The Full Multi

Unzip your options for multi-access to the multibusiness unit.

Service providers are faced with a future-proofing dilemma. Not only must they choose an infrastructure that supports multiple services, they also must select, among a variety of first-mile access methods, how to cost-effectively deliver those services now and in the future. Broadband-wireless access is quick and easy to deploy but requires a license. DSL enables providers to take advantage of existing infrastructure but requires high-quality copper. Fiber offers unlimited bandwidth but at a higher cost.

The multiservice approach to network evolution is, by now, widely accepted. But the issue of how to deliver those services still is contentious, despite the fact that customers care much more about what is delivered, rather than how. Service providers also are challenged to cost-effectively differentiate their services to new markets, protect their territories or grow market share.

The Options
In a perfect fixed telecommunications world, we might all be linked by fiber. However, as late as last year less than 3% of office buildings in the United States were connected by fiber. An Ovum study found that worldwide the compound annual growth rate of fiber lines installed (to business customers) between 1998 and 2003 is estimated at 23%, while xDSL, cable modems, and broadband wireless clock in at 110%, 113% and 85%, respectively.

According to industry projections, nearly seven out of 10 people and businesses in the United States will use the Internet by 2003. Broadband connections are estimated as the access method for more than half of these users. The technical characteristics and relative economics of the various broadband-access methods tend to dictate where they are deployed. Traditionally, the high revenue potential and high demand of the city core has supported the economics of fiber, with symmetric DSL (SDSL) used to augment existing infrastructure. Surrounding the core is a ring of lower density typified by small- to medium-size enterprises and multiple dwelling units (MDUs) and traditionally identified as a sweet spot for both LMDS broadband wireless and SDSL. It has been estimated that within two years, more than 50 million U.S. employees will be involved in remote work, indicating a growing demand for business-class broadband connectivity outside the city core.

The suburbs and their predominance of single-family homes are the stomping grounds of ADSL, cable access and, more recently, 2-way MMDS, previously used as a video-distribution method.

Advance Planning
Assuming a service provider has deployed appropriate access methods, what's next? Or, more appropriately, what should have been considered before? First, know that conditions will change. New services and applications will emerge that require greater amounts of bandwidth. Density may increase in service-coverage areas to the degree that fiber deployment is warranted. New business parks might be established, necessitating an expanded coverage area. Increased competition, regulatory challenges and service disruptions are also future certainties.

So how does a service provider remain open to future opportunities while protecting itself against its perils?

First, employ a multi-access approach to service delivery. Service providers should deploy an architecture that not only provides a range of first-mile access methods that allows them to attack their markets with the most appropriate and cost-effective access method today, but also allows them to change access methods as future conditions warrant without service disruption.

For instance, in Canada, Max-Link Communications has nationwide licenses for 1GHz of spectrum in the 28GHz spectrum band. Although the company is aggressively deploying broadband-wireless base stations to expand its footprint in larger centers, it remains access-agnostic.

Fiber will serve locations where it's economically appropriate. MaxLink's fiber facilities will be integrated with economical broadband-wireless extensions. It also will make use of DSL technologies for shorter distances and in-building broadband.

Although a MaxLink competitor using fiber talks of serving about 3,150 buildings across Canada, MaxLink's addressable market will include 40,000 buildings of 50,000 square feet or more. The number expands to more than 100,000 when the smaller commercial buildings and MDUs that can be cost-effectively reached are added.

Next, aim for one network-management system that provides visibility across the entire network, regardless of the number of different technologies, protocols, and access methods used in the network.

Some service providers describe their broadband-access networks as a patchwork or a tapestry, indicating the variety of different access methods deployed. You should be careful to ensure that these networks are "stitched together" with a consistent network-management system to reduce NOC overhead and complexity.

Network control and diagnostic functions should enable the service provider to achieve maximum efficiency from the network infrastructure and operational staff while ensuring that customer-contracted service levels are fulfilled. The system must allow advanced remote service management allowing service providers to remotely deploy and configure new services, establish customer VPNs, monitor the state of any network component and troubleshoot network problems. Ultimately, the network-management system must minimize the number of truck rolls necessary for service installation and maintenance to reduce operational costs.

To reduce time to market for introduction of new services, service providers can help their customers help themselves with self-subscription and zero-touch provisioning. Reminding ourselves that customers are focused more on the "what" than the "how" of telecommunications-service delivery, service management provides great opportunities for differentiation.

Arguably, one of the best opportunities for service providers to differentiate themselves through self-subscription features lies with the small- to medium-size enterprise market (SME). Recent research on SMEs in multiple business units (MBUs) ranked scaleability — the ability to increase or decrease services according to changing needs — as one of the top three priorities for service providers. In the same study, the owners of these MBUs rated improved tenant satisfaction as the No. 1 benefit they seek from partnerships with a telecom service provider. Effective service-management systems therefore satisfy all stakeholders in the equation.

Also, it's important to remember that one of the drivers pushing the need for bandwidth to the SME market is its need to compete effectively with larger competitors. Effective service management giving the SME greater control over its network is key to supporting these efforts while minimizing the involvement and costs incurred by the provider.

SMEs typically represent substantial levels of traffic and, therefore, revenue opportunities, combined with a reasonable cost to serve and relatively short implementation times. As a result, they are one of the fastest ways to bring revenues on stream.

The business model for service delivery to MBUs is based on aggregating the demand of the SMEs within the building — a co-op approach. The service provider's challenge is to sell to both the end users and the property managers or owners. A partnership may be established whereby the property owner guarantees a level of tenant participation, or up-front capital costs are shared, or, alternatively, the property owner acts as the service provider's agent and earns a commission for services sold.

A Case in Point
From the network perspective, one approach to effectively serving MBU customers involves a combination of access methods, including broadband wireless for last-mile connectivity and DSL to extend broadband services over existing in-building infrastructure. This approach provides the benefits of quick market capture while enabling an optimal service mix. In fact, a service provider deploying broadband wireless could even extend DSL throughout the building where the base station is located. This property-owner-friendly approach could facilitate the process of gaining valuable rooftop space for the outdoor radio frequency gear. The service provider also may want to include switching functionality in the base station to minimize backhaul requirements.

As the cell density increases, with more buildings being connected over the air to the base station, features such as dynamic bandwidth allocation (DBA) enable the service provider to efficiently handle the growing traffic. DBA shares bandwidth among multiple users dynamically and enables oversubscription of the available bandwidth while retaining quality of service. Once market capture is achieved, the service provider may consider deploying last-mile fiber, where end-user demand supports the economics of this option. In that case, the service provider can retain the multiservice gear in the base station and redeploy the wireless-specific products to a new service coverage area. In other words, no stranded capital.

The Bottom Line
The issues of last-mile access, network and service management are fundamentally linked. Essentially the message to service providers is serve up a full menu of services using the access method that best suits the current circumstances. However, remain flexible as circumstances change. Also, ensure the reliability of services in a manner that reduces the total cost of network ownership. Then, sit back and let the customers serve themselves. The message is not unique to the SME market in MBUs. But right now, SMEs are especially hungry.

Brazeau (alainb@newbridge.com) is Alcatel AVP of wireless networks.