The combination of 5G technologies and millimeter wave spectrum could prove a compelling alternative to fiber in providing gigabit internet speeds.
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The wireless industry has been generating significant dialogue recently surrounding gigabit internet connections and how to deploy these networks both quickly and at an affordable cost. And with so much excitement surrounding millimeter wave products, conversations have turned to new possibilities in gigabit connectivity. Now “5G” technology, along with other millimeter wave products, are emerging as the key technology that will enabled networks to operate faster, extend farther and penetrate deeper, enabling the arrival of new and innovative products and services.
Millimeter wave products operate in the frequency band between 30 GHz and 300 GHz. These special electromagnetic waves whose frequency are far beyond the frequency range of other commonly used wireless technologies, have the ability to transmit large amounts of data. Within the 60 GHz frequency, narrow beams enable multiple radios to be installed on the same rooftop or tower, even when operating at the same transmit and receive frequencies. These bands also offer interference and security advantages when compared to other wireless technologies. So, how exactly does the unlicensed 60 GHz frequency play into the recent “gigabit era” to drive down costs?
When the telecommunications industry considers fiber-to-the-home costs, the metric generally referenced is “cost per home passed.” This metric is important because with cabled fiber it is necessary to build out and trench past each home or business that might want the service – whether they actually buy the service or not. Cost per home passed is used to describe, on average, the price to build out the fiber plant to reach only potential subscribers.
The “take-rate” is another notable metric, referring to the percentage of houses passed that actually sign up for service and become subscribers. For end-users who sign up and become subscribers there is an additional expense for a fiber drop to their home or business plus the customer premise equipment – an extra cost that is common across nearly all broadband services whether xDSL, DOCSIS, fiber, etc.
With hybrid fiber-wireless and pure wireless gigabit networks, the cost structure is significantly reduced. Wireless technology allows large geographic areas to be covered per base station deployed and only homes that become subscribers require the additional cost of a CPE. In the past, these networks typically operated in the 2.4 GHz and 5 GHz bands, but the drawback is that they cannot deliver the bandwidth comparable to fiber networks. And with the growing “noise” from millions of other devices that operate in the same spectrum, these factors can severely impair an internet service providers ability to provide reliable, high-bandwidth connections.
With the 60 GHz unlicensed band, service providers can provide the best of both worlds. An amazing amount of spectrum is available – 14 gigahertz total in the U.S. for example, and with the unique characteristics of this band we never need to worry about indoor devices interfering with the outdoor devices delivering the internet connection. This technology is readily available today to deliver multigigabit connections over 60 GHz bandwidth, making it a true competitor to the speeds delivered by traditional wired fiber, delivering reliable gigabit connections wirelessly.
For example, a typical subdivision’s cost per home passed comes in at $750 per home, on average. Again, this cost is incurred to build out the fiber network just to have the option to offer service to that customer. This cost may vary slightly depending on several factors, but it’s a reasonable average. With a take rate of 50%, the cost per subscriber connected has already doubled to $1,500. To do the same with a wireless solution, each sector covers up to 32 potential subscribers. This brings the cost per subscriber down to roughly $30 and includes the wireless infrastructure to interconnect and feed the base stations.
One must also consider the cost for each CPE, which favors wireless connectivity. For FTTH, the incremental cost for each subscriber who signs up for service is around $700 on average (OLT, ONT and drop). For wireless, the cost is under $500 today with further reductions in cost on the horizon.
For a 625 home subdivision like the one shown below, the cost would compare as follows with a 50% take rate:
Exactly where does 60 GHz and other 5G technology fit within the deployment of millimeter wave wireless networks? With these new technologies on the horizon, current networks must be flexible enough to overcome the challenges of population density, data rich neighborhoods and the ability to feed future devices while providing ubiquitous connectivity. Connecting small cells will be one of the most important economic development tactics over the next 10 years, encouraging the expansion of links to building tops, neighborhoods and other public spaces. Ubiquitous high-speed data connections are key to economic growth and the development of next-generation products and services.
60 GHz technology along with 5G has enormous potential and will contribute to the global economy with new business and job growth through the expansion of goods and services enabled by this technology. But to maximize its potential, several factors, including gigabit-plus connections and the expansion of network access, need to work in cooperation to achieve a steadfast wireless experience.
Future 5G networks will most benefit from:
• Additional spectrum.
• Higher frequencies above 6 GHz.
• Dense networks and small cells.
• Simultaneous, multiple connections.
• Flexibility to enable vast numbers of connected devices, with highly reliable connections.
Gigabit connections are becoming economically viable with an increasing demand among residential and business customers. The unlicensed millimeter wave market, coupled with innovative wireless technologies, will most certainly allow for the expansion of more cost-effective wireless networks world-wide. Innovative products like these will work hand-in-hand along with fiber and 5G to usher in the era of low-cost, high-speed connectivity. It is an exciting time to be a part of enabling the next generation of networks that utilize cutting edge technology to bring affordable gigabit internet connections to everyone.
Hal Bledsoe, president of IgniteNet, has a well-established history in the wireless industry. As a graduate of Georgia Institute of Technology in Computer Engineering, he has become a thought leader in emerging wireless technologies.
