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Mexican operator profits by switching from leased fibre to PMP

Mexican operator profits by switching from leased fibre to PMP
29 July 2015

Switch from leased fibre to licensed PMP increases customer base and profits for Mexican operatorThe challenge

A leading telecommunications provider in Mexico needed a cost effective approach that would enable them to enhance their services and grow their business in the enterprise access market. 

In order to achieve this, the operator needed to increase its capacity in line with the demands of modern businesses, at the same time as expanding coverage into new regions.

Until this point, the operator had deployed a leased fibre strategy. Although successful in the past, the high operating costs and inflexibility of leased fibre meant this was not financially viable to support the next phase of their growth. 

They needed a new approach.

The solution

Following an extensive trial, the operator chose to deploy CBNL’s VectaStar point-to-multipoint (PMP) solution which provided a profitable business case for the operator to switch from leased fibre and build its own carrier-grade wireless enterprise access network.

VectaStar enabled the operator to save up to 50 percent CAPEX, 30 percent OPEX and 50 percent total cost of ownership compared to their previous leased fibre strategy.

Equivalent cost savings were also achieved compared to the alternative approach of deploying an owned point-to-point network, due to PMP’s significant savings on equipment, spectrum and site rental costs.

The operator deployed VectaStar in the 10.5GHz spectrum band which is reserved specially for PMP in Mexico.

By using 7MHz and 14MHz channel sizes, the operator was able to provision up to 150Mb/s to each customer site and achieve a range up to 20km.

This was in addition to guaranteed carrier-grade services, achieved through the use of licensed spectrum.

This approach created the optimum price:performance balance for the operator, providing a highly profitable business case to deploy the enhanced and wide-scale services its customers required.

By owning their own network and benefiting from the fast time to market of VectaStar, the operator was able to quickly expand its network and access new customers which were previously not financially viable to attain or beyond the reach of fibre.

Working with its partner SITEC, CBNL provided the operator with in country project management, training and support services to allow them to ensure that the deployment and roll out was provided quickly and cost-effectively.

Results

The operator saw an immediate return on investment following the VectaStar deployment, allowing it to increase its competiveness and win new customers through more extensive network services.

The business case for VectaStar enabled the operator to quickly roll out their own carrier-grade services across the country and create highly attractive pricing for their customers.

This combination provided a competitive edge for the operator in the Mexican enterprise access market where time to market  and cost efficiency are critical requirement to win new customers.

As a result, the operator has been able to grow its customer base, secure its leading position in the market and improve its bottom line.

The roll out has also enabled them to win additional customers with new, monetisable services, including additional country wide projects where they own spectrum.

“We are delighted that following the deployment of VectaStar, our customer in Mexico has seen a great return on investment and increased its customer base,”

explains Lionel Chmilewsky, CEO of CBNL. 

“Utilising our LATAM presence and local partner, we were able to work closely with the operator to deploy an innovative PMP microwave network utilising our industry leading VectaStar platform.

"This will deliver a smarter, more efficient and resourceful network to support the traffic needs of today’s consumers and future capacity and coverage requirements.” 

CBNL launched the latest generation of its market leading licensed PMP platform at Mobile World Congress 2015.

The new platform offers up to 600 per link, 14.4Gb/s per hub site, up to 20km range and continues to offer total cost of ownership savings of up to 50 percent compared to fibre and traditional point-to-point technology.