LTE Wireless Base stations
For many remote oilfield and energy operations, 4G LTE technology is the most logical and viable choice for communications that require high bandwidth communications. The advanced radio characteristics of LTE address several issues that have traditionally encumbered cellular wireless, including multipath and multiuser interference. LTE‘s use of orthogonal frequency division multiple access (“OFDMA”) and multiple-input and multiple-output (“MIMO”) in the downlink transmission effectively eliminates intra-cell multiuser interference and minimizes inter-cell multiuser interference, thereby maximizing performance. Similarly, the single-carrier frequency division multiple access (“SC-FDMA”) uplink transmission allows for user equipment to transmit low power signals without the need for expensive power amplifiers. Moreover, the improvement in battery power consumption in CPEs complements the coverage and multipath/power performance advantages offered by LTE.
TEN has entered an equipment supply agreement with a worldwide leader in cellular infrastructure equipment. For example, the TEN LTE core which provides for cellular control and data transit capabilities is sourced from a leading LTE radio manufacturer under an exclusive arrangement whereby TEN is the only permitted buyer of LTE radios for use in oilfield communications.
Patent Pending CPE
TEN has created a patent pending CPE device based on best-of-breed third party components that is a critical technology differentiator and lead time advantage relative to potential competitors. The TEN CPE package includes an LTE radio with an IP router with Ethernet and other ports to provide user connectivity to the network. It essentially acts like a “wireless hotspot” at a given worksite providing for device connectivity to the LTE network infrastructure. The solution was designed to be rugged, low-power and economical to meet the harsh environment demands of the oilfield. It also features solar power recharging which reduces downtime and increases ease of use characteristics.
In developing the CPE solution TEN partnered with a leading LTE radio supplier to implement an LTE radio (“UE”) that is designed to support the oil and gas industry, and is integrated into the TEN CPE. This UE is unique in the LTE industry in that it is the only cellular radio entering the market that will support all LTE bands. TEN has obtained an exclusivity period for adoption of this device from the provider. TEN currently works with a third party to assemble the CPE devices.
Backbone Network Architecture
TEN employs its own state-of-the-art network architecture, based on multi-protocol label switching (“MPLS”) technology for Internet protocol (“IP”) networks. TEN‘s unique LTE network architecture enables secure portability of customer data and applications across any site in the TEN network. Customers can move from one location to the next in the Permian Basin and their applications, IP addresses and even voice over Internet protocol (“VoIP”) telephone numbers will follow them to the new location.
Comparable Technologies
Current providers of similar networks exist in a variety of fashions. These networks can provide the needed coverage:
- Existing Cellular providers
- Wireless Internet Service Providers
- Land Lines
However, due to the remote nature of the oilfields, these providers are not commercially viable. TEN has a substantial first mover advantage if it can deploy its network in a timely manner, as anticipated in its business plan. Oilfield communications is currently provided using an assortment of inferior technologies.
| Licensed Narrowband (ie. GE MDS) | Unlicensed PMP (i.e. Motorola Canopy) | Vsat | WiMax | TEN | |
|---|---|---|---|---|---|
| Troughput | 19.2Kbps | 5Mbps | 768Kbps | 16Mbps | 50Mbps |
| Cell Range | 5 Miles | 5 Miles | Unlimited | 8 Miles | 18 Miles |
| Latency | 11Ms | 15Ms | 1+Second | 40Ms | 9Ms |
| $$/User | $$ | $ | $$$ | $$ | $ |
| Interference Exposure | Low | High | Low | Moderate | Low |
| Security | Moderate | Low | Low | Moderate | High |
| Mobility | None | None | None | None | High |
| Many Vendors | Low | Moderate | Moderate | Moderate | High |
Dedicated Customer Networks
Larger oil and gas industry participants have in many instances developed and deployed their own dedicated service networks. These are capital intensive and because they operate on unlicensed spectrum interfere with networks from competitors and other area industry users. These operators have not expressed commitment to providing service in the remote locations of Texas shale plays. Moreover, the aforementioned networks, including licensed narrowband and unlicensed PMP cannot provide sufficient bandwidth and lack many capabilities. TEN will operate in completely different RF spectra from these networks and will provide coverage exclusively to the oil and gas industry.
VSTAT Satellite
Satellites are available to any transmitter given a source of power and an unobstructed line of sight between the transmitter and the satellite. However, the operational limitations to VSAT are significant. First, it is difficult to set up and operate because of the directional antenna system. Secondly, satellites are unable to provide significant bandwidth with any level of quality of service. Some VSAT systems on-line now support traffic demands of up to 1Mbps, but the typical available bandwidth is 128Kbps or less. Satellite is also unable to support mobile requirements or places where line of sight to the satellite is obstructed. LTE, on the other hand, penetrates foliage and obstructions quite well while supporting continuous data transmission at speeds of 20 Mbps or better. Lastly, Satellite usage can cost up to 3-5 times more than TEN intends to charge for equivalent capabilities.
Worldwide Interoperability for Microwave Access (“WiMax”)
WiMax is an IP based wireless broadband access technology that performs similar to a Wi-Fi network with the coverage of a cellular network. WiMax is delivered through a communication tower that delivers a signal to a customer’s receiver. In order to reach full wireless service and range, WiMax receivers must be positioned on a rooftop or pole. Without this placement, WiMax only has a range of 4-6 miles and cannot be placed on moving vehicles. Furthermore, WiMax is relatively expensive to providers and users.