GSMA HSPA and LTE market update - March 2011

GSA Secretariat Email: info@gsacom.com GSM/3G and LTE Market Update March 3, 2011 Global mobile Suppliers Association (GSA) www.gsacom.com www.linkedin.com/groups?gid=2313721 Follow GSA on Twitter Global mobile Suppliers Association (GSA) www.twitter.com/gsacom www.youtube.com/user/GSAMOBILESUPPLIERS www.gsacom.com/rss/gsanews.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 1/64

Recent press releases from GSA Press releases: www.gsacom.com/news/index.php4 February 9, 2011: GSA Confirms 63 LTE User Devices have launched www.gsacom.com/news/gsa_320.php4 February 7, 2011: GSA updates HSPA Devices survey: 2,922 HSPA products launched, including 92 HSPA+ devices www.gsacom.com/news/gsa_319.php4 February 4, 2011: GSA study confirms Mobile HD Voice services expanding globally www.gsacom.com/news/gsa_318.php4 January 26, 2011: HSPA+ is now mainstream, says GSA: 103 operators launched in 57 countries www.gsacom.com/news/gsa_316.php4 January 12, 2011: GSA confirms LTE as the fastest developing system in the history of mobile telecommunications, 180 operators now investing www.gsacom.com/news/gsa_315.php4 FAST FACTS (regularly updated) www.gsacom.com/news/gsa_fastfacts.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 2/64

LTE: the fastest developing mobile system technology ever ! LTE operator commitments are developing faster than they did for HSPA, which until now had been the fastest developing mobile communications system. By comparing the number of operator commitments 6 months and 12 months after first commercial system launches for HSDPA, HSUPA, HSPA+ and LTE respectively, LTE proves to be the fastest developing mobile communications system technology ever. Alan Hadden, President of the GSA, said: “LTE made excellent progress in 2010 to become the fastest developing mobile system technology ever. We expect that the introduction of LTE systems and user devices will significantly quicken in 2011.” Chart available as a PDF: www.gsacom.com/gsm_3g/info_papers.php4 or JPEG file: www.gsacom.com/news/statistics.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 3/64

GSA surveys referenced in this report Status of the LTE ecosystem report February 9, 2011 Mobile HD Voice using W-AMR February 2, 2011 UMTS900 Global Status March 1, 2011 All are available as free Digital Dividend Update November 5, 2010 downloads via the links on www.gsacom.com HSPA Devices Survey February 7, 2011 60+ maps and charts 3G/WCDMA-HSPA, HSPA+ and LTE Fact Sheet March 2, 2011 www.gsacom.com/news/statistics.php4 WCDMA-HSPA Launches Worldwide January 24, 2011 Log-in first HSPA Operator Commitments January 24, 2011 Not registered? Global HSPA+ Network Commitments & Deployments January 24, 2011 It only takes a minute at www.gsacom.com/php/register_form.php4 Evolution to LTE report January 12, 2011 Mobile broadband growth – reports from HSPA operators February 24, 2011 EDGE Fact Sheet August 19, 2010 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 4/64

Mobile broadband success stories globally Traffic, revenue, profit growth across the world AT&T: 2010 PCCW: 1H 2010 Post-paid data ARPU growth 18% 3G data = 45% service revenue SmarTone-Vodafone : 2Q 2010 Vodacom South Africa : FY 2010 Mobile data revenue up 38% YoY Data traffic up 58% MOBISTAR: 1H 2010 Mobile data revenue = 31% Turkcell: 3Q 2010 Mobile Internet revenue up 83.7% YoY There are dozens more examples Download: Mobile Broadband Growth report (February 2011) www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 5/64

GSM/WCDMA-HSPA success in all regions Mobile subscriptions growth charts and maps for all regions and key markets available at www.gsacom.com/news/statistics.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 8/64

3G growth In Europe  2012: 3G subscriptions will outnumber GSM  2014: around 70% of mobile subscriptions will be 3G In emerging markets  First wave of launches  Several network deployments  Low-cost 3G devices being introduced www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 9/64

WCDMA subscriptions growth worldwide  regional breakdown: Q2 2010 Q4 2010 (provisional): 632 million WCDMA globally including 342 million HSPA subscriptions (data provided by Informa Telecoms & Media as at January 27, 2011 and is subject to change) www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 10/64

3GPP radio access evolution LTE Evolution LTE HSPA+ HSPA 3G/WCDMA D/L peak rate 384 kbps 14.4 Mbps 21/28/42/84 Mbps > 150+ Mbps 1 Gbps target www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 11/64

WCDMA is the leading 3G system globally Over 99% of WCDMA operators have commercially launched HSPA on their networks www.gsacom.com Global mobile Suppliers Association © 2011 GSM/3G Market Update – August 9, 2010GSM/3G and LTE Market Update – March 3, 2011 Slide no. 14/63Slide no. 14/64

HSPA mobile broadband eco-system - mainstream 59% of devices support peak DL data speed of at least 7.2 Mps 945 HSUPA devices 92 HSPA+ devices Smartphones (i.e. HSPA with WiFi) is the main growth device segment 526 UMTS900 devices supporting HSPA Excluding notebooks and e-book readers, 21% of book HSPA devices operate in the 900 MHz band GSA HSPA Devices Survey Key Findings – Faebruary 7, 2011 www.gsacom.com www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 17/64

GAMBoD: GSA’s analysis tool for HSPA devices A GSA Member Benefit www.gsacom.com/gambod Comprehensive analysis of every launched HSPA device, as confirmed by GSA‟s latest HSPA Devices survey, and personalized to individual needs, can be GAMBOD is a search and analysis tool undertaken by registered users of GSA developed by GSA for mobile broadband member organizations and network devices (HSPA, HSPA+, LTE) allowing operators using GAMBOD searches by supplier, form factor, features, www.gsacom.com/gambod peak downlink/uplink speeds, and operating frequency. The feature support for HD Voice (W-AMR) is now included. Results are presented as a list or spreadsheet, or in charts which may be inserted into documents or presentations, subject to accreditation of GSA as the source. An RSS feed can be activated to alert when new devices are added by GSA to its database. Qualification to use GAMBoD: You need to be employed by a member organization of GSA to use GAMBOD and have registered on www.gsacom.com with the corporate email address. GAMBoD is also accessible to network operators who have also have registered on www.gsacom.com with the corporate email address. www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 19/64

EDGE contributes to mobile broadband success  Most HSPA networks combine with EDGE The majority of WCDMA-HSPA networks are complemented with GSM/EDGE for service continuity in areas where WCDMA-HSPA coverage is not available, to ensure that users will receive a good experience of most 3G services 295 HSPA network operator commitments (72.3%) also committed to EDGE EDGE can today deliver user data speeds up to 300 kbps peak; more comes with EDGE Evolution 2,053 HSPA user devices (84%) also support GSM/EDGE (excluding notebooks and e-book readers) www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 21/64

GSM/EDGE: a global, mature technology  Over 80% of commercial GPRS networks have committed to EDGE 543 GSM/EDGE commitments in 198 countries 531 commercial GSM/EDGE networks in 196 countries Source: GSA EDGE Fact Sheet - August 19, 2010 www.gsacom.com/gsm_3g/edge_databank.php4#EDGE_Fact_Sheet www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 22/64

EDGE Evolution  Evolved GERAN: drivers and goals Operators stress service continuity as being very important WCDMA evolution to HSPA is a key driver for EDGE Evolution (GERAN Evolution) since reducing the performance gap is the priority EDGE Evolution - potential benefits:  2 – 3 times increase in EDGE bit rates  2 – 3 times spectral efficiency gain (for voice & data capacity)  Halve the latency (roundtrip time)  All achieved with low impact on the GSM/EDGE network Standardized in 3GPP Release 7 Leading manufacturers committed www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 23/64

Dual Carrier  The first step in evolving EDGE Dual Carrier is the first step in evolving EDGE, bringing the prospect of doubling today’s EDGE speeds to 592 kbps on existing EDGE-capable networks. Commercial downlink Dual Carrier solutions are expected to be introduced in 2009 EGPRS-2 level B+ is standardized in the newly-released 3GPP Release 8, providing a wider pulse shaping filter to enable higher average end user throughput, and therefore better coverage compared to level B EDGE Evolution capabilities are being deployed – download GSA information paper “EDGE Evolution” for latest updates, via the link on www.gsacom.com GSA Information Paper “EDGE Evolution” www.gsacom.com/gsm_3g/info_papers.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 24/64

UMTS900: HSPA deployed in the 900 MHz band Cost reduction in rural/suburban areas Improved in-building penetrationUMTS900 operator case studyElisa, FinlandIncreased coverageSignificant CAPEX, OPEX savingsRe-use existing sitesFaster rolloutImproved voice serviceImproved in-building penetration UMTS900 Operator Case Study on Elisa www.gsacom.com/gsm_3g/info_papers.php4 UMTS900 has an economic motivation – it is a business decision www.gsacom.com Global mobile Suppliers Association © 2009 Slide no. 25/64

Improved user experience of mobile broadband and voice with UMTS900 UMTS900 operator case study “Site optimization gave customers a kick up in performance Optus, Australia for 2G service as well as access to UMTS900” “The extended reach of 900 MHz means we can deliver better quality and wider coverage across sparsely populated areas, as well as enhanced depth of coverage” “UMTS900 has been critical in bringing up the depth of coverage into people’s homes, so they get a similar experience in both voice and data coverage, making it a more economically feasible solution for expansion” “By having a technology that allows us to get into more places at a lower cost, we can deliver more services. For example, we can grow our small and medium business and consumer market penetration” UMTS900 Operator Case Study on Optus “Amongst other applications, UMTS900 implementation is a www.gsacom.com/gsm_3g/info_papers.php4 case study for how we will utilize new spectrum arising from the Digital Dividend” www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 26/64

UMTS900 operator insights – Elisa FI Recommended download – www.gsacom.com UMTS900 Update: New Operator Insights Presentation by Dr Eetu Prieur, Elisa Finland Developing A Fully Inclusive Mobile Broadband Strategy: Bringing Mobile Broadband To Remote And Rural Areas Elisa launched the worlds first UMTS900 (HSPA) system in Finland in November 2007 and are now upgrading to HSPA+. In his presentation Dr Eetu Prieur explains why UMTS900 is “a 100% clear go”. www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 28/64

HSPA850 networks in commercial service  Launched in Australia, The Philippines, Latin America UMTS850 commercial launch: October 06 World’s largest UMTS 850 network. Telstras Next G™ network covers more than 1.9 million square kilometres. The Next G™ network provides mobile broadband access to 99 per cent of Australians, spanning city to country including many remote coastal and rural communities (www.telstra.com.au) Commercial UMTS-HSPA networks launched throughout the Americas; most operate in the 850 MHz band A robust UMTS850 ecosystem exists today which includes 1,125* HSPA devices which operate in the 850 MHz band (*excluding notebooks and e-book readers) Source: GSA HSPA Devices survey – February 7, 2011 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 29/64

The roadmap for LTE Excellent Mobile Broadband Today Enhanced User Experience Voice and full Range of IP Services Improved voice and data capability Rel-99 Rel-5 Rel-6 Rel-7 Rel-8 Rel-9 & beyond WCDMA HSPA HSPA+ (HSPA Evolved) Rel-8 Rel-9 Rel-10 LTE leverages new, wider and TDD spectrum LTE LTE - A 2009 - 2010 2011+ - - - - - - - - - > www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 30/64

The industry direction is to LTE - LTE is needed to accommodate huge traffic growth Year 2010: LTE performance Peak downlink: > 150 Mbps Mobile broadband is gaining momentum from Typical user speed: 10-30 Mbps 10- widespread 3.5G deployments, flat rate data Typical user UL rate: 5-50 Mbps 5- tariffs, and availability of internet friendly mobiles Spectrum flexibility Traffic rising/revenue falling Can use new or re-farmed spectrum, FDD and TDD Variable channel bandwidth 40x – 100x traffic increase May need to be supported Improved performance across several frequency bands Higher capacity, peak and user data rates Higher bandwidth Much lower latency “always on”; enhanced user experience LTE is essential to take mobile Lower cost IP-based flat network architecture; Low OPEX broadband to the mass market High degree of self configuration/optimization High re-use of assets including sites Complements 3G/HSPA Addresses high capacity requirements Seamless service continuity/multimode devices Next generation solution for 3GPP and 3GPP2 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 31/64

The LTE ecosystem is building Source : GSA Report: Status of the LTE Ecosystem Issue #1: February 9, 2011 Free download via the link on www.gsacom.com www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 35/64

Spectrum for LTE deployments  An operator may introduce LTE in ‘new’ bands where it is easier to deploy 10 MHz or 20 MHz carriers for maximum benefits of using LTE  2.6 GHz band (IMT Extension band)  Digital Dividend spectrum 700, 800 MHz  or in re-farmed existing mobile bands e.g. 850, 900, 1700, 1800, 1900, 2100 MHz  Eventually LTE may be deployed in all of these bands – and others later  2.6 GHz (for capacity) and DD 700/800 MHz (wider coverage, improved in-building) is a good combination  LTE offers a choice of carrier bandwidths: 1.4 MHz to 20 MHz; the widest bandwidth will be needed for the highest speeds www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 36/64

Other spectrum candidates for LTE LTE FDD LTE FDD will most likely in future be deployed in LTE TDD existing cellular bands too, including: Early TDD Spectrum for LTE (LTE TDD  850 MHz  900 MHz  IMT Extension Center Gap 2570–2620 MHz  AWS (1700/2100 MHz)  2.3 TDD i.e. 2300–2400 MHz Future TDD possibility  1800 MHz = 3.6 GHz  1900 MHz  2100 MHz Future possibilities:  450 – 470 MHz  3.6 GHz www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 37/64

2.6 GHz: key LTE band for APAC, Europe, MEA, LatAm  Telenor and Netcom acquired 2.6 GHz spectrum and are building LTE networks in Norway  TeliaSonera launched LTE commercial service in Oslo launched on December 15, 2009  Teliasonera, Elisa and DNA have been granted licences and 2.6 GHz spectrum and will build LTE networks in Finland (operators may also use 1800 MHz re-farmed spectrum for LTE)  TeliaSonera Sweden has launched LTE beginning in Stockholm in December 2009; now continuing deployment in more cities using nationwide 2 x 20 MHz 2.6 GHz spectrum  Tele2 Sweden and TeleNor Sweden have both launched LTE on a jointly-built network (Net4Mobility) which includes spectrum sharing in 900 MHz and 2.6 GHz  In Hong Kong, 2x15 MHz blocks of 2.6 GHz FDD spectrum were auctioned and won by China Mobile, Genius Brand and CSL Limited. CSL has launched an LTE/DC-HSPA+ network Europe: 2.6 GHz spectrum has also been awarded in Austria, Denmark, Germany and The Netherlands More auctions of 2.6 GHz spectrum are planned in the coming months Asia: 2.6 GHz spectrum consultations, trials are on-going in many markets including Australia, Indonesia, Malaysia, Singapore, Taiwan, The Philippines MEA: Deployments, trials underway e.g Saudi Arabia, Jordan, South Africa, UAE Latin America: Brazil, Chile and Mexico plan auctions of 2.6 GHz. In Colombia one of the operators has been allocated 2.6 GHz and will deploy LTE in this band www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 38/64

LTE1800: a promising option First commercial LTE1800 system launched (in 20 MHz bandwidth) Mobyland & CenterNet Poland LTE1800 operator trials and deployment activities e.g.: Elisa (FI) Bouygues Telecom (FR) Orange (FR) Cosmote (GR) Optus (AUS) VHA (AUS) Used with permission of Elisa CSL Ltd (HK) SmarTone-Vodafone (HK) T-Mobile (selected markets) Telstra has announced plans to commercially launch LTE1800 in major cities across Australia by end 2011 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 39/64

LTE1800: a promising option There is growing interest and momentum towards deploying LTE in re-farmed 1800 spectrum Regulatory obstacles are removed in many markets, however more work is needed An ecosystem of chipsets, platforms and user devices is needed to support growing operator requirements Early signs are that there will be a choice of several devices by end 2011 – however more commitments are needed. PRESENTATIONS from the 1800 MHz Mobile Broadband seminar at MWC „11 are available to download Log into the GSA website first – then visit www.gsacom.com/programs/mwc2011.php4 Presentations from GSM Association (GSMA), GSA, Ericsson, Telstra, Qualcomm www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 40/64

Digital Dividend spectrum Digital Dividend refers to the spectrum that becomes freed up as a result of the switchover from analog to digital terrestrial TV Digital Dividend spectrum is in the UHF range (200 MHz and 1 GHz) and excellent for extending mobile broadband to rural and semi-urban areas. This spectrum band offers an excellent balance between transmission capacity and distance coverage. It has very good propagation characteristics i.e. improved in-building performance in built-up areas Digital Dividend offers an unprecedented amount of spectrum which can be utilized for extending mobile broadband services to all, including to the most rural areas, and to speed up rollout. By applying the Digital Dividend for mobile broadband services, enormous benefits will ensue around the world in terms of social impact and increased productivity www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 41/64

Digital Dividend bands New UHF Digital Dividend spectrum is becoming available in all regions  Region 1 (Europe, Middle East and Africa) identified 790-862 MHz for mobile services  Region 2 (Americas) identified 698-806 MHz  Region 3 (Asia) some countries (China, India, Japan) identified 698-862 MHz; others identified 790-862 MHz www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 42/64

Digital Dividend Update report from GSA  Regulatory plans, auctions, deployments globally  See GSA’s Digital Dividend Update, free download from www.gsacom.com Digital Dividend offers an unprecedented amount of spectrum which can be utilized for extending mobile broadband services to all, including to the most rural areas, and to speed up rollout. By applying the Digital Dividend for mobile broadband services, enormous benefits will ensue around the world in terms of social impact and increased productivity Digital Dividend Update This report from GSA provides an update of the present situation in all regions of the world regarding the Digital Dividend opportunity. Digital Dividend Update Published by GSA – November 5, 2010 www.gsacom.com www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 43/64

LTE system design Downlink based on OFDMA: Orthogonal Frequency Division Multiple Access, for improved spectral efficiency, capacity etc QPSK, 16QAM and 64QAM modulation schemes supported Uplink based on SC-FDMA: Single Carrier – Frequency Division Multiple Access. Technically similar to OFDMA but better suited for uplink from hand-held devices (battery power considerations) BPSK, QPSK, 8PSK and 16QAM modulation schemes supported Designed for both paired and unpaired spectrum use Designed for FDD and TDD use Macro-diversity (soft handover) no longer required Circuit-switched connectivity no longer supported www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 44/64

3GPP LTE standard LTE Release 8 Major Parameters Access Scheme UL DFTS-OFDM DL OFDMA LTE-Release 8 User Equipment Categories Bandwidth 1.4, 3.5, 10,15, 20MHz Minimum TTI 1msec Sub-carrier spacing 15kHx Cyclic prefix length Short 4.7usec Long 16.7usec Modulation QPSK, 16QAM, 64QAM Spatial multiplexing Single layer for UL per UE Up to 4 layers for DL per UE MU-MIMO supported for UL and DL LTE is specified in 36 series technical specifications The LTE Release 8 specifications can be found on www.3gpp.org ™ ETSI has registered "LTE" as a trademark for the benefit of the 3GPP Partners www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 45/64

Evolution of the 3GPP core network The 3GPP core network has also undergone System Architecture Evolution (SAE) in the same timeframe The architecture is based on an as LTE, optimizing it for packet mode and, in particular, evolution of the existing GSM/WCDMA core for the IP-Multimedia Subsystem (IMS), which supports network, with simplified operations and all access technologies, including fixed wire-line access. smooth, cost-efficient deployment This allows:  Improvements in latency, capacity, throughput Simplification of the core network, and optimization for IP traffic and services, and expected growth Simplified support & handover to non-3GPP access technologies The result is the evolved packet system (EPS) that consists of the core network part, the evolved packet core (EPC) and the radio network evolution part, the evolved UTRAN (E-UTRAN), i.e. LTE. The EPS is Source: Ericsson also standardized within 3GPP Release 8 (March 2009) There are two nodes in the SAE architecture user plane; the LTE base and is the baseline for implementations. station (eNodeB) and the SAE Gateway. This flat architecture reduces the number of involved nodes in connections. LTE base stations are connected to the core network over the S1 interface www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 46/64

Voice over LTE Industry update: Verizon Wireless announced the company is likely to add VoLTE functionality to its 4G smartphones next year, and demonstrated the technology at MWC „11 with the LG Revolution smartphone www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 47/64

LTE TDD The LTE market will include LTE TDD as well as FDD systems The China Mobile TD-SCDMA system covered 284 cities by end 2009. China Mobile announced it had 22.63 million 3G/TD-SCDMA subscribers at end January 2011 LTE TDD is positioned as the next evolution in TD-SCDMA family and a natural progression  From 3GPP standards perspective: commonality with FDD  From vendor perspective: increasing use of software defined radio techniques  From operator perspective: spectrum availability, flexible base stations Early LTE TDD trials  China Mobile showcased it’s complete end-to-end LTE TDD network at the World Expo in Shanghai from May to October 2010 LTE TDD dongle supported streaming of 24 simultaneous video streams at a total data rate of 20 Mbps  In Ireland, LTE TDD testing has been performed with the authorization of regulator ComReg under its trial and test licence program LTE TDD deployment outside China Spectrum suitable for LTE TDD deployments was auctioned in India following the recent BWA auction. Qualcomm won one slot of 20 MHz TDD spectrum in the 2.3 GHz band covering the key telecom circles of Delhi, Mumbai, Haryana and Kerala and will deploy LTE TDD networks in these areas. www.qualcomm.com/news/releases/2010/07/29/qualcomm-announces-collaboration-global-holding-corporation-and-tulip-telec www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 48/64

LTE TDD is maturing towards commercialization LTE TDD was showcased by China Mobile and leading industry partners at the World Expo 2010, Shanghai .The large- scale trial network covered the whole 5.28 square-km site, outdoors and in 9 pavilions and 2 demonstration centers. Several products supporting the trial network are launched or planned including WWAN cards, routers and dongles. Key milestones achieved in the trial include:  Demonstration of LTE TDD HD video telephone in single 20 MHz spectrum with peak DL speeds of up to 80 Mbps  Demonstration of VOD, video communication, and other high-speed mobile broadband apps  Demonstration of 24-channel video streaming  Mobile HD video conferencing between the trial network and another location  Inter-Operability Test of multiple LTE TDD USB dongles in a single mobile network cell  China Mobile is deploying further trial LTE TDD networks in 3 major cities (Qingdao, Xiamen and Zhuhai ). Deployment in each city will be 100+ base stations. Smaller trial networks will also be deployed in Beijing and Shanghai  China Mobile is also partnering with foreign operators to establish trial LTE TDD networks overseas, e.g.Taiwan India is a key market for LTE TDD following the BWA spectrum auction. Qualcomm through its JV with local partners is committed to LTE TDD and anticipates commercial service from 2011. Some other BWA spectrum winners are finalizing their technology choice, so more winners may also choose LTE TDD. www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 49/64

LTE TDD trials in 2011  Clearwire (USA) has requested 3GPP to standardize LTE TDD for operation in 2496 – 2690 MHz and is undertaking technology trials of both LTE TDD and LTE FDD  In Germany, E Plus has announced plans to undertake a trial of LTE TDD together with China Mobile  Vivid Wireless has finished trials and aims to launch LTE-TDD on Australian east coast within 18 months  The launch of the Global TD-LTE Initiative at MWC ’11 by China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2 aims to accelerate the LTE TDD ecosystem development  See GSA’s Evolution to LTE report for latest updates (www.gsacom.com)  LTE TDD is expected to be commercially launched in 2011, beginning in China and India www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 50/64

LTE: the main direction for the industry  LTE is the next generation network beyond 3G for mobile broadband, standardized by 3GPP  LTE networks provide the capacity to support demand for connectivity from a new generation of consumer devices tailored to those new mobile applications  LTE is the next step in the user experience which enhances more demanding applications  LTE is essential to take mobile broadband to the mass market  LTE support new services and features which require higher levels of capability and performance  LTE brings new efficiencies including support for a full IP-based network and harmonization with other radio access technologies  LTE means new spectrum for mobile services – particularly for mobile broadband  Current implementations of LTE support instantaneous downlink peak data rate of at least 100 Mb/s within 20 MHz allocation and instantaneous uplink peak data rate of 50 Mb/s LTE is market reality today 17 systems commercially launched www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 51/64

LTE: the single global standard  LTE is on track, attracting global industry support.  The first LTE systems launched in 2009  LTE is the natural migration choice for GSM/HSPA operators. LTE is also the next generation mobile broadband system of choice of leading CDMA operators, who will be in the forefront of service introduction  As a result of collaboration between 3GPP, 3GPP2 and IEEE there is a roadmap for CDMA operators to evolve to LTE  The key spectrum bands for new LTE spectrum are 2.6 GHz and digital dividend bands (700, 800 MHz)  Re-farmed 1800 MHz spectrum enables LTE1800 to provide 2 times coverage compared to LTE2600  The LTE TDD mode (LTE TDD) is a real complement to LTE FDD and the perfect choice for providing high speed mobile broadband access through unpaired radio spectrum. LTE TDD provides a future-proof evolutionary path for TD-SCDMA  With LTE we have one single global standard, securing and driving even higher economies of scale and importantly, simplifying roaming www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 52/64

LTE-Advanced 3GPP made a formal submission to the ITU in October 2009, proposing that LTE Release 10 & beyond (LTE-Advanced) be evaluated as a candidate for IMT-Advanced. The submission was made jointly in the name of the 3GPP Organizational Partners: ARIB, ATIS, CCSA, ETSI, TTA and TTC. GSA supported this a Market Representation Partner of 3GPP. The ITU has now formally recognized LTE and LTE-Advanced as a future-proofed roadmap for mobile operators who are deploying more and more advanced mobile broadband services. In October 2010 the ITU announced it had accepted and officially designated LTE-Advanced as an IMT-Advanced (4G) technology. IMT-Advanced provides a global platform on which to build the next-generations of interactive mobile services that will provide faster data access, enhanced roaming capabilities, unified messaging and broadband multimedia 3GPP plans to complete its work on LTE-Advanced specifications by 2011 ITU website: Overview - Development of IMT-Advanced www.itu.int/itunews/manager/display.asp?lang=en&year=2008&issue=10&ipage=39&ext=html www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 53/64

Data traffic growth exceeded all expectations ….. and will grow a lot, lot more! Mobile operators moving to usage-based pricing models  to relieve network congestion  contain the cost of funding next-generation networks In mature markets  48% predict mobile operators will develop new pricing models over the next three years  55% agree tiered pricing is the future  47% argue “all-you-can-eat” data plans threaten revenue Source: Telecordia Technologies presentation at GSA Mobile Broadband Forum – London, September 2010 (referencing the Freshfields ‘mobile challenges survey’, completed in June 2010) Penetration of mobile broadband percentage of total broadband subs www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 54/64

Flat rate pricing  Operators have slashed prices by up to 90% within the space of 2 to 3 years  Depending on the country, different pricing schemes are offered by 3G operators  Most operators price by data volume with a stated amount e.g. 5 Gbytes or use the term “unlimited, subject to fair use”  For prepaid customers some operators offer unlimited usage for one day  Pricing by download speed is rarer, e.g. in Singapore  Pricing by duration of connection is also rare, and used, for example, in Italy  Some operators charge a premium rate for corporate users www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 55/64

Business model innovation: some possibilities  Bandwidth based tiers e.g. watch HD Video, user initiated, upsell and promotion opportunities  Application based  3rd party payment  “Turbo boost”- on demand bandwidth  Value added offers to drive revenue  Flat rate browsing (data speed penalty) e.g. Vodafone Spain Tarifa Plana Navegación  Off-peak pricing to move traffic e.g. Optus Australia  monthly cap double for off peak usage  once data has been exhausted no excess charges apply and customers can still access unlimited Optus web mail, Optus Zoo and Facebook until the end of the billing month  Sept 2010: Vodafone Germany announced tiered data bundles tied to service speeds for LTE  EUR39.99: 7.2 Mbps download speeds,10GB cap  EUR49.99: 21.6 Mbps maximum download speeds, 15GB cap  EUR69.99: 50 Mbps download speeds, 30GB cap  When data allowance used, download speed automatically reduces to 384 kbps until new month begins www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 56/64

Summary and outlook  The new Internet is mobile; wireless connectivity is extending into new applications and environments  Smartphones will soon dominate the mobile broadband landscape  The outlook is for continuing strong data growth; video will be a major component  HSPA+ is enabling operators to deliver an improved user experience with higher data performance, reduced latency at lower cost, and position for growth  LTE is the next step in the user experience and essential for taking mobile broadband to the mass market and to achieve the full potential of mobile broadband  LTE TDD technology is quickly maturing and may present interesting possibilities  LTE and HSPA/HSPA+ will co-exist for several years  Business model innovation is needed  Access to new spectrum is crucial  2.6 GHz for capacity; sub 1 GHz (digital dividend) for coverage and improved in-building performance  Re-farmed spectrum e.g. 1800 MHz will give some operators an additional option for migrating to LTE www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 57/64

Mobile HD Voice gaining momentum 15 operators commercially launched mobile HD Voice Trials running on a number of networks 26 HD Voice phones launched by major brands See GSA’s latest report on HD Voice based on the AMR Wideband technology www.gsacom.com ALSO AVAILABLE: World map of countries where mobile HD Voice services are commercially launched CHART: Mobile HD Voice compatible user devices www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 58/64

GSA’s Mobile HD Voice resources: www.gsacom.com  GSA report: Mobile HD Voice service using AMR Wideband technology  World map where mobile HD Voice services are commercially launched  CHART: Mobile HD Voice compatible user devices www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 59/64

Key events supported by GSA Stockholm, 12-13 April, 2011 www.lteforum2011.com/eng/index-uk.php Amsterdam, 17-19 May, 2011 http://ws.lteconference.com Rio de Janeiro, June 2011 www.mobile-broadband-event.com/847/ Discounts available to GSA members at these events See Events page for more details plus links to organizers’ websites www.gsacom.com/events/index.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 60/64

Events supported by GSA Discounts available to GSA members at most events See Events page for more details plus links to organizers’ websites www.gsacom.com/events/index.php4 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 61/64

GSA members white papers  Thought-leading  Produced in association with GSA  Free downloads via links on the home page www.gsacom.com Abstract: With mobile broadband becoming more available all the time, and the introduction of smart phones and more applications and content, mobile broadband usage is poised to explode. Some would argue the wave has already hit the market. But if you think that means an automatic windfall for operators, you may be in for a rude awakening. They are challenged to manage this traffic growth, which is increasing at a much faster rate than revenues and creating profitability and customer experience challenges. And they are challenged to identify whether their mobile broadband strategy is to be a bit-pipe access player or to be a value-added player. In this paper, we’ll look at the imminent opportunity of mobile broadband, and assess the competitive threats every provider must grapple with. We’ll also explore ways operators can insert themselves into the value chain, protecting their relationships with their customers, and giving themselves every chance to cash in on what needs to be a significant source of future revenue potential. www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 62/64

Follow GSA on Facebook, LinkedIN, Twitter News, technology and market updates www.facebook.com/pages/Global-mobile-Suppliers-Association-GSA/123462771012551 Invitation to join the GSA Group on LinkedIN www.linkedin.com/groups?gid=2313721 1800 Feb 11, 2011 1,686 Members 1600 1400 Discussions 1200 Members 1000 Networking 800 600 400 Subgroups on: 200 UMTS900, LTE1800, HD Voice 0 Sep 2009 GSA LinkedIN Group members growth www.twitter.com/gsacom 650 followers www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 63/64

Visit the website to download key GSA reports – free of charge EDGE, HSPA, HSPA+, LTE: networks, devices Spectrum including Digital Dividend, 2.6 GHz, re-farming (900/1800 MHz) 60+ maps, charts at www.gsacom.com/news/statistics.php4 The Global mobile Suppliers Association (GSA) represents leading GSM/EDGE/WCDMA-HSPA and LTE suppliers, providing trusted, widely referenced reports, facts, analysis and information explaining market developments and trends. GSA advises governments, regulators and policy-makers on the optimum conditions for market development. Briefings are given to media and analysts. GSA- organized seminars facilitate enhanced dialog between operators, members and developer communities. GSA is a 3GPP Market Representation Partner and co-operates with other key organizations worldwide. The website www.gsacom.com is targeted to the industry and is the main channel for distribution of information and news. We welcome visitors to the site annually from over 200 countries. The website has over 37,000 registered users which grows every day. 15,000 – 18,000 reports, surveys, information papers , charts, maps etc. are downloaded from the GSA website each month. Website: www.gsacom.com RSS newfeed: www.gsacom.com/rss/gsanews.php4 GSA LinkedIN Group: www.linkedin.com/groups?gid=2313721 Twitter: www.twitter.com/gsacom YouTube: www.youtube.com/GSAMOBILESUPPLIERS For more information on joining GSA please contact marketing@gsacom.com or telephone +44 1279 439667 www.gsacom.com Global mobile Suppliers Association © 2011GSM/3G and LTE Market Update – March 3, 2011 Slide no. 64/64

GSMA HSPA and LTE market update - March 2011

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GSMA HSPA and LTE market update - March 2011 Presentation Transcript