This Frost & Sullivan analyst briefing explores if LTE is the answer to service provider's data woes as well as other various short term measures that service providers are implementing and some of
This Frost & Sullivan analyst briefing explores if LTE is the answer to service provider's data woes as well as other various short term measures that service providers are implementing and some of the long term solutions.
The growth of smartphones and M2M applications is expected to fuel the growth of data and exacerbate the bottlenecks faced by wireless service providers.
Source: Frost & Sullivan.
Diverging Growth Projections for ARPU and Traffic
The decoupling of data revenues and increasing data reduce the profit margins from data services, thereby making the expansion of networks less sustainable and justified.
$ Cost Revenues Data having a larger ARPU share Voice having a larger ARPU share Time Source: Frost & Sullivan.
Network Relieve and Monetization WiFi Offload Bandwidth Management Frequency Re-Farming Managing Traffic and Revenues Deep Packet Inspection App and Content Store Femto Offload Content Delivery Network IP Backhauling Source: Frost & Sullivan.
Course of Action – Short-Run Solution Solution Description Radio Offload
WLAN offload is explored by AT&T and PCCW. Femto offload is explored by most major Japanese service providers and Sprint.
Offloading of data traffic from mobile network’s precious spectrum onto WLAN/Femto and transporting it back over theunderlying infrastructure like Digital Subscriber Line
Limits the transfer of data over a period of time; provides a means of achieving higher network efficiency but not necessary to user’s experience
Various implementations would include bitrate limits, bursting, and individual bandwidth cap. These have been explored by many major operators in a bid to manage traffic.
Controlling the rate of different classes of traffic transversing the network and monitoring traffic for compliance with traffic contract
Implementations depend on overload conditions, traffic classifications, and self limiting sources.
Deep Packet Inspection
Increasingly deployed in mobile networks, with some vendors like Ericsson integrating the solution across wireless and wireline
With more protocols using tunneling and encryption, deep packet inspection (DPI) is increasingly being used to analyze the traffic and work in conjunction with network policy servers.
Traditionally, placing content cached nearer to the edge of the network and to the end user reduces the traffic load across the network and latency and packet loss.
Mobile and online Content Delivery Networkstill differ in their capabilities; however, this gap is closing. Many mobile implementations encompass compression, adaptive streaming, and transcoding.
Considerations would include frequency planning, re-optimization, underlying 2G service impact, and handset availability. It is explored by Elisa, CSL, Optus, Vodafone, and AIS.
With limited licensed spectrum, reuse of the existing 2G spectrum is becoming attractive. Due to the nature of radio propagation, this strategy can provide improved coverage and performance.
Course of Action – Long-Term Solution LTE & Radio Enhancements Migration to All-IP
LTE providing additional capacity relief, network capabilities and QoS support
Software defined radios providing seamless evolution and CAPEX/OPEX savings
Planned macro nodes & uncoordinated local node deployments
Solutions like ALU’s LightRadio and NSN liquid radio with their smaller form factor & cloud like architecture
Converging of disparate networks and converged platforms
Beyond upgrading of the existing node capacity or introduction of Macro/Micro/Pico nodes, operators are increasingly looking at WLAN/Femto offloading as a cost-effective alternative solution to manage the rapid growth in data.
Offloading of data traffic onto WLAN and Femto is increasingly becoming attractive as it provides the following benefits:
Data is offloaded from the Macro nodes and transported over the underlying transport network, which alleviates traffic not only on the radio interface but also on the backhauling
Reduced equipment cost, deployment/services cost, leasing and operating expenses
Cost savings associated with the spectrum license fee, as WLAN operates in the unlicensed spectrum
However, some factors such as the following have to be considered when implementing these offload strategies:
Constraint on whether the underlying infrastructure is owned by the operator or by a partner, and quality of service (QoS) arrangements have to be considered
Whether the underlying infrastructure is itself highly utilized
The cost and complexity associated with a large mesh WLAN network
Mobility considerations for WLAN likely to involve more complexities and cost
WLAN runs on a unlicensed network; its performance would depend on the interference in the area deployed
Insufficient Capacity Growth to Meet Demand
Acquisition of LTE and re-farming of theexisting GSM band will be still insufficient to support the expected X26 increase in capacity growth over the next five years.
Gap has to be filled be by re-farming the additional available spectrum and/or other wireless offload strategies like WiFi, Femto, and coordinated small cells. *Assumption that operators acquire equal bandwidth in LTE spectrum and re-farm their existing GSM band ** Estimates are based on download capacities Source: Frost & Sullivan.
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For Additional Information Donna Jeremiah Corporate Communications Asia Pacific +603 6204 5832 firstname.lastname@example.org Carrie Low Corporate Communications Asia Pacific +603 6204 5910 email@example.com Mark Koh Senior Industry Analyst ICT +65 6890 0999 firstname.lastname@example.org Jessie Loh Corporate Communications Asia Pacific +65 6890 0942 email@example.com