WAS Cyprus Consultation Answer THALES

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Auteur : F .Magne WAS CONSULTATION

30th of March 2006

PUBLIC CONSULTATION

On CYPRUS Authorisation of Wireless Access Systems

Answers to the consultation

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Auteur :F. Magne WAS CONSULTATION

30th of March 2006

THALES ELECTRONIC SYSTEMS S.A. – Société Anonyme with a share capital of 10.062.000€ - AP.M.A.E. : 47216/04/B/00/149/(03) Prefecture of Eastern Attica – ΑΦΜ : EL099362663 (VAT) Registered Office : 48 Konstantinoupoleos – Karellas – 194 00 Koropi – Attica – Greece – Tel +30 210 66 84 200 – Fax : +30 210 66 84 333 - [email protected]

Table of Contents

1. SERVICES ( CONSULTATION § 2.1) ................................................................................................. 4

1.1. FIXED SERVICES......................................................................................................................................... 4 1.2. NOMADIC SERVICES................................................................................................................................... 5 1.3. MOBILE SERVICES...................................................................................................................................... 5 1.4. CONCLUSION.............................................................................................................................................. 5

2. BUSINESS PLAN.................................................................................................................................... 5

2.1. COVERAGE AND MARKET SHARE...................................................................................................... 5 2.2. BUSINESS PLAN ELEMENTS............................................................................................................... 6 2.3. CONCLUSION ....................................................................................................................................... 10

3. DIMENSIONING ACCORDING TO THE SERVICES ADDRESSED .......................................... 11

4. ANSWERS TO THE QUESTIONS ON RADIO FREQUENCY BANDS, THEIR USE AND THE ATTRIBUTION PROCESS............................................................................................................................. 12

4.1. QUESTION 1- DO YOU AGREE THAT THE SCOPE OF THIS PRESENT AUTHORIZATION PHASE SHOULD INCLUDE

BANDS 3.4 – 3.6 GHZ AND 24.5 – 26.5 GHZ? .....................................................................................................12 4.2. QUESTION 2 - PLEASE, PROVIDE YOUR COMMENTS ON THE RECOMMENDED USE OF BAND 3.4 – 3.6 GHZ.12 4.3. QUESTION 3 - PLEASE, PROVIDE YOUR COMMENTS ON THE RECOMMENDED USE OF BAND 24.5 – 26.5 GHZ. 13 4.4. QUESTION 4 - DO YOU AGREE WITH THE RECOMMENDED TECHNICAL REQUIREMENTS FOR THE USE OF BAND

3.4 – 3.6 GHZ, AS DESCRIBED IN PARAGRAPHS 3.3.1 AND 3.3.2? ........................................................................ 13 4.5. QUESTION 5 - DO YOU AGREE WITH THE RECOMMENDED TECHNICAL REQUIREMENTS FOR THE USE OF BAND

24.5 – 26.5 GHZ, AS DESCRIBED IN PARAGRAPH 3.4?.......................................................................................... 13 4.6. QUESTION 6 - DO YOU AGREE WITH THE RECOMMENDATION, WITH REGARD TO THE USE OF BAND 3.4 – 3.6 GHZ, THAT THERE MUST BE NO PREDETERMINATION OF THE EXACT NUMBER OF AUTHORIZATIONS, BUT THROUGH

THE AUTHORIZATION PROCEDURE, INTERESTED OPERATORS CAN BE ABLE TO SET UP THEIR OWN PAIRED BLOCKS

HAVING A SIZE RANGING FROM 2X17.5 MHZ MINIMUM TO 2X35 MHZ MAXIMUM ? ............................................ 13 4.7. QUESTION 7 - DO YOU FEEL THAT THE ASSIGNMENT OF SPECTRUM RANGING FROM 2X17.5 MHZ TO 2X35 MHZ (ALSO INCLUDING ALLOWANCE FOR INTERNAL GUARD BANDS) WILL MEET YOUR NEEDS FOR SPECTRUM IN

ORDER TO BE ABLE TO PROVIDE THE SERVICES OF YOUR CHOICE? IF NOT, PLEASE, STATE YOUR NEEDS FOR

SPECTRUM, AS WELL AS THE WAS TECHNOLOGY AND SERVICES YOU INTEND TO DEVELOP................................ 13 4.8. QUESTION 8 - DO YOU AGREE WITH THE RECOMMENDATION, WITH REGARD TO THE USE OF BAND 24.5 – 26.5 GHZ, THAT THERE MUST BE 4 AUTHORIZATIONS OF A PAIRED BLOCK EQUAL TO 2X140 MHZ AND 2 AUTHORIZATIONS OF A PAIRED BLOCK EQUAL TO 2X84 MHZ (ALSO INCLUDING INTERNAL GUARD BANDS)? IF NOT, PLEASE STATE AND JUSTIFY YOUR DIFFERENT OPINION........................................................................................ 14 4.9. QUESTIONS 9 TO 17.................................................................................................................................. 14 4.10. QUESTIONS 18 TO 22 ............................................................................................................................... 15 4.11. QUESTIONS 23 TO 25 - GENERAL QUESTIONS.......................................................................................... 16

5. GIGACOM WAS (WIRELESS ACCESS SYSTEM ) HIGHLIGHTS ............................................ 17

5.1. ARCHITECTURE AND TECHNOLOGY.......................................................................................................... 17

6. CONCLUSION . .................................................................................................................................... 20

7. ANNEX SUBSCRIBER CONFIGURATIONS................................................................................... 21

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Introduction : Department of Electronic Communication has issued a consultation to potential tenders on WAS networks aimed for fixed, nomadic and mobile, narrow and wide band services. Since ADSL is limited in throughput and fibre by far too expensive, the consultation aims at fostering wireless solutions to address broad band services as advised by European Union. It is clear on the first hand that spectrum consideration are of the outmost importance particularly to obtain sufficient Internet capacity on various areas as well as sufficient throughput for multimedia. Economy is also a major parameter , it is to underline that Internet alone cannot provide sufficient revenues to sustain investment growth in networks, hopefully customers are willing to have multimedia services: many digital TV programs, HD TV and VoD. Moreover customer requires less expensive fix telephony i.e. VoIP and hopefully a single bill for the 3-play.

Ensuring relevant coverage of Triple Play for fixed and nomadic configurations will foster development and lead to correct return on investment. Whereas BluWan (a subsidiary of Thales) as developed 3- PLAY over wide band microwave technology upon innovative and efficient architecture, Thales ES is applying as potential system solution suppliers and provides herewith their answers to the consultation in reference.

The answer approach to the 25 Questions will be the following:

- first to consider the services offered (as in § 2.1 of the consultation)

- the corresponding business plan that the tender is forecasting

- the consideration of the various bandwidth needed for the plan

- questions answers or comment in relation with the forth above points

- last chapter will give the information on the WAS network proposed

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.

1. Services ( Consultation § 2.1)

Demands, evolution and economy lead to offer to various subscribers as households, enterprises, administrations, universities and nomadic subscribers (professional and tourists) Triple play services « à la carte » according to their needs and their financial means. Operators’ interest is to get as much as possible customers and increase the ARPU. Customers’ interest is to have his appropriate communication package on one moderate bill.

1.1. Fixed services

1.1.1. Households

Services are those proposed by dynamic operators, to day mainly on cable, as in UK or Italy that is to say « triple- play »:

• Unicast: Internet services of at least 2.5 Mbps down loading and of 128kbs up loading that permit to correctly exploit the on-line Internet services with the potential to access to services including "rich media" for the ensemble of new applications as (e-learning, conference, design, games), The capacity should be upgraded to take in account the « peer to peer » development

• Multicast: Video on Demand (VoD) with DVD quality, and delayed or differed viewing of specialised channels are new multicast services that are now offered (though it was slow to start).

• Broadcast: A wide panel of diffusion, as TV channels group adapted to local needs, International TV channels, and HDTV programs as soon as they are available. Possible programs could be the following:

- Digital National programs

- European program for tourists plus some US as CNN

- Thematic programs

- HDTV programs in: Sport, Cinema and Culture

It is to be noted that many a household has at last 2TV set and then ADSL throughput in insufficient (as it is for HD TV)

• Telephony over IP

• Small Home Office. More and more jobs in the “services” could be performed from home and more and more educated professional have office home extension to avoid rush hours.

1.1.2. Professional : SME and Public Services

As described in §2 of the Consultation, high capacity for professional LAN and inter-LAN communication , as well as so called “rich media” services as teleconferences, @-training, @-design ,@-learnning … require from 10Mbps to 100Mbps connexion depending of the professional unit size. QoS needs and disposability is of course higher with professional application

Professional applications are of outmost importance: not only it fosters the regional development but it may represent almost one third of the revenues for the operator contributing the best to the profitability.

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1.2. Nomadic services In public areas, connexions to Internet start to represent a market and a trend for tourists as well as for professional either on their lap top either on PDA or PALM. A new service is in development: multimedia on MPEG4 and DVB-H and in the future, with DVB-T one will visualise quality TV on lap top, watching a foot ball game while waiting the train for instance. So the trend is to feed hot spots not only with Internet but with multimedia

1.3. Mobile services High capacity WAS can also backhaul 2G and 3G base station for mobile. But evolution is not clear yet about 802.16e competing with 3G and being a solution for 4G. Clearly it is another large problem and another market. The present answer will only deal with 3 PLAY Access for the fixed and the feed of nomadic.

1.4. Conclusion We will address typically what is called quadruple play i.e. triple play for households, fast Internet with QoS for SME and public services, and the feed of new type of “hot spots” with fast down load Internet and multimedia.

2. Business Plan Thales Electronic System is intended to submit offers for 3-PLAY system solutions over Cyprus. As required in the consultation we introduce the business plan for a quarter of Cyprus households as an initial stage.

2.1. COVERAGE and MARKET SHARE

CYPRUS represents roughly 400 000 households and 6000 enterprises, the government aims at a coverage of 70% out of which Gigacom can rapidly (depending of the cash for investment) get 35% of market share, i.e. to cover more than 250 000 inhabitants and 100 000 households plus 2000 SMEs. Upon these assumptions we can provide the elements of a business plan related to the services expressed in § 2.1 of the consultation document and upon the system proposed to match the § 2.1.Requirements. The system proposed provides large access a network WAS connected to the Cyprus fibre ring as far as the Internet and VoIP and to the satellites as far as the multimedia. A WAS will cover between 20 000 and 40 000 households depending of the area addressed. These areas can be dense (over the main cities) and can extend to urban areas easily. The interest of radio being precisely its capability to cover large areas. Each WAS comprise three or four segments: transport, backhaul, last mile access, local distribution and hot spots. As far as the consultation is concerned it mainly pertains to the last mile access segment (WiMax type) at 3.5GHz and backhaul segment (LMDS type) 26 GHz .

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2.2. BUSINESS PLAN ELEMENTS

1 -COVERAGE

CYPRUS 1rst market Demography & coverage scenarioYEARS 1 2 3 4 5 6 7 total

inhzbitants number covered 3 61250 85750 73500 24500 0 245003

Households 0 24500 34300 29400 9800 0 98000

average hh density 1 2500 2500 2500 2500 1 1 2500Professionals # 0,08 1593 2230 1911 637 0 6370

2.2.1. SUBSCRIBER DEVEVOLPMENT FLOW

Year 1 is 2006: authorisation, studies, sites survey and pilot deployment

Numbers of subs

0

5000

10000

15000

20000

25000

30000

35000

40000

1 2 3 4 5

YEARS

SUBS

2.2.2. HYPOTHESIS on SERVICES FARES

Revenues € high low notes -Dual-triple play/month € 50 45 tvhd vod hdInternet tel 40 end period - TV only/month 30 25 then 30 end period TVHD - SME & Adm/month 250 200 128k guarantied- Internet only 20 20 including VoIP As far as the consultation is concerned it mainly pertains to the last mile access segment (WiMax type) at 3.5GHz and backhaul segment (LMDS type) 26 GHz .

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2.2.3. INVESTMENT FLOW ACCORDING TO THE COVERAGE PLAN

With the target of 250 000 inhabitants coverage and rate growth in 2, the following chart gives the infrastructure cost in blue and CPE (customer premises equipment) and installation costs in violet.

Note: CPE includes outdoor unit (antenna and microwave transposition to IF ) and modem.

2.2.4. 5-1 OPEX STRUCTURE HYPOTHESIS

OPEX BREAK DOWN

13%

7%

7%

12%

4%8%

44%

3%

2%Sales & Mkt

G&A

network operating

maintenance +hl

Soft licences

internet transport

TV provider pay back

freq tax

sites leasing

Abreviations:

- G & A General & Administration - hl hot line

INFRASTRUCTURE & CPE COST K€ FLOW

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1 2 3 4 5 6

YEARS

INFRA INVESTMENT

CPE COST

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2.2.5. OPEX FLOW ACCORDING TO DEPLOYMENT AND PENETRATION

OPEX EVOLUTION K€

0

2000

4000

6000

8000

10000

12000

1 2 3 4 5 6 7 8

YEARS

sites leasing

freq tax

TV provider payback internet transport

Soft licences

maintenance +hl

network operating

G&A

Sales & Mkt

Note : The above costs do not include fixed network usage costs.

2.2.6. AVERAGE CAPEX OVER THE DEPLOYMENT PERIOD on NICOSIA

This computation is an average over the period that includes prices decrease

CAPEX/ Subscriber K € Nicosia

0,11

0,04

0,03

0,02

0,24

CPE

hh cabling

NH

RN HSN

Engineering

Abbreviations: CPE Customer equipment hh households NH Net Head RN Relay Node HSN Hot Spot Node See § 5.1.2 architecture figure 2

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2.2.7. OPERATIONAL RESULT

The operational result IFO (Income from operation) is computed over the coverage supposed in §1 with penetration rate start of 9% for 3-Play and low fares (§ 2.2.2)

Year 1 concerns preliminary studies and preparation then fast installation allows getting quick revenues and getting a positive IFO on the first year

IFO k€ 245Kinhab rate start 9%3P at 45€ , 13%TV at 25€

-2000

0

2000

4000

6000

8000

1 2 3 4 5

YEARS

5 years infrastructure amortisation

10 years infrastructureamorisation

2.2.8. CUMULATION OF THE CASH FROM OPERATION

Not taking 2006 into account (reserved for the survey studies and pilot) we see that the cash need will be of 1 M€ the first year and possibly 2 M€ the second year. The system will generate high cash after two or three years, depending of fares level and attractiveness, allowing growing and reinvesting on less dense areas for instance.

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CUMULATED CASH K € CYPRUS /245Kinha

-4000

-2000

0

2000

4000

6000

8000

10000

1 2 3 4 5

YEARSFARE 50€ 3Play , 30€TV 20€ Int

FARE 45€ 3Play , 25€ TV, 20€ Int

2.3. CONCLUSION

This case study shows that Gigacom – the system solution that we propose - is profitable

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3. Dimensioning according to the services addressed

Before answering the questions of the consultation, we must analyse the capacity needed in order to determine the desired bandwidth over the various segments. Summary of the needs and trends for households:

Summary of needs and trends for professional users:

SYNTHESIS FOR THE NETWORK OVER a 25 000 inhabitants Wirele ss Access System

Households: 10 000 Enterprises 650 Subscribers 3500 at 30% rate. To compute WAS capacity and throughputs; one should take hypothesis of provisioning for households and SMEs over a sufficient number of both to get a good statistic. Based upon the above services performances we have to consider sufficient provisioning indicator: 30kbps was the provisioning offered by France Telecom two years ago with an acceptable service for households it is very probable that these figure will increase and and almost double with peer to peer thus the 40 +15 proposed in the dimensioning.

SERVICES BASIC CONFIGURATION UP GRADE MULTIMEDIA TV PROGRAMS 80 160 TVHD 1 3 to 9 VoD 10Mbsp 100Mbps DATA & VOICE INTERNET Throughput down load

4Mbps 20Mbps

INTERNET Throughput up load

128kbps 2Mbps

VoIP yes yes

SERVICES BASIC CONFIGURATION UP GRADE RICH MEDIA TELE CONFERENCING 2Mbps 4Mbps VoD Seminars, training… 4Mbps 20Mbps DATA & VOICE INTERNET THRUPUT dl 10Mbps 100Mbps INTERNET THRUPUT ul 4Mbps 20Mbps VoIP yes yes

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In conclusion one can forecast a down load capacity need , with multimedia, around 1Gbps and return path of 100Mbps in QPSK in the near future for areas covering 30 000 inhabitants.

4. Answers to the Questions on radio frequency band s, their use and the attribution process.

As it is exposed in the previous chapters, the needed capacity will not be obtained by the WiMAX technology and its attributed frequencies, our solution exposed in §5 proposes that down load contents will be transmitted over a satellite technology in Ku band, which has the best performances for multimedia and the lowest cost (modulators and set top box mass production) , as encapsulation of IP in DVB is now currently used, all the IP down load capacity is carried on the same spectrum. As a result the use of this low cost technology provides the profitable business plan in § 2. The answers to the questions will therefore essentially refer to 3.5GHz bands proposed to the consultation.

4.1. Question 1- Do you agree that the scope of th is present authorization phase should include bands 3.4 – 3.6 GHz and 24.5 – 26.5 GHz?

As noted in Section 6 of the present document, our company proposes the use of 10.7 – 12.7 GHz frequency band, as well as the use of 3.4-3.6 GHz and 5.4-5.7 GHz frequency bands, in order for the Wireless Access System to achieve the capacity requirements described in Section 3. We propose that we shall present the features and the advantages of our system in the use of spectrum, in a presentation at your premises.

4.2. Question 2 - Please, provide your comments on the recommended use of band 3.4 – 3.6 GHz.

Wireless Last mile access Internet and VoIP for fixed applications has been the first application and is still relevant. Nevertheless there is a strong tendency, mainly coming from Asia to use these frequencies for mobile. Indeed many a constructor and chip set designer are abandoning 802.16d for 802.16e for wide band mobile. This could be explained by the mobile market attraction and the fact that WiMAX has not sufficient performances to fulfil the needs of Triple play for households.

SERVICES Parameter

PROVISIONING CAPACITY TOTAL CAPACITY

MULTIMEDIA DOWN LOAD TV PROGRAMS 100program 400Mbps 625Mbps TVHD 3 36Mbps VoD 1container 45Mbps DATA & VOICE UP LOAD Household download

40Kbps 120Mbps 70Mbps

Household upload 15Kbps 45Mbps SME download 128Kbps 25Mbps SME upload 128Kbps 25Mbps

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4.3. Question 3 - Please, provide your comments o n the recommended use of band 24.5 – 26.5 GHz.

This part of the spectrum could be dedicated to wireless backhaul either to base station of mobile radio either to and fix last mile base station, possibly it provides access for industrial sites enterprises. Nevertheless its cost and protocols DAVIC are not suitable for a huge market and for systems that could match the need for “broad band for all”.

4.4. Question 4 - Do you agree with the recommende d technical requirements for the use of band 3.4 – 3.6 GHz, as described in paragraphs 3.3.1 and 3.3.2? Yes, we agree.

4.5. Question 5 - Do you agree with the recommende d technical requirements for the use of band 24.5 – 26.5 GHz, as described i n paragraph 3.4? We do not consider these frequencies and associated products as relevant for the “broad band for all» applications

4.6. Question 6 - Do you agree with the recommend ation, with regard to the use of band 3.4 – 3.6 GHz, that there must be no pr edetermination of the exact number of authorizations, but through the aut horization procedure, interested operators can be able to set up their ow n paired blocks having a size ranging from 2x17.5 MHz minimum to 2x35 MHz ma ximum? Yes, we agree.

4.7. Question 7 - Do you feel that the assignment of spectrum ranging from 2x17.5 MHz to 2x35 MHz (also including allowance f or internal guard bands) will meet your needs for spectrum in order t o be able to provide the services of your choice? If not, please, state your needs for spectrum, as well as the WAS technology and services you intend to develop. We do not agree that the above mentioned spectrum will meet the needs for our complete 3-PLAY system. But, yes we agree, for data return path and VoIP access segment. I.e. for one quarter on the capacity needed. As it has been explained on chart n°3 §3, this frequency band cannot meet down load capacity for triple or quadruple play. These frequencies pertain to access segment only; indeed there are other means cheaper and more efficient for transport an backhaul. With this consideration, the need according to our business plan is a minimum pair of 17.5 MHz for the return path access segment. Now WiMAX forum and others considers that other frequencies can be used for this access segment as 5.4 to 5.7GHz free band. Together with ruggedized WiFi (2.4GHz) for local distribution and Hyperlan or cheap microwave link this will complete our return path system.

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4.8. Question 8 - Do you agree with the recommendat ion, with regard to the use of band 24.5 – 26.5 GHz, that there must be 4 autho rizations of a paired block equal to 2x140 MHz and 2 authorizations of a paired block equal to 2x84 MHz (also including internal guard bands)? If not, please state and justify your different opinion. We have no specific opinion. Indeed we do not propose use of such technology for our 3 Play offer, the two reasons being that the cost of equipments are to high and standards and protocols are not the best for the application (in particular multimedia) and architecture we propose.

4.9. Questions 9 to 17

Question 9 - Do you agree with the recommended tend er methodology (both for band 3.4 – 3.6 GHz and band 24.5 – 26.5 G Hz)? Yes, we agree.

Question 10 - Do you agree that the tender procedur e for band 3.4 – 3.6 GHz should take place first, followed by the tender procedure for the 2x140 GHz block in band 24.5 – 26.5 GHz, whereas the tend er procedure for the 2x84 ΜΗz authorizations in band 24.5 – 26.5 GHz should tak e place last? Yes, we agree.

Question 11 - Do you agree with the recommended met hodology for the determination of the exact spectrum block for each successful applicant (both in band 3.4 – 3.6 GHz and in band 24.5 – 26.5 GHz)? Yes, we agree.

Question 12 - Please, provide comments on the reser ve price (starting price) for each 3.5 MHz pair and for the 2.5 MHz pa ir in band 3.4 – 3.6 GHz, as well as for each 2x140 ΜΗz authorization and each 2x84 ΜΗz authorization in band 24.5 – 26.5 GHz. Starting price could be around 50 k€ per pair of 17Mhz, this can be computed from a tax of 10c€ per Mhz per user per year and the overall capacity we intend to deploy over Cyprus.

Question 13 - Please, provide comments on the crite ria that must be met by applicants. Applicant must be an operator with experience on wireless, on access comprehension (market and techniques), on home communication services and evolution.

Question 14 - Please, provide comments on the crite ria used for the selection of the applicants who will take part in t he tender procedure. Considering the Cyprus market size, we propose 3 authorisations to be granted. Question 15 - Please, provide comments on the geogr aphic extent of authorizations.

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The authorization should be granted for the whole Island of Cyprus. Question 16 - Please provide your opinions on the a chievement of network coverage of rural and other under-served regions so as to provide services to end users in the said areas. According to your o pinion, what are the criteria for a certain region to be designated as u nder-served? What incentives could possibly be offered? What must be the required commitments on the part of authorized operators (ob ligations with regard to geographic coverage, time schedule for coverage and the provision of services)?

In order to cover rural areas, a profitable strategy could be first developed over main inhabited areas with an architecture that can be extended progressively. As good design and deployment over dense areas can provide cash rapidly to grow further, rurban areas could be covered. Then as far as the 30% left real incentive should be set up in some way to help to extend the network to low density areas. Our proposed architecture can provide such extension at reasonable cost, nevertheless under 200 households per km² return on investment is slow, two incentives could match the business plan extension: o one would be to get a loan, at 0 rate for 5 years, on the infrastructure equipments, roughly

300K€ for 1000 isolated houses o European Union was proposing to fund 300€ per household for the digital divide on FEDER

funds. o Combination of loan and European support may be the right solution.

Question 17 - Please, provide comments on the metho d and time of payment of the radio frequency authorization duties . Frequencies payment process could be a combination of cash and recurrent taxes (half / half). We have it completely integrated in the OPEX of the business plan in § 2 (see OPEX breakdown)

4.10. Questions 18 to 22

Question 18 - Please, provide comments on the durat ion of authorizations.

As infrastructure part could be amortized on 5 or 10 years authorisation should be granted for ten years at least (provided frequency is used)

Question 19 - Please, provide comments on the inten tion to terminate the individual right of use in the case where frequenci es are not used for a set period of time. In case frequencies are not used after a period of 2 years, the tender could either resale the authorization to another operator needing it, or resale it to the administration at half price.

Question 20 - Please, provide comments on the frame work pertaining to coordination and the solution of interference-relat ed problems. If electromagnetic recommendations are applied, there is little probability of interference occurrence between operators installation and their own frequencies allocated bands. ECC/REC/4005 should be respected. Nevertheless near far and indoor propagation may reveal

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some surprises. To avoid such possibilities we will use mainly outdoor antennas together with directivity. These questions will be treated in the detailed engineering phase. It is therefore necessary that every operator be aware of other operator frequencies and location.

Question 21 - Please, provide comments on the joint installation of antennas and the joint use of facilities.

Joint installation (co-site): distances between antennas and antennas diagram (side lobes level) has to be carefully studied. This technical situation is currently performed for GSM networks and is taking place in the detailed engineering process. Question 22 - Please, provide comments on the colle ction, use and provision of the information referred to in paragra ph 6.9. Will be provided when general engineering is performed.

4.11. Questions 23 to 25 - General Questions

Question 23 - What is a possible market you would l ike to serve through wireless access systems (large – small and medium s ize companies, home users) and what services do you intend to provide?

Reference to § 1.4 as far as services and § 2 as far as market share.

Question 24 - In view of the fact that only bands 3 .4 – 3.6 GHz and 24.5 – 26.5 GHz are to be authorized now, when and under w hat circumstances should there be an examination of the possible prov ision of additional authorizations for wireless access systems operatin g in other radio frequency bands? (e.g. 3.6 – 3.8 GHz and 27.5 – 29. 5 GHz)?

Extension need of 3.5GHz may be needed in a couple of years depending on the competition in that band

Question 25 - Please, provide comments on any other aspect of the issue in question (which no specific comments is requested f or) and document your opinion.

Considering the bandwidth needed for 3-Play, the little spectrum in competition at 3.5GHz with no multimedia services, considering the high cost/efficiency at 26GHz we propose to use the 12GHz spectrum shared with the satellite broadcast for the down loading of multimedia and Internet when using all IEEE 802.XX equipments to get a best capacity for upload. The 12GHz band is recommended by ITU for fixed and satellite broadcast and it has been demonstrated that sharing the band is acceptable (in particular for SKYBRIDGE project acceptance) , therefore in many a country this band sharing is operational: first in the US for MVDDS , in Europe (Ireland, Iceland, Norway, Slovenia, Spain,) in Emirates, in VietNam and starting in Africa.

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5. GigaCom WAS (Wireless Access System ) highlights

GigaCom is a low cost 3-PLAY wireless network which can serve 20 000 customers with 80 to 160 TV programs 10Mbs to 100Mbps Internet & VoIP. Based on the BluWan hierarchy architecture it is suitable for urban, suburban, rurban and rural areas. This architecture offers full services and in the same time full scalability. Modularity is such that either Internet & VoIP can be deployed first, either multimedia broadcast as MVDDS. Compared to WiMAX, GigaCom is primarily a complete network over a large number of subscribers whatever the household density, it provides full multimedia services that are essential to profitability (ARPU and number of customers) and five time more Internet capacity. Gigacom may use WiMAX as a segment for last mile access, in that case WiMAX capacity is primarily used for return path.

5.1. Architecture and technology

5.1.1. Principles

- Hierarchical architecture is implemented to manage equipments, multimedia, Internet flows, customers and the growth in services and coverage. - Best technologies and standards are combined and optimised within the architecture o Gigabit Ethernet provides the best cost/performances Internet networking , as in EPON*, compatible to all wireless IEEE standards 802.11 & 16 o DVB-S satellite technology offers the best radio quality for multimedia broadcast and uses the cheapest multimedia management, modulators and terminal set top box. o Then Internet down load (the biggest flow) is passed over DVB containers (IP/DVB) to profit of the bandwidth and of the DVB performances. o Internet return path and VoIP are then set on 802.xx chain (pipe line arrangement of WiFi, WiMAX & Hyperlan), these equipments capacity are compatible of the return path needs. - Coverage is ensured by relays nodes at two levels: o Access level or “last mile” which will cover some km² in dense areas up to several tenth of km² in “ rurban” areas , capable of serving 400 to1000 subscribers o Local level for buildings, group of buildings or group of houses. o Relay nodes simply retransmit the down load wide band containing multimedia and IP packets for subscribers o Relay nodes collect the IP return path and ensure VoIP a dedicated VLAN o Backhaul function, at the two levels, is ensured by the radio access themselves, i.e. Hyperlan or WiMAX …. * EPON: Ethernet Passive Optical Network or fibre to the home (FTTH) is widely deployed in Japan, Gigabit Ethernet turn out to be the better cost/ efficiency networking technique for that access size.

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5.1.2. Physical deployment presentation:

Figure 2 deployment diagram

5.1.3. Technical representation

Gigacom has two transmission path: one down load capable of 26 containers of 40MHz each of these containers transporting TV “bouquets” of 8 to 10 programs or 3HDTV programs or VoD or Internet data, down load standard is DVB-S permitting to have excellent transmission performances and cheap sensible satellite set top box at the consumer’s. The up load is set up on a transmission chain 802.xx for Internet requests, return files, hypertext, MPEG4 images and VoIP, from customers to switch router of the Net Head. Standards are 802.11g at local level, 802.16d at access level and 802.11a at backhaul level, each node connected on 802.3 interfacing. The down load is broadcast and simply re amplified at each relay node, the up-load is collected from each subscriber, connected and switched back at each relay node.

Relay Nodes

Hot spots hd

entreprises

collective

IP DVB dl 802.xx ul

Net Head

IP DVB dl 802.xx ul

IP DVB dl 802.xx ul

IP DVB dl 802.xx ul

individual

HS Relays

BACKHAUL 15 km ACCESS 4 km LOCAL

Relay Nodes

Hot spots hd

entreprises

collective

IP DVB dl 802.xx ul

Net Head

IP DVB dl 802.xx ul

IP DVB dl 802.xx ul

IP DVB dl 802.xx ul

individual

HS Relays

BACKHAUL 15 km ACCESS 4 km LOCAL

Ref : CWC v1.0 19/23


30th of March 2006


Figure 3 logical diagram

5.1.4. Frequency allocation & channels

Down link Frequencies GHz

Channel width Number of channels

programs Efficient capacity

NOTE

TV Digital 11.7 12.7 36 MHz 12 100 HDTV 11.7 12.7 36 MHz 3 9 VoD 11.7 12.7 36 MHz 2 90 Mbps* IP 11.7 12.7 36 MHz 4 180 Mbps* Total channels

used 21** Up link IP Frequencies

GHz Channel width Number of

channels Efficient

capacity NOTE

802.16d 3.4 3.6 3.5 MHZ 20 140 Mbps ACCESS 802.11 a 5.4 5.7 10 MhZ 12 108 Mbps BACKHAUL

• * capacity will be doubled next year with DVB S2 (8 PSK)

• ** whole capacitiy can be doubled with cross polarisation

TV + IP/DVB

Gigabit Ethernet

TV + IP/DVB

802.16 + 802.11

Home

Nomadic

NH

RN

HSNWiFi

TV + IP/DVB

Gigabit Ethernet

TV + IP/DVB

802.16 + 802.11

Home

Nomadic

NH

RN

HSNWiFi

Ref : CWC v1.0 20/23


30th of March 2006


6. Conclusion .

Triple play is the bundle of services that most of customers would require in a “à la carte way” with a unique bill. Triple play is also the bundle of services which will permit profitability to operator by increasing the number of subscriber as well as the ARPU. This approach is reinforced by the incoming HDTV. As a consequence the spectrum required on large number of subscriber areas (target for profitability) is now of 1GHz and will rise to 2 or 3GHz after 2010. Solutions proposed should be built on multi frequencies architecture and particularly on microwave for down link, architectures should be widely scalable and spectrum available. According to the previous fundamentals, the spectrum in the 2.4 to 3.5 GHz on which operates current 802.xx equipments is far too narrow to match the requirements. Morover theses frequencies propagation is such that reuse and planning are tricky, particularly if they are applied in non LOS (Line of Site). So the idea is to alleviate 802.xx equipments in S and C band from the down load Internet. Then, one needs some more Gigabits to broadcast the multimedia and deliver the huge down load Internet capacity needed on the WAS area. First necessary spectrum is in Ku band fro 10.7 to 12.7 GH.z, precisely the satellite band. Compatibility (antennas are very directive and not oriented in the same directions, with low power and very selective set top boxes) has been proven (rules are established) and many a country share the band in particular the US on the MVDDS It has the great advantage to re use a well proven, spread, cheap technology. ) which is in operation in many countries (U.S., Ireland, Slovenia, Island, Norway…) and which is accepted in France for Skybridge Project and will be needed for Cyprus WAS. The spectrum proposal in the 26GHz is problematic. Standards are not on DVB-M/SC and, as frequencies band are fragmented, it is not possible to have a simple amplifier to broadcast. Equipments, still expensive, are not dedicated to reach households. Future. Bandwidth will always be a problem and In a couple of years Q band (as recommended by the CEPT) will enhance the system on the same scalable architecture, ensuring then long term perenity . Prototype is existing and a big pilot of the system is starting over Paris. The last spectrum regulated by the CEPT is the 40.5 to 43.5GHz that Thales is developing on the K u band scheme to cover large areas of metropolis and suburbs (to be installed in Paris next fa ll).

Ref : CWC v1.0 21/23


30th of March 2006


7. ANNEX subscriber configurations

HOUSEHOLD EQUIPEMENT SCHEME

10.7-12.7 GHz Antenna & lnb

Ref : CWC v1.0 22/23


30th of March 2006


ENTREPRISE EQUIPEMENT SCHEME


Ref : CWC v1.0 23/23


30th of March 2006


FIX to MOBILE RELAY NOMADIC SPACE

HOT SPOT EQUIPEMENT MOBILE (NOMADIC)

END

PLEASE FORWARD YOUR COMMENTS TO :

MARIO A. SAVVIDIS Executive Managing Director THALES ELECTRONIC SYSTEMS Konstantinoupoleos Street, 48 GR-19400 KARELLAS KOROPIOU Tel: +30 210 66 84 400 Fax: +30 210 66 84 326 E-mail: [email protected]


WAS Cyprus Consultation Answer THALES

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