From the fifth year after the first deployment, the high profit made will allow us to invest in the improvement of network and to meet even better the needs of our customers. Here are some upgrade possibilities we are approaching: -

The optimisation of the global load of our network. The implementation of different frequency bandwidth in specific area where the demand is higher for example. The improvement of the quality of service during mobility according to the evolving technology.

Of course all these upgrades will follow closely the feedback from our customer in order to meet and exceed their demand with the most efficient and adequate response.

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Broadband Wireless Access network for the city of Lyon

Glossary

AES : Advanced Encryption Standard BS: Base Station CPE : Customer Premises Equipment DL : downlink EAP: Enhanced Authentication Protocol FBSS: Fast Base Station Switching FDD : Frequency Division Duplex H-ARQ: Hybrid Automatic Repeat Request IEEE : Institute of Electrical and Electronics Engineers IP : Internet Protocol LOS : Line Of Sight MDHO: Macro-Diversity HandOver MS : Mobile Station NLOS : No LOS OFDM : Orthogonal Frequency OFDMA: OFDMA Access QAM : Quadrature Amplitude Modulation QPSK : Quadrature Phase Shift Key SOFDMA: Scalable OFDMA TDD : Time Division Duplex ToIP: Telephony over IP UL : Uplink VoIP : Voice over IP

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