Any organization currently transferring data across T1/E1 lines or using traditional microwave systems could be wasting thousands of dollars – or even hundreds of thousands – every single month. As more and more organizations – including service providers, enterprises and public safety organizations – crunch the numbers, they realize that point-to-point solutions are much more economical than alternative technologies for applications such as wireless backhaul, remote connectivity as well as deployments in challenging non-line-of-sight environments.

The Bottom Line for Service Providers: Big Savings in Operating Costs

For mobile service providers, the cost of backhauling network traffic – where network traffic is transferred from the towers back to the switching centers – remains a huge part of their operating budgets. And given that the cost of leasing T1/E1 lines runs anywhere from $200 per month to upwards of $1,500 per month, it is easy to see how quickly these costs can add up. The cost of connecting just 10,000 cell towers can easily reach $15 million per month. In fact, according to the research firm Heavy Reading, leased lines can account for as much as 25 percent of a mobile operator’s operating expenses. And with the advent of 4G technology, those costs are only going to continue to rise.

That’s why service providers’ reliance on T1/E1 technology is waning. There is no question that T1/E1 technology is still the dominant backhaul technology in markets such as Latin America, North America and Eastern Europe, but by 2014, “the use of T1/E1 for backhaul will disappear in most markets and will be significantly reduced in the rest,” according to the report “Mobile Backhaul – Global Market Analysis and Forecast” by ABI Research.

Many service providers are already turning to point-to-point (PTP) wireless technology to add additional backhaul capacity and reduce the dollars spent on T1 leased lines. Motorola’s Point-to-Point systems can transfer data up to 124 miles (200 kilometers) at speeds of up to 300 Mbps. The bottom line is that operators can on average see a ROI in less than a year for a typical point-to-point deployment.

Making the Public Safer with Wireless Point-to-Point Technology

When it comes to communications, the biggest concern for public safety organizations is reliability, and that’s where 4.9 GHz licensed point-to-point solutions offer first responders critical peace of mind. Because these systems are licensed specifically for public safety operations, there is less chance of interference or blocked traffic when using them. This means public safety organizations are now using 4.9 GHz point-to-point systems to support mission-critical operations such as backhauling traffic from radio towers to the 9-1-1 command center, and ASTRO 25 system and for other crime-fighting systems such as video surveillance. Of course, public safety agencies can use point-to-point systems that operate in other frequencies as well, including the unlicensed 5.4 and 5.8 GHz frequencies. Motorola’s Point-to-Point radios in the unlicensed band do offer an unparalleled level of interference mitigation techniques that enable the radios to deliver carrier grade reliability even in high interference, multi-path environments.

Public safety organizations around the globe are already using a variety of wireless PTP technology (both line-of-sight and non line-of-sight systems) to support mission-critical operations. For instance, Central Scotland Fire and Rescue Services – which responds to 10,000 emergency calls per year – deployed seven point-to-point wireless links, placed from a few meters apart to more than to 21 kilometers (13 miles) apart, to support VoIP emergency calls and administrative data. By installing the PTP system, the organization completely eliminated the need for leased lines.

In Shanghai, a solution was needed to backhaul multiple T1 connections from Xu Jing to Feng Xi, a distance of 7.8 kilometers (4.8 miles) across an environment obstructed by tall buildings. In less than three hours, service provider ROOTS Communications had installed a system with integrated antennas that backhauled T1 traffic in a non-line of sight environment.

When leased-line T1 connectivity proved too costly and provided limited bandwidth, city officials in Torrance, Calif., turned to broadband wireless for VoIP, email and Internet access as well as to provide network access to two police sub-stations and two animal control facilities. Running at 33 Mbps, the signals are highly secure and reliable – even though they have to work around a courthouse obstructing the three-mile (4.8 kilometer) path. The system is on pace to pay for itself in less than three years.

When the City of Santa Barbara Fire Department in California needed to upgrade its T1 networks for voice over IP applications and add more bandwidth for a video conferencing application to train fire personnel, it also turned to wireless point-to-point technology. The network had to overcome significant interference from nearby hospitals and universities and provide connectivity across hilly terrain and around city buildings. In addition, communications had to be reliable and provide continuity in the event of natural disasters such as earthquakes.

The city deployed eight Motorola 5.8 GHz PTP bridges – six integrated systems with internal antennas and two connectorized systems with external antennas. The network provides consistent performance while delivering 22 Mbps throughput in six fire stations and 45 Mbps throughput in the airport and headquarters stations. And it was so reliable that the city removed its existing leased vendor-supplied fiber optic cable and now relies solely on the PTP network for its data communications to the Santa Barbara airport fire station. The city estimates its annual savings at $106,000.

An Enterprising Replacement

Instead of leasing T1/E1 lines or installing expensive traditional microwave systems, enterprises can use wireless point-to-point systems to connect remote facilities to a network quickly and cost-effectively, to provide reliable campus-wide high-speed network coverage or to support applications such as video surveillance. Generally, installing a wireless network in these cases represents a minimum savings of 80 percent compared to a wireline system.

For instance, take a look at a real-world, head-to-head comparison between a wired and a wireless video surveillance system. One manufacturing company building a major new plant wished to remotely monitor and control the construction site throughout the process. The site was located about 45 minutes away from the company’s main offices, and a six-camera video surveillance network was designed to cover the area.

Two of the cameras in the system were located approximately 300 feet (91.4 meters) from the main switch, two were located 366 meters (1,200 feet) from the main switch and two were located 3,200 meters (two miles) from the main switch. And the cost of deploying a wired network to support that video surveillance would have been $134,296 – and that doesn’t even begin to include the monthly recurring costs for the service. In contrast, installing a wireless system with the same capabilities cost only $11,860.

Point-to-point systems have demonstrated their technical strengths and economic advantages in deployments around the world. The bottom line is that PTP systems can pay for themselves within a year or even just a few months by eliminating leased line costs for operators. A win-win situation for all.