Rules of the Game: Low Latency Microwave in a Multi-Regulatory Environment

[潛伏Latency] Charcoal, watercolor, fire on paper, 2011. Photo credit: RedPapaya (栩) / Foter / CC BY-NC-ND

[潛伏Latency] Charcoal, watercolor, fire on paper, 2011. Photo credit: RedPapaya (栩) / Foter / CC BY-NC-ND

Over the course of the last 18 months, a new application has grown by leaps and bounds for microwave networks: low latency. Low-latency microwave networks find most of their applicability in financial transactions, such as for executing trading instructions between major stock exchanges and trading houses in other cities.

Typically, low-latency microwave is used to “replace” traditional-fiber based networks linking financial centers. The business driver for microwave-instead-of-fiber in low latency is the time it takes to transmit trading instructions. With microwave, latency is reduced by a few milliseconds as compared to fiber. Nevertheless, those few milliseconds can translate into a trading edge over rival investors, which means big bucks. Low latency investors will pay a premium for this edge resulting in increased revenue for low-latency microwave network operators.

However, as with most financial functions, low latency is subject to a set of stringent regulations. The scenario is doubly difficult when low-latency microwave networks transmit across international boundaries. This compares to linking financial centers within a single country, which is relatively straightforward from a regulatory perspective because there is only one set of rules. The fact is when connecting financial centers in different nations and the operator’s network has to traverse other countries’ borders, the process becomes orders of magnitude more complex. Download the complete article for a fuller examination of some of these issues and why there should be widespread support for greater international harmonization of microwave regulation.

Ian Marshall
Regulatory Manager
Aviat Networks

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3 Important Questions for Ultra-Low Latency Microwave Networks

Aviat Networks Ultra Low Latency Best Practices Webinar and 3 QuestionsAre you considering building an ultra-low latency microwave network? Then you are not alone. Microwave is quickly becoming the default transport choice for low latency networks. However, building an ultra-low latency microwave network is not simple; there are many considerations. Latency through the “box” is important, but it is not the only factor, and too much focus on this metric may be a distraction. What is most important is end-to-end latency of the link. Aviat Networks recently addressed this topic in a webinar (registration required) and free presentation download and answered three very important questions regarding ultra-low latency microwave technology.

Also in this webinar, Travis Mitchell, Aviat Networks director of low latency business development, and Sergio Licardie, Aviat Networks senior director of systems engineering, consider the best practices for ultra-low latency microwave networks as they explore the techniques, technologies and design approaches necessary to ensure lowest end-to-end latency. They also discuss some innovations to look for in microwave networking to ensure continuous improvement in end-to-end latency performance. Other topics covered include:

  • Main contributors to end-to-end latency of microwave networks
  • Best options to reduce overall latency
  • Strategies to avoid compromising overall availability

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Best Practices for Ultra Low Latency Microwave Networks

Theoretical Chicago-NY microwave networks using existing towers compared to existing optical network

For discussion purposes of ultra low latency, two theoretical ultra low latency microwave networks are compared to an existing optical Chicago-NY network.

In today’s ultra-competitive High Frequency Trading markets, speed is everything, and recently wireless technologies, and specifically microwave networking, have been recognized as a faster alternative to optical transport for ultra-low latency financial applications.

Even though microwave technology has been in use in telecommunications networks around the world for more than 50 years, new developments have optimized microwave products to drive down the latency performance to the point that microwave can significantly outperform fiber over long routes, for example between Chicago and New York. This has provided a new market opportunity for innovative service providers to venture into the microwave low latency business.

Although reducing the latency of the equipment is an important consideration, the most important metric is the end-to-end latency. Many factors that influence overall end-to-end latency require a deep understanding of the technology and how this is applied in practice.

This white paper will show that to achieve the lowest end-to-end latency with the highest possible reliability and network stability not only requires a microwave platform that supports cutting edge low latency performance but also a combination of experience and expertise necessary to design, deploy, support and operate a microwave transmission network.

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