Alpha Omega Wireless Blog

Wireless Backhaul Makes Financial Sense

Posted by Joe Wargo on Fri, Sep 24, 2010 @ 05:06 PM

Wireless backhaul, often referred to as fixed wireless backhaul or wireless Ethernet bridges, has become a standard for creating network connectivity between locations. Wireless backhaul can be used for establishing data network connections from building to building, field locations to a network presence, connecting network fiber segments, or last mile connections, etc. Wireless Ethernet bridges can also be used for connecting devices on to networks, like IP video cameras, SCADA devices, client devices, phones, two-way radio / pagers, etc.

Wireless backhaul can be in the form of point to point wireless, point to multipoint wireless, or wireless mesh configurations. Wireless bridges can be licensed microwave links or unlicensed wireless Ethernet bridges. A licensed microwave link or wireless Ethernet bridge can provide throughput as low as 10Mbps up to GigE full duplex (with gigabit wireless).

Wireless Ethernet bridges, allow you to eliminate reoccurring costs of leasing fiber from telecommunication companies, eliminate the cost of additional head end equipment, and AES encryption hardware devices. Wireless Ethernet bridges preserve native IP throughout the system. Because you own the microwave link connection and not lease it, ROI is maximized with a low CPEX. You also gain the peace of mind of having control over your own infrastructure.

Take for example the cost to lease a DS3 (45Mbps) connection through a carrier. A typical scenario is that it costs roughly $4000.00 a month with a 3 to 5 year contract. Over three years that’s $144,000.00! Let’s not forget that it also typically takes 3 to 6 months to provision.

Now for comparison, let’s look at a point to point wireless Ethernet bridge using a licensed microwave radios. Although you can install a 50Mbps full duplex (100Mbps aggregate throughput) wireless bridge, most systems are typically purchased at 100Mbps full duplex (200Mbps aggregate throughput) because there just isn’t much cost differential between a 50Mbps and 100Mbps full duplex licensed microwave link. It’s typically the same radio system and just software throttled. Most licensed microwave radios are capable of 366Mbps full duplex (732Mbps aggregate throughput) and 60GHz and 80GHz millimeter wave is GigE full duplex.

A typical 100Mbps full duplex licensed microwave link, which can be installed in several days rather than 4 to 6 months like a DS3, would have a CAPEX of $20,000.00 to $30,000.00 depending on the frequency and distance. Say you add in a 5 year advanced replacement manufacture warranty and annual support from the integrator at a cost of $15,000.00. That’s roughly $45,000.00 compared to $144,000.00. That gives you an ROI of roughly 11 months. Plus you have over double the bandwidth!

Wireless ROI

As you compare higher bandwidths like leased 100Mbps or gigabit fiber the ROI is increased even further. Most GigE wireless backhauls have an ROI of 3 to 4 months. That’s it. No more reoccurring costs because you own it. If a wireless Ethernet bridge is properly engineered and the wireless installation is done by a professional wireless integrator a point to point wireless backhaul can provide greater security over leased lines and give 99.999% reliability (meaning <5min of predictable outage a year). Most telecommunication companies can only guaranty 99.9% on a SLA because they know they’ll have network outages throughout the year.

Tags: General, Wireless 101, Licensed wireless, Un-lincesed Wireless, Wireless Industry, wireless mesh, Point to Point Wireless, Point to Multipoint