Wednesday, May 21, 2008


Max Telecom uses Navini Smart WiMAX and Cisco Carrier Ethernet solutions to deliver
nationwide mobile services.
Business Challenges Max Telecom entered the telecommunications market in Bulgaria just two and a half years ago and quickly established itself as a new-generation operator by adopting the latest network and business innovations and giving subscribers industry-leading services and capabilities. The “greenfield” company is garnering international attention with its nationwide network based on mobile WiMAX™ technology. The ambition of Max Telecom is to extend its modern, highly efficient network to the entire population of the country within the next few years. The aggressive build-out has challenged the company to select technology partners that can deliver the required hand-held devices as well as help Max Telecom deliver its vision of mobile access for all services.
The company currently offers Internet access, VPNs, voice services, video, and IPTV.
Having already selected Cisco® for the core network, Max Telecom evaluated radio vendors to determine the best possible foundation to meet its goal of delivering all services using mobile WiMAX. The company simultaneously evaluated all alternatives for an efficient access/aggregation solution. To shorten time to market and keep costs low, Max Telecom decided to lease parts of the network. A third-party provides Ethernet to the home (ETTH) for access to base stations in various cities, and Metropolitan Area Network (MAN) lines to connect its headquarters with the smaller cities. To build out the mobile access network, Max Telecom looked for base station equipment and an overall architecture that could scale aggressively and
help ensure security within its leased transport environment. The company aims to cover 90 percent of the 7.5 million residents of Bulgaria by the end of this year.

The major requirements for the base station selection and overall design included:
● Controlling capital expenses and operating expenses by minimizing cell counts and
improving in-building coverage. Evolving from fixed services (desktop modems, PCs) to mobile services (handheld and embedded devices) as new 802.16e wireless broadband devices become available
● Enabling a broad range of services for competitive differentiation and to gain market share Network Solutions Aiming to pioneer mobile WiMAX services, Max Telecom focused its selection process on a rigorous evaluation of the leading WiMAX technologies. The company identified Smart Beamforming as a breakthrough that could enable its aggressive goals. This led the operator to Navini, the global leader for broadband wireless access solutions. With an established relationship with Cisco, Max Telecom also had confidence in Cisco as a partner that could enable a fast deployment. (See Figure 1.)
Figure 1. The Max Telecom 802.16e WiMAX Network

Leading-edge WiMAX Navini Smart WiMAX combines both Smart Beamforming and beamformed multiple-input multipleoutput (MIMO) technologies, two advancements uniquely combined by Navini to push the capabilities of broadband wireless networks. The unique combination doubles the data throughput for mobile WiMAX, extends the range, and enhances the signal strength. By using both Smart Beamforming and MIMO technologies, Navini offers base station and smart antenna solutions that enable data transmissions at rates up to six times faster than other WiMAX solutions. Smart WiMAX also extends coverage. In many places where standard signals cannot be received, the enhanced beamformed MIMO signal has the power and performance to break through. The results
are better mobility, higher throughput rates, and better coverage both indoor and outside. The Navini technology also enables fewer cell sites while increasing overall network capacity. “In terms of technology, Navini was clearly the best for our WiMAX deployment,” says Kroum Manoilov, chief operating officer for Max Telecom. “Now that Navini has been acquired by Cisco, we feel even better about the solution. Cisco and Navini have extensive worldwide deployment experience, and we have relied on their knowledge of the WiMAX space to help us meet our fastpaced rollout of mobile services.”
Smart WiMAX service has enabled Max Telecom to begin rolling out mobile services. The
company offers fixed and nomadic services today, and will enhance mobility when IEEE 802.16ecompliant CPE and hand-held devices are available in early 2008. Max Telecom has already built out more than 150 base stations and introduced fixed and nomadic WiMAX service to more than 10 cities.
Cisco Aggregation
The WiMAX network officially went live in October 2007, allowing transfer speeds of up to 2 megabits per second (Mbps). Max Telecom plans to increase that rate to 5 Mbps in early 2008. To aggregate traffic from the base stations, the operator decided to use Ethernet over Multiprotocol Label Switching (EoMPLS) and Hierarchical Virtual Private LAN Service (H-VPLS). This Carrier Ethernet solution allows Max Telecom to efficiently and securely tunnel all WiMAX traffic over the leased transport connections.
Max Telecom selected the Cisco Catalyst® 3750 Metro Ethernet switch for aggregating base station traffic. The Cisco Catalyst 3750 nodes are connected to Cisco 7600 Series routers (over the EoMPLS/H-VPLS network) for a complete aggregation solution. With greater intelligence at the edge, the Cisco Catalyst 3750 metro switches enable more differentiated Ethernet services and give Max Telecom hierarchical quality of service (QoS), traffic shaping, intelligent 802.1Q tunneling, VLAN mapping, and EoMPLS support. This robust feature set helps Max Telecom offer different service-level agreements (SLAs) and flexible service options.
End-to-End Solution Cisco and Navini products provide a complete mobile WiMAX solution for Max Telecom. The open, flexible design can accommodate Access Service Network (ASN) gateways as the mobile service subscriber base grows, and a full suite of features help to differentiate the carrier from the competition. End-to-end QoS, over-the-air activation, and self-provisioning contribute to a costeffective
business model and enable a growing portfolio of services.

Business Results WiMAX has fulfilled its promise and enabled Max
Telecom to rapidly and cost-effectively achieve national coverage. The Navini and Cisco solutions have created the WiMAX foundation for mobile services, and put Max Telecom in an enviable position for service innovations. As soon as mobile equipment vendors introduce new handsets and other devices, Max Telecom can give subscribers
anytime, anywhere voice over IP (VoIP) and IPTV as well as the full suite of other broadband services. The new network gives the operator a build-as-they-grow solution, with the current plans for expanding capacity for up to 100,000 subscribers by the end of 2008. To compete against larger DSL and cable players, Max Telecom has also adopted an aggressive wholesale strategy. The operator is developing relationships with LAN service providers, and will pass through its voice and other services that can be bundled with the data services from these providers. The 802.16e WiMAX network enables this business, and is also enabling Max Telecom to expand its “tripleplay”
business by teaming up with a Bulgarian satellite TV provider to bring more content to subscribers. Within the first few months after deploying the new mobile WiMAX solution, the results are promising:
● Capital expenses will come down from about US$430 per potential subscriber to less than
US$200 within three years.
● Data subscribers are expected to grow from less than 10,000 to between 50,000 and
100,000 by the end of 2008 (depending on the availability of mobile WiMAX devices).
● Scalable capacity can support more services, with plans in place for creative service
bundles. For example, Max Telecom plans to bundle mobile VoIP and broadband.
● The low operating expenses achieved with the WiMAX solution will enable differentiating
services including a free TV service (MaxTV), rebranded Google applications (mobile
MaxApps), and a mobile e-mail service (MaxMail).
“Cisco has helped us establish a very strong market position,” says Manoilov. “We have hit all of our schedule targets and are confident that our WiMAX network can help us bring exceptional service quality to our subscribers. The combination of Navini WiMAX and Cisco Carrier Ethernet technologies put us ahead of the incumbent providers and other competitors.”
For More Information To find out more about Cisco Carrier Ethernet solutions, go to:
To find out more about the Navini WiMAX solutions, go to:

Friday, May 9, 2008


Recently read that how you can plan your WiMax internet service tariff plans. You can go to few different ways to how to calculate it most affordable for your customers.

The per-line $ cost of WiMax is totally differrent from the Per-Line$ cost of ADSL. Yes, ADSL Costs have been recovered over 10's of years, and you dont have that much time for break-even, but WiMax per capita Capex is also very low.
- Make a 3 year model on the Capex recovery with 3 scenarios - Conservative, Realistic and Optimistic. Each model will have projected number of subscribers - at various price points. this will give you 2-3 key data points on which model looks most realist.
Once the data is right in front of you, just take a 20% dip in bandwidth costs over every year, and build data price.
Carriers also optimise throughput by reducing throttle bandwidth. Access might be 54mbps, but bandwidth is rarely close to that number, that can further optimise the OpEx.

Add a Delta of recovery exp - 20% - 40% of Opex. and see if the number is helpful.
The other disruptive way of doing it is - take a ridiculusly low price, say in a market which has 40$ per year fee, take 10$ per year. build projections on network, opex and subscribers - you might be surprised on the results.

WiMax for starter as you understand is far superior tech compared to ur adsl or other existing techs on the price front here the method i will apply to determine the price
1.what is total CAPEx involment with project (like 360 Wimax tower and other infrastructure required),
next is what is cost acquire the Bandwidth for delivery through the last mile (in this case Wimax)
now you have to price the product so that your not making loss on whole thing plus add profit in

2.Now,Bcoz ur using the the newest tech u hav many advantages over old legacy techs ,deployment is cheaper
like if u hav 360 tower u can very much cover a area of 25sq km

3.on the price there could be synergy be a premium player as ur tech is the best,target the niche market
and ask for premium payout or target the mass market and price it below asdl player and get get
paid by driving the volume and creating new market of users(this is what Indian mobile players did!)
on the pricing a lot will depend on the sourcing of your infrastructure and bandwidth.
Amortization of the cost of bandwidth + cost of BTS + cost of CPE + Marginal opex cost

Example -
- BTS (360 coverage) capacity - 'x' mbps
Wimax POP/ BTS(360 Coverage) Costs "y"
Per kbps cost = (x * 1024) / y

- Cost of CPE (if on Right to use/ Bundled model)
- CAPEX (network hardware, switching architecture, Tower, backhaul)
- Bandwidth cost - (shared model costing - typical to what ADSL does)
take all these into consideration and align your foretasted numbers with minimal margins in place to start with.

Tarrif models could have multiple variants.
To cover the capex spent on WIMAX
- One time Service charges - covers cost of CPE (if provided on rental)
- Recurring Wireless access charges - (Covers per kbps bandwidth usage cost & maintenance)

- Clean bandwidth / bundled with CPE - High premium
- 1:4 , min and max throughput / bundled with CPE -

You can keep on subsidizing the price after adding bundles like VOIP and internet telephony.