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2009 Cisco Systems, Inc. All rights reserved. This document is Cisco Public Information. Page 1 of 20
Migration to All-IP RAN Transport
Overview
Mobile network infrastructures are quickly evolving as mobile operators expand beyond voice to
bring high-speed services available from IP networks and the Internet to subscribers. The result is
the emergence of networks that are becoming mobile versions of the high-speed Internet or a
mobile Internet. As the leader in IP networking, Cisco is uniquely positioned to help mobile
operators deliver what some analysts predict will be a 100 fold increase in mobile data traffic by
2013. One of the key areas in mobile networks, ripe for transformation in the rush to deliver robust
mobile Internet services, is the Radio Access Network (RAN). Mobile operators must dramatically
reduce the cost per bit in their current backhaul solutions while providing transport for third
generation (3G) technologies, the next wave of Long Term Evolution (LTE) technologies, and
traditional technologies. The move to the all-IP RAN is the single largest infrastructure challenge
facing mobile operators.
This paper explores the strategy recommended by Cisco for mobile operators to implement an IP
RAN backhaul network that allows decoupling from the radio technology as they migrate to an all-
IP RAN. This strategy allows mobile operators to cost-effectively provide the bandwidth, backhaul
scalability, affordable transport, and intelligent network features necessary to support the
Connected Life, the Internet-everywhere experience. As devices in the RAN evolve to support IP,
Ethernet, and other transport types, mobile operators can replace and upgrade portions of the
RAN, such as base stations, in a more graceful, and cost-efficient manner. A review of current and
evolving RAN architectures and migration strategies follows, along with a review of carrier-class
features necessary in the all-IP RAN, and finally relevant Cisco

products and technologies.

The Changing Landscape
Today, the RANs of mobile operators are being stretched to their limits by the changing
requirements of converged multimedia traffic and rising traffic volumes. RAN infrastructures are
currently a mix of second generation (2G) technologies and third generation (3G) technologies.
Global System for Mobile (GSM) operators are using TDM as well as 3G technologies such as
ATM, and more recently Ethernet and IP, to enable high-speed data and voice. Operators with
Code Division Multiple Access (CDMA) architectures are using Multilink Point-to-Point Protocol
(MLPPP) to bond multiple T1 or E1 lines for backhaul over native IP. And the WiMAX standard is
also gaining momentum worldwide, delivering data using the 802.16e for fixed and mobile
services.
Faced with the convergence of traditional and newer services, mobile operators are embracing IP
and often Multiprotocol Label Switching (MPLS) due to the enhanced ability of these technologies
to provision, scale, and manage multiple services. The move to IP has occurred in the network
core outward but RANs have not been adapted to efficiently handle IP broadband traffic due to the
high costs of replacing aggregation and cell site infrastructures. Many mobile operators are
therefore looking into intermediate solutions to ease the cost of eventually evolving to an all-IP
RAN.


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As mobile operators migrate from 2G and 3G to native IP radio (such as LTE and WiMAX), the
right independent backhaul transport can support it all, and also be the foundation for the next
generation to come.. Supported solutions includes current interim solutions in the RAN using
existing T1 and E1 circuits, including:
IP over MLPPP
Copper bonding
Pseudowires over MPLS
Native IP
Along with many new, very compelling application services, LTE will usher in technologies that will
drive bandwidth demands much higher in mobile networks. For example, an LTE deployment is
estimated to require 200 to 300 Gbps bandwidth at the aggregation site and 100 to 200 Mbps per
cell site multiplied by thousands of sites. Cisco has anticipated these changes, providing traffic
management, provisioning tools and methods of scaling networks based on the intelligence and
robust transport properties of the IP Next-Generation Network (NGN).
Interim RAN backhaul solutions, such as the Cisco Mobile Transport over Packet (MToP) solution
that uses pseudowires, support a wide variety of transport options with clocking and many value-
added intelligent features. These interim solutions allow mobile operators to utilize the radios they
have without needing to upgrade them right away while relying on the many features of the IP NGN
to provide the bandwidth, scalability, and intelligent traffic-handling features required. Later, when
radio standards and vendor solutions have evolved to capably support the all-IP end-to-end mobile
network, mobile operators can upgrade their radios gradually without worrying about compatibility
and stability issues and large capital investments.
The Importance of Maintaining Separate RANs and Transport Networks in the Near
Term
In the process of converting their RAN backhaul from circuit-switched to packet-switched solutions,
many mobile operators are choosing to deploy Carrier Ethernet transport between the cell site and
the radio network controller (RNC) and from the RNC to the mobile switching center (MSC) to
provide higher bandwidth at a much lower cost. Cisco believes that the most cost-effective strategy
is to first focus on building an independent transport network not integrated by radio type or
generation. Maintaining separate RANs and transport networks at this stage of the migration to all-
IP mobile networks will enable mobile operators to:
Benefit from a physical demarcation between base stations and the transport network for
operations, administration, and maintenance (such as loopback and BER testing), including
the monitoring of service level agreements (SLAs)
Use pseudowire or MLPPP interfaces to leverage all traditional equipment and technology
in the RAN while providing robust, highly cost-effective broadband transport and backhaul
utilizing the intelligence of IP and in some cases Multiprotocol Label Switching MPLS,
including quality of service (QoS) and IP service level agreement (IP SLA) features for a
higher quality of experience
Provide IP Security for traversing non-trusted transport networks
Efficiently supporting multi-vendor cell sites
Several radio vendors have announced or will soon announce Ethernet interfaces on their 3G
radio equipment installed in Node Bs and RNCs. These products may initially be based on


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pseudowire cards added to equipment chasses that will provide pseudowire interfaces between
the RAN and the access network but will likely quickly move to an end-to-end IP architecture, e.g.,
with Iub/IP. Full integration of these enhanced Node Bs and RNCs with IP traffic including
WiMAX and the 3GPP LTE is expected to follow. However, implementing an independent RAN
transport infrastructure allows mobile operators to address bandwidth, transport, and backhaul
cost challenges right away without the added pressure, CapEx, and complexity of replacing (or
upgrading) all of the radios in the RAN infrastructure with products from different vendors that are
at different stages of supporting IP traffic.
Todays Standard Transport Options for the RAN
Current RAN transport architectures for mobile networks use expensive E1 or T1 connections to
the cell sites. TDM was used for the first digital cellular systems and then subsequent evolutions
have defined ATM for transporting traffic on GSM (3GPP) networks and MLPPP for transport on
CDMA (3GPP2) networks, Figure 1.
Figure 1. Standard Transport Options for the RAN

RAN transport technologies in these deployments include:
2.5G GSM: Frame Relay TDM, High-Level Data Link Control (HDLC) TDM
3.5G CDMA: Point-to-Point Protocol Multiplexing (PPPmux) cUDP/IP/PPPmux/MLPPP;
1xRTT and Evolution Data Optimized (EV-DO)
3.5G Wideband CDMA (WCDMA): ATM, ATM Adaptation Layer 2/5 (AAL2/5); High Speed
Packet Access (HSPA)
Backhaul Approaches in GSM Networks
Wireline service providers have realized that moving to a packet-based network from a traditional
TDM network addresses their throughput requirements from end users whose requirements have
been growing exponentially. Packet networks have also provided a cost-efficient transport option
as compared to traditional TDM networks. Packet-based transport has been extended into the
mobile space where GSM/UMTS Release-4 transport networks address the core, inter-mobile


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switching center inter-MSC and UMTS Release 5 the inter-radio network controller (inter-RNC)
connectivity in a capacity-driven and cost-efficient manner. Today, this transport method has been
extended to the RAN. It leverages similar transitional methods to migrate traditional transport
methods, such as TDM and ATM pseudowire emulation edge-to-edge (PWE3) as well as to
provide a means to recover clock over a packet network.
Instead of deploying a wide area ATM network in the core, mobile operators have instead
deployed converged IP or IP/MPLS core networks that are able to transport older traffic types
along with new high-speed multimedia traffic using pseudowire encapsulation. In addition,
operators have started the migration away from their monolithic MSCs towards a distributed model
whereby an MSC server and media gateway are used to replace the TDM voice trunks between
sites with VoIP interfaces using Release 4 architecture, Figure 2.
Figure 2. Pseudowires Across Core to Tunnel Legacy ATM Interfaces Between RNC Sites and RNC and
MSC Sites

The ability to transport wide area ATM interfaces over an IP/MPLS core, coupled with the adoption
of Release 4 voice over IP (VoIP), have allowed operators to deploy converged core networks able
to transport all traffic. This has further increased Ciscos importance among mobile operators.
For the RAN, Cisco has engineered the Cisco Mobile Transport over Packet (MToP) solution for
RAN aggregation, which allows for an incremental, cost-efficient transition to a Carrier Ethernet
RAN without service disruption. Cisco MToP uses MPLS technology to extend the packet-based
core already deployed by many mobile service providers out to the edge of the network. MToP
pseudowires which are MPLS virtual circuit tunnels aggregate and transport TDM, IP,
Ethernet, and ATM traffic, as well as clock synchronization, from the RAN to the network core. The
solution increases the bandwidth available for backhaul and other services by an order of
magnitude but at a tenth of the cost per bit when compared to T1 and E1 service. It is fast and
easy to deploy. Another benefit is that MToP uses the existing MPLS infrastructure for the highest
levels of traffic grooming and network management, QoS, and the ability to assign classes of
service.
With Cisco MToP in the RAN, ATM switches in the RAN can be removed. Cisco 7600 Series
routers equipped with Cisco Circuit Emulation over Packet (CEoP) shared port adapter (SPA)


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cards handle transport of all traffic types and interface with all traditional SONET/SDH equipment,
Figure 3.
Figure 3. MToP in the RAN Solution in a GSM Network

The CEoP SPA module in the MToP solution lets the mobile operator take advantage of packet
transport networks and the savings in operational expenses (OpEx) with next-generation Carrier
Ethernet compared to traditional leased line TDM services.
Backhaul Approaches in CDMA Networks
CDMA operators are already in the final stages of evolving the RAN to all-IP. Over the past few
years RAN vendors have evolved their base stations to support IP interfaces. IP is used to natively
transport both 1xRTT voice and EVDO data from the cell site to the mobile telephone switching
office (MTSO). Today IP-based 1xRTT and EVDO traffic is transported over T1/E1 lines using
MLPPP. The majority of these base stations can be easily upgraded to support a native Ethernet
interface in lieu of a TDM interface.
In preparation for LTE, many CDMA operators are migrating their backhaul from TDM to Ethernet.
This migration is fairly straightforward for operators who already have IP-enabled base stations. In
this environment there is no need to support circuit emulation or TDM pseudowires, thus
simplifying the configuration of the RAN. The RAN can be based on simple IP routing protocol or
static routing. The typical RAN configuration is shown in Figure 4.


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Figure 4. RAN Backhaul in CDMA Networks

The cell site router provides connectivity for the various IP-based radios in the cell site over User
Network Interface (UNI) ports. It also interfaces with the service provider network interface device
on its Network Node Iinterface (NNI) uplink ports. At the Mobile Telephone Switching Office
(MTSO), a pair of aggregation Layer 2 and Layer 3 switches aggregate all cell sites in a given
area. The service provider is responsible for providing a logical connection from the cell site to
both aggregation switches. This logical connection may be provided using various technologies,
such as Ethernet over SONET, MPLS pseudowire, or Metro Ethernet Virtual Circuit.
After a logical connection is established between the cell site and the aggregation switches, IP
reachability can be configured, as shown in Figure 5.
Figure 5. IP Reachability Between Cell Site and Aggregation Switches

IP reachability between the cell site and the aggregation switches is established using static
routing. Fast failure detection is accomplished by tying Bidirectional Forwarding Detection (BFD) to
static routes. In the event of an aggregation node or link failure, BFD will trigger a switchover to the
secondary path.
When a mobile operator is required to support TDM interfaces, the following architecture may be
used, Figure 6.


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Figure 6. Support of TDM Interfaces in a CDMA RAN

To support transmission over T1/E1 lines using MLPPP, the MLPP bundle is terminated at the cell
site on the cell site router. IP is used to route all traffic from the cell site to the MTSO. This
approach provides a consistent all-IP routed solution for Ethernet and T1/ E1 cell sites.
The solution provides an end-to-end, all-IP architecture for Ethernet backhaul. Because there is no
need for MPLS pseudowires to support TDM traffic, the architecture is simplified and builds on IP
as the foundation technology in the RAN. The architecture is easy to configure, and easy to
manage. It is also very flexible because the architecture has the ability to optimally support the
LTE X2 interface and to provide other features to increase the scalability of the RAN.
Like their GSM counterparts, mobile operators with CDMA architectures are well advised to
develop the RAN and the transport network separately at this evolutionary stage of the mobile
internet. While the CDMA world already has wide deployments of IP-enabled radios, they do not
yet have Ethernet-capable radios. The cost to upgrade radios to provide Ethernet to the cell sites
is prohibitively expensive now. Some analysts predict that once LTE becomes the norm, CDMA
operators will need devices in each cell site with 30 Ethernet interfaces, enabling 500 MB of
bandwidth.
In the meantime, bonding T1/ E1 lines into a single pipe using MLPPP and then transporting native
IP backhaul is an efficient, scalable, and affordable interim solution. Mobile operators can
concentrate more resources on the transport network, which will provide the intelligence,
bandwidth, and scalability once LTE and end-to-end IP make GSM and CDMA network
architectures more uniform.
Requirements for an All-IP RAN
A true all-IP RAN, a network architecture will have to support multiple radio types where each radio
element has it own transport properties and requirements to support the edge and core. Any all-IP
RAN backhaul network must address the recent radio developments such as WiMAX and LTE,
where the network connection is a native IP interface. An all-IP RAN backhaul solution will also
have to include a method for migrating existing or traditional transport types to a packet
infrastructure.
In the all-IP RAN, pseudowires, MLPPP, and other workarounds will no longer be needed as
Ethernet connections with IP or IP/MPLS services will carry backhaul from the cell site to the core.
Critical features necessary in an all-IP RAN will include:
Scalability


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Bandwidth
Redundancy
High availability
A demarcation point between the RAN and transport networks for testing and SLA
monitoring
Core and cell site redundancy
Content delivery
QoS
Layer 3 routing
Security
Several of these issues are new to the departments that supported traditional synchronous TDM
RAN backhaul networks. Migration to an all-IP / Carrier Ethernet RAN will be a multi-year process
for most mobile operators who Primarily have 2G and 2.5G networks in place today. Ultimately,
mobile networks will collapse backhaul technologies in favor of IP services running from the cell
site all the way back to the network core and the NOC.
The NGMN Alliances Requirements for Optimized Backhaul
The Next Generation Mobile Network (NGMN) Alliance is defining requirements from leading
operators for a 4G, all-IP network, providing guidance to the 3rd Generation Partnership Project
(3GPP). Cisco is an active member of the Alliance and is contributing to the IP RAN architecture
definition based on IP, Carrier Ethernet and MPLS technologies. With the increasing diversity of
services traveling across mobile networks, all traffic is not the same. It varies based on
characteristics such as burstiness, volume, end-to-end delay, variance, and tolerance for dropped
packets. It is vital to be able to identify, classify, and prioritize traffic across the transport network.
Additionally, mobile operators should be able to enforce different levels of service for pre-paid
customers, roaming customers, local customers, or business customers paying different
subscription rates and with different service bundles. With Node Bs able to classify traffic at the
edge of the network, mobile operators can prioritize traffic appropriately. And wholesalers should
be able to prove that they can enforce strict SLAs for customers.
Addressing Bearer Traffic and Clocking Requirements
The need for IP or IP/MPLS-based RAN transport for newer radio endpoints is clear. The
challenge for most mobile operators is how to migrate to full packet-based transport. This
migration can be separated into two primary aspects:
Bearer traffic (voice, data, control)
Clock recovery over a packet core


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In both GSM and CDMA environments, the initial incentive for migrating to a packet core is to meet
the high throughput requirements for different varieties of high-speed traffic. Most operators will
start to offload this traffic from their E1 and T1 lines to some type of DSL or Ethernet service.
As shown in Figure 7, both the traditional TDM network and the packet network exist in parallel.
This allows the operator to separate the data traffic to a more efficient transport without sacrificing
the voice or control traffic. The diagram shows the Node B as the radio endpoint in a GSM
network. This typically uses ATM as a means for transport. To upgrade these radio elements, most
radio vendors are developing modules that allow these radio elements to be upgraded with a
module that converts the ATM bearer to an ATM PWE3 that uses Ethernet connectivity to transport
the traditional ATM traffic. This solution has a fast time-to-market and is relatively inexpensive.
Figure 7. Offloading High-Speed Traffic to DSL or Ethernet Service

In addition to the ATM bearer traffic, clocking between the core radio and edge radio elements
must be addressed. In this hybrid mode, the clock can be recovered via the E1 and T1 lines. In
Figure 8, the dark blue line represents voice virtual circuits, the light blue line represents control
virtual circuits, and the green line represents high speed downlink packet access (HSDPA) and
high speed uplink packet access (HSUPA) ATM PWE3 connections.
Figure 8. Maintaining Synchronous Clock Between the Core and RAN



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Different clock recovery methods are becoming available where clocking information can be sent
natively over the packet core and accurately recovered at the edge. Due to the deployment of
these packet networks, radio vendors are developing new radio platforms with native Ethernet/IP
interfaces. These newer platforms will leverage the packet cores and provide a way to eliminate
the costly TDM E1/ T1 lines for voice and control bearer traffic and for clock recovery.
In CDMA networks, clocking is available from traditional 3G infrastructures that typically have a
Global Positioning System (GPS) antennae in the cell site to provide clocking. Timing over packet
is therefore not necessary. As mobile operators roll out LTE, if timing is an issue, a separate GPS
can be supplied for radios, traditional clocking solutions from 2G equipment can be used, or a
timing-over-packet solution can be another option. These approaches give CDMA operators many
options for reusing clocking technologies as they move to LTE.
The migration to a packet core makes the RAN scalable to support newer radio technologies as
they are deployed. The consideration of macro-range coverage through WiMAX and in-building
radio coverage through Femtocell are influencing the development of Ethernet/IP interfaces that
will allow these radio elements to be connected anywhere in the overall packet network.
QoS in Transport
To address rate limiting, scheduling, and queuing, Hierarchical QoS could be used, as shown in
Figure 9.
Figure 9. Use of Hierarchical QoS with Packet Flow among Policy Maps

Layer 2 and Layer 3 Comparisons for Packet Core
As transport networks for RANs evolve to packet-based infrastructures, mobile operators are faced
with the decision to build a Layer 2 or a Layer 3 packet transport core. Which option is best will
vary from operator to operator based on their specific needs and requirements. For example, the
primary topology for an existing 3G network is hub-and-spoke where the primary communication
path is directly to and from the cell site and Mobile Telephone Switching Office (MTSO) with little to
no communication directly between cell sites. In 4G and LTE, however, the concept of inter-cell
site communication is introduced. Partial and full mesh topology requirements like those seen in


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4G and LTE should be considered when determining a flat Layer 2 network or a routed Layer 3
network.
The variables in choosing a Layer 2 over Layer 3 solution are very similar to those considered by
engineers during the transition from Layer 2 switches to Layer 3 routed networks. Many analogies
apply when considering which option is best for the mobile operator. Cisco will support either
environment.
When looking at Layer 2 versus Layer 3 in the core, the following topics should be considered:
Scalability
Deployment complexity
Service provisioning complexity
Complexity of management and troubleshooting
Deployment cost
Management and maintenance costs
Layer 2 Core Networks: Virtual Private LAN Service (VPLS) is the principal technology
implemented by service providers that want to deploy and maintain flat Layer 2 networks, Figure
10. VPLS is an Ethernet-based service that looks like a Layer 2 VPN. VPLS supports
geographically distributed Ethernet LANs (for example, cell sites) where multiple locations can
reside on the same broadcast domain if so desired. It uses MPLS as the transport/backbone
network to carry the packets. VPLS supports point-to-point and multipoint configurations, and uses
the MAC address to locate the other endpoint. The IP address is not used.
Figure 10. Layer 2 Transport Option for the RAN



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Layer 3 Core Networks: MPLS Virtual Routing and Forwarding (VRF) is used for Layer 3-aware
transport networks, Figure 11. MPLS offers a fully meshed architecture where all sites can
communicate directly with any other site without having to run through a hub and host location first.
Two key benefits are improved site-to-site performance and fewer burdens imposed on remote
locations. Network meshing and the addition of subsequent network devices are automatic
functions of MPLS connection-less technology, making the addition of cell sites less challenging
for operations staff. Mobile operators that want to migrate to a Layer 3 network with MPLS and
VRF will be able to support the dynamic traffic requirements of their increasingly technology rich
cell site devices.
Figure 11. Layer 3 Transport Option for the RAN All-IP, IP Node B, WiMAX


There are some key differentiators between Layer 2 VPLS and Layer 3 MPLS, as shown in Table
1.
Table 1. Layer 2 VPLS and Layer 3 MPLS Comparisons
Feature Layer 2 VPLS Layer 3 MPLS
Dynamic Path Establishment Supported with VPLS Supported with MPLS
Scaling Up to 1000 nodes per Layer 2 domain
(H-VPLS can help scaling)
Hierarchical
Not an issue
Ability to route between directly
connected cell sites
Not supported if on separate broadcast
domain (Layer 3 needed to go between
broadcast domains)
Supported
Endpoint Identification MAC address IP address
IP address transparency Supported Not supported
without Layer 3 VPNs
Operation/craft expertise Lower Higher
QoS capabilities Lower Higher


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Broadcast domains Supported
(both point-to-point and multipoint)
Not supported in a routed network
Support for network growth Manual effort Configuration-intensive Easier with support of
Automatic Discovery

While Cisco does remain technology agnostic in the Layer-2 verses Layer-3 debate for IP RAN
Backhaul, as the operator evolves to a 3GPP LTE network there are distinct competitive
advantages to a Layer-3 infrastructure. Fortunately the Cisco IP RAN portfolio natively supports
both Layer-2 switching and Layer-3 routing.
Green Initiative for All-IP RAN
Another anticipated benefit of the evolution to the all-IP RAN is devices and technologies with
significantly lower energy consumption due to more efficient design, fewer platforms needed, and
virtual maintenance. An October 2008 white paper based on research by Alcatel-Lucent that was
highlighted in Light Reading directly addressed the basic power savings associated with TDM
compared to IP networks. Power costs and consumption for a 10,000-line TDM switch and a two-
frame compact IP Multimedia Subsystem (IMS) configuration in North America came to one-tenth
that of a comparable TDM network. Another finding by Pyramid Research, based on an estimated
160 million circuit-switched lines in Canada and the United States. in 2008, estimated that each
10,000-line switch utilizes 925,000 kilowatt hours (kWh) per year, coming to US$7.95 per line or
$1.27 for all 160 million installed lines. An IP solution would use only 102,000 kWh a year and cost
$144 million.
The Alliance for Telecommunications Industry Solutions (ATIS) Network Interface, Power, and
Protection Committee (NIPP) is in the process of developing and ratifying standards that will
include consumption targets for power systems for telecommunications equipment to help lower
power usage. And the IEEE P802.3az Energy Efficient Ethernet Taskforce is working on energy-
efficient Ethernet ports that will also help to minimize power usage.
Another indirect green benefit of the high-speed mobile Internet is reducing carbon emissions
through increased reliance on teleconferencing and videoconferencing instead of face-to-face
meetings. A study by The Climate Group found that previous, conservative estimates have
suggested that virtual meetings could replace between 5 and 20 percent of global business travel.
While already a leader in energy efficiency for network infrastructure, Cisco product development
continues to enhance efficiency, reusability, and recycling ablity.
All-IP RAN Total Cost of Ownership
While evaluating the technical requirements for the evolution to the all-IP RAN, mobile operators
are intent on ensuring that their technology choice provides the most cost-effective solution. Given
that transmission costs on average consume 19 percent of mobile operators operational
expenditures, according to a February 2007 report by Unstrung Insider, reducing this cost is vital to
an operators long-term financial stability, especially with increasing traffic predictions and reduced
revenue per user. A comparison between different technical solutions must include both the capital
and operational expenditures. A well constructed TCO study will also include network growth over
a period of five years.
Cisco has modeled a wide range of technical options using the TCO approach and has shown that
a migration from a Plesiochronous Digital Hierarchy (PDH) and Synchronous Digital Hierarchy


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(SDH) infrastructure to IP or IP/MPLS is extremely cost effective and ROIs can be extremely fast
especially if the mobile operator already has an existing IP or IP/MPLS network. The simulation
focuses on GSM network architectures and includes a wide range of capital and operational costs,
including the major costs related to backhaul. Note that the costs for SDH and Ethernet backhaul
were based on industry figures.
Four major scenarios were modeled using a Monte Carlo approach, which allows for a wide range
of input parameters to be randomized within a known variance. The outputs are then mapped onto
a probability density function to illustrate the spread of results. The scenarios included:
Scenario 1: SDH infrastructure
Scenario 2: Microwave backhaul from cell site to a pre-aggregation device with an MPLS-
based Ethernet network between the pre-aggregation device and the aggregation device
Scenario 3: MPLS from the cell site using Metro Ethernet
Scenario 4: Hybrid model using DSL backhaul for data and SDH for voice and signaling
The results of the simulation are summarized in Figure 12 and Figure 13.
Figure 12. Total Cost of Ownership for Different All-IP Backhaul Solutions
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
S1 TCO S2TCO S3TCO S4TCO
T
C
O

U
S
D

(
M
i
l
l
i
o
n
s
)
Mean Standard Deviation

Figure 13 provides a comparison of the average and standard deviation of the different scenarios.
Both of the MPLS solutions provide significant TCO savings compared with a continued build-out
of the SDH infrastructure.
A number of input parameters have been randomized within a reasonable variance. The figures
provide a view of the spread of the different scenarios and allow a comparison to be made where
the input parameters are not well known. From the diagram the two MPLS options again illustrate
the lower TCO compared with the baseline scenario.


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Figure 13. Comparison of Average and Standard Deviation of Different Scenarios
0
200
400
600
800
1000
1200
1400
1600
F
r
e
q
u
e
n
c
y
Total Cost of Ownership USD (Million)
S1TCO S2TCO S3TCO S4TCO

In summary, IP and IP/MPLS solutions provide a TCO saving of between 25 and 40 percent over a
five year period. This result is based upon the assumption that the initial SDH network has been
built and is considered a sunk cost. All additional equipment purchases for the SDH network are
then compared to a complete build-out of a number of different IP and IP/MPLS solutions.
The analysis clearly showed that the costs for PDH and SDH backhaul are onerous and that the
savings when moving to Metro Ethernet-based technologies in conjunction with IP/MPLS-based
pay for themselves in a relatively short period of time.
Most mobile operators have not one but several different combinations of transport and RAN
solutions. Comparisons of one type of backhaul scenario versus another are therefore
approximate at best. Additionally, costs for network connections vary throughout the world, but
Table 2 contains an approximate cost comparison of high-speed data backhaul using E1/T1 lines
versus Ethernet connections over pseudowires, as in the Cisco MToP solution. The tremendous
savings possible using Cisco MToP is clear. (Note: Five E1/T1 lines equal one 10-Mbps Ethernet
connection. For high-speed data service for LTE backhauling, one 100-Mbps Ethernet connection
is presumed necessary.)
Table 2. Monthly Comparison of E1/T1 Backhaul versus 10/100 Mbps Ethernet Connection Using MToP
Legacy Connection: E1/T1 Lines Cost
E1 (1.5 Mbps) or T1 (2.0 Mbps) per month $150-300
E1 or T1 per year $1,800-3,600
x 5 per base station for 3G service per year $9,000-18,000
Cisco MToP Cost
10/100 Ethernet connection using pseudowires per month $50-100
10/100 Ethernet connection using pseudowires per year $600-1,200

Savings based on the TCO for an all-IP RAN would be similar if not greater than the Cisco MToP
solution as compared to traditional backhaul approaches. With the all-IP RAN, GSM operators can
utilize the same equipment used for the MToP solution, simply adding more Ethernet ports to their
cell site routers.


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CDMA operators who already have all-IP RANs today are already enjoying many of the lower TCO
benefits of having moved beyond TDM backhaul. They too can leverage their existing equipment in
their continued evolution to bring Ethernet to the RAN. All that will be required are Metro Ethernet
switches in cell sites.
Maintaining a Demarcation Point between the RAN and Transport Network
The T1 and E1 point-to-point circuits used in todays backhaul networks are terminated at cell site
locations at demarcation points called smart jacks. The smart jacks are the interconnect point in
the cell site where the T1/E1 service terminates and the mobile operator cell site equipment
connects to them. These smart jacks offer a demarcation point where circuit testing such as
loopbacks and Bit Error Rate Tester (BERT) can be performed to test for integrity and continuity of
the backhaul network. The demarcation point also offers an interconnect point for circuit-testing
equipment such as T-1 Bit Error Rate Detector (T-BERD) to be inserted.
It is advantageous to decouple the cell site radio interface from the packet-based transport
network while preserving the operational functionality of the demarcation point provided in the
older T1/E1 backhaul networks. To do this, a separate device is required between the transport
network and the Ethernet-enabled radios in the RAN, Figure 14. This device provides the
operations personnel with a cell site touch point were operational-level tests can be run.
Figure 14. Demarcation Point Between the RAN and Transport Network

Letting the cell site routers instead of the radio perform packet marketing, QoS, security, (SLA)
monitoring, and other services provides mobile operators with a lot of flexibility as radio equipment
vendors now supply varying levels of functionality in their products. Here too, maintaining an
independent transport network lets mobile operators pursue upgrades to their radio equipment
more gradually, reducing cost and upgrade pressures in the near term.
Evolving IP Security for Mobile Networks
The security of mobile systems has evolved from the original unidirectional authentication and
base station ciphering in GSM to the mutual authentication and RNC-based ciphering with 3G and
back toward base-station-based ciphering, Figure 15.


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Figure 15. 3GPP Security Evolution

3GPP has defined a security solution for protecting intra-operator interfaces called Network
Domain Security/IP Layer Security (NDS/IP). In 3G networks NDS/IP defines the use of an IPSec
ESP Security Association to protect control plane traffic that needs security protection.
Because the design of LTE terminates the user-plane security at the base station, the overall
architecture includes two security levels. The first protects interfaces between the handset and the
base station while the second protects internal interfaces between the base stations and between
the base station and the Evolved Packet Core, Figure 16.
Figure 16. First and Second Security Layers in LTE

3GPP has since defined NDS/IP for LTE to cover the protection of IP-based control plane signaling
and user plane data for the Evolved Packet Core and the LTE RAN, as defined in 3GPP 33.401.
This standardizes the use of IPsec ESP according to RFC 4303 using Internet Key Exchange
Version 2 (IKEv2) certificate-based authentication for both S1-C and C1-U interfaces as well as the
X2 inter-eNB traffic. The use of Tunnel Mode IPSec allows the architecture to be realized using a


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separate security gateway used to protect the S1 interface. Such an architecture leads to the
segmentation of the all-IP RAN network into the RAN Access domain which may well be untrusted
and require IPSec protection of user traffic and the RAN Aggregation domain which represents the
trusted part of the RAN transport network,
CDMA security protocols are designed to provide voice, signaling, and data privacy as well. In
CDMA networks, security protocols rely on a 64-bit authentication key and the Electronic Serial
Number (ESN) of the mobile handset. A random binary number called RANDSSD, which is
generated in the Home Location Register (HLR), also plays a role in the authentication
procedures. The authentication key is programmed into the mobile handset and is stored in the
HLR. CDMA systems also use the standardized Cellular Authentication and Voice Encryption
(CAVE) algorithm to generate a key called the Shared Secret Data (SSD). The SSD is used for
creating authentication signatures and for generating keys to encrypt voice and signaling
messages.
As both GSM and CDMA operators migrate to LTE, they will adopt security procedures that more
closely resemble GSM/LTE.
IP SLA and Ethernet Operations, Administration, and Maintenance in the All-IP RAN
As mobile operators expand their RANs to include IP and Ethernet broadband services, it is
important that they keep in mind the operations requirements of these networks and the
capabilities of Ethernet Operations, Administration, and Maintenance (OAM) and Cisco IOS IP
SLA to provide the same capabilities they enjoy today.
The ability to monitor and manage SLAs for service provider transport networks is a key capability
for mobile operators. Standards-based protocols such as One-Way Active Measurement Protocol
(OWAMP), Two-Way Active Measurement Protocol (TWAMP) and Cisco IOS IP SLA can meet
these needs.
OWAMP as defined by RFC 4656 is designed to allow measurement of one-way latency
and loss between IP endpoints.
TWAMP as defined by a draft RFC extends OWAMP to support two-way or round-trip delay
and loss measurement. OWAMP measurement accuracy is limited by several factors,
including the precision to which time can be synchronized between the endpoints and the
manner in which OWAMP packets are handled inside each endpoint. Nevertheless,
OWAMP and TWAMP may be candidates for connectivity monitoring in alternative
backhaul environments where Cisco IOS IP SLA is used today.
Cisco IOS

IP SLA is a capability embedded within almost all devices that run Cisco IOS

Software. It allows Cisco customers to understand IP service levels for IP services, increase
productivity, lower operational costs, and reduce the frequency of network outages.
Cisco IOS IP SLA can perform network assessments, verify QoS, ease deployment of new
services, and assist administrators with network troubleshooting. Service level assurance metrics
and methodologies are based on the use of active traffic monitoring the generation of traffic in a
continuous, reliable, and predictable mannerfor measuring performance. IP SLA can simulate
network data and IP services and collect network performance information in real time. This
includes data regarding response time, one-way latency, jitter, packet loss, voice quality scoring,
and server response time. Cisco IOS IP SLA can also monitor performance for different classes of
traffic over the same connection.


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Mobile operators are also working with wireline and cable service providers to meet their RAN
transport network needs, especially at the network edge. Using Cisco IOS IP SLA, for example,
wholesalers can keep track of and report on the end-to-end services they are providing. Mobile
operators are pursuing this wholesale model, reselling the bandwidth as a managed service. Some
are placing cell site routers in the cell sites of other mobile operators, routing traffic over their own
network and then dropping it at the aggregation sites or core of the mobile operator.
The ability to monitor, troubleshoot, and meet SLAs for these third party Ethernet networks is a
requirement. Until recently, Ethernet lacked OAM functionality like that found in SONET/SDH or
ATM, and therefore was not characterized as carrier class. Recent developments in the ITI and
IEEE standards bodies and among vendors have provided OAM capabilities for Ethernet networks.
This has enabled mobile operators to leverage these networks to utilize the demands of their
operations staffs.
Cisco Products for the RAN Evolution
The Cisco in the RAN portfolio of solutions offer the mobile operator (and the transport carrier who
wishes to offer IP RAN Backhaul as a service) a complete end-to-end infrastructure from the core
to the cell tower. While providing immediate cost reductions and bandwidth expansion, we offer
features and capabilities truly unique in the industry. These capabilities provide unmatched traffic
handling during peak hours, unrivaled security and resiliency, the level of performance and scaling
required both today and in the future.
The Mobile Service Provider network, along with user applications, is evolving to All-IP. As the
undisputed IP leader, Cisco provides the technology, solutions, and expertise that mobile
operators need as they transition to next-generation networks. Deploying solutions that deliver
greater network intelligence, integration, and overall flexibility will not only give operators short-
term benefits but ultimately will boost their competitive advantage.
Ensure that your 3G and 4G network can support high-bandwidth services. Cisco and its partners
can assist you in taking advantage of the many compelling benefits of a packet-based RAN
backhaul network today. To read more about Cisco Mobile Transport over Pseudowires, visit
http://www.cisco.com/go/mobiletransport.
Conclusion
The rapid pace of technological change is impacting mobile networks as never before and mobile
operators are faced with hard choices as to where to focus resources. The Cisco strategy of
maintaining separate RAN and transport networks while migrating to an end-to-end all-IP network
is a prudent way for mobile operators to protect existing investments in radio equipment while
bolstering their transport networks with capacity, intelligence, and features that allow for scalability
and bandwidth-intensive services and applications.
While the ultimate vision embraced by many mobile operators and industry analysts is to replace
TDM and ATM equipment and bring IP services over Carrier Ethernet to the cell site, a complete
retrofit of infrastructure to make this possible would also incur huge capital costs. Instead, a
growing number of mobile operators are deploying viable solutions that separate RAN and
transport networks and allow interconnections using solutions such as Cisco MToP and MLPPP.
Only Cisco has the MToP solution, the end-to-end IP MPLS NGN architecture, and the vision to
help mobile operators migrate their networks to the newest and best technology solutions without
causing service disruptions and operational challenges and incurring major costs. With the coming
of LTE, mobile operators will see even more pressures on their networks and the dual network


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strategy proposed by Cisco will ensure that they have carrier class features in place in the
transport network while the RAN technologies undergo a revolution in features and functionality.
For More Information
Cisco IP NGN for Mobile Operators
http://www.cisco.com/go/mobiletransport
MToP in the RAN
http://www.cisco.com/en/US/netsol/ns732/networking_solutions_solution.html











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