SlideShare a Scribd company logo
1 of 44
Download to read offline
 
	
  
Evaluating	
  the	
  LTE	
  Broadcast	
  Opportunity	
  
	
  
	
  
	
  
www.gsacom.com	
  
	
  
	
  
Prepared	
  for	
  the	
  GSA	
  by:	
  
	
  
	
  Innovation	
  Observatory	
  
Silvaco	
  Technology	
  Centre,	
  Compass	
  Point	
  Business	
  Park	
  
St	
  Ives,	
  Cambridgeshire,	
  PE27	
  5JL,	
  UK	
  
Tel:	
  +44	
  (0)1480	
  309341	
  
Email:	
  sales@innovationobservatory.com	
  
	
  
	
  
November	
  2015	
  
	
  
	
  
	
  
Sponsored	
  by:	
  
EE,	
  PCCW	
  HKT,	
  Plus	
  (Polkomtel),	
  Smartfren,	
  Telstra	
  
Copyright	
  ©	
  GSA	
  –	
  Global	
  mobile	
  Suppliers	
  Association	
  2015	
  
 
	
  
The	
  contents	
  of	
  this	
  document	
  are	
  the	
  property	
  of	
  GSA	
  and	
  are	
  protected	
  by	
  copyright	
  and	
  other	
  
intellectual	
  property	
  rights.	
  All	
  rights	
  reserved.	
  Reproduction	
  of	
  this	
  publication	
  in	
  part	
  for	
  non-­‐
commercial	
  use	
  is	
  allowed	
  if	
  the	
  source	
  is	
  stated.	
  For	
  other	
  use,	
  and	
  any	
  other	
  enquiries,	
  please	
  
contact:	
  
GSA	
  Secretariat	
  
Email:	
  info@gsacom.com	
  
Tel:	
  	
  +44	
  (0)1279	
  439	
  667	
  
GSA	
  cannot	
  and	
  does	
  not	
  warrant	
  the	
  accuracy,	
  completeness,	
  currentness,	
  non-­‐infringement,	
  
merchantability	
  or	
  suitability	
  for	
  a	
  particular	
  purpose	
  of	
  the	
  contents	
  herein.	
  
	
  
	
  
	
  
	
  
Acknowledgements:	
  
This	
  report	
  benefits	
  enormously	
  from	
  the	
  insights	
  and	
  experiences	
  kindly	
  contributed	
  by	
  LTE	
  
Broadcast	
  operator	
  pioneers	
  and	
  leading	
  vendors	
  including	
  the	
  BBC,	
  EE,	
  Ericsson,	
  Expway,	
  Huawei,	
  
Institut	
  für	
  Rundfunktechnik,	
  Nokia,	
  PCCW	
  HKT,	
  Plus	
  (Polkomtel),	
  Qualcomm,	
  Smartfren,	
  and	
  Telstra.	
  
We	
  would	
  like	
  to	
  thank	
  these	
  companies	
  for	
  their	
  help.	
  
	
   	
  
 
	
  
Table	
  of	
  contents	
  
	
  
Evaluating	
  the	
  LTE	
  Broadcast	
  Opportunity	
  ............................................................................................	
  1	
  
Table	
  of	
  contents	
  ...............................................................................................................................	
  3	
  
Preface	
  ...............................................................................................................................................	
  4	
  
Introduction	
  –	
  the	
  time	
  is	
  right	
  for	
  LTE	
  Broadcast	
  deployment	
  ........................................................	
  5	
  
Why	
  LTE	
  Broadcast,	
  and	
  why	
  now?	
  ...............................................................................................	
  5	
  
Technology	
  description	
  .....................................................................................................................	
  6	
  
Drivers	
  of	
  adoption	
  ............................................................................................................................	
  9	
  
Revenue	
  opportunities	
  ................................................................................................................	
  10	
  
Efficient	
  television	
  distribution	
  ....................................................................................................	
  12	
  
Barriers	
  to	
  adoption	
  .........................................................................................................................	
  13	
  
Device	
  availability	
  ........................................................................................................................	
  14	
  
Network	
  upgrade	
  requirements	
  ..................................................................................................	
  17	
  
Timelines	
  for	
  adoption	
  ....................................................................................................................	
  18	
  
Forecasts	
  for	
  service	
  availability	
  ..................................................................................................	
  23	
  
Forecasts	
  for	
  global	
  service	
  provider	
  revenue	
  .................................................................................	
  24	
  
Business	
  case	
  checklist	
  ................................................................................................................	
  26	
  
Service	
  implementation	
  business	
  case	
  -­‐	
  revenues	
  ......................................................................	
  28	
  
Service	
  implementation	
  business	
  case	
  -­‐	
  first	
  mover	
  advantage	
  ..................................................	
  29	
  
Service	
  implementation	
  business	
  case	
  –	
  costs	
  ............................................................................	
  30	
  
Service	
  implementation	
  business	
  case	
  costs	
  vs	
  revenues	
  ...........................................................	
  32	
  
Service	
  implementation	
  business	
  case	
  –	
  offload	
  cost	
  savings	
  .....................................................	
  33	
  
Annex	
  A	
  –	
  eMBMS	
  compatible	
  devices	
  ...........................................................................................	
  36	
  
Annex	
  B	
  -­‐	
  Survey	
  details	
  ..................................................................................................................	
  41	
  
Annex	
  C	
  –	
  Operator	
  case	
  studies	
  .....................................................................................................	
  43	
  
EE	
  .................................................................................................................................................	
  43	
  
Polkomtel	
  .....................................................................................................................................	
  43	
  
Telstra	
  ..........................................................................................................................................	
  44	
  
	
  
	
   	
  
 
	
  
Preface	
  
The	
  GSA’s	
  roles	
  include	
  explaining	
  the	
  opportunities	
  available	
  and	
  benefits	
  to	
  be	
  gained	
  from	
  
deploying	
  mobile	
  communications	
  systems	
  technologies,	
  the	
  need	
  for	
  adequate	
  spectrum	
  
provisions,	
  and	
  stimulating	
  supporting	
  user	
  device	
  ecosystems.	
  During	
  the	
  17	
  years	
  since	
  the	
  GSA	
  
was	
  established	
  there	
  have	
  been	
  many	
  successes,	
  initially	
  with	
  EDGE	
  and	
  followed	
  by	
  the	
  launch	
  of	
  
mobile	
  broadband	
  enabled	
  by	
  WCDMA	
  and	
  HSPA.	
  As	
  these	
  technologies	
  matured	
  and	
  entered	
  the	
  
mainstream,	
  spectrum	
  refarming	
  moved	
  up	
  the	
  agenda,	
  and	
  3G	
  technology	
  deployments	
  
(HSPA/HSPA+)	
  were	
  enabled	
  in	
  spectrum	
  previously	
  reserved	
  for	
  2G	
  systems,	
  such	
  as	
  GSM	
  (e.g.	
  900	
  
MHz).	
  3G	
  deployment	
  in	
  900	
  MHz	
  spectrum	
  (UMTS900)	
  has	
  long	
  since	
  been	
  mainstream.	
  
Industry	
  acknowledges	
  the	
  contribution	
  that	
  GSA	
  makes	
  to	
  LTE	
  and	
  LTE-­‐Advanced	
  developments,	
  
including	
  delivering	
  trusted	
  facts	
  and	
  analysis	
  about	
  the	
  market	
  and	
  reporting	
  on	
  the	
  user	
  devices	
  
ecosystem.	
  GSA	
  heavily	
  promoted	
  refarming	
  of	
  2G/1800	
  MHz	
  spectrum	
  for	
  LTE	
  and	
  this	
  band	
  is	
  now	
  
firmly	
  the	
  most	
  common	
  for	
  LTE,	
  with	
  the	
  largest	
  devices	
  ecosystem.	
  LTE	
  is	
  the	
  fastest	
  developing	
  
mobile	
  communications	
  systems	
  technology	
  ever	
  and	
  has	
  the	
  flexibility	
  to	
  support	
  a	
  myriad	
  of	
  use	
  
cases	
  for	
  consumer	
  and	
  enterprise	
  markets.	
  	
  And	
  of	
  course	
  LTE	
  will	
  be	
  with	
  us	
  for	
  years	
  to	
  come	
  and	
  
will	
  continue	
  to	
  evolve	
  on	
  the	
  road	
  to	
  5G	
  and	
  beyond.	
  
The	
  combination	
  of	
  ubiquitous	
  superfast	
  broadband	
  performance	
  enabled	
  by	
  LTE,	
  the	
  emergence	
  of	
  
smartphones	
  as	
  the	
  form	
  factor	
  of	
  choice	
  for	
  many,	
  and	
  access	
  to	
  more	
  content,	
  data,	
  and	
  especially	
  
video,	
  are	
  driving	
  network	
  traffic	
  growth	
  to	
  unprecedented	
  levels.	
  In	
  highly	
  competitive	
  markets,	
  
network	
  operators	
  must	
  maintain	
  the	
  user	
  experience	
  of	
  mobile	
  broadband	
  and	
  enable	
  more	
  
capacity	
  to	
  support	
  growth.	
  LTE	
  Broadcast,	
  enabled	
  by	
  eMBMS	
  technology	
  and	
  standardized	
  by	
  
3GPP,	
  allows	
  operators	
  to	
  deliver	
  content	
  such	
  as	
  video	
  or	
  software	
  updates	
  much	
  more	
  efficiently,	
  
ensuring	
  the	
  best	
  experience	
  for	
  users	
  of	
  those	
  services,	
  and	
  freeing	
  up	
  network	
  capacity	
  to	
  ensure	
  
the	
  best	
  experience	
  for	
  all	
  users.	
  LTE	
  Broadcast	
  enables	
  new	
  services,	
  new	
  business	
  models,	
  and	
  
revenue	
  growth	
  and	
  is	
  a	
  potential	
  “game	
  changer”	
  that	
  no	
  LTE	
  operator	
  can	
  afford	
  to	
  ignore.	
  	
  
There	
  needs	
  to	
  be	
  a	
  good	
  choice	
  of	
  devices	
  for	
  users.	
  More	
  now	
  needs	
  to	
  be	
  done.	
  This	
  report	
  
informs,	
  educates	
  and	
  demonstrates	
  the	
  business	
  potential	
  of	
  using	
  LTE	
  Broadcast.	
  By	
  showing	
  the	
  
commitment	
  of	
  leading	
  network	
  operators	
  in	
  all	
  regions	
  and	
  key	
  systems	
  and	
  solutions	
  vendors,	
  
broadcasters	
  and	
  content	
  owners,	
  and	
  examining	
  many	
  promising	
  business	
  models,	
  the	
  report	
  will	
  
convince	
  all	
  device	
  manufacturers	
  to	
  include	
  LTE	
  Broadcast	
  in	
  their	
  product	
  roadmaps.	
  
	
  
	
  
	
  
Alan	
  Hadden,	
  VP,	
  Research	
  
GSA	
  (Global	
  mobile	
  Suppliers	
  Association)	
  
 
	
  
	
  
Introduction	
  –	
  the	
  time	
  is	
  right	
  for	
  LTE	
  Broadcast	
  deployment	
  
LTE	
  Broadcast	
  (also	
  sometimes	
  called	
  LTE	
  Multicast)	
  is	
  on	
  the	
  brink	
  of	
  transforming	
  the	
  types	
  of	
  
services	
  that	
  mobile	
  customers	
  receive,	
  the	
  quality	
  of	
  those	
  services,	
  and	
  the	
  ways	
  they	
  are	
  
delivered.	
  LTE	
  Broadcast	
  is	
  enabled	
  by	
  eMBMS:	
  a	
  3GPP	
  standardized	
  technology	
  that	
  allows	
  mobile	
  
operators	
  to	
  use	
  a	
  proportion	
  of	
  their	
  network	
  capacity	
  for	
  broadcast	
  of	
  popular	
  content	
  or	
  data.	
  
This	
  means	
  they	
  can	
  use	
  the	
  same	
  broadcast	
  stream	
  to	
  serve	
  multiple	
  -­‐	
  theoretically	
  unlimited	
  -­‐	
  
customers	
  within	
  a	
  single	
  cell	
  with	
  the	
  same	
  video,	
  TV	
  or	
  other	
  data	
  service,	
  instead	
  of	
  needing	
  to	
  
unicast	
  delivery	
  of	
  the	
  same	
  information	
  to	
  every	
  user	
  individually.	
  This	
  has	
  a	
  potentially	
  major	
  
impact	
  on	
  the	
  capacity	
  needed	
  to	
  deliver	
  popular	
  content,	
  and	
  opens	
  up	
  new	
  business	
  opportunities	
  
for	
  mobile	
  operators.	
  	
  
This	
  is	
  not	
  the	
  first	
  time	
  that	
  the	
  world	
  has	
  been	
  offered	
  mobile	
  broadcast	
  services.	
  In	
  fact,	
  a	
  variety	
  
of	
  technologies	
  have	
  been	
  tested	
  and	
  some	
  deployed	
  -­‐	
  most	
  notably	
  DVB-­‐H.	
  Previous	
  attempts	
  to	
  
introduce	
  mobile	
  broadcast-­‐based	
  services	
  failed	
  due	
  to	
  a	
  lack	
  of	
  critical	
  mass	
  in	
  terms	
  of	
  the	
  
numbers,	
  types	
  and	
  variations	
  of	
  devices	
  that	
  could	
  support	
  services,	
  the	
  inefficiency	
  or	
  cost	
  of	
  
offering	
  services,	
  mis-­‐alignment	
  between	
  DVB-­‐H	
  coverage	
  and	
  the	
  indoor	
  and	
  outdoor	
  coverage	
  
requirements	
  of	
  mobile	
  networks,	
  absence	
  of	
  key	
  features	
  (such	
  as	
  the	
  ability	
  to	
  turn	
  services	
  on	
  or	
  
off	
  on	
  demand),	
  the	
  lack	
  of	
  compelling	
  business	
  cases	
  for	
  the	
  deployment	
  of	
  the	
  technologies	
  
concerned,	
  and	
  user	
  reluctance	
  to	
  spend	
  more	
  money.	
  
However,	
  the	
  world	
  is	
  now	
  a	
  very	
  different	
  place.	
  A	
  number	
  of	
  factors	
  have	
  fallen	
  into	
  place	
  to	
  make	
  
the	
  need	
  for	
  deployment	
  of	
  mobile	
  broadcast	
  technologies	
  much	
  more	
  compelling.	
  We	
  look	
  at	
  these	
  
in	
  turn	
  in	
  the	
  next	
  few	
  paragraphs.	
  
Why	
  LTE	
  Broadcast,	
  and	
  why	
  now?	
  
Mobile	
  network	
  operators	
  are	
  now	
  already	
  delivering	
  large	
  amounts	
  of	
  video	
  content	
  to	
  their	
  
customers.	
  When	
  DVB-­‐H	
  was	
  first	
  conceived	
  the	
  scale	
  of	
  video	
  delivery	
  to	
  mobile	
  devices	
  was	
  
substantially	
  smaller.	
  Video	
  and	
  TV	
  content	
  delivery	
  is	
  one	
  of	
  the	
  primary	
  drivers	
  of	
  traffic	
  growth	
  
within	
  mobile	
  networks,	
  and	
  that	
  growth	
  is	
  not	
  likely	
  to	
  end	
  any	
  time	
  soon.	
  	
  The	
  swelling	
  volumes	
  of	
  
video	
  traffic	
  are	
  putting	
  significant	
  pressure	
  on	
  networks	
  (from	
  cost	
  and	
  deliverability	
  perspectives),	
  
and	
  will	
  exert	
  even	
  more	
  pressure	
  in	
  the	
  future	
  unless	
  mobile	
  operators	
  find	
  new,	
  more	
  efficient	
  
means	
  of	
  delivering	
  that	
  content.	
  
Users’	
  expectations	
  are	
  substantially	
  different	
  now	
  than	
  they	
  were	
  ten	
  years	
  ago.	
  Acclimatised	
  to	
  
improved	
  coverage,	
  and	
  the	
  much	
  higher	
  data	
  speeds	
  offered	
  by	
  HSPA+	
  and	
  LTE,	
  they	
  expect	
  their	
  
mobile	
  devices	
  to	
  be	
  able	
  to	
  access	
  video	
  and	
  TV	
  content	
  without	
  much	
  delay	
  and	
  at	
  high	
  quality.	
  
Users	
  are	
  not	
  spending	
  more	
  on	
  mobile	
  –	
  average	
  revenues	
  per	
  user	
  have	
  reached	
  a	
  plateau	
  in	
  
many	
  countries,	
  and	
  even	
  started	
  to	
  fall	
  in	
  major	
  markets	
  around	
  the	
  world.	
  	
  
When	
  looking	
  at	
  the	
  number	
  of	
  human	
  customers	
  and	
  the	
  number	
  of	
  connected	
  mobile	
  devices	
  they	
  
hold,	
  mobile	
  markets	
  around	
  the	
  world	
  are	
  increasingly	
  saturated.	
  That	
  means	
  that	
  ensuring	
  
customer	
  satisfaction	
  and	
  users’	
  quality	
  of	
  experience	
  is	
  critical	
  for	
  retaining	
  customers,	
  and	
  
winning	
  customers	
  from	
  competitors.	
  Outside	
  developing	
  markets	
  there	
  is	
  little	
  growth	
  to	
  be	
  had	
  
 
	
  
from	
  finding	
  the	
  ‘as	
  yet	
  unconnected’.	
  Operators	
  must	
  offer	
  the	
  best	
  quality	
  of	
  experience	
  to	
  retain	
  
their	
  users.	
  	
  
As	
  well	
  as	
  enabling	
  the	
  provision	
  of	
  new	
  services	
  for	
  residential	
  consumers,	
  the	
  deployment	
  of	
  LTE	
  
Broadcast	
  technology	
  opens	
  up	
  new	
  possibilities	
  amongst	
  other	
  customer	
  groups.	
  It	
  would	
  support	
  
the	
  introduction	
  of	
  services	
  such	
  as	
  the	
  broadcast	
  of	
  system	
  upgrades	
  for	
  software	
  companies	
  and	
  
with	
  enterprise	
  customers	
  that	
  have	
  large	
  scale,	
  distributed	
  machine-­‐to-­‐machine	
  applications.	
  It	
  can	
  
also	
  be	
  used	
  to	
  deliver	
  emergency	
  broadcast	
  services	
  for	
  government	
  or	
  public	
  sector	
  organisations	
  
(complementing	
  the	
  push-­‐to-­‐talk	
  and	
  device-­‐to-­‐device	
  capabilities	
  of	
  LTE	
  that	
  are	
  also	
  attractive	
  to	
  
those	
  customers).	
  
Added	
  to	
  this,	
  the	
  mobile	
  broadcast	
  technology	
  available	
  to	
  network	
  operators	
  is	
  much	
  improved.	
  
LTE	
  Broadcast	
  (eMBMS)	
  is	
  substantially	
  more	
  efficient	
  than	
  previous	
  mobile	
  broadcast	
  technologies,	
  
and	
  promises	
  new	
  functions	
  and	
  features	
  that	
  make	
  its	
  deployment	
  more	
  practical	
  and	
  attractive.	
  
Some	
  operators	
  have	
  already	
  launched	
  services,	
  with	
  others	
  running	
  pre-­‐commercial	
  trials.	
  The	
  
technology	
  is	
  proven	
  and	
  we	
  expect	
  to	
  see	
  more	
  commercial	
  services	
  going	
  live	
  over	
  the	
  next	
  twelve	
  
months.	
  
Collectively	
  these	
  factors	
  have	
  substantially	
  improved	
  the	
  business	
  case	
  for	
  deployment.	
  This	
  report	
  
describes	
  LTE	
  Broadcast	
  (based	
  on	
  eMBMS)	
  in	
  detail,	
  explaining	
  what	
  the	
  technology	
  does,	
  and	
  how	
  
far	
  the	
  market	
  has	
  moved	
  towards	
  widespread	
  deployment;	
  summarizes	
  the	
  state	
  of	
  the	
  ecosystem;	
  
and	
  examines	
  the	
  business	
  case	
  for	
  eMBMS,	
  making	
  the	
  case	
  for	
  broader	
  ecosystem	
  support	
  for	
  the	
  
technology.	
  The	
  report	
  argues	
  that	
  the	
  time	
  is	
  now	
  ripe	
  for	
  network	
  operators	
  to	
  start	
  to	
  roll	
  out	
  
commercial	
  services,	
  and	
  for	
  vendors	
  to	
  support	
  their	
  cause	
  by	
  selling	
  a	
  wide	
  range	
  of	
  eMBMS-­‐
enabled	
  devices.	
  
Technology	
  description	
  
Mobile	
  networks	
  traditionally	
  use	
  a	
  unicast	
  approach	
  to	
  deliver	
  content	
  (including	
  video,	
  TV,	
  music,	
  
images	
  or	
  data)	
  to	
  end	
  users.	
  In	
  other	
  words,	
  transmissions	
  to	
  different	
  devices	
  are	
  all	
  set	
  up	
  and	
  
delivered	
  independently,	
  using	
  distinct	
  portions	
  of	
  the	
  operator’s	
  spectrum	
  resource,	
  even	
  if	
  
different	
  users	
  want	
  to	
  receive	
  the	
  same	
  content.	
  If	
  five	
  people	
  in	
  the	
  same	
  cell	
  want	
  to	
  receive	
  the	
  
same	
  live	
  TV	
  content,	
  the	
  network	
  must	
  deliver	
  that	
  content	
  five	
  times.	
  
LTE	
  Broadcast	
  uses	
  a	
  multicast	
  approach.	
  It	
  sends	
  the	
  content	
  once,	
  and	
  that	
  same	
  content	
  is	
  
received	
  by	
  all	
  the	
  users	
  who	
  want	
  to	
  receive	
  it,	
  as	
  Figure	
  1	
  illustrates.	
  The	
  result	
  is	
  a	
  potential	
  
substantial	
  reduction	
  in	
  the	
  amount	
  of	
  network	
  resource	
  used	
  to	
  deliver	
  the	
  content.	
  
All	
  kinds	
  of	
  content	
  can	
  be	
  broadcast	
  –	
  linear	
  and	
  live	
  TV	
  and	
  video,	
  linear	
  and	
  live	
  music,	
  static	
  
content,	
  software,	
  data	
  and	
  information.	
  
3GPP	
  has	
  been	
  working	
  to	
  define	
  LTE	
  Broadcast	
  (eMBMS).	
  Initial	
  standards	
  have	
  been	
  released,	
  and	
  
future	
  evolutions	
  are	
  also	
  planned.	
  	
  It	
  is	
  a	
  technology	
  which	
  works	
  now,	
  and	
  will	
  continue	
  to	
  evolve.	
  	
  
The	
  operator	
  has	
  the	
  flexibility	
  to	
  decide	
  how	
  much	
  of	
  its	
  spectrum	
  resource	
  to	
  dedicate	
  to	
  LTE	
  
Broadcast,	
  by	
  allocating	
  proportions	
  of	
  different	
  carriers	
  for	
  either	
  unicast	
  or	
  broadcast	
  content.	
  
Those	
  proportions	
  can	
  be	
  given	
  different	
  profiles	
  at	
  different	
  times	
  of	
  the	
  day.	
  The	
  operator	
  also	
  has	
  
 
	
  
the	
  option	
  to	
  implement	
  the	
  technology	
  on	
  a	
  cell-­‐by-­‐cell	
  basis	
  so	
  that	
  LTE	
  Broadcast	
  only	
  consumes	
  
capacity	
  in	
  areas	
  where	
  the	
  operator	
  wants	
  the	
  service	
  to	
  be	
  offered.	
  	
  
	
  
Figure	
  1:	
  LTE	
  Broadcast	
  compared	
  with	
  LTE	
  Unicast	
  
	
  
Alternatively,	
  cell	
  sites	
  can	
  be	
  grouped	
  to	
  target	
  areas	
  into	
  which	
  the	
  same	
  content	
  will	
  be	
  
broadcast.	
  Towers	
  in	
  those	
  groups	
  will	
  broadcast	
  the	
  same	
  content,	
  at	
  the	
  same	
  time,	
  on	
  the	
  same	
  
frequencies,	
  creating	
  what	
  is	
  called	
  a	
  Single	
  Frequency	
  Network	
  (SFN).	
  	
  Tower	
  broadcasts	
  within	
  the	
  
SFN	
  are	
  carefully	
  synchronized.	
  Any	
  compatible	
  device	
  within	
  the	
  area	
  of	
  the	
  SFN	
  can	
  pick	
  up	
  the	
  
broadcast	
  (a	
  Multimedia	
  Broadcast	
  Service	
  over	
  a	
  Single	
  Frequency	
  Network,	
  or	
  MBSFN),	
  receiving	
  
multiple	
  transmissions	
  of	
  the	
  same	
  data	
  from	
  different	
  towers,	
  but	
  presenting	
  to	
  the	
  end	
  user	
  only	
  a	
  
single	
  channel.	
  This	
  use	
  of	
  multiple	
  towers	
  can	
  mean	
  improved	
  service	
  quality	
  for	
  customers	
  in	
  cell	
  
overlap	
  areas	
  as	
  their	
  devices	
  no	
  longer	
  need	
  to	
  rely	
  on	
  a	
  weak	
  signal	
  from	
  a	
  single	
  tower.	
  
Moreover,	
  a	
  single	
  cell	
  site	
  can	
  be	
  a	
  member	
  of	
  multiple	
  MBSFN	
  groups,	
  giving	
  the	
  operator	
  
flexibility	
  in	
  terms	
  of	
  where	
  and	
  when	
  to	
  deliver	
  different	
  types	
  of	
  content	
  to	
  different	
  types	
  of	
  user.	
  
(One	
  urban	
  cell	
  might	
  for	
  instance	
  be	
  part	
  of	
  a	
  group	
  dedicated	
  to	
  delivering	
  software	
  downloads	
  for	
  
business	
  users,	
  and	
  also	
  part	
  of	
  a	
  group	
  delivering	
  live	
  content	
  to	
  sports	
  fans	
  in	
  a	
  stadium,	
  with	
  its	
  
role	
  changing	
  at	
  different	
  times	
  of	
  the	
  day	
  or	
  week.)	
  
Critical	
  future	
  features	
  of	
  eMBMS	
  will	
  include:	
  
• MBMS	
  Operation	
  On	
  Demand	
  (MOOD)	
  –	
  standardized	
  in	
  3GPP	
  release	
  12,	
  this	
  will	
  provide	
  
operators	
  with	
  ability	
  to	
  turn	
  eMBMS	
  on	
  or	
  off	
  dynamically,	
  according	
  to	
  network	
  
requirements.	
  This	
  will	
  be	
  a	
  major	
  evolution	
  for	
  the	
  technology,	
  which	
  (in	
  any	
  given	
  cell)	
  
currently	
  needs	
  to	
  follow	
  a	
  standard	
  profile	
  for	
  allocation	
  of	
  spectrum	
  to	
  either	
  unicast	
  or	
  
broadcast	
  at	
  any	
  given	
  time	
  of	
  the	
  day.	
  MOOD	
  will	
  have	
  a	
  major	
  impact	
  on	
  the	
  efficiency	
  of	
  
capacity	
  usage	
  of	
  LTE	
  Broadcast.	
  	
  Prior	
  to	
  MOOD	
  the	
  capacity	
  is	
  reserved	
  for	
  eMBMS	
  even	
  if	
  
it	
  is	
  not	
  being	
  used.	
  The	
  MOOD	
  feature	
  makes	
  a	
  big	
  difference	
  to	
  business	
  cases	
  where	
  
customer	
  demand	
  for	
  content	
  is	
  unpredictable	
  either	
  in	
  terms	
  of	
  time	
  of	
  day	
  or	
  location.	
  It	
  
should	
  be	
  noted	
  that	
  various	
  proprietary	
  solutions	
  offering	
  MOOD-­‐type	
  capability	
  are	
  in	
  
development	
  and	
  will	
  be	
  available	
  soon,	
  or	
  in	
  some	
  cases	
  are	
  available	
  already.	
  
 
	
  
• HEVC	
  –	
  standardized	
  in	
  3GPP	
  release	
  12	
  –	
  is	
  expected	
  to	
  enhance	
  compression	
  so	
  that	
  
channels	
  can	
  be	
  squeezed	
  into	
  smaller	
  frequency	
  bands,	
  offering	
  an	
  anticipated	
  40-­‐50%	
  
improvement	
  over	
  AVC/H.264.	
  	
  
• Multiband	
  eMBMS	
  using	
  carrier	
  aggregation	
  –	
  expected	
  to	
  be	
  standardized	
  in	
  release	
  13	
  (or	
  
beyond).	
  Currently	
  the	
  operator	
  must	
  select	
  the	
  band	
  to	
  be	
  used	
  for	
  eMBMS	
  (e.g.	
  1800	
  or	
  
2600)	
  and	
  devices	
  are	
  tied	
  to	
  single	
  bands.	
  
Typically	
  it	
  takes	
  12	
  to	
  24	
  months	
  after	
  standardization	
  for	
  3GPP	
  release	
  features	
  to	
  make	
  their	
  way	
  
into	
  commercial	
  products.	
  On	
  that	
  basis	
  we	
  should	
  expect	
  to	
  see	
  release	
  12	
  features	
  emerging	
  from	
  
mid-­‐2016	
  onwards.	
  Interviews	
  with	
  operators	
  and	
  vendors	
  suggest	
  that	
  availability	
  of	
  standards-­‐
based	
  MOOD	
  solutions	
  might	
  still	
  be	
  1	
  to	
  3	
  years	
  away,	
  although	
  operators	
  are	
  pressing	
  for	
  earlier	
  
availability.	
  	
  
Figure	
  2:	
  The	
  timeline	
  for	
  LTE	
  Broadcast	
  technology	
  and	
  market	
  development	
  
	
  
	
   	
  
 
	
  
Drivers	
  of	
  adoption	
  
There	
  are	
  a	
  number	
  of	
  drivers	
  of	
  interest	
  in	
  LTE	
  Broadcast.	
  These	
  include	
  increasing	
  market	
  
saturation,	
  slowing	
  revenue	
  growth,	
  and	
  spiralling	
  volumes	
  of	
  video	
  traffic	
  within	
  mobile	
  networks.	
  
These	
  are	
  not	
  all	
  of	
  equivalent	
  importance,	
  however,	
  and	
  to	
  test	
  the	
  relative	
  strength	
  of	
  these	
  
drivers,	
  the	
  GSA	
  polled	
  its	
  members’	
  views.	
  	
  
Figure	
  3:	
  Drivers	
  of	
  LTE	
  Broadcast	
  adoption	
  
	
  
Question	
  asked:	
  What	
  do	
  you	
  think	
  are	
  the	
  three	
  most	
  important	
  drivers	
  of	
  LTE	
  Broadcast	
  infrastructure	
  and	
  
services?	
  Please	
  rank	
  three	
  only,	
  in	
  order.	
  173	
  respondents	
  
Respondents	
  were	
  asked	
  to	
  identify	
  the	
  most	
  important	
  market	
  drivers	
  from	
  a	
  prompted	
  list,	
  
identifying	
  the	
  top	
  three	
  in	
  order	
  of	
  importance.	
  The	
  chart	
  shows	
  the	
  counts	
  of	
  their	
  responses.	
  
Ability	
  to	
  open	
  up	
  new	
  revenues	
  was	
  most	
  often	
  chosen	
  as	
  one	
  of	
  the	
  top	
  three	
  drivers;	
  just	
  ahead	
  
of	
  the	
  need	
  to	
  deal	
  with	
  growth	
  in	
  demand	
  for	
  video	
  content	
  and	
  the	
  ability	
  to	
  improve	
  users’	
  
quality	
  of	
  experience.	
  (The	
  potential	
  to	
  open	
  up	
  new	
  revenue	
  streams	
  is	
  considered	
  in	
  detail	
  in	
  the	
  
next	
  section	
  below.)	
  The	
  need	
  to	
  deal	
  with	
  growth	
  in	
  demand	
  for	
  video	
  was	
  rated	
  as	
  the	
  most	
  
important	
  driver	
  by	
  more	
  people	
  than	
  any	
  of	
  the	
  other	
  drivers.	
  	
  
The	
  requirement	
  to	
  deal	
  with	
  growing	
  demand	
  for	
  video	
  content	
  is	
  clearly	
  related	
  to	
  the	
  other	
  top	
  
three	
  issue	
  of	
  improving	
  users’	
  quality	
  of	
  experience.	
  In	
  addition	
  to	
  making	
  the	
  delivery	
  of	
  popular	
  
content	
  more	
  efficient	
  for	
  the	
  network	
  operator,	
  LTE	
  Broadcast	
  can	
  improve	
  the	
  quality	
  of	
  service	
  
both	
  for	
  the	
  users	
  of	
  the	
  LTE	
  Broadcast	
  infrastructure	
  and	
  for	
  other	
  mobile	
  users.	
  Users	
  of	
  the	
  LTE	
  
Broadcast	
  service	
  no	
  longer	
  compete	
  for	
  network	
  access,	
  and	
  popular	
  content	
  is	
  provided	
  with	
  
committed	
  levels	
  of	
  bandwidth	
  to	
  assure	
  the	
  delivery	
  of	
  services.	
  Meanwhile	
  the	
  other	
  mobile	
  users	
  
find	
  that	
  as	
  multiple	
  bandwidth-­‐hungry	
  video	
  customers	
  are	
  moved	
  onto	
  LTE	
  Broadcast,	
  the	
  capacity	
  
left	
  for	
  them	
  to	
  use	
  increases	
  (so	
  long	
  as	
  LTE	
  Broadcast	
  is	
  not	
  allocated	
  too	
  much	
  spectrum).	
  
Network	
  operator	
  respondents’	
  opinions	
  were	
  similar	
  to	
  those	
  of	
  other	
  respondent	
  types	
  (vendors,	
  
service	
  providers,	
  broadcasters,	
  industry	
  commentators)1
	
  except	
  that	
  the	
  availability	
  of	
  clear	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1
	
  More	
  details	
  about	
  the	
  surveys	
  undertaken	
  to	
  inform	
  this	
  report	
  are	
  provided	
  in	
  the	
  annex	
  
 
	
  
business	
  opportunities	
  was	
  ranked	
  at	
  the	
  most	
  important	
  driver	
  by	
  operators,	
  just	
  ahead	
  of	
  video	
  
growth;	
  and	
  mobile	
  data	
  demand	
  growth	
  was	
  chosen	
  as	
  a	
  top	
  three	
  driver	
  slightly	
  more	
  often	
  than	
  
video	
  demand	
  growth.	
  
Revenue	
  opportunities	
  
It	
  is	
  perhaps	
  not	
  surprising	
  that	
  LTE	
  Broadcast	
  has	
  captured	
  interest,	
  as	
  it	
  offers	
  mobile	
  operators	
  
the	
  opportunity	
  to	
  create	
  new	
  services,	
  and	
  find	
  new	
  ways	
  to	
  monetize	
  them	
  –	
  through	
  payment	
  
from	
  consumers	
  and	
  businesses,	
  revenue-­‐sharing	
  arrangements,	
  reduced	
  churn,	
  new	
  subscriber	
  
additions,	
  or	
  network	
  cost	
  savings.	
  Operators	
  have	
  so	
  far	
  largely	
  tested	
  mobile	
  TV	
  broadcast-­‐related	
  
applications	
  but	
  LTE	
  Broadcast	
  could	
  provide	
  the	
  technological	
  underpinning	
  for	
  a	
  very	
  wide	
  range	
  of	
  
services.	
  Some	
  of	
  the	
  key	
  ones	
  are	
  listed	
  in	
  the	
  table	
  below.	
  
Figure	
  4:	
  The	
  applications	
  for	
  LTE	
  Broadcast	
  being	
  considered	
  by	
  operators	
  
Service	
  concept	
   Description	
  
HD	
  mobile	
  TV	
   High	
  quality	
  (HD)	
  mobile	
  live	
  and	
  linear	
  TV,	
  when	
  you're	
  out	
  and	
  about	
  or	
  at	
  
home	
  
Content	
  pre-­‐distribution	
   Consumers'	
  favourite	
  online	
  TV,	
  video	
  and	
  magazine	
  /	
  news	
  content,	
  pushed	
  in	
  
advance	
  to	
  a	
  mobile	
  device	
  and	
  ready	
  to	
  watch	
  in	
  HD	
  with	
  no	
  buffering,	
  at	
  the	
  
time	
  of	
  broadcast	
  /	
  publication	
  –	
  or	
  later	
  
Driver	
  services	
   Services	
  for	
  drivers	
  and	
  car	
  passengers,	
  including	
  real-­‐time	
  traffic	
  reports,	
  parking	
  
space	
  help,	
  automatic	
  satnav	
  updates,	
  enhanced	
  safety	
  services	
  (e.g.	
  seeing	
  
beyond	
  the	
  car	
  in	
  front),	
  and	
  entertainment	
  
Sports	
  /	
  music	
  stadium	
  
services	
  
Video	
  and	
  other	
  content	
  (instant	
  multi-­‐angle	
  replays,	
  video	
  from	
  other	
  events	
  
elsewhere,	
  close-­‐ups,	
  stats	
  information,	
  exclusive	
  merchandise	
  offers	
  etc.,	
  all	
  
with	
  excellent	
  speed	
  even	
  at	
  or	
  around	
  busy	
  events	
  like	
  music	
  festivals,	
  concerts,	
  
football,	
  motor	
  and	
  horse	
  racing,	
  tennis,	
  cycling,	
  or	
  athletics)	
  
Emergency	
  services	
   Wireless	
  emergency	
  /	
  public	
  safety	
  alerts,	
  and	
  priority	
  push-­‐to-­‐talk	
  services	
  for	
  
the	
  emergency	
  services	
  
Software	
  distribution	
   Operating	
  system	
  /	
  firmware	
  /	
  application	
  updates	
  distributed	
  rapidly	
  and	
  
efficiently	
  to	
  users	
  
Digital	
  signage	
   Distribution	
  of	
  digital	
  signage	
  (video	
  advertising	
  posters)	
  locally,	
  regionally	
  or	
  
nationally	
  
Internet	
  of	
  Things	
  
systems	
  
Internet	
  of	
  Things	
  system	
  /	
  sensor	
  /	
  actuator	
  configuration,	
  including	
  for	
  smart	
  
meters	
  and	
  lighting	
  controls	
  
Commercial	
  content	
  
distribution	
  
Hotel,	
  theme	
  park,	
  airport	
  and	
  other	
  venue	
  content	
  distribution	
  (videos,	
  
presentations,	
  advertising,	
  maps	
  etc.)	
  to	
  user	
  devices	
  and	
  screens	
  within	
  venue	
  
Campus	
  content	
  
distribution	
  
Campus	
  content	
  distribution,	
  including	
  distribution	
  of	
  lecture	
  notes	
  to	
  students,	
  
or	
  corporate	
  information	
  to	
  staff	
  
Public	
  transport	
  info	
   Public	
  transport	
  information	
  (maps,	
  timetables,	
  alerts	
  etc.)	
  broadcast	
  live	
  across	
  
the	
  network	
  to	
  screens	
  and	
  consumers'	
  devices	
  
	
  
Understanding	
  which	
  of	
  these	
  services	
  has	
  the	
  greatest	
  potential	
  for	
  success	
  will	
  be	
  crucial	
  to	
  mobile	
  
operators.	
  The	
  GSA	
  tested	
  potential	
  for	
  success	
  in	
  two	
  ways.	
  	
  It	
  tested	
  the	
  appeal	
  of	
  a	
  number	
  of	
  
individual	
  services	
  and	
  bundles	
  of	
  services	
  with	
  members	
  of	
  the	
  GSA	
  community,	
  to	
  see	
  which	
  they	
  
thought	
  had	
  the	
  most	
  chance	
  of	
  success,	
  using	
  the	
  service	
  descriptions	
  provided	
  in	
  the	
  table	
  above.	
  
Respondents	
  were	
  asked	
  to	
  indicate	
  whether	
  they	
  thought	
  the	
  services	
  would	
  succeed	
  if	
  launched,	
  
or	
  would	
  not	
  succeed	
  even	
  if	
  launched.	
  The	
  survey	
  feedback	
  is	
  in	
  Figure	
  5.	
  
	
   	
  
 
	
  
Figure	
  5:	
  Likely	
  success	
  of	
  LTE	
  Broadcast	
  services	
  
	
  
Question	
  asked:	
  We	
  will	
  show	
  you	
  a	
  list	
  of	
  potential	
  applications	
  of	
  LTE	
  Broadcast	
  technology.	
  For	
  each	
  one,	
  
please	
  indicate	
  how	
  likely	
  you	
  think	
  the	
  service	
  is	
  to	
  succeed,	
  on	
  a	
  scale	
  of	
  1-­‐5,	
  where	
  	
  	
  1	
  =	
  “this	
  service	
  will	
  not	
  
succeed	
  at	
  all,	
  even	
  if	
  LTE	
  Broadcast	
  infrastructure	
  and	
  devices	
  are	
  in	
  place”,	
  and	
  	
  	
  5	
  =	
  “this	
  service	
  is	
  very	
  likely	
  
to	
  succeed”.	
  173	
  respondents	
  
With	
  the	
  exception	
  of	
  digital	
  signage,	
  all	
  services	
  tested	
  were	
  given	
  a	
  4	
  or	
  a	
  5	
  score	
  by	
  more	
  than	
  
half	
  the	
  respondents,	
  indicating	
  people	
  think	
  them	
  likely	
  or	
  very	
  likely	
  to	
  succeed.	
  There	
  was	
  no	
  
significant	
  difference	
  between	
  operators’	
  responses	
  and	
  those	
  from	
  other	
  industry	
  players.	
  
Some	
  of	
  the	
  concepts	
  were	
  also	
  tested	
  with	
  consumers	
  in	
  the	
  UK	
  (as	
  an	
  example	
  market),	
  to	
  gauge	
  
their	
  level	
  of	
  interest	
  in	
  using	
  such	
  services.	
  (Services	
  clearly	
  only	
  of	
  interest	
  to	
  business	
  users,	
  such	
  
as	
  Internet	
  of	
  Things-­‐related	
  applications,	
  were	
  not	
  tested.)	
  Respondents	
  were	
  given	
  service	
  
descriptions	
  and	
  asked	
  (inter	
  alia)	
  whether	
  they	
  would	
  use	
  them.	
  The	
  results	
  are	
  shown	
  in	
  Figure	
  6	
  
below.	
  
Although	
  they	
  are	
  not	
  directly	
  comparable,	
  it	
  is	
  interesting	
  to	
  note	
  the	
  differences	
  between	
  the	
  two	
  
sets	
  of	
  survey	
  results.	
  Sports	
  /	
  music	
  stadium	
  services	
  were	
  ranked	
  highest	
  in	
  terms	
  of	
  likelihood	
  of	
  
success	
  by	
  industry	
  survey	
  participants,	
  whilst	
  UK	
  consumers	
  indicated	
  that	
  the	
  service	
  they	
  would	
  
most	
  like	
  to	
  use	
  is	
  mobile	
  TV.	
  Content	
  pre-­‐distribution	
  was	
  also	
  popular	
  amongst	
  end	
  users.	
  
	
   	
  
 
	
  
Figure	
  6:	
  Interest	
  in	
  various	
  LTE	
  Broadcast	
  concepts.	
  Base	
  343	
  UK	
  mobile	
  users	
  	
  	
  	
  	
  	
  
	
  
	
  
Efficient	
  television	
  distribution	
  
It	
  is	
  important	
  to	
  note	
  that	
  network	
  operators	
  are	
  not	
  the	
  only	
  companies	
  investigating	
  the	
  potential	
  
of	
  eMBMS	
  to	
  distribute	
  content.	
  A	
  variety	
  of	
  broadcasters	
  have	
  also	
  started	
  to	
  explore	
  the	
  
capabilities	
  of	
  the	
  technology.	
  There	
  are	
  subtle	
  differences	
  in	
  their	
  motivations.	
  Network	
  operators	
  
are	
  looking	
  at	
  LTE	
  Broadcast	
  as	
  a	
  means	
  to	
  manage	
  the	
  cost	
  of	
  delivering	
  traffic	
  over	
  their	
  networks	
  
whilst	
  sustaining	
  quality	
  of	
  customer	
  experience,	
  and	
  as	
  a	
  means	
  of	
  developing	
  new	
  revenue	
  
generating	
  services.	
  Broadcasters	
  are	
  sometimes	
  simply	
  looking	
  at	
  eMBMS	
  as	
  a	
  new	
  method	
  for	
  
reaching	
  the	
  increasing	
  numbers	
  of	
  customers	
  that	
  are	
  accessing	
  their	
  content	
  via	
  mobile	
  devices.	
  
They	
  are	
  keen	
  to	
  ensure	
  quality	
  of	
  experience	
  for	
  those	
  end	
  users	
  viewing	
  their	
  services	
  over	
  
wireless	
  networks,	
  and	
  to	
  reach	
  the	
  biggest	
  possible	
  audience	
  with	
  their	
  content.	
  	
  
For	
  instance,	
  Germany’s	
  research	
  and	
  development	
  institute	
  for	
  broadcast	
  and	
  digital	
  media	
  
technology,	
  IRT	
  (which	
  is	
  owned	
  by	
  the	
  country’s	
  public	
  service	
  broadcasters)	
  and	
  the	
  Bavarian	
  
broadcaster	
  Bayerischer	
  Rundfunk	
  (an	
  associate	
  of	
  IRT)	
  are	
  exploring	
  the	
  potential	
  benefits	
  and	
  
drawbacks	
  of	
  eMBMS	
  for	
  broadcasters.	
  Germany	
  is	
  in	
  the	
  process	
  of	
  moving	
  its	
  free-­‐to-­‐air	
  
broadcasting	
  services	
  to	
  DVB-­‐T2,	
  and	
  the	
  DVB-­‐T2	
  networks	
  in	
  Germany	
  will	
  be	
  designed	
  for	
  portable	
  
reception	
  (including	
  some	
  use	
  in	
  cars).	
  Nevertheless,	
  the	
  broadcasters	
  are	
  seeing	
  on-­‐demand	
  
content	
  (which	
  requires	
  a	
  return	
  channel)	
  account	
  for	
  an	
  increasing	
  share	
  of	
  mobile	
  media	
  
consumption	
  and	
  they	
  are	
  considering	
  how	
  the	
  next	
  (post	
  DVB-­‐T2)	
  generation	
  of	
  broadcast	
  
networks	
  could	
  deliver	
  access	
  to	
  linear	
  and	
  non-­‐linear	
  media	
  services	
  on	
  the	
  move.	
  Moreover,	
  
unlocking	
  millions	
  of	
  smartphones	
  and	
  tablets	
  as	
  a	
  potential	
  receiver	
  for	
  broadcasting	
  content	
  is	
  
regarded	
  as	
  very	
  appealing.	
  	
  	
  
	
   	
  
 
	
  
Barriers	
  to	
  adoption	
  
Whilst	
  there	
  are	
  drivers	
  for	
  the	
  deployment	
  of	
  LTE	
  Broadcast,	
  there	
  are	
  also	
  a	
  number	
  of	
  barriers.	
  In	
  
the	
  GSA’s	
  survey	
  of	
  its	
  member	
  community,	
  respondents	
  were	
  asked	
  to	
  identify	
  the	
  most	
  important	
  
market	
  barriers	
  from	
  a	
  prompted	
  list,	
  identifying	
  the	
  top	
  three	
  in	
  order	
  of	
  importance.	
  Figure	
  7	
  
shows	
  the	
  counts	
  of	
  their	
  responses.	
  
The	
  results	
  show	
  that	
  there	
  is	
  still	
  work	
  to	
  be	
  done	
  to	
  make	
  the	
  business	
  case	
  for	
  deployment	
  of	
  LTE	
  
Broadcast;	
  that	
  issue	
  was	
  ranked	
  the	
  single	
  biggest	
  barrier,	
  and	
  as	
  a	
  top	
  three	
  barrier	
  by	
  the	
  most	
  
number	
  of	
  survey	
  respondents.	
  Second	
  was	
  the	
  lack	
  of	
  availability	
  of	
  eMBMS-­‐enabled	
  devices,	
  
followed	
  by	
  a	
  lack	
  of	
  media/content	
  partnerships.	
  
Although	
  industry	
  players	
  are	
  still	
  concerned	
  about	
  the	
  business	
  case	
  for	
  LTE	
  Broadcast,	
  we	
  would	
  
contend	
  that	
  these	
  barriers	
  are	
  in	
  the	
  process	
  of	
  being	
  overcome.	
  We	
  expect	
  that	
  trials	
  and	
  early	
  
deployments	
  will	
  show	
  that	
  there	
  is	
  a	
  case	
  for	
  LTE	
  deployment	
  on	
  a	
  wide	
  scale	
  (and	
  below	
  we	
  work	
  
through	
  a	
  generic	
  business	
  case	
  that	
  demonstrates	
  clear	
  potential).	
  
Figure	
  7:	
  Barriers	
  to	
  LTE	
  Broadcast	
  deployment	
  
	
  
Question	
  asked:	
  What	
  are	
  the	
  three	
  most	
  important	
  barriers	
  to	
  roll	
  out	
  of	
  LTE	
  Broadcast	
  infrastructure	
  and	
  
services?	
  Please	
  rank	
  three	
  only,	
  in	
  order.	
  173	
  respondents	
  
	
  
Device	
  availability	
  is	
  low,	
  but	
  is	
  expected	
  to	
  grow	
  in	
  the	
  coming	
  months.	
  Device	
  availability	
  is	
  
explored	
  further	
  in	
  the	
  section	
  below.	
  
Cost	
  of	
  infrastructure	
  deployment	
  is	
  a	
  concern.	
  Mobile	
  operators	
  are	
  comparing	
  the	
  costs	
  of	
  LTE	
  
Broadcast	
  with	
  the	
  costs	
  of	
  LTE	
  unicast	
  and	
  other	
  network	
  improvement	
  technologies	
  they	
  might	
  
deploy.	
  Broadcasters	
  are	
  comparing	
  the	
  costs	
  and	
  capabilities	
  of	
  LTE	
  Broadcast	
  not	
  with	
  LTE	
  unicast	
  
solutions,	
  but	
  with	
  alternative	
  broadcast	
  approaches.	
  	
  
 
	
  
Unavailability	
  /	
  maturity	
  of	
  network	
  technology	
  was	
  rated	
  overall	
  as	
  the	
  fourth	
  biggest	
  barrier	
  –	
  
again	
  a	
  barrier	
  that	
  is	
  steadily	
  being	
  overcome.	
  There	
  is	
  a	
  variety	
  of	
  network	
  technology	
  vendors	
  that	
  
now	
  offer	
  eMBMS	
  solutions.	
  
The	
  lack	
  of	
  media	
  partnerships	
  was	
  seen	
  as	
  an	
  issue	
  for	
  operators	
  planning	
  TV-­‐related	
  services.	
  
Many	
  of	
  the	
  LTE	
  Broadcast	
  business	
  cases	
  involve	
  commercial	
  participants	
  from	
  outside	
  the	
  mobile	
  
telecom	
  value	
  chain	
  including:	
  
• Content	
  producers	
  /	
  owners	
  (for	
  video	
  /	
  TV	
  broadcast-­‐based	
  services)	
  
• Sports	
  organisations	
  and	
  rights	
  owners	
  (for	
  stadium	
  and	
  sports	
  coverage	
  deals)	
  
• Software	
  developers	
  (for	
  the	
  LTE	
  Broadcast	
  software	
  upgrade	
  model).	
  
It	
  should	
  be	
  noted	
  that	
  there	
  are	
  a	
  great	
  many	
  telecoms	
  groups	
  worldwide	
  which	
  include	
  both	
  
mobile	
  operators	
  and	
  broadcasters	
  or	
  content	
  providers;	
  and	
  there	
  are	
  others	
  that	
  have	
  experience	
  
of	
  content	
  delivery	
  through	
  IPTV	
  or	
  cable	
  TV	
  businesses	
  they	
  operate.	
  	
  	
  
Device	
  availability	
  	
  
Device	
  availability	
  needs	
  to	
  improve	
  to	
  ensure	
  that	
  when	
  operators	
  launch	
  their	
  LTE	
  Broadcast	
  
services,	
  these	
  can	
  be	
  received	
  by	
  a	
  range	
  of	
  handsets	
  and	
  other	
  devices	
  (and	
  ideally	
  by	
  the	
  most	
  
popular	
  models).	
  	
  
In	
  order	
  to	
  be	
  LTE	
  Broadcast	
  compatible,	
  CPE	
  must	
  be	
  equipped	
  with	
  the	
  following:	
  
• LTE	
  Broadcast	
  capable	
  chipsets,	
  with	
  the	
  LTE	
  Broadcast	
  feature	
  turned	
  on	
  
• Middleware	
  to	
  support	
  the	
  applications	
  that	
  will	
  be	
  developed	
  to	
  use	
  LTE-­‐Broadcast.	
  The	
  
middleware	
  must	
  be	
  able	
  to	
  decode	
  and	
  display	
  the	
  received	
  broadcast	
  content	
  
• LTE	
  Broadcast	
  applications	
  themselves	
  
Initially	
  only	
  a	
  few	
  devices	
  were	
  available,	
  with	
  handset	
  companies	
  supplying	
  bespoke	
  batches	
  of	
  
test	
  handsets	
  and	
  tablets	
  that	
  could	
  be	
  used	
  in	
  trials	
  /	
  pilot	
  projects.	
  The	
  number	
  of	
  compatible	
  
devices	
  is	
  now	
  steadily	
  increasing.	
  	
  
The	
  availability	
  of	
  chipsets	
  supporting	
  eMBMS	
  is	
  not	
  now	
  a	
  problem	
  –	
  there	
  are	
  many	
  chipsets	
  
available	
  that	
  support	
  the	
  technology.	
  That	
  said,	
  there	
  are	
  significant	
  gaps.	
  It	
  is	
  also	
  important	
  to	
  
note	
  that	
  chipsets	
  are	
  not	
  all	
  created	
  equal.	
  Chipsets	
  must	
  be	
  able	
  to	
  support	
  the	
  full	
  range	
  of	
  
standardized	
  eMBMS	
  features.	
  Known	
  chipset	
  availability	
  from	
  the	
  leading	
  vendors	
  is	
  as	
  follows:	
  
Qualcomm	
  Technologies’	
  chipsets	
  and	
  its	
  LTE	
  Broadcast	
  middleware	
  solution	
  have	
  been	
  used	
  in	
  
many	
  of	
  the	
  operator	
  trials	
  that	
  have	
  taken	
  place.	
  Qualcomm	
  reports	
  that	
  all	
  its	
  latest	
  Snapdragon	
  	
  
modems	
  (the	
  X5	
  class	
  including	
  the	
  Snapdragon	
  210,	
  212,	
  412,	
  415,	
  616	
  and	
  X5	
  LTE	
  Modem;	
  the	
  X6	
  
class	
  including	
  the	
  Snapdragon	
  430;	
  the	
  X7	
  class	
  including	
  the	
  Snapdragon	
  X7	
  LTE	
  Modem;	
  the	
  X8	
  
class	
  including	
  the	
  Snapdragon	
  617,	
  618	
  and	
  620	
  processors;	
  the	
  X10	
  including	
  the	
  Snapdragon	
  808	
  
and	
  810	
  processors;	
  and	
  the	
  X12	
  modem	
  class	
  including	
  the	
  X12	
  LTE	
  modem	
  and	
  Snapdragon	
  820	
  
processor)	
  are	
  now	
  technically	
  capable	
  of	
  supporting	
  LTE	
  Broadcast	
  services.	
  These	
  processors	
  are	
  
contained	
  in	
  a	
  large	
  number	
  of	
  devices.	
  	
  
Sequans	
  also	
  supports	
  LTE	
  Broadcast.	
  Sequans	
  reports	
  that	
  its	
  VZ22M	
  EZLinkLTE	
  modules	
  (designed	
  
for	
  tablets,	
  notebooks,	
  laptops	
  and	
  other	
  portable	
  computers)	
  support	
  eMBMS.	
  Its	
  VZ22Q	
  EZlinkLTE	
  
 
	
  
module	
  (designed	
  for	
  adding	
  LTE	
  to	
  M2M	
  and	
  connected	
  consumer	
  electronics	
  devices)	
  also	
  offers	
  
eMBMS	
  support.	
  Both	
  have	
  been	
  certified	
  for	
  deployment	
  in	
  the	
  Verizon	
  network.	
  	
  
In	
  addition,	
  the	
  company’s	
  Cassiopeia	
  LTE-­‐Advanced	
  chipset	
  solution	
  supports	
  eMBMS	
  (and	
  has	
  
been	
  deployed	
  in	
  CPE	
  being	
  used	
  by	
  Linkem	
  in	
  its	
  new	
  LTE	
  network	
  in	
  Italy),	
  as	
  does	
  its	
  Mont	
  Blanc	
  
LTE	
  platform	
  (used	
  in	
  Orange’s	
  trials	
  in	
  France,	
  and	
  Verizon’s	
  trials	
  in	
  the	
  U.S.).	
  
Sequans	
  says	
  its	
  EZLinkLTE	
  modules	
  support	
  all	
  major	
  operating	
  systems,	
  including	
  Android,	
  
Windows,	
  Linux,	
  and	
  Google	
  Chrome.	
  
Altair’s	
  FourGee-­‐3800/6300	
  chipset	
  supports	
  eMBMS,	
  and	
  is,	
  according	
  to	
  the	
  company,	
  suitable	
  for	
  
deployment	
  in	
  most	
  types	
  of	
  device.	
  	
  It	
  has	
  been	
  working	
  with	
  middleware	
  provider	
  Roundbox	
  to	
  
deliver	
  a	
  package	
  of	
  interoperable	
  LTE	
  Broadcast	
  eMBMS	
  chipsets	
  and	
  device	
  software.	
  	
  
Intel	
  demonstrated	
  a	
  platform	
  running	
  Expway’s	
  eMBMS	
  middleware	
  on	
  its	
  Intel	
  XMM	
  7160	
  modem	
  
at	
  MWC	
  2014.	
  It	
  currently	
  lists	
  three	
  4G	
  LTE	
  platforms	
  as	
  eMBMS	
  compatible.	
  These	
  are	
  the	
  XMM	
  
7260,	
  the	
  XMM7262,	
  and	
  its	
  newly	
  launched	
  XMM	
  7360.	
  The	
  first	
  devices	
  based	
  on	
  the	
  XMM7360	
  
are	
  expected	
  before	
  the	
  end	
  of	
  2015.	
  	
  
Marvell’s	
  ARMADA	
  mobile	
  platforms,	
  including	
  the	
  PXA1802,	
  PXA1920,	
  PXA1928,	
  PXA1908	
  and	
  
PXA1936	
  have	
  all	
  been	
  enhanced	
  to	
  support	
  eMBMS	
  technology.	
  Its	
  PXA1918	
  has	
  also	
  been	
  
introduced	
  with	
  eMBMS	
  support.	
  Marvell	
  has	
  demonstrated	
  the	
  interoperability	
  of	
  its	
  chipsets	
  with	
  
Expway’s	
  middleware.	
  
GCT	
  lists	
  several	
  modems	
  that	
  support	
  eMBMS:	
  the	
  GDM7243Q:	
  Advanced	
  FDD-­‐TDD	
  LTE	
  Cat.	
  5/6/7;	
  
the	
  GDM7243M:	
  Multi-­‐Mode	
  FDD-­‐TDD	
  LTE	
  +	
  WiMAX	
  devices;	
  and	
  the	
  GDM7243S:	
  FDD-­‐TDD	
  LTE,	
  
Cat.	
  4.	
  
All	
  of	
  these	
  vendors	
  have	
  announced	
  the	
  launch	
  of	
  devices	
  containing	
  their	
  chipsets.	
  A	
  full	
  list	
  is	
  
contained	
  in	
  the	
  table	
  in	
  Annex	
  A.	
  
Middleware	
  is	
  also	
  available	
  for	
  most	
  of	
  these	
  chipsets.	
  For	
  instance,	
  Expway	
  reports	
  that	
  its	
  eMBMS	
  
middleware	
  supports	
  chipsets	
  from	
  Altair,	
  Intel,	
  Marvell,	
  Qualcomm	
  and	
  Sequans,	
  and	
  we	
  are	
  aware	
  
of	
  at	
  least	
  25	
  devices	
  that	
  have	
  been	
  tested	
  /	
  certified	
  /	
  trialled	
  with	
  Expway	
  middleware.	
  Expway’s	
  
middleware	
  runs	
  on	
  a	
  variety	
  of	
  operating	
  systems	
  including	
  Android,	
  Linus,	
  iOS	
  and	
  Windows.	
  
Meanwhile,	
  Qualcomm	
  provides	
  its	
  own	
  eMBMS	
  middleware	
  and	
  SDK	
  and	
  states	
  that	
  it	
  has	
  rolled	
  
this	
  out	
  to	
  support	
  all	
  of	
  its	
  eMBMS	
  compatible	
  chipsets.	
  	
  
Even	
  if	
  a	
  device	
  has	
  a	
  compatible	
  chipset	
  and	
  has	
  been	
  demonstrated	
  with,	
  or	
  certified	
  as	
  
compatible	
  with	
  LTE	
  Broadcast	
  middleware,	
  it	
  still	
  needs	
  to	
  be	
  eMBMS-­‐enabled.	
  This	
  is	
  starting	
  to	
  
happen,	
  often	
  with	
  devices	
  enabled	
  for	
  eMBMS	
  via	
  a	
  software/firmware	
  upgrade	
  following	
  service	
  
launch.	
  
One	
  operator	
  we	
  spoke	
  to	
  stated	
  that	
  it	
  was	
  aware	
  of	
  20	
  compatible	
  devices,	
  that	
  14	
  of	
  them	
  were	
  
being	
  used	
  in	
  its	
  network	
  and	
  were	
  all	
  capable	
  of	
  firmware	
  upgrade	
  to	
  support	
  eMBMS.	
  It	
  said	
  three	
  
of	
  those	
  were	
  already	
  present	
  in	
  sufficient	
  volumes	
  to	
  justify	
  that	
  firmware	
  upgrade.	
  
 
	
  
Separately	
  we	
  understand	
  that	
  Verizon	
  has	
  certified	
  at	
  least	
  ten	
  eMBMS	
  compatible	
  devices	
  for	
  use	
  
on	
  its	
  network,	
  with	
  around	
  five	
  more	
  due	
  before	
  the	
  end	
  of	
  2015.	
  The	
  company	
  has	
  enabled	
  the	
  
use	
  of	
  a	
  variety	
  of	
  these	
  devices	
  for	
  eMBMS	
  via	
  software	
  upgrades.	
  
Our	
  research	
  has	
  identified	
  97	
  devices	
  in	
  a	
  variety	
  of	
  form	
  factors	
  that	
  have	
  either	
  been	
  used	
  in	
  
demonstrations	
  or	
  trials	
  (some	
  of	
  them	
  customised	
  specifically	
  for	
  the	
  trial),	
  or	
  are	
  being	
  sold	
  with	
  
eMBMS	
  compatible	
  chipsets	
  and	
  so	
  could	
  be	
  used	
  to	
  provide	
  services.	
  Of	
  those,	
  63	
  devices	
  have	
  
been	
  identified	
  as	
  having	
  been	
  demonstrated	
  with	
  or	
  certified	
  as	
  compatible	
  with	
  commercially	
  
available	
  eMBMS	
  middleware.	
  
One	
  notable	
  absence	
  from	
  the	
  LTE	
  Broadcast	
  community	
  is	
  Apple.	
  Apple	
  is	
  generally	
  perceived	
  to	
  be	
  
a	
  crucial	
  player	
  as	
  far	
  as	
  the	
  success	
  prospects	
  of	
  LTE	
  Broadcast	
  is	
  concerned.	
  We	
  understand	
  from	
  
operator	
  sources	
  that	
  Apple	
  has	
  so	
  far	
  shown	
  no	
  clear	
  interest	
  in	
  enabling	
  eMBMS	
  in	
  its	
  devices.	
  Nor	
  
has	
  it	
  confirmed	
  to	
  the	
  GSA	
  whether	
  it	
  plans	
  to	
  enable	
  eMBMS	
  in	
  its	
  handsets.	
  	
  
The	
  device	
  availability	
  barrier	
  could	
  relatively	
  easily	
  be	
  overcome	
  by	
  the	
  vendor	
  community.	
  When	
  
asked	
  What	
  device	
  penetration	
  must	
  eMBMS	
  achieve	
  in	
  order	
  for	
  operators	
  to	
  seriously	
  consider	
  
introducing	
  LTE	
  Broadcast	
  services?	
  respondents	
  to	
  the	
  survey	
  of	
  GSA	
  community	
  readers	
  generally	
  
indicated	
  they	
  thought	
  between	
  10%	
  and	
  50%	
  device	
  penetration	
  is	
  needed	
  before	
  operators	
  can	
  
consider	
  launching	
  services,	
  with	
  the	
  10%	
  to	
  25%	
  range	
  getting	
  the	
  most	
  responses.	
  The	
  average	
  of	
  
the	
  penetration	
  scores	
  indicated	
  was	
  just	
  under	
  30%.	
  	
  	
  
Figure	
  8:	
  LTE	
  Broadcast	
  device	
  penetration	
  requirements	
  
	
  
Question	
  asked:	
  What	
  device	
  penetration	
  must	
  eMBMS	
  achieve	
  in	
  order	
  for	
  operators	
  to	
  
seriously	
  consider	
  introducing	
  LTE	
  Broadcast	
  services?	
  Base	
  123	
  respondents	
  
Given	
  device	
  churn	
  rates	
  (on	
  average	
  as	
  frequent	
  as	
  once	
  every	
  two	
  years	
  in	
  some	
  markets,	
  with	
  
many	
  customers	
  changing	
  device	
  every	
  year),	
  this	
  would	
  not	
  take	
  long	
  to	
  achieve	
  if	
  there	
  is	
  a	
  good	
  
range	
  of	
  compatible	
  devices	
  to	
  offer	
  customers.	
  Going	
  forward	
  we	
  expect	
  more	
  vendors	
  to	
  enable	
  
their	
  devices	
  for	
  eMBMS	
  at	
  the	
  request	
  of	
  network	
  operators.	
  For	
  many	
  existing	
  smartphones,	
  
eMBMS	
  can	
  be	
  enabled	
  through	
  an	
  operating	
  system	
  firmware	
  upgrade.	
  	
  
One	
  issue	
  that	
  must	
  be	
  considered	
  is	
  spectrum	
  band	
  support,	
  though.	
  Devices	
  that	
  have	
  been	
  made	
  
available	
  to	
  support	
  KT’s	
  service	
  in	
  Korea	
  are	
  not	
  usable	
  in	
  Western	
  markets	
  because	
  they	
  support	
  
spectrum	
  bands	
  that	
  will	
  not	
  be	
  used	
  by	
  operators	
  in	
  the	
  West	
  to	
  provide	
  LTE	
  Broadcast	
  services.	
  
 
	
  
Nonetheless,	
  in	
  many	
  cases	
  we	
  regard	
  the	
  main	
  barrier	
  to	
  introduction	
  of	
  eMBMS-­‐capable	
  devices	
  to	
  
be	
  an	
  economic	
  one.	
  Either	
  the	
  operator	
  or	
  the	
  device	
  vendor	
  must	
  decide	
  it	
  is	
  worth	
  the	
  cost	
  to	
  
activate	
  the	
  capability	
  in	
  the	
  chipsets	
  and	
  to	
  deploy	
  the	
  middleware.	
  	
  
Network	
  upgrade	
  requirements	
  
Operators	
  planning	
  to	
  deploy	
  LTE	
  Broadcast	
  in	
  their	
  network	
  will	
  need	
  to	
  make	
  some	
  technical	
  
adjustments	
  to	
  their	
  networks	
  to	
  enable	
  services.	
  Figure	
  9	
  depicts	
  the	
  key	
  network	
  elements	
  
required	
  to	
  deliver	
  LTE	
  Broadcast	
  services.	
  
	
  
Figure	
  9:	
  LTE	
  Broadcast	
  network	
  infrastructure	
  
	
  
The	
  key	
  elements	
  are:	
  
• Content	
  encoders	
  /	
  transcoders.	
  While	
  not	
  critical	
  if	
  appropriately	
  encoded	
  content	
  is	
  
sourced	
  from	
  third	
  parties,	
  generally	
  speaking	
  content	
  will	
  need	
  to	
  be	
  encoded	
  using	
  H.265,	
  
or	
  when	
  it	
  is	
  introduced	
  in	
  networks,	
  HVEC,	
  to	
  ensure	
  the	
  content	
  is	
  sufficiently	
  compressed.	
  
Better	
  compression	
  means	
  less	
  bandwidth	
  and	
  spectrum	
  is	
  needed	
  to	
  deliver	
  the	
  service	
  (or	
  
more	
  can	
  be	
  delivered	
  using	
  the	
  same	
  spectrum).	
  
• Ericsson	
  reported	
  that	
  trials	
  with	
  Telstra	
  showed	
  HVEC	
  reduced	
  bandwidth	
  required	
  to	
  
deliver	
  high	
  quality	
  video	
  by	
  30-­‐40%	
  compared	
  with	
  MPEG-­‐4	
  AVC	
  coding.	
  	
  
• Streamed	
  video	
  would	
  need	
  to	
  use	
  MPEG-­‐DASH	
  (the	
  standard	
  for	
  Dynamic	
  Adaptive	
  
Streaming	
  over	
  HTTP),	
  which	
  is	
  standardized	
  for	
  eMBMS	
  live	
  streaming.	
  	
  
• Synchronization	
  -­‐	
  required	
  in	
  order	
  that	
  cells	
  forming	
  part	
  of	
  the	
  same	
  MBSFN	
  Area	
  can	
  
broadcast	
  in	
  a	
  synchronized	
  fashion.	
  
• MBMS	
  Coordination	
  Entity	
  (MBMS	
  CE)	
  –	
  schedules	
  resources,	
  allocating	
  time	
  and	
  frequency	
  
to	
  eMBMS.	
  Manages	
  eMBMS	
  session	
  admission.	
  This	
  function	
  is	
  located	
  in	
  the	
  eNodeBs	
  and	
  
will	
  require	
  either	
  a	
  software	
  or	
  hardware	
  upgrade.	
  
• Broadcast	
  Multicast	
  Service	
  Centre	
  (BM-­‐SC)	
  –	
  manages	
  functions	
  such	
  as	
  authentication,	
  
authorization,	
  and	
  content	
  packaging	
  for	
  transport	
  (using	
  FLUTE),	
  content	
  synchronization	
  
and	
  application	
  layer	
  forward	
  error	
  correction.	
  	
  
• Multimedia	
  Broadcast	
  Gateway	
  (MBMS	
  Gateway)	
  –	
  delivers	
  content	
  to	
  the	
  relevant	
  
eNodeBs	
  for	
  broadcasting,	
  and	
  manages	
  E-­‐UTRAN	
  session	
  control	
  signalling	
  (via	
  the	
  MME).	
  
	
   	
  
 
	
  
Timelines	
  for	
  adoption	
  
Numerous	
  operators	
  have	
  now	
  completed	
  trials	
  of	
  eMBMS	
  in	
  live	
  networks,	
  with	
  live	
  customers.	
  
Most	
  trials	
  have	
  been	
  technical	
  in	
  nature,	
  rather	
  than	
  commercial.	
  The	
  table	
  below	
  lists	
  the	
  known	
  
trials.	
  Where	
  cells	
  are	
  blank,	
  we	
  have	
  no	
  information.	
  
Figure	
  10:	
  Operator	
  trials	
  of	
  LTE	
  Broadcast	
  	
  
Participants Details
Lead
operator /
broadcaster
Vendors and
others
Country Date Trial data
3 Samsung UK Technical trials in Maidenhead UK	
  
AT&T Ericsson,
Qualcomm
(middleware),
ESPN,
MobiTV
(streaming
app),
Samsung
(handsets)
US Jan
2015
Feb
2015
Trials in Texas of live football game
offering extra content feeds with new
camera angles and bonus content. Trial
aimed at minimizing network congestion	
  
	
  
Trial at SuperBowl 2015 involving 40 LTE
Broadcast enabled Samsung Galaxy Note
3 Android smartphones. 5MHz per cell
reserved for delivery of three channels	
  
Bayerischer
Rundfunk,
IRT
Nokia Germany July
2014
Trial in Munich broadcasting content over
a 200 km
2
area using Nokia Flexi
Multiradio 10 base stations deployed at
four sites	
  
Bell
Mobility
Expway Canada
China
Mobile
Huawei,
Expway
Ericsson,
Qualcomm
China
Hong Kong
Feb
2013
Sept
2014
Demonstrated at MWC
Demonstrated at LTE Summit	
  
China
Telecom
Huawei, ZTE,
Expway
China Aug
2014
Pre-commercial trial at the 2014 Summer
Youth Olympic Games (YOG). The service
provided live feeds to the YOG Control
Centre and the temporary business hall in
the Youth Olympic Village, as well as
Hohai University campus and Nanjing
University of Posts and Telecoms campus,
in Nanjing. In addition, China Telecom
made 18,000 Huawei C8817 eMBMS-
enabled device units available to YOG
service volunteers so that they could watch
HD YOG games on their mobile terminals
anytime, anywhere, and free of charge
China
Telecom
(Wuxi
Telecom)
ZTE China Nov
2014
Wuxi Telecom has launched eMBMS at
Jiangnan University, Wuxi Business and
Vocational School, and Wuxi Technology
Institute (New District). On-site tests
showed that the network could deliver
high-quality mobile videos, and IP RAN
multicast services to a reliable millisecond
level	
  
EE BBC,
Qualcomm,
Huawei, plus
UK May
2014
and May
Technical trial at Commonwealth Games,
with content from three Commonwealth
Games events. Games shown live in
 
	
  
EVS and
Intellicore (FA
Cup trial),
Expway
2015 Glasgow’s Science Centre on handsets,
and live broadcast streams sent to trial
handsets running the BBC’s iPlayer
application
FA Cup Final - one broadcast stream of
live footage, and others to show multiple
camera angles and replays – to tablets
Etisalat Alcatel Lucent UAE Mar
2014
Known to have trialled. Alcatel Lucent
network deployment contract deal reported
to include capability for eMBMS 	
  
Globe
Telecom
Huawei Philippines Sept
2014
Demonstrated the technology at the Globe
Innovation Forum	
  
RAI, TDF Expway,
GatesAir,
Nokia
France and
Italy
April
2015
Trial to test convergence potential of
eMBMS with DVB. Two data streams in
the trials in France and Italy share the
same UHF channel using time division
multiplexing. One carries conventional
DVB broadcast for TVs, and the other
carries LTE broadcast signals for
smartphones, laptops and tablets. The
French trial (at the Eiffel Tower) is testing
pre-download of popular content to
mobiles; the Italian trial (in the Aosta
Valley) is testing mobile video streaming
(four channels with HVEC coding)
KPN Ericsson,
Samsung,
IBM,
Amsterdam
Arena
NL May
2014
Football match in Amsterdam,
Netherlands, between Ajax and NEC
KT Samsung,
Expway
Nokia
Korea
Germany
Feb
2013
Nov
2015
Demonstrated at MWC
Demonstrated at Nokia Research Center
in Germany their jointly developed ultra-
low latency (<1s delay) delivery of HD
video from camera to smartphone over
eMBMS.	
  
Megafon Huawei Russia Sept
2014
Laboratory technical testing	
  
Meo Huawei Portugal 	
  
MTS Ericsson,
Qualcomm
Russia 2015 Technical trial: several channels of video
content delivered to smartphones in
Russia from distribution centre in Germany
Orange Alcatel Lucent,
Samsung,
Expway,
Sequans,
Qualcomm
France May /
June
2014
French Open tennis. Four live channels at
2.5 Mbit/s in 6MHz of downlink capacity (in
the 2.6GHz band)
Demonstration tablets were used, running
Expway middleware on Sequans chipsets
PCCW
(CSL)
Huawei Hong Kong Internal tests
Trial at the Hong Kong Rugby Sevens
Polkomtel
Plus
Ericsson,
Samsung,
Polsat
Poland Sept
2014
Four channels showing different camera
angles delivered throughout the stadium to
300 devices during the Men’s Volleyball
championship in Warsaw
RJIL Samsung,
Expway,
Marvell
India RJIL is using Expway’s LTE Broadcast
middleware for TV and push VOD, and
traditional LTE for fixed and mobile voice,
 
	
  
as well as for Internet	
  
Singtel Ericsson Singapore June
2015
Trial at 28th South East Asian (SEA)
Games designed to demonstrate
commercial viability for businesses.
Multiple mobile devices ran the Singtel TV
GO app, displaying live broadcasts of
sporting events.	
  The demonstration also
presented drone videography of the men’s
and women’s 500m 12-crew traditional
boat race - the aerial footage was uplinked
through Singtel’s high-speed LTE network
and streamed to the mobile devices using
LTE Broadcast technology	
  
SK Telecom Nokia Korea Oct
2015
Reported to be co-developing an eMBMS
solution for disaster communications
Smart
Communica
tions
Huawei
Also in Feb 14
TV5, Cignal
Digital TV
Philippines Nov
2013,
then
Feb
2014
In Nov 2013 multicast preloaded videos via
LTE stations to ten LTE tablets.
In Feb 2014 tested live feeds of performing
bands and two live TV channels, at a
music concert delivered to demo LTE
tablets	
  
Smartfren Indonesia Dec
2015
Trial planned
Telecom
Italia Mobile
Huawei,
Expway
Ericsson, RAI,
Samsung,
Qualcomm
Italy April
2015
October
2015
Live streaming via tablets to supporters of
an AC Milan football match, of three
matches taking place elsewhere
At Expo 2015, a live broadcast of concert
music (at a definition of 4K), plus streamed
music channels and on-demand TV,
across the whole exhibition area to
selected trial users with mobile phones. A
second demonstration involving RAI
occurred at the end of the show
Telstra Ericsson,
Expway
Australia Jan
2014 &
2015
Three high-quality, live-video feeds
offering live coverage, highlights and
statistics delivered to multiple users at the
Melbourne Cricket Ground
Additional trials at a racing carnival in 2014
and various sporting finals in 2015.
T-Mobile Huawei Germany 	
  
Verizon Ericsson,
Qualcomm,
Samsung and
MobiTV, D-
Link, Altair and
Roundbox
Expway
US 2014
and
2015
Demonstrated LTE Multicast at NFL stadia
(for the Super Bowl 2014) and at Indy Car
race tracks. Has also demonstrated
operated LTE Multicast for M2M (digital
signage at CTIA 2014 and MWC 2015)
and for distribution of software updates
and in-car entertainment to car fleets (with
Visteon) at CES and MWC 2015.
Vivo Expway Brazil
Vodafone Expway Portugal
Vodafone Huawei,
Valencia CF,
Quickplay,
Thomson
Video
Networks
Spain June
2015
Five HD format channels of content from
the game broadcast at a football match
including a live content feed, 3D
recreations of the game in real-time, stats
channel, fan recordings uploaded at the
event, and a social channel for tweets,
photos and comments
 
	
  
Vodafone Ericsson,
Qualcomm,
Samsung
Huawei
Germany Feb
2014
July
2014
LTE Broadcast test at Borussia
Mönchengladbach football match in
Germany
Live broadcasting of the Kieler Woche
sailing event using two DBS3900
distributed base stations; signal broadcast
to smartphones and tablets held by
audience members
	
  
We	
  can	
  expect	
  further	
  trials	
  in	
  the	
  future.	
  Our	
  survey	
  of	
  the	
  GSA	
  community	
  showed	
  that	
  many	
  
operators	
  are	
  planning	
  to	
  test	
  eMBMS.	
  33%	
  of	
  the	
  network	
  operators	
  that	
  answered	
  a	
  question	
  
about	
  their	
  intentions	
  stated	
  that	
  they	
  were	
  trialling	
  now,	
  or	
  would	
  trial	
  eMBMS	
  within	
  a	
  year.	
  Over	
  
50%	
  plan	
  to	
  run	
  trials	
  within	
  two	
  to	
  three	
  years.	
  Over	
  10%	
  indicated	
  they	
  have	
  deployed	
  eMBMS	
  or	
  
have	
  plans	
  to	
  deploy	
  within	
  the	
  year.	
  
Figure	
  11:	
  eMBMS	
  -­‐	
  operator	
  trial	
  and	
  launch	
  plans	
  
	
  
Question	
  asked:	
  How	
  advanced	
  is	
  your	
  planning	
  for	
  LTE	
  Broadcast	
  infrastructure	
  rollout?	
  51	
  respondents	
  
	
  
Even	
  amongst	
  those	
  operators	
  without	
  definite	
  deployment	
  plans,	
  there	
  is	
  a	
  general	
  optimism	
  about	
  
the	
  likelihood	
  of	
  service	
  introduction.	
  As	
  Figure	
  12	
  shows,	
  nearly	
  40%	
  of	
  those	
  who	
  answered	
  the	
  
question	
  said	
  they	
  expected	
  to	
  launch	
  services	
  within	
  the	
  next	
  two	
  years,	
  and	
  60%	
  of	
  them	
  within	
  
three	
  years.	
  	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
Figure	
  12:	
  eMBMS	
  -­‐	
  operator	
  launch	
  plans	
  
	
  
Question	
  asked:	
  What	
  is	
  your	
  best	
  estimate	
  of	
  when	
  LTE	
  Broadcast	
  services	
  might	
  start	
  on	
  your	
  network?	
  
Choose	
  the	
  answer	
  that	
  fits	
  best.	
  53	
  respondents	
  
	
  
A	
  select	
  few	
  operators	
  have	
  gone	
  further	
  and	
  committed	
  to	
  commercial	
  launches	
  of	
  eMBMS.	
  We	
  
believe	
  that	
  two	
  operators	
  have	
  now	
  launched	
  services	
  (KT	
  in	
  Korea	
  and	
  Verizon	
  in	
  the	
  U.S.).	
  Figure	
  
13	
  below	
  shows	
  operators’	
  publicly	
  announced	
  commitments	
  and	
  launches.	
  Our	
  research	
  suggests	
  
there	
  are	
  two	
  other	
  networks	
  with	
  eMBMS	
  deployed	
  but	
  not	
  announced	
  (and	
  hence	
  not	
  listed	
  in	
  the	
  
table	
  below);	
  one	
  of	
  which	
  is	
  understood	
  to	
  be	
  planning	
  to	
  launch	
  commercial	
  services	
  soon.	
  
Figure	
  13:	
  LTE	
  Broadcast	
  -­‐	
  operator	
  launches	
  and	
  launch	
  commitments	
  
Operator	
   Country	
   Timetable	
  and	
  details	
  
KT	
   Korea	
   Live.	
  Launched	
  services	
  in	
  Jan	
  2014.	
  Provides	
  Olleh	
  Mobile	
  TV	
  
services	
  (including	
  two	
  channels	
  of	
  HD	
  TV	
  plus	
  on	
  demand	
  TV)	
  
within	
  larger	
  bundles	
  mobile	
  subscription	
  bundles.	
  
Samsung	
  provides	
  a	
  dynamic	
  cell	
  activation	
  algorithm	
  which	
  
emulates	
  what	
  the	
  MOOD	
  standard	
  is	
  ultimately	
  expected	
  to	
  
provide.	
  Delivered	
  on	
  Galaxy	
  Note	
  3	
  
Telstra	
   Australia	
   Planned.	
  Launch	
  during	
  2015;	
  Ericsson	
  technology	
  being	
  
progressively	
  deployed	
  in	
  Telstra’s	
  network	
  
EE	
   UK	
   Planned.	
  Technology	
  deployment	
  planned	
  for	
  2016	
  
Globe	
  Telecom	
   Philippines	
   Planned.	
  Expected	
  to	
  be	
  commercially	
  available	
  in	
  selected	
  
areas	
  within	
  2015	
  
Verizon	
   U.S	
   Launched	
  its	
  Go90	
  service	
  in	
  September	
  2015.	
  This	
  supports	
  
eMBMS	
  (as	
  did	
  Verizon’s	
  Indy	
  Car	
  2015	
  application),	
  although	
  
we	
  understand	
  it	
  does	
  not	
  always	
  use	
  it.	
  Devices	
  are	
  available	
  
commercially	
  from	
  Verizon	
  with	
  eMBMS	
  support	
  
China	
  Telecom	
   China	
   Planned	
  service	
  launch	
  in	
  2015	
  	
  
AT&T	
   U.S.	
   Planned	
  service	
  launch	
  in	
  2015	
  
	
  
 
	
  
Quickplay,	
  a	
  distributor	
  of	
  linear	
  OTT	
  TV	
  with	
  a	
  reach	
  of	
  over	
  a	
  billion	
  viewers,	
  and	
  which	
  has	
  
introduced	
  multiscreen	
  video	
  services	
  for	
  AT&T,	
  Rogers,	
  Singtel,	
  Telus,	
  and	
  Verizon,	
  has	
  also	
  
announced	
  support	
  for	
  LTE	
  Broadcast.	
  It	
  recently	
  acquired	
  Roundbox,	
  a	
  provider	
  of	
  TV	
  delivery	
  
software	
  including	
  eMBMS	
  middleware	
  (its	
  Roundbox	
  Client	
  for	
  4G	
  LTE	
  Broadcast).	
  
The	
  operators	
  that	
  have	
  run	
  trials,	
  and	
  those	
  that	
  have	
  introduced	
  services,	
  have	
  all	
  been	
  using	
  
different	
  spectrum	
  bands.	
  They	
  have	
  of	
  course	
  been	
  influenced	
  by	
  the	
  spectrum	
  assets	
  they	
  already	
  
own.	
  For	
  instance	
  Plus	
  Poland	
  has	
  been	
  using	
  spectrum	
  at	
  1800MHz.	
  Smart’s	
  trials	
  in	
  the	
  Philippines	
  
have	
  been	
  run	
  at	
  2.1GHz.	
  Nokia’s	
  trials	
  with	
  the	
  Bavarian	
  company	
  Bayerischer	
  Rundfunk	
  used	
  part	
  
of	
  the	
  700MHz	
  band	
  (Band	
  28)	
  which	
  is	
  not	
  yet	
  used	
  by	
  Germany	
  mobile	
  operators	
  for	
  LTE.	
  Some	
  
operators	
  have	
  used	
  FDD	
  and	
  some	
  TDD	
  frequency.	
  Some	
  operators	
  and	
  vendors	
  are	
  pressing	
  for	
  
the	
  next	
  wave	
  of	
  digital	
  dividend	
  spectrum	
  to	
  be	
  set	
  aside	
  for	
  LTE	
  Broadcast.	
  	
  
Forecasts	
  for	
  service	
  availability	
  
Based	
  on	
  interviews	
  with	
  operators	
  and	
  vendors,	
  public	
  statements	
  about	
  deployment	
  plans,	
  and	
  
research	
  with	
  members	
  of	
  the	
  GSA	
  readership,	
  we	
  have	
  forecast	
  the	
  availability	
  of	
  LTE	
  Broadcast	
  
services.	
  	
  
Figure	
  14:	
  Forecasts	
  for	
  global	
  LTE	
  Broadcast	
  subscriber	
  coverage	
  
	
  
By	
  the	
  end	
  of	
  2020	
  we	
  expected	
  LTE	
  Broadcast	
  coverage	
  (i.e.	
  the	
  number	
  of	
  people	
  with	
  access	
  to	
  
LTE	
  Broadcast	
  services	
  within	
  some	
  locations	
  in	
  their	
  country)	
  to	
  be	
  reaching	
  nearly	
  2	
  billion	
  people.	
  
This	
  does	
  not	
  match	
  geographic	
  coverage	
  –	
  which	
  will	
  be	
  much	
  lower	
  than	
  that	
  for	
  other	
  LTE	
  
services	
  because	
  LTE	
  Broadcast	
  is	
  unlikely	
  in	
  the	
  near	
  future	
  to	
  be	
  deployed	
  across	
  most	
  or	
  all	
  of	
  any	
  
given	
  network.	
  It	
  will	
  be	
  deployed	
  where	
  the	
  need	
  is	
  greatest,	
  or	
  where	
  users	
  are	
  most	
  found	
  (i.e.	
  it	
  
will	
  be	
  deployed	
  in	
  those	
  cells	
  for	
  which	
  it	
  makes	
  economic	
  sense).	
  
Evidence	
  from	
  our	
  research	
  suggests	
  there	
  will	
  be	
  a	
  small	
  number	
  of	
  anchor	
  business	
  cases	
  for	
  the	
  
deployment	
  of	
  LTE	
  Broadcast.	
  In	
  most	
  markets	
  these	
  will	
  be:	
  
• ‘Stadium’	
  services	
  
• Mobile	
  TV	
  services	
  (linear	
  and	
  live)	
  
• Pre-­‐download	
  content	
  services.	
  
 
	
  
In	
  selected	
  instances	
  emergency	
  service	
  network	
  projects	
  are	
  expected	
  to	
  drive	
  initial	
  deployments.	
  	
  
Once	
  LTE	
  Broadcast	
  has	
  been	
  deployed	
  in	
  an	
  area	
  to	
  support	
  one	
  service,	
  the	
  business	
  case	
  for	
  
deploying	
  additional	
  services	
  will	
  be	
  much	
  easier	
  to	
  prove,	
  so	
  we	
  anticipate	
  multiple	
  LTE	
  Broadcast	
  
service	
  types	
  to	
  emerge	
  in	
  activated	
  networks.	
  
Forecasts	
  for	
  global	
  service	
  provider	
  revenue	
  
The	
  following	
  section	
  provides	
  forecasts	
  for	
  potential	
  global	
  revenue	
  from	
  a	
  number	
  of	
  LTE	
  
Broadcast	
  services	
  between	
  2016	
  and	
  2020.	
  The	
  services	
  modelled	
  are	
  those	
  for	
  which	
  we	
  can	
  
envisage	
  a	
  reasonable	
  prospect	
  of	
  consumers	
  paying	
  extra	
  to	
  receive	
  the	
  services	
  concerned	
  (though	
  
the	
  business	
  case	
  does	
  not	
  depend	
  on	
  this).	
  We	
  have	
  not	
  modelled	
  other	
  market	
  opportunities	
  
where	
  the	
  cost	
  of	
  services	
  would	
  be	
  funded	
  by	
  other	
  parties	
  -­‐	
  for	
  instance	
  the	
  government	
  or	
  public	
  
sector,	
  or	
  advertisers,	
  or	
  enterprise	
  customers	
  seeking	
  to	
  improve	
  the	
  services	
  they	
  provide	
  to	
  
customers,	
  or	
  the	
  network	
  operators	
  themselves.	
  However,	
  we	
  expect	
  the	
  potential	
  revenue	
  from	
  
these	
  services	
  to	
  be	
  significant	
  for	
  many	
  operators.	
  
We	
  have	
  tested	
  propensity	
  to	
  buy	
  the	
  modelled	
  services	
  with	
  a	
  group	
  of	
  UK	
  mobile	
  phone	
  users,	
  and	
  
have	
  used	
  the	
  data	
  from	
  this	
  survey,	
  and	
  other	
  research,	
  to	
  guide	
  the	
  forecasts.	
  
The	
  forecasts	
  make	
  the	
  following	
  assumptions.	
  
Many	
  services	
  will	
  either	
  be	
  provided	
  free	
  of	
  charge	
  by	
  the	
  network	
  operators	
  in	
  order	
  to	
  sustain	
  
user	
  experience	
  and	
  to	
  contain	
  network	
  capacity	
  usage;	
  or	
  they	
  will	
  be	
  provided	
  as	
  part	
  of	
  a	
  large	
  
service	
  bundle	
  with	
  the	
  revenue	
  from	
  the	
  LTE	
  Broadcast	
  essentially	
  indistinguishable	
  from	
  other	
  
data	
  services	
  revenue.	
  (KT	
  in	
  South	
  Korea,	
  for	
  instance,	
  already	
  provides	
  mobile	
  TV	
  using	
  LTE	
  
Broadcast,	
  with	
  the	
  service	
  provided	
  as	
  an	
  element	
  of	
  its	
  service	
  bundle	
  for	
  higher	
  paying	
  
customers.)	
  	
  
Only	
  a	
  subset	
  of	
  customers	
  will	
  be	
  prepared	
  to	
  pay	
  extra	
  for	
  LTE	
  Broadcast	
  services.	
  We	
  have	
  
modelled	
  the	
  extra	
  revenue	
  that	
  can	
  be	
  captured	
  from	
  those	
  customers	
  willing	
  to	
  spend	
  a	
  little	
  
more.	
  Paying	
  customers	
  will	
  pay	
  only	
  a	
  small	
  percentage	
  on	
  top	
  of	
  their	
  existing	
  spend	
  to	
  access	
  
services.	
  We	
  have	
  assumed	
  a	
  typical	
  premium	
  of	
  5%-­‐10%,	
  varying	
  by	
  country	
  and	
  service	
  type.	
  
The	
  total	
  user	
  base	
  is	
  limited	
  by:	
  	
  
a) Availability	
  of	
  LTE	
  Broadcast	
  services.	
  We	
  have	
  assumed	
  more	
  services	
  will	
  start	
  to	
  become	
  
available	
  from	
  2016,	
  with	
  the	
  proportion	
  of	
  LTE	
  networks	
  offering	
  some	
  element	
  of	
  LTE	
  
Broadcast	
  service	
  rising	
  to	
  nearly	
  40%	
  by	
  the	
  end	
  of	
  2020.	
  
b) Availability	
  of	
  LTE	
  Broadcast	
  capable	
  devices.	
  We	
  have	
  assumed	
  that	
  services	
  will	
  be	
  offered	
  
on	
  smartphones,	
  tablets,	
  specialised	
  home	
  gateway	
  /	
  set-­‐top-­‐box	
  devices,	
  and	
  some	
  
dongles.	
  	
  	
  
c) We	
  have	
  assumed	
  that	
  service	
  revenues	
  will	
  be	
  partially	
  additive.	
  In	
  other	
  words,	
  some	
  
customers	
  will	
  buy	
  more	
  than	
  one	
  service	
  –	
  either	
  explicitly	
  or	
  as	
  part	
  of	
  a	
  bundle.	
  Not	
  all	
  
customers	
  will	
  buy	
  all	
  services.	
  
	
  
	
  
 
	
  
Figure	
  15:	
  LTE	
  Broadcast	
  –	
  global	
  forecast	
  for	
  incremental	
  mobile	
  service	
  revenue,	
  selected	
  
services	
  to	
  2020	
  
	
  
We	
  forecast	
  the	
  total	
  market	
  for	
  the	
  five	
  LTE	
  Broadcast	
  services	
  modelled	
  will	
  reach	
  around	
  $14	
  
billion	
  globally	
  by	
  the	
  end	
  of	
  2020.	
  Although	
  that	
  seems	
  large,	
  the	
  figure	
  only	
  amounts	
  around	
  a	
  
1.5%	
  uplift	
  on	
  total	
  global	
  mobile	
  revenues.	
  We	
  would	
  expect	
  revenue	
  from	
  LTE	
  Broadcast	
  services	
  
to	
  become	
  more	
  important	
  in	
  subsequent	
  years.	
  There	
  is	
  also	
  considerable	
  upside	
  in	
  the	
  form	
  of	
  
revenue	
  generated	
  from	
  advertising	
  (not	
  counted	
  here)	
  and	
  revenue	
  generated	
  through	
  two-­‐sided	
  
business	
  models	
  (i.e.	
  charging	
  content	
  providers	
  for	
  delivery	
  of	
  their	
  content	
  via	
  LTE	
  Broadcast	
  to	
  
ensure	
  a	
  better	
  user	
  experience,	
  but	
  not	
  charging	
  end	
  customers).	
  
	
   	
  
 
	
  
Business	
  case	
  for	
  deployment	
  of	
  LTE	
  Broadcast	
  services	
  
As	
  our	
  research	
  above	
  shows,	
  operators	
  are	
  in	
  the	
  process	
  of	
  exploring	
  the	
  business	
  case	
  for	
  
eMBMS.	
  The	
  following	
  section	
  provides	
  an	
  overview	
  of	
  the	
  types	
  of	
  issues	
  that	
  operators	
  need	
  to	
  
consider	
  when	
  they	
  are	
  preparing	
  their	
  business	
  cases.	
  It	
  then	
  works	
  through	
  the	
  business	
  case	
  for	
  
deployment	
  of	
  a	
  subset	
  of	
  services	
  within	
  a	
  hypothetical	
  operator’s	
  network	
  (broadly	
  based	
  on	
  
Western	
  European	
  costs	
  and	
  ARPUs).	
  
Business	
  case	
  checklist	
  
Operators	
  thinking	
  through	
  the	
  case	
  for	
  LTE	
  Broadcast	
  must	
  consider	
  a	
  wide	
  range	
  of	
  factors.	
  The	
  
following	
  checklist	
  identifies	
  some	
  of	
  the	
  most	
  crucial	
  elements	
  of	
  the	
  business	
  case	
  and	
  talks	
  
through	
  how	
  we	
  deal	
  with	
  them	
  in	
  the	
  subsequent	
  business	
  case	
  example.	
  	
  
Factor	
  to	
  consider	
   Details	
  
Business	
  model	
   Operators	
  considering	
  the	
  introduction	
  of	
  LTE	
  Broadcast	
  can	
  choose	
  from	
  a	
  
wide	
  range	
  of	
  business	
  models.	
  Operators	
  might	
  choose	
  to	
  charge	
  explicitly	
  
for	
  some	
  LTE	
  Broadcast	
  services;	
  some	
  services	
  might	
  be	
  bundled	
  in	
  as	
  
components	
  within	
  premium	
  subscription	
  deals;	
  some	
  might	
  be	
  advertising	
  
or	
  sponsorship	
  funded;	
  some	
  might	
  simply	
  be	
  offered	
  free	
  in	
  order	
  to	
  save	
  
network	
  capacity	
  (cost)	
  or	
  to	
  improve	
  user	
  experience.	
  The	
  business	
  cases	
  
will	
  be	
  different	
  under	
  each	
  of	
  these	
  scenarios.	
  In	
  this	
  paper	
  we	
  have	
  
considered	
  the	
  scenario	
  in	
  which	
  operators	
  explicitly	
  charge	
  for	
  LTE	
  
Broadcast	
  services.	
  Primary	
  research	
  we	
  have	
  undertaken	
  suggests	
  there	
  is	
  a	
  
significant	
  minority	
  that	
  will	
  pay	
  what	
  they	
  consider	
  to	
  be	
  a	
  reasonable	
  fee	
  
for	
  services	
  based	
  on	
  LTE	
  Broadcast.	
  It	
  is	
  instructive	
  to	
  analyse	
  whether	
  these	
  
customers	
  alone	
  can	
  justify	
  the	
  cost	
  of	
  LTE	
  Broadcast	
  investment.	
  
Content	
  
availability	
  
Where	
  an	
  operator	
  is	
  planning	
  to	
  introduce	
  a	
  mobile	
  TV	
  service	
  to	
  stream	
  
one	
  or	
  more	
  channels	
  of	
  linear	
  or	
  live	
  TV	
  direct	
  to	
  end	
  user’s	
  devices,	
  or	
  to	
  
offer	
  content	
  pre-­‐downloads,	
  one	
  of	
  the	
  critical	
  factors	
  in	
  the	
  business	
  case	
  is	
  
the	
  cost	
  of	
  acquiring	
  the	
  content.	
  Some	
  mobile	
  operators	
  planning	
  mobile	
  TV	
  
services	
  using	
  eMBMS	
  belong	
  to	
  larger	
  corporate	
  groups	
  that	
  also	
  
encompass	
  broadcasters,	
  or	
  other	
  content	
  providers	
  /	
  owners.	
  
	
  
Our	
  analysis	
  of	
  the	
  business	
  case	
  for	
  introducing	
  LTE	
  Broadcast	
  considers	
  
three	
  scenarios:	
  	
  
1. Where	
  operators	
  already	
  own	
  the	
  content	
  and	
  distribution	
  rights	
  
2. Where	
  content	
  ownership	
  resides	
  within	
  related	
  group	
  companies	
  
and	
  the	
  operator	
  shares	
  revenue	
  from	
  the	
  sales	
  of	
  that	
  content	
  on	
  a	
  
50:50	
  basis	
  
3. Where	
  the	
  operator	
  must	
  acquire	
  the	
  content	
  from	
  third	
  parties.	
  As	
  
there	
  is	
  a	
  large	
  range	
  of	
  potential	
  scenarios	
  and	
  business	
  models,	
  for	
  
simplicity’s	
  sake,	
  we	
  have	
  assumed	
  the	
  operator	
  would	
  enter	
  a	
  
revenue	
  share	
  agreement	
  and	
  retain	
  33%	
  of	
  the	
  sales	
  of	
  the	
  content.	
  	
  
	
  
Availability	
  of	
  content	
  will	
  also	
  have	
  a	
  significant	
  impact	
  on	
  the	
  time-­‐to-­‐
market	
  that	
  can	
  be	
  achieved	
  by	
  a	
  mobile	
  operator.	
  Creation	
  of	
  content	
  and	
  
acquisition	
  of	
  content	
  rights	
  is	
  a	
  complex	
  and	
  time	
  consuming	
  activity.	
  Those	
  
with	
  existing	
  internal	
  expertise	
  will	
  be	
  able	
  to	
  get	
  to	
  market	
  much	
  faster.	
  
Those	
  with	
  existing	
  capabilities	
  probably	
  also	
  have	
  access	
  to	
  a	
  library	
  of	
  
resources	
  they	
  might	
  choose	
  to	
  use,	
  thereby	
  saving	
  time.	
  	
  
 
	
  
RAN	
  status	
   The	
  capabilities	
  of	
  an	
  operator’s	
  RAN	
  will	
  have	
  a	
  significant	
  impact	
  on	
  the	
  
business	
  case.	
  If	
  an	
  operator	
  is	
  ordering	
  a	
  new	
  LTE	
  network	
  anyway,	
  the	
  cost	
  
of	
  having	
  LTE	
  Broadcast	
  capability	
  included	
  within	
  the	
  initial	
  specification	
  is	
  
almost	
  irrelevant.	
  In	
  other	
  circumstances	
  the	
  RAN	
  must	
  be	
  upgraded	
  –	
  for	
  
instance	
  to	
  include	
  the	
  MBMS-­‐CE	
  and	
  to	
  support	
  synchronization	
  if	
  that	
  is	
  
not	
  already	
  included.	
  If	
  an	
  operator	
  can	
  upgrade	
  the	
  RAN	
  with	
  software	
  
upgrades	
  the	
  cost	
  is	
  less	
  significant	
  than	
  if	
  new	
  hardware	
  is	
  required	
  (for	
  
instance	
  to	
  support	
  new	
  spectrum	
  bands,	
  or	
  where	
  new	
  cards	
  must	
  be	
  
added).	
  	
  
Core	
  costs	
   As	
  described	
  above,	
  operators	
  wishing	
  to	
  deploy	
  LTE	
  Broadcast	
  services	
  will	
  
need	
  to	
  invest	
  in	
  several	
  new	
  network	
  functions	
  for	
  the	
  core	
  network.	
  These	
  
include	
  the	
  MBMS	
  Gateway;	
  the	
  BM-­‐SC,	
  encoding	
  and	
  caching	
  equipment.	
  
Although	
  these	
  costs	
  are	
  not	
  enormous	
  in	
  the	
  context	
  of	
  the	
  whole	
  business	
  
case,	
  they	
  nonetheless	
  represent	
  a	
  significant	
  value.	
  Our	
  business	
  case	
  
assumes	
  a	
  capex	
  cost	
  of	
  $11	
  million	
  for	
  a	
  European	
  tier	
  one	
  network.	
  	
  	
  
Cost	
  of	
  network	
   Even	
  where	
  the	
  operator	
  has	
  a	
  brand	
  new	
  network,	
  fully	
  capable	
  of	
  
delivering	
  LTE	
  Broadcast	
  services,	
  the	
  business	
  case	
  must	
  still	
  factor	
  in	
  the	
  
cost	
  of	
  setting	
  aside	
  a	
  significant	
  proportion	
  of	
  the	
  total	
  network	
  capacity	
  for	
  
the	
  sole	
  provision	
  of	
  LTE	
  Broadcast	
  (either	
  on	
  a	
  profile-­‐driven	
  basis,	
  or	
  once	
  
MOOD	
  is	
  available,	
  on-­‐demand).	
  The	
  business	
  analysis	
  here	
  assumes	
  that	
  the	
  
operator	
  is	
  delivering	
  numerous	
  channels	
  of	
  HD	
  mobile	
  live	
  and	
  linear	
  TV,	
  
and	
  so	
  must	
  set	
  aside	
  a	
  substantial	
  percentage	
  of	
  its	
  spectrum	
  capacity	
  to	
  
deliver	
  services.	
  We	
  have	
  assumed	
  up	
  to	
  60%	
  of	
  all	
  the	
  network	
  capacity	
  in	
  
eMBMS	
  active	
  cells	
  is	
  set	
  aside	
  for	
  LTE	
  Broadcast	
  during	
  peak	
  traffic	
  periods,	
  
with	
  an	
  average	
  of	
  40%	
  of	
  capacity	
  dedicated	
  to	
  LTE	
  Broadcast	
  across	
  the	
  
whole	
  day.	
  (The	
  model	
  assumes	
  the	
  operator	
  has	
  20MHz	
  of	
  LTE	
  capacity.)	
  
Availability	
  and	
  
cost	
  of	
  attractive	
  
LTE	
  Broadcast	
  
capable	
  handsets	
  
Operators	
  will	
  need	
  to	
  consider	
  the	
  availability	
  of	
  attractive,	
  cost	
  effective	
  
LTE	
  Broadcast	
  capable	
  handsets.	
  Our	
  model	
  makes	
  the	
  assumption	
  that	
  
these	
  are	
  widely	
  available.	
  There	
  is	
  likely	
  to	
  be	
  a	
  cost	
  for	
  enabling	
  the	
  
eMBMS	
  capability	
  in	
  the	
  chipset,	
  and	
  for	
  installing	
  the	
  middleware	
  which	
  will	
  
either	
  have	
  to	
  be	
  assumed	
  by	
  the	
  handset	
  vendor	
  or	
  the	
  operator.	
  We	
  have	
  
assumed	
  this	
  is	
  less	
  than	
  $0.5	
  per	
  handset.	
  
Backhaul	
  costs	
   In	
  some	
  markets	
  operators	
  will	
  need	
  to	
  add	
  extra	
  backhaul	
  to	
  cope	
  with	
  the	
  
distribution	
  of	
  the	
  content	
  to	
  towers	
  –	
  particularly	
  where	
  LTE	
  Broadcast	
  is	
  
used	
  for	
  delivery	
  of	
  numerous	
  HD	
  TV	
  channels.	
  In	
  other	
  instances,	
  use	
  of	
  LTE	
  
Broadcast	
  will	
  reduce	
  pressure	
  on	
  backhaul	
  by	
  replacing	
  multiple	
  unicast	
  
streams	
  with	
  a	
  single	
  broadcast	
  stream.	
  We	
  have	
  assumed	
  that	
  no	
  backhaul	
  
upgrades	
  are	
  required	
  for	
  the	
  purposes	
  of	
  this	
  model.	
  	
  
Cell	
  site	
  coverage	
   Operators	
  will	
  need	
  to	
  consider	
  how	
  much	
  of	
  their	
  network	
  should	
  be	
  LTE	
  
Broadcast-­‐enabled.	
  This	
  decision	
  will	
  be	
  influenced	
  by	
  the	
  services	
  they	
  
choose	
  to	
  offer.	
  A	
  stadium-­‐based	
  service	
  has	
  an	
  obvious	
  geographic	
  focus.	
  
Mobile	
  TV	
  services	
  or	
  content	
  pre-­‐download	
  services,	
  or	
  implementations	
  
designed	
  to	
  reduce	
  spectrum	
  usage	
  (unicast	
  to	
  multicast	
  offload)	
  will	
  need	
  to	
  
be	
  made	
  available	
  in	
  areas	
  where	
  there	
  is	
  a	
  denser	
  concentration	
  of	
  urban	
  
users.	
  Vendors	
  also	
  report	
  that	
  LTE	
  Broadcast	
  works	
  less	
  well	
  where	
  cell	
  
towers	
  are	
  further	
  apart	
  (>5km)	
  due	
  to	
  signal	
  propagation	
  and	
  
synchronization	
  challenges.	
  It	
  may	
  also	
  be	
  unnecessary	
  to	
  enable	
  all	
  cell	
  sites	
  
within	
  a	
  local	
  area	
  with	
  LTE	
  Broadcast	
  in	
  order	
  to	
  provide	
  good	
  coverage.	
  
The	
  business	
  case	
  modelled	
  here	
  assumes	
  half	
  of	
  the	
  operator’s	
  cell	
  sites	
  
have	
  LTE	
  Broadcast	
  enabled	
  -­‐	
  roughly	
  enough	
  to	
  cover	
  most	
  urban	
  and	
  
suburban	
  areas.	
  	
  
 
	
  
Service	
  implementation	
  business	
  case	
  -­‐	
  revenues	
  
The	
  business	
  case	
  we	
  have	
  modelled	
  involves	
  a	
  hypothetical	
  operator	
  with	
  about	
  one-­‐third	
  share	
  of	
  
a	
  market	
  of	
  60	
  million	
  subscribers.	
  It	
  offers	
  three	
  paid	
  services	
  –	
  mobile	
  TV,	
  stadium	
  TV	
  and	
  content	
  
pre-­‐downloads.	
  The	
  model	
  is	
  not	
  explicit	
  about	
  how	
  the	
  fee	
  is	
  charged	
  (it	
  could	
  be	
  based	
  on	
  a	
  daily	
  
rate	
  for	
  usage,	
  could	
  be	
  a	
  subscription	
  add-­‐on,	
  or	
  could	
  be	
  an	
  allocated	
  a	
  proportion	
  of	
  the	
  revenue	
  
of	
  a	
  premium	
  package	
  including	
  other	
  service	
  elements).	
  Take-­‐up	
  rates	
  as	
  a	
  percentage	
  of	
  the	
  
customer	
  base	
  rise	
  over	
  five	
  years	
  to	
  the	
  following	
  figures:	
  
• Mobile	
  TV	
  –	
  25%	
  of	
  its	
  own	
  customer	
  base	
  
• Stadium	
  TV	
  –	
  13%	
  of	
  its	
  own	
  customer	
  base	
  
• Content	
  pre-­‐downloads	
  –	
  26%	
  of	
  its	
  own	
  customer	
  base.	
  
These	
  assumptions	
  have	
  been	
  informed	
  by	
  survey	
  feedback.	
  	
  We	
  have	
  assumed	
  ARPU	
  uplifts	
  of	
  
between	
  12%	
  and	
  14.5%	
  (again	
  based	
  on	
  analysis	
  of	
  the	
  survey	
  results).	
  
We	
  have	
  modelled	
  three	
  scenarios:	
  	
  one	
  in	
  which	
  the	
  operator	
  retains	
  the	
  whole	
  fee	
  paid	
  by	
  the	
  
customer,	
  and	
  two	
  others	
  in	
  which	
  it	
  retains	
  either	
  50%	
  or	
  33%	
  of	
  the	
  revenue	
  under	
  content-­‐based	
  
service	
  revenue-­‐share	
  arrangements.	
  	
  
The	
  outputs	
  are	
  shown	
  in	
  Figures	
  16	
  and	
  17.	
  
Figure	
  16:	
  LTE	
  Broadcast	
  –	
  hypothetical	
  business	
  case	
  revenues	
  
	
  
By	
  the	
  end	
  of	
  year	
  five	
  the	
  operator	
  is	
  generating	
  revenues	
  of	
  nearly	
  US$675	
  million	
  per	
  year,	
  
keeping	
  between	
  US$222	
  million	
  and	
  the	
  full	
  value	
  of	
  that	
  revenue.	
  This	
  shows	
  how	
  important	
  the	
  
content	
  acquisition	
  arrangements	
  are	
  for	
  the	
  business	
  case.	
  We	
  have	
  modelled	
  a	
  revenue	
  share	
  
arrangement	
  as	
  it	
  is	
  simpler	
  for	
  the	
  purposes	
  of	
  this	
  model	
  than	
  a	
  wholesale	
  purchase	
  cost,	
  or	
  the	
  
cost	
  for	
  the	
  operator	
  to	
  produce	
  content	
  itself.	
  	
  
	
  
	
  
	
  
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)
Evaluating the LTE Broadcast Opportunity (GSA report)

More Related Content

What's hot

UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...
UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...
UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...techUK
 
Over The Top Tv Platform Technologies - Overview
Over The Top Tv Platform Technologies - OverviewOver The Top Tv Platform Technologies - Overview
Over The Top Tv Platform Technologies - Overviewmashup* Event
 
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...Coleago Consulting
 
MVNO issues in Thailand - and how to solve them v2.0
MVNO issues in Thailand - and how to solve them v2.0MVNO issues in Thailand - and how to solve them v2.0
MVNO issues in Thailand - and how to solve them v2.0YOZZO
 
Thailand's MVNO Market Update 2014
Thailand's MVNO Market Update 2014Thailand's MVNO Market Update 2014
Thailand's MVNO Market Update 2014YOZZO
 
Study on LTE support for V2X services
Study on LTE support for V2X servicesStudy on LTE support for V2X services
Study on LTE support for V2X servicesYi-Hsueh Tsai
 
Global Ethernet Telebriefing 06 23 09
Global Ethernet Telebriefing 06 23 09Global Ethernet Telebriefing 06 23 09
Global Ethernet Telebriefing 06 23 09David Hold
 
3GPP TR 22.885 study on LTE support for V2X services
3GPP TR 22.885 study on LTE support for V2X services3GPP TR 22.885 study on LTE support for V2X services
3GPP TR 22.885 study on LTE support for V2X servicesYi-Hsueh Tsai
 
Femtocells Study Executive Summary (M394 65)
Femtocells Study  Executive Summary (M394 65)Femtocells Study  Executive Summary (M394 65)
Femtocells Study Executive Summary (M394 65)Luke Thomas
 
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...Antonio Bove
 
Spectrum assignment mechanisms v001 270716 sz
Spectrum assignment mechanisms v001 270716 szSpectrum assignment mechanisms v001 270716 sz
Spectrum assignment mechanisms v001 270716 szColeago Consulting
 
What is driving recent increases in prices paid s zehle coleago 16 june 15
What is driving recent increases in prices paid s zehle coleago 16 june 15What is driving recent increases in prices paid s zehle coleago 16 june 15
What is driving recent increases in prices paid s zehle coleago 16 june 15Coleago Consulting
 
Detecon Workshop - Telco and OTT Partnerships
Detecon Workshop - Telco and OTT PartnershipsDetecon Workshop - Telco and OTT Partnerships
Detecon Workshop - Telco and OTT PartnershipsAdrian Hall
 
Hawk taccom ms pres 29.04.10
Hawk taccom ms pres 29.04.10Hawk taccom ms pres 29.04.10
Hawk taccom ms pres 29.04.10guest0dfc7125
 
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...Coleago Consulting
 
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014Best practice spectrum auctions workshop, New Delhi 24 Sep 2014
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014Coleago Consulting
 
Mobile Vas In India
Mobile Vas In IndiaMobile Vas In India
Mobile Vas In IndiaRobin Kapoor
 

What's hot (20)

5 g sg-niri-oct13
5 g sg-niri-oct135 g sg-niri-oct13
5 g sg-niri-oct13
 
NBTC over view
NBTC over viewNBTC over view
NBTC over view
 
UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...
UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...
UK Spectrum Policy Forum - Kumar Singarajah, Avanti Communications Ltd - Fixe...
 
Over The Top Tv Platform Technologies - Overview
Over The Top Tv Platform Technologies - OverviewOver The Top Tv Platform Technologies - Overview
Over The Top Tv Platform Technologies - Overview
 
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...
Spectrum Workshop - Issues and challenges in spectrum allocations and spectru...
 
MVNO issues in Thailand - and how to solve them v2.0
MVNO issues in Thailand - and how to solve them v2.0MVNO issues in Thailand - and how to solve them v2.0
MVNO issues in Thailand - and how to solve them v2.0
 
Thailand's MVNO Market Update 2014
Thailand's MVNO Market Update 2014Thailand's MVNO Market Update 2014
Thailand's MVNO Market Update 2014
 
Study on LTE support for V2X services
Study on LTE support for V2X servicesStudy on LTE support for V2X services
Study on LTE support for V2X services
 
Global Ethernet Telebriefing 06 23 09
Global Ethernet Telebriefing 06 23 09Global Ethernet Telebriefing 06 23 09
Global Ethernet Telebriefing 06 23 09
 
3GPP TR 22.885 study on LTE support for V2X services
3GPP TR 22.885 study on LTE support for V2X services3GPP TR 22.885 study on LTE support for V2X services
3GPP TR 22.885 study on LTE support for V2X services
 
Femtocells Study Executive Summary (M394 65)
Femtocells Study  Executive Summary (M394 65)Femtocells Study  Executive Summary (M394 65)
Femtocells Study Executive Summary (M394 65)
 
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...
VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product...
 
Spectrum assignment mechanisms v001 270716 sz
Spectrum assignment mechanisms v001 270716 szSpectrum assignment mechanisms v001 270716 sz
Spectrum assignment mechanisms v001 270716 sz
 
What is driving recent increases in prices paid s zehle coleago 16 june 15
What is driving recent increases in prices paid s zehle coleago 16 june 15What is driving recent increases in prices paid s zehle coleago 16 june 15
What is driving recent increases in prices paid s zehle coleago 16 june 15
 
Detecon Workshop - Telco and OTT Partnerships
Detecon Workshop - Telco and OTT PartnershipsDetecon Workshop - Telco and OTT Partnerships
Detecon Workshop - Telco and OTT Partnerships
 
Hawk taccom ms pres 29.04.10
Hawk taccom ms pres 29.04.10Hawk taccom ms pres 29.04.10
Hawk taccom ms pres 29.04.10
 
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...
The Data Tsunami - Spectrum Allocation, Infrastructure Sharing and Industry C...
 
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014Best practice spectrum auctions workshop, New Delhi 24 Sep 2014
Best practice spectrum auctions workshop, New Delhi 24 Sep 2014
 
Mobile Vas In India
Mobile Vas In IndiaMobile Vas In India
Mobile Vas In India
 
Chris Adams
Chris AdamsChris Adams
Chris Adams
 

Similar to Evaluating the LTE Broadcast Opportunity (GSA report)

Lte benefits guide verizon
Lte benefits guide verizonLte benefits guide verizon
Lte benefits guide verizonldodnikova
 
Samir's whitepaper5g
Samir's whitepaper5gSamir's whitepaper5g
Samir's whitepaper5gSamir Mohanty
 
GSA-Evolution_to_LTE_report_October_2016
GSA-Evolution_to_LTE_report_October_2016GSA-Evolution_to_LTE_report_October_2016
GSA-Evolution_to_LTE_report_October_2016Sitha Sok
 
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.0
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.05G-Advanced Technology Evolution from a Network Perspective White Paper 2.0
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.0IPLOOK Networks
 
EDGE, HSPA, LTE: The Mobile Broadband Advantage
EDGE, HSPA, LTE: The Mobile Broadband AdvantageEDGE, HSPA, LTE: The Mobile Broadband Advantage
EDGE, HSPA, LTE: The Mobile Broadband Advantageeanimou
 
The second phase of lte advanced lte-b 30-fold capacity boosting to lte
The second phase of lte advanced lte-b  30-fold capacity boosting to lteThe second phase of lte advanced lte-b  30-fold capacity boosting to lte
The second phase of lte advanced lte-b 30-fold capacity boosting to ltessk
 
3 G Case Studies Published
3 G Case Studies Published3 G Case Studies Published
3 G Case Studies Publishedwoyaozhangda
 
5G Spectrum Recommendations White Paper
5G Spectrum Recommendations  White Paper5G Spectrum Recommendations  White Paper
5G Spectrum Recommendations White PaperSitha Sok
 
Signalsflash070113 LTE World Summit Key take aways
Signalsflash070113 LTE World Summit Key take awaysSignalsflash070113 LTE World Summit Key take aways
Signalsflash070113 LTE World Summit Key take awaysnavaidkhan
 
Policy control and charging for lte
Policy control and charging for ltePolicy control and charging for lte
Policy control and charging for lteMorg
 
Globalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generationGlobalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generationGlobal Compose
 
Telco Global Connect 7
Telco Global Connect 7Telco Global Connect 7
Telco Global Connect 7Sadiq Malik
 
Nexus nortel umts_whitepaper_v2_0
Nexus nortel umts_whitepaper_v2_0Nexus nortel umts_whitepaper_v2_0
Nexus nortel umts_whitepaper_v2_0Nguyen Le
 

Similar to Evaluating the LTE Broadcast Opportunity (GSA report) (20)

Gsa global lte_market_update_010813
Gsa global lte_market_update_010813Gsa global lte_market_update_010813
Gsa global lte_market_update_010813
 
Lte benefits guide verizon
Lte benefits guide verizonLte benefits guide verizon
Lte benefits guide verizon
 
Samir's whitepaper5g
Samir's whitepaper5gSamir's whitepaper5g
Samir's whitepaper5g
 
GSA-Evolution_to_LTE_report_October_2016
GSA-Evolution_to_LTE_report_October_2016GSA-Evolution_to_LTE_report_October_2016
GSA-Evolution_to_LTE_report_October_2016
 
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.0
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.05G-Advanced Technology Evolution from a Network Perspective White Paper 2.0
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.0
 
EDGE, HSPA, LTE: The Mobile Broadband Advantage
EDGE, HSPA, LTE: The Mobile Broadband AdvantageEDGE, HSPA, LTE: The Mobile Broadband Advantage
EDGE, HSPA, LTE: The Mobile Broadband Advantage
 
The second phase of lte advanced lte-b 30-fold capacity boosting to lte
The second phase of lte advanced lte-b  30-fold capacity boosting to lteThe second phase of lte advanced lte-b  30-fold capacity boosting to lte
The second phase of lte advanced lte-b 30-fold capacity boosting to lte
 
3 G Case Studies Published
3 G Case Studies Published3 G Case Studies Published
3 G Case Studies Published
 
LTE Vision 2020
LTE Vision 2020LTE Vision 2020
LTE Vision 2020
 
Essay On ENCE
Essay On ENCEEssay On ENCE
Essay On ENCE
 
5G Spectrum Recommendations White Paper
5G Spectrum Recommendations  White Paper5G Spectrum Recommendations  White Paper
5G Spectrum Recommendations White Paper
 
Signalsflash070113 LTE World Summit Key take aways
Signalsflash070113 LTE World Summit Key take awaysSignalsflash070113 LTE World Summit Key take aways
Signalsflash070113 LTE World Summit Key take aways
 
5g tutorial
5g tutorial5g tutorial
5g tutorial
 
Policy control and charging for lte
Policy control and charging for ltePolicy control and charging for lte
Policy control and charging for lte
 
Drivers for 5G
Drivers for 5GDrivers for 5G
Drivers for 5G
 
Globalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generationGlobalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generation
 
Globalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generationGlobalcompose.com sample essay paper on 5 g fifth generation
Globalcompose.com sample essay paper on 5 g fifth generation
 
Noticias tel dic
Noticias tel dicNoticias tel dic
Noticias tel dic
 
Telco Global Connect 7
Telco Global Connect 7Telco Global Connect 7
Telco Global Connect 7
 
Nexus nortel umts_whitepaper_v2_0
Nexus nortel umts_whitepaper_v2_0Nexus nortel umts_whitepaper_v2_0
Nexus nortel umts_whitepaper_v2_0
 

More from Global mobile Suppliers Association (GSA)

LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)
LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)
LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)Global mobile Suppliers Association (GSA)
 

More from Global mobile Suppliers Association (GSA) (20)

LTE2100 market status report (GSA - September 23, 2015)
LTE2100 market status report (GSA - September 23, 2015)LTE2100 market status report (GSA - September 23, 2015)
LTE2100 market status report (GSA - September 23, 2015)
 
LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)
LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)
LTE in 900MHz spectrum (3GPP band 8) market status (GSA report - July 31, 2015)
 
HSPA Operator Commitments report (GSA - October 2015)
HSPA Operator Commitments report (GSA - October 2015)HSPA Operator Commitments report (GSA - October 2015)
HSPA Operator Commitments report (GSA - October 2015)
 
The Internet of Things to 2020 (GSA white paper, October 2015)
The Internet of Things to 2020 (GSA white paper, October 2015)The Internet of Things to 2020 (GSA white paper, October 2015)
The Internet of Things to 2020 (GSA white paper, October 2015)
 
5G: Consensus Insights from GSA Executive Members (GSA - November 4, 2015)
5G: Consensus Insights from GSA Executive Members (GSA - November 4, 2015)5G: Consensus Insights from GSA Executive Members (GSA - November 4, 2015)
5G: Consensus Insights from GSA Executive Members (GSA - November 4, 2015)
 
SNAPSHOT: LTE1800 status report (GSA - October 13, 2015)
SNAPSHOT: LTE1800 status report (GSA - October 13, 2015)SNAPSHOT: LTE1800 status report (GSA - October 13, 2015)
SNAPSHOT: LTE1800 status report (GSA - October 13, 2015)
 
SNAPSHOT: APT700 status report (GSA - October 2013)
SNAPSHOT: APT700 status report (GSA - October 2013)SNAPSHOT: APT700 status report (GSA - October 2013)
SNAPSHOT: APT700 status report (GSA - October 2013)
 
Mobile HD Voice: Global Update report (GSA - November 3, 2015)
Mobile HD Voice: Global Update report (GSA - November 3, 2015)Mobile HD Voice: Global Update report (GSA - November 3, 2015)
Mobile HD Voice: Global Update report (GSA - November 3, 2015)
 
Evolution to LTE (GSA report, October 13, 2015)
Evolution to LTE (GSA report, October 13, 2015)Evolution to LTE (GSA report, October 13, 2015)
Evolution to LTE (GSA report, October 13, 2015)
 
GSA: LTE MARKET UPDATE (presentation at CommunicAsia 2014)
GSA: LTE MARKET UPDATE (presentation at CommunicAsia 2014)GSA: LTE MARKET UPDATE (presentation at CommunicAsia 2014)
GSA: LTE MARKET UPDATE (presentation at CommunicAsia 2014)
 
GSA STATUS OF THE GLOBAL LTE1800 MARKET report - July 18, 2013
GSA STATUS OF THE GLOBAL LTE1800 MARKET report - July 18, 2013GSA STATUS OF THE GLOBAL LTE1800 MARKET report - July 18, 2013
GSA STATUS OF THE GLOBAL LTE1800 MARKET report - July 18, 2013
 
GSA Mobile Broadband Status Report August 2010
GSA Mobile Broadband Status Report August 2010GSA Mobile Broadband Status Report August 2010
GSA Mobile Broadband Status Report August 2010
 
Evolution to LTE - An Overview August 2010
Evolution to LTE - An Overview August 2010Evolution to LTE - An Overview August 2010
Evolution to LTE - An Overview August 2010
 
Mobile Broadband Growth - Reports from HSPA Operators Worldwide August 2010
Mobile Broadband Growth - Reports from HSPA Operators Worldwide August 2010Mobile Broadband Growth - Reports from HSPA Operators Worldwide August 2010
Mobile Broadband Growth - Reports from HSPA Operators Worldwide August 2010
 
Digital Dividend Update July 2010
Digital Dividend Update July 2010Digital Dividend Update July 2010
Digital Dividend Update July 2010
 
HSPA Evolution (HSPA+) overview July 2010
HSPA Evolution (HSPA+) overview July 2010HSPA Evolution (HSPA+) overview July 2010
HSPA Evolution (HSPA+) overview July 2010
 
Global HSPA Update July 2010
Global HSPA Update July 2010Global HSPA Update July 2010
Global HSPA Update July 2010
 
GSA HSPA Slide Deck June 2010
GSA HSPA Slide Deck June 2010GSA HSPA Slide Deck June 2010
GSA HSPA Slide Deck June 2010
 
CommunicAsia 2010 Summit Alan Hadden GSA
CommunicAsia 2010 Summit Alan Hadden GSACommunicAsia 2010 Summit Alan Hadden GSA
CommunicAsia 2010 Summit Alan Hadden GSA
 
GSA HSPA Slide Deck April 2010
GSA HSPA Slide Deck April 2010GSA HSPA Slide Deck April 2010
GSA HSPA Slide Deck April 2010
 

Recently uploaded

CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun serviceCALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun serviceanilsa9823
 
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual serviceCALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual serviceanilsa9823
 
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,Pooja Nehwal
 
9892124323 | Book Call Girls in Juhu and escort services 24x7
9892124323 | Book Call Girls in Juhu and escort services 24x79892124323 | Book Call Girls in Juhu and escort services 24x7
9892124323 | Book Call Girls in Juhu and escort services 24x7Pooja Nehwal
 
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...wyqazy
 
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝soniya singh
 
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...Niamh verma
 

Recently uploaded (7)

CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun serviceCALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best Night Fun service
 
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual serviceCALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Saharaganj Lucknow best sexual service
 
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,
Call US Pooja 9892124323 ✓Call Girls In Mira Road ( Mumbai ) secure service,
 
9892124323 | Book Call Girls in Juhu and escort services 24x7
9892124323 | Book Call Girls in Juhu and escort services 24x79892124323 | Book Call Girls in Juhu and escort services 24x7
9892124323 | Book Call Girls in Juhu and escort services 24x7
 
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...
哪里有卖的《俄亥俄大学学历证书+俄亥俄大学文凭证书+俄亥俄大学学位证书》Q微信741003700《俄亥俄大学学位证书复制》办理俄亥俄大学毕业证成绩单|购买...
 
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝
Model Call Girl in Shalimar Bagh Delhi reach out to us at 🔝8264348440🔝
 
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...
Chandigarh Call Girls Service ❤️🍑 9115573837 👄🫦Independent Escort Service Cha...
 

Evaluating the LTE Broadcast Opportunity (GSA report)

  • 1.     Evaluating  the  LTE  Broadcast  Opportunity         www.gsacom.com       Prepared  for  the  GSA  by:      Innovation  Observatory   Silvaco  Technology  Centre,  Compass  Point  Business  Park   St  Ives,  Cambridgeshire,  PE27  5JL,  UK   Tel:  +44  (0)1480  309341   Email:  sales@innovationobservatory.com       November  2015         Sponsored  by:   EE,  PCCW  HKT,  Plus  (Polkomtel),  Smartfren,  Telstra   Copyright  ©  GSA  –  Global  mobile  Suppliers  Association  2015  
  • 2.     The  contents  of  this  document  are  the  property  of  GSA  and  are  protected  by  copyright  and  other   intellectual  property  rights.  All  rights  reserved.  Reproduction  of  this  publication  in  part  for  non-­‐ commercial  use  is  allowed  if  the  source  is  stated.  For  other  use,  and  any  other  enquiries,  please   contact:   GSA  Secretariat   Email:  info@gsacom.com   Tel:    +44  (0)1279  439  667   GSA  cannot  and  does  not  warrant  the  accuracy,  completeness,  currentness,  non-­‐infringement,   merchantability  or  suitability  for  a  particular  purpose  of  the  contents  herein.           Acknowledgements:   This  report  benefits  enormously  from  the  insights  and  experiences  kindly  contributed  by  LTE   Broadcast  operator  pioneers  and  leading  vendors  including  the  BBC,  EE,  Ericsson,  Expway,  Huawei,   Institut  für  Rundfunktechnik,  Nokia,  PCCW  HKT,  Plus  (Polkomtel),  Qualcomm,  Smartfren,  and  Telstra.   We  would  like  to  thank  these  companies  for  their  help.      
  • 3.     Table  of  contents     Evaluating  the  LTE  Broadcast  Opportunity  ............................................................................................  1   Table  of  contents  ...............................................................................................................................  3   Preface  ...............................................................................................................................................  4   Introduction  –  the  time  is  right  for  LTE  Broadcast  deployment  ........................................................  5   Why  LTE  Broadcast,  and  why  now?  ...............................................................................................  5   Technology  description  .....................................................................................................................  6   Drivers  of  adoption  ............................................................................................................................  9   Revenue  opportunities  ................................................................................................................  10   Efficient  television  distribution  ....................................................................................................  12   Barriers  to  adoption  .........................................................................................................................  13   Device  availability  ........................................................................................................................  14   Network  upgrade  requirements  ..................................................................................................  17   Timelines  for  adoption  ....................................................................................................................  18   Forecasts  for  service  availability  ..................................................................................................  23   Forecasts  for  global  service  provider  revenue  .................................................................................  24   Business  case  checklist  ................................................................................................................  26   Service  implementation  business  case  -­‐  revenues  ......................................................................  28   Service  implementation  business  case  -­‐  first  mover  advantage  ..................................................  29   Service  implementation  business  case  –  costs  ............................................................................  30   Service  implementation  business  case  costs  vs  revenues  ...........................................................  32   Service  implementation  business  case  –  offload  cost  savings  .....................................................  33   Annex  A  –  eMBMS  compatible  devices  ...........................................................................................  36   Annex  B  -­‐  Survey  details  ..................................................................................................................  41   Annex  C  –  Operator  case  studies  .....................................................................................................  43   EE  .................................................................................................................................................  43   Polkomtel  .....................................................................................................................................  43   Telstra  ..........................................................................................................................................  44        
  • 4.     Preface   The  GSA’s  roles  include  explaining  the  opportunities  available  and  benefits  to  be  gained  from   deploying  mobile  communications  systems  technologies,  the  need  for  adequate  spectrum   provisions,  and  stimulating  supporting  user  device  ecosystems.  During  the  17  years  since  the  GSA   was  established  there  have  been  many  successes,  initially  with  EDGE  and  followed  by  the  launch  of   mobile  broadband  enabled  by  WCDMA  and  HSPA.  As  these  technologies  matured  and  entered  the   mainstream,  spectrum  refarming  moved  up  the  agenda,  and  3G  technology  deployments   (HSPA/HSPA+)  were  enabled  in  spectrum  previously  reserved  for  2G  systems,  such  as  GSM  (e.g.  900   MHz).  3G  deployment  in  900  MHz  spectrum  (UMTS900)  has  long  since  been  mainstream.   Industry  acknowledges  the  contribution  that  GSA  makes  to  LTE  and  LTE-­‐Advanced  developments,   including  delivering  trusted  facts  and  analysis  about  the  market  and  reporting  on  the  user  devices   ecosystem.  GSA  heavily  promoted  refarming  of  2G/1800  MHz  spectrum  for  LTE  and  this  band  is  now   firmly  the  most  common  for  LTE,  with  the  largest  devices  ecosystem.  LTE  is  the  fastest  developing   mobile  communications  systems  technology  ever  and  has  the  flexibility  to  support  a  myriad  of  use   cases  for  consumer  and  enterprise  markets.    And  of  course  LTE  will  be  with  us  for  years  to  come  and   will  continue  to  evolve  on  the  road  to  5G  and  beyond.   The  combination  of  ubiquitous  superfast  broadband  performance  enabled  by  LTE,  the  emergence  of   smartphones  as  the  form  factor  of  choice  for  many,  and  access  to  more  content,  data,  and  especially   video,  are  driving  network  traffic  growth  to  unprecedented  levels.  In  highly  competitive  markets,   network  operators  must  maintain  the  user  experience  of  mobile  broadband  and  enable  more   capacity  to  support  growth.  LTE  Broadcast,  enabled  by  eMBMS  technology  and  standardized  by   3GPP,  allows  operators  to  deliver  content  such  as  video  or  software  updates  much  more  efficiently,   ensuring  the  best  experience  for  users  of  those  services,  and  freeing  up  network  capacity  to  ensure   the  best  experience  for  all  users.  LTE  Broadcast  enables  new  services,  new  business  models,  and   revenue  growth  and  is  a  potential  “game  changer”  that  no  LTE  operator  can  afford  to  ignore.     There  needs  to  be  a  good  choice  of  devices  for  users.  More  now  needs  to  be  done.  This  report   informs,  educates  and  demonstrates  the  business  potential  of  using  LTE  Broadcast.  By  showing  the   commitment  of  leading  network  operators  in  all  regions  and  key  systems  and  solutions  vendors,   broadcasters  and  content  owners,  and  examining  many  promising  business  models,  the  report  will   convince  all  device  manufacturers  to  include  LTE  Broadcast  in  their  product  roadmaps.         Alan  Hadden,  VP,  Research   GSA  (Global  mobile  Suppliers  Association)  
  • 5.       Introduction  –  the  time  is  right  for  LTE  Broadcast  deployment   LTE  Broadcast  (also  sometimes  called  LTE  Multicast)  is  on  the  brink  of  transforming  the  types  of   services  that  mobile  customers  receive,  the  quality  of  those  services,  and  the  ways  they  are   delivered.  LTE  Broadcast  is  enabled  by  eMBMS:  a  3GPP  standardized  technology  that  allows  mobile   operators  to  use  a  proportion  of  their  network  capacity  for  broadcast  of  popular  content  or  data.   This  means  they  can  use  the  same  broadcast  stream  to  serve  multiple  -­‐  theoretically  unlimited  -­‐   customers  within  a  single  cell  with  the  same  video,  TV  or  other  data  service,  instead  of  needing  to   unicast  delivery  of  the  same  information  to  every  user  individually.  This  has  a  potentially  major   impact  on  the  capacity  needed  to  deliver  popular  content,  and  opens  up  new  business  opportunities   for  mobile  operators.     This  is  not  the  first  time  that  the  world  has  been  offered  mobile  broadcast  services.  In  fact,  a  variety   of  technologies  have  been  tested  and  some  deployed  -­‐  most  notably  DVB-­‐H.  Previous  attempts  to   introduce  mobile  broadcast-­‐based  services  failed  due  to  a  lack  of  critical  mass  in  terms  of  the   numbers,  types  and  variations  of  devices  that  could  support  services,  the  inefficiency  or  cost  of   offering  services,  mis-­‐alignment  between  DVB-­‐H  coverage  and  the  indoor  and  outdoor  coverage   requirements  of  mobile  networks,  absence  of  key  features  (such  as  the  ability  to  turn  services  on  or   off  on  demand),  the  lack  of  compelling  business  cases  for  the  deployment  of  the  technologies   concerned,  and  user  reluctance  to  spend  more  money.   However,  the  world  is  now  a  very  different  place.  A  number  of  factors  have  fallen  into  place  to  make   the  need  for  deployment  of  mobile  broadcast  technologies  much  more  compelling.  We  look  at  these   in  turn  in  the  next  few  paragraphs.   Why  LTE  Broadcast,  and  why  now?   Mobile  network  operators  are  now  already  delivering  large  amounts  of  video  content  to  their   customers.  When  DVB-­‐H  was  first  conceived  the  scale  of  video  delivery  to  mobile  devices  was   substantially  smaller.  Video  and  TV  content  delivery  is  one  of  the  primary  drivers  of  traffic  growth   within  mobile  networks,  and  that  growth  is  not  likely  to  end  any  time  soon.    The  swelling  volumes  of   video  traffic  are  putting  significant  pressure  on  networks  (from  cost  and  deliverability  perspectives),   and  will  exert  even  more  pressure  in  the  future  unless  mobile  operators  find  new,  more  efficient   means  of  delivering  that  content.   Users’  expectations  are  substantially  different  now  than  they  were  ten  years  ago.  Acclimatised  to   improved  coverage,  and  the  much  higher  data  speeds  offered  by  HSPA+  and  LTE,  they  expect  their   mobile  devices  to  be  able  to  access  video  and  TV  content  without  much  delay  and  at  high  quality.   Users  are  not  spending  more  on  mobile  –  average  revenues  per  user  have  reached  a  plateau  in   many  countries,  and  even  started  to  fall  in  major  markets  around  the  world.     When  looking  at  the  number  of  human  customers  and  the  number  of  connected  mobile  devices  they   hold,  mobile  markets  around  the  world  are  increasingly  saturated.  That  means  that  ensuring   customer  satisfaction  and  users’  quality  of  experience  is  critical  for  retaining  customers,  and   winning  customers  from  competitors.  Outside  developing  markets  there  is  little  growth  to  be  had  
  • 6.     from  finding  the  ‘as  yet  unconnected’.  Operators  must  offer  the  best  quality  of  experience  to  retain   their  users.     As  well  as  enabling  the  provision  of  new  services  for  residential  consumers,  the  deployment  of  LTE   Broadcast  technology  opens  up  new  possibilities  amongst  other  customer  groups.  It  would  support   the  introduction  of  services  such  as  the  broadcast  of  system  upgrades  for  software  companies  and   with  enterprise  customers  that  have  large  scale,  distributed  machine-­‐to-­‐machine  applications.  It  can   also  be  used  to  deliver  emergency  broadcast  services  for  government  or  public  sector  organisations   (complementing  the  push-­‐to-­‐talk  and  device-­‐to-­‐device  capabilities  of  LTE  that  are  also  attractive  to   those  customers).   Added  to  this,  the  mobile  broadcast  technology  available  to  network  operators  is  much  improved.   LTE  Broadcast  (eMBMS)  is  substantially  more  efficient  than  previous  mobile  broadcast  technologies,   and  promises  new  functions  and  features  that  make  its  deployment  more  practical  and  attractive.   Some  operators  have  already  launched  services,  with  others  running  pre-­‐commercial  trials.  The   technology  is  proven  and  we  expect  to  see  more  commercial  services  going  live  over  the  next  twelve   months.   Collectively  these  factors  have  substantially  improved  the  business  case  for  deployment.  This  report   describes  LTE  Broadcast  (based  on  eMBMS)  in  detail,  explaining  what  the  technology  does,  and  how   far  the  market  has  moved  towards  widespread  deployment;  summarizes  the  state  of  the  ecosystem;   and  examines  the  business  case  for  eMBMS,  making  the  case  for  broader  ecosystem  support  for  the   technology.  The  report  argues  that  the  time  is  now  ripe  for  network  operators  to  start  to  roll  out   commercial  services,  and  for  vendors  to  support  their  cause  by  selling  a  wide  range  of  eMBMS-­‐ enabled  devices.   Technology  description   Mobile  networks  traditionally  use  a  unicast  approach  to  deliver  content  (including  video,  TV,  music,   images  or  data)  to  end  users.  In  other  words,  transmissions  to  different  devices  are  all  set  up  and   delivered  independently,  using  distinct  portions  of  the  operator’s  spectrum  resource,  even  if   different  users  want  to  receive  the  same  content.  If  five  people  in  the  same  cell  want  to  receive  the   same  live  TV  content,  the  network  must  deliver  that  content  five  times.   LTE  Broadcast  uses  a  multicast  approach.  It  sends  the  content  once,  and  that  same  content  is   received  by  all  the  users  who  want  to  receive  it,  as  Figure  1  illustrates.  The  result  is  a  potential   substantial  reduction  in  the  amount  of  network  resource  used  to  deliver  the  content.   All  kinds  of  content  can  be  broadcast  –  linear  and  live  TV  and  video,  linear  and  live  music,  static   content,  software,  data  and  information.   3GPP  has  been  working  to  define  LTE  Broadcast  (eMBMS).  Initial  standards  have  been  released,  and   future  evolutions  are  also  planned.    It  is  a  technology  which  works  now,  and  will  continue  to  evolve.     The  operator  has  the  flexibility  to  decide  how  much  of  its  spectrum  resource  to  dedicate  to  LTE   Broadcast,  by  allocating  proportions  of  different  carriers  for  either  unicast  or  broadcast  content.   Those  proportions  can  be  given  different  profiles  at  different  times  of  the  day.  The  operator  also  has  
  • 7.     the  option  to  implement  the  technology  on  a  cell-­‐by-­‐cell  basis  so  that  LTE  Broadcast  only  consumes   capacity  in  areas  where  the  operator  wants  the  service  to  be  offered.       Figure  1:  LTE  Broadcast  compared  with  LTE  Unicast     Alternatively,  cell  sites  can  be  grouped  to  target  areas  into  which  the  same  content  will  be   broadcast.  Towers  in  those  groups  will  broadcast  the  same  content,  at  the  same  time,  on  the  same   frequencies,  creating  what  is  called  a  Single  Frequency  Network  (SFN).    Tower  broadcasts  within  the   SFN  are  carefully  synchronized.  Any  compatible  device  within  the  area  of  the  SFN  can  pick  up  the   broadcast  (a  Multimedia  Broadcast  Service  over  a  Single  Frequency  Network,  or  MBSFN),  receiving   multiple  transmissions  of  the  same  data  from  different  towers,  but  presenting  to  the  end  user  only  a   single  channel.  This  use  of  multiple  towers  can  mean  improved  service  quality  for  customers  in  cell   overlap  areas  as  their  devices  no  longer  need  to  rely  on  a  weak  signal  from  a  single  tower.   Moreover,  a  single  cell  site  can  be  a  member  of  multiple  MBSFN  groups,  giving  the  operator   flexibility  in  terms  of  where  and  when  to  deliver  different  types  of  content  to  different  types  of  user.   (One  urban  cell  might  for  instance  be  part  of  a  group  dedicated  to  delivering  software  downloads  for   business  users,  and  also  part  of  a  group  delivering  live  content  to  sports  fans  in  a  stadium,  with  its   role  changing  at  different  times  of  the  day  or  week.)   Critical  future  features  of  eMBMS  will  include:   • MBMS  Operation  On  Demand  (MOOD)  –  standardized  in  3GPP  release  12,  this  will  provide   operators  with  ability  to  turn  eMBMS  on  or  off  dynamically,  according  to  network   requirements.  This  will  be  a  major  evolution  for  the  technology,  which  (in  any  given  cell)   currently  needs  to  follow  a  standard  profile  for  allocation  of  spectrum  to  either  unicast  or   broadcast  at  any  given  time  of  the  day.  MOOD  will  have  a  major  impact  on  the  efficiency  of   capacity  usage  of  LTE  Broadcast.    Prior  to  MOOD  the  capacity  is  reserved  for  eMBMS  even  if   it  is  not  being  used.  The  MOOD  feature  makes  a  big  difference  to  business  cases  where   customer  demand  for  content  is  unpredictable  either  in  terms  of  time  of  day  or  location.  It   should  be  noted  that  various  proprietary  solutions  offering  MOOD-­‐type  capability  are  in   development  and  will  be  available  soon,  or  in  some  cases  are  available  already.  
  • 8.     • HEVC  –  standardized  in  3GPP  release  12  –  is  expected  to  enhance  compression  so  that   channels  can  be  squeezed  into  smaller  frequency  bands,  offering  an  anticipated  40-­‐50%   improvement  over  AVC/H.264.     • Multiband  eMBMS  using  carrier  aggregation  –  expected  to  be  standardized  in  release  13  (or   beyond).  Currently  the  operator  must  select  the  band  to  be  used  for  eMBMS  (e.g.  1800  or   2600)  and  devices  are  tied  to  single  bands.   Typically  it  takes  12  to  24  months  after  standardization  for  3GPP  release  features  to  make  their  way   into  commercial  products.  On  that  basis  we  should  expect  to  see  release  12  features  emerging  from   mid-­‐2016  onwards.  Interviews  with  operators  and  vendors  suggest  that  availability  of  standards-­‐ based  MOOD  solutions  might  still  be  1  to  3  years  away,  although  operators  are  pressing  for  earlier   availability.     Figure  2:  The  timeline  for  LTE  Broadcast  technology  and  market  development        
  • 9.     Drivers  of  adoption   There  are  a  number  of  drivers  of  interest  in  LTE  Broadcast.  These  include  increasing  market   saturation,  slowing  revenue  growth,  and  spiralling  volumes  of  video  traffic  within  mobile  networks.   These  are  not  all  of  equivalent  importance,  however,  and  to  test  the  relative  strength  of  these   drivers,  the  GSA  polled  its  members’  views.     Figure  3:  Drivers  of  LTE  Broadcast  adoption     Question  asked:  What  do  you  think  are  the  three  most  important  drivers  of  LTE  Broadcast  infrastructure  and   services?  Please  rank  three  only,  in  order.  173  respondents   Respondents  were  asked  to  identify  the  most  important  market  drivers  from  a  prompted  list,   identifying  the  top  three  in  order  of  importance.  The  chart  shows  the  counts  of  their  responses.   Ability  to  open  up  new  revenues  was  most  often  chosen  as  one  of  the  top  three  drivers;  just  ahead   of  the  need  to  deal  with  growth  in  demand  for  video  content  and  the  ability  to  improve  users’   quality  of  experience.  (The  potential  to  open  up  new  revenue  streams  is  considered  in  detail  in  the   next  section  below.)  The  need  to  deal  with  growth  in  demand  for  video  was  rated  as  the  most   important  driver  by  more  people  than  any  of  the  other  drivers.     The  requirement  to  deal  with  growing  demand  for  video  content  is  clearly  related  to  the  other  top   three  issue  of  improving  users’  quality  of  experience.  In  addition  to  making  the  delivery  of  popular   content  more  efficient  for  the  network  operator,  LTE  Broadcast  can  improve  the  quality  of  service   both  for  the  users  of  the  LTE  Broadcast  infrastructure  and  for  other  mobile  users.  Users  of  the  LTE   Broadcast  service  no  longer  compete  for  network  access,  and  popular  content  is  provided  with   committed  levels  of  bandwidth  to  assure  the  delivery  of  services.  Meanwhile  the  other  mobile  users   find  that  as  multiple  bandwidth-­‐hungry  video  customers  are  moved  onto  LTE  Broadcast,  the  capacity   left  for  them  to  use  increases  (so  long  as  LTE  Broadcast  is  not  allocated  too  much  spectrum).   Network  operator  respondents’  opinions  were  similar  to  those  of  other  respondent  types  (vendors,   service  providers,  broadcasters,  industry  commentators)1  except  that  the  availability  of  clear                                                                                                                             1  More  details  about  the  surveys  undertaken  to  inform  this  report  are  provided  in  the  annex  
  • 10.     business  opportunities  was  ranked  at  the  most  important  driver  by  operators,  just  ahead  of  video   growth;  and  mobile  data  demand  growth  was  chosen  as  a  top  three  driver  slightly  more  often  than   video  demand  growth.   Revenue  opportunities   It  is  perhaps  not  surprising  that  LTE  Broadcast  has  captured  interest,  as  it  offers  mobile  operators   the  opportunity  to  create  new  services,  and  find  new  ways  to  monetize  them  –  through  payment   from  consumers  and  businesses,  revenue-­‐sharing  arrangements,  reduced  churn,  new  subscriber   additions,  or  network  cost  savings.  Operators  have  so  far  largely  tested  mobile  TV  broadcast-­‐related   applications  but  LTE  Broadcast  could  provide  the  technological  underpinning  for  a  very  wide  range  of   services.  Some  of  the  key  ones  are  listed  in  the  table  below.   Figure  4:  The  applications  for  LTE  Broadcast  being  considered  by  operators   Service  concept   Description   HD  mobile  TV   High  quality  (HD)  mobile  live  and  linear  TV,  when  you're  out  and  about  or  at   home   Content  pre-­‐distribution   Consumers'  favourite  online  TV,  video  and  magazine  /  news  content,  pushed  in   advance  to  a  mobile  device  and  ready  to  watch  in  HD  with  no  buffering,  at  the   time  of  broadcast  /  publication  –  or  later   Driver  services   Services  for  drivers  and  car  passengers,  including  real-­‐time  traffic  reports,  parking   space  help,  automatic  satnav  updates,  enhanced  safety  services  (e.g.  seeing   beyond  the  car  in  front),  and  entertainment   Sports  /  music  stadium   services   Video  and  other  content  (instant  multi-­‐angle  replays,  video  from  other  events   elsewhere,  close-­‐ups,  stats  information,  exclusive  merchandise  offers  etc.,  all   with  excellent  speed  even  at  or  around  busy  events  like  music  festivals,  concerts,   football,  motor  and  horse  racing,  tennis,  cycling,  or  athletics)   Emergency  services   Wireless  emergency  /  public  safety  alerts,  and  priority  push-­‐to-­‐talk  services  for   the  emergency  services   Software  distribution   Operating  system  /  firmware  /  application  updates  distributed  rapidly  and   efficiently  to  users   Digital  signage   Distribution  of  digital  signage  (video  advertising  posters)  locally,  regionally  or   nationally   Internet  of  Things   systems   Internet  of  Things  system  /  sensor  /  actuator  configuration,  including  for  smart   meters  and  lighting  controls   Commercial  content   distribution   Hotel,  theme  park,  airport  and  other  venue  content  distribution  (videos,   presentations,  advertising,  maps  etc.)  to  user  devices  and  screens  within  venue   Campus  content   distribution   Campus  content  distribution,  including  distribution  of  lecture  notes  to  students,   or  corporate  information  to  staff   Public  transport  info   Public  transport  information  (maps,  timetables,  alerts  etc.)  broadcast  live  across   the  network  to  screens  and  consumers'  devices     Understanding  which  of  these  services  has  the  greatest  potential  for  success  will  be  crucial  to  mobile   operators.  The  GSA  tested  potential  for  success  in  two  ways.    It  tested  the  appeal  of  a  number  of   individual  services  and  bundles  of  services  with  members  of  the  GSA  community,  to  see  which  they   thought  had  the  most  chance  of  success,  using  the  service  descriptions  provided  in  the  table  above.   Respondents  were  asked  to  indicate  whether  they  thought  the  services  would  succeed  if  launched,   or  would  not  succeed  even  if  launched.  The  survey  feedback  is  in  Figure  5.      
  • 11.     Figure  5:  Likely  success  of  LTE  Broadcast  services     Question  asked:  We  will  show  you  a  list  of  potential  applications  of  LTE  Broadcast  technology.  For  each  one,   please  indicate  how  likely  you  think  the  service  is  to  succeed,  on  a  scale  of  1-­‐5,  where      1  =  “this  service  will  not   succeed  at  all,  even  if  LTE  Broadcast  infrastructure  and  devices  are  in  place”,  and      5  =  “this  service  is  very  likely   to  succeed”.  173  respondents   With  the  exception  of  digital  signage,  all  services  tested  were  given  a  4  or  a  5  score  by  more  than   half  the  respondents,  indicating  people  think  them  likely  or  very  likely  to  succeed.  There  was  no   significant  difference  between  operators’  responses  and  those  from  other  industry  players.   Some  of  the  concepts  were  also  tested  with  consumers  in  the  UK  (as  an  example  market),  to  gauge   their  level  of  interest  in  using  such  services.  (Services  clearly  only  of  interest  to  business  users,  such   as  Internet  of  Things-­‐related  applications,  were  not  tested.)  Respondents  were  given  service   descriptions  and  asked  (inter  alia)  whether  they  would  use  them.  The  results  are  shown  in  Figure  6   below.   Although  they  are  not  directly  comparable,  it  is  interesting  to  note  the  differences  between  the  two   sets  of  survey  results.  Sports  /  music  stadium  services  were  ranked  highest  in  terms  of  likelihood  of   success  by  industry  survey  participants,  whilst  UK  consumers  indicated  that  the  service  they  would   most  like  to  use  is  mobile  TV.  Content  pre-­‐distribution  was  also  popular  amongst  end  users.      
  • 12.     Figure  6:  Interest  in  various  LTE  Broadcast  concepts.  Base  343  UK  mobile  users                 Efficient  television  distribution   It  is  important  to  note  that  network  operators  are  not  the  only  companies  investigating  the  potential   of  eMBMS  to  distribute  content.  A  variety  of  broadcasters  have  also  started  to  explore  the   capabilities  of  the  technology.  There  are  subtle  differences  in  their  motivations.  Network  operators   are  looking  at  LTE  Broadcast  as  a  means  to  manage  the  cost  of  delivering  traffic  over  their  networks   whilst  sustaining  quality  of  customer  experience,  and  as  a  means  of  developing  new  revenue   generating  services.  Broadcasters  are  sometimes  simply  looking  at  eMBMS  as  a  new  method  for   reaching  the  increasing  numbers  of  customers  that  are  accessing  their  content  via  mobile  devices.   They  are  keen  to  ensure  quality  of  experience  for  those  end  users  viewing  their  services  over   wireless  networks,  and  to  reach  the  biggest  possible  audience  with  their  content.     For  instance,  Germany’s  research  and  development  institute  for  broadcast  and  digital  media   technology,  IRT  (which  is  owned  by  the  country’s  public  service  broadcasters)  and  the  Bavarian   broadcaster  Bayerischer  Rundfunk  (an  associate  of  IRT)  are  exploring  the  potential  benefits  and   drawbacks  of  eMBMS  for  broadcasters.  Germany  is  in  the  process  of  moving  its  free-­‐to-­‐air   broadcasting  services  to  DVB-­‐T2,  and  the  DVB-­‐T2  networks  in  Germany  will  be  designed  for  portable   reception  (including  some  use  in  cars).  Nevertheless,  the  broadcasters  are  seeing  on-­‐demand   content  (which  requires  a  return  channel)  account  for  an  increasing  share  of  mobile  media   consumption  and  they  are  considering  how  the  next  (post  DVB-­‐T2)  generation  of  broadcast   networks  could  deliver  access  to  linear  and  non-­‐linear  media  services  on  the  move.  Moreover,   unlocking  millions  of  smartphones  and  tablets  as  a  potential  receiver  for  broadcasting  content  is   regarded  as  very  appealing.          
  • 13.     Barriers  to  adoption   Whilst  there  are  drivers  for  the  deployment  of  LTE  Broadcast,  there  are  also  a  number  of  barriers.  In   the  GSA’s  survey  of  its  member  community,  respondents  were  asked  to  identify  the  most  important   market  barriers  from  a  prompted  list,  identifying  the  top  three  in  order  of  importance.  Figure  7   shows  the  counts  of  their  responses.   The  results  show  that  there  is  still  work  to  be  done  to  make  the  business  case  for  deployment  of  LTE   Broadcast;  that  issue  was  ranked  the  single  biggest  barrier,  and  as  a  top  three  barrier  by  the  most   number  of  survey  respondents.  Second  was  the  lack  of  availability  of  eMBMS-­‐enabled  devices,   followed  by  a  lack  of  media/content  partnerships.   Although  industry  players  are  still  concerned  about  the  business  case  for  LTE  Broadcast,  we  would   contend  that  these  barriers  are  in  the  process  of  being  overcome.  We  expect  that  trials  and  early   deployments  will  show  that  there  is  a  case  for  LTE  deployment  on  a  wide  scale  (and  below  we  work   through  a  generic  business  case  that  demonstrates  clear  potential).   Figure  7:  Barriers  to  LTE  Broadcast  deployment     Question  asked:  What  are  the  three  most  important  barriers  to  roll  out  of  LTE  Broadcast  infrastructure  and   services?  Please  rank  three  only,  in  order.  173  respondents     Device  availability  is  low,  but  is  expected  to  grow  in  the  coming  months.  Device  availability  is   explored  further  in  the  section  below.   Cost  of  infrastructure  deployment  is  a  concern.  Mobile  operators  are  comparing  the  costs  of  LTE   Broadcast  with  the  costs  of  LTE  unicast  and  other  network  improvement  technologies  they  might   deploy.  Broadcasters  are  comparing  the  costs  and  capabilities  of  LTE  Broadcast  not  with  LTE  unicast   solutions,  but  with  alternative  broadcast  approaches.    
  • 14.     Unavailability  /  maturity  of  network  technology  was  rated  overall  as  the  fourth  biggest  barrier  –   again  a  barrier  that  is  steadily  being  overcome.  There  is  a  variety  of  network  technology  vendors  that   now  offer  eMBMS  solutions.   The  lack  of  media  partnerships  was  seen  as  an  issue  for  operators  planning  TV-­‐related  services.   Many  of  the  LTE  Broadcast  business  cases  involve  commercial  participants  from  outside  the  mobile   telecom  value  chain  including:   • Content  producers  /  owners  (for  video  /  TV  broadcast-­‐based  services)   • Sports  organisations  and  rights  owners  (for  stadium  and  sports  coverage  deals)   • Software  developers  (for  the  LTE  Broadcast  software  upgrade  model).   It  should  be  noted  that  there  are  a  great  many  telecoms  groups  worldwide  which  include  both   mobile  operators  and  broadcasters  or  content  providers;  and  there  are  others  that  have  experience   of  content  delivery  through  IPTV  or  cable  TV  businesses  they  operate.       Device  availability     Device  availability  needs  to  improve  to  ensure  that  when  operators  launch  their  LTE  Broadcast   services,  these  can  be  received  by  a  range  of  handsets  and  other  devices  (and  ideally  by  the  most   popular  models).     In  order  to  be  LTE  Broadcast  compatible,  CPE  must  be  equipped  with  the  following:   • LTE  Broadcast  capable  chipsets,  with  the  LTE  Broadcast  feature  turned  on   • Middleware  to  support  the  applications  that  will  be  developed  to  use  LTE-­‐Broadcast.  The   middleware  must  be  able  to  decode  and  display  the  received  broadcast  content   • LTE  Broadcast  applications  themselves   Initially  only  a  few  devices  were  available,  with  handset  companies  supplying  bespoke  batches  of   test  handsets  and  tablets  that  could  be  used  in  trials  /  pilot  projects.  The  number  of  compatible   devices  is  now  steadily  increasing.     The  availability  of  chipsets  supporting  eMBMS  is  not  now  a  problem  –  there  are  many  chipsets   available  that  support  the  technology.  That  said,  there  are  significant  gaps.  It  is  also  important  to   note  that  chipsets  are  not  all  created  equal.  Chipsets  must  be  able  to  support  the  full  range  of   standardized  eMBMS  features.  Known  chipset  availability  from  the  leading  vendors  is  as  follows:   Qualcomm  Technologies’  chipsets  and  its  LTE  Broadcast  middleware  solution  have  been  used  in   many  of  the  operator  trials  that  have  taken  place.  Qualcomm  reports  that  all  its  latest  Snapdragon     modems  (the  X5  class  including  the  Snapdragon  210,  212,  412,  415,  616  and  X5  LTE  Modem;  the  X6   class  including  the  Snapdragon  430;  the  X7  class  including  the  Snapdragon  X7  LTE  Modem;  the  X8   class  including  the  Snapdragon  617,  618  and  620  processors;  the  X10  including  the  Snapdragon  808   and  810  processors;  and  the  X12  modem  class  including  the  X12  LTE  modem  and  Snapdragon  820   processor)  are  now  technically  capable  of  supporting  LTE  Broadcast  services.  These  processors  are   contained  in  a  large  number  of  devices.     Sequans  also  supports  LTE  Broadcast.  Sequans  reports  that  its  VZ22M  EZLinkLTE  modules  (designed   for  tablets,  notebooks,  laptops  and  other  portable  computers)  support  eMBMS.  Its  VZ22Q  EZlinkLTE  
  • 15.     module  (designed  for  adding  LTE  to  M2M  and  connected  consumer  electronics  devices)  also  offers   eMBMS  support.  Both  have  been  certified  for  deployment  in  the  Verizon  network.     In  addition,  the  company’s  Cassiopeia  LTE-­‐Advanced  chipset  solution  supports  eMBMS  (and  has   been  deployed  in  CPE  being  used  by  Linkem  in  its  new  LTE  network  in  Italy),  as  does  its  Mont  Blanc   LTE  platform  (used  in  Orange’s  trials  in  France,  and  Verizon’s  trials  in  the  U.S.).   Sequans  says  its  EZLinkLTE  modules  support  all  major  operating  systems,  including  Android,   Windows,  Linux,  and  Google  Chrome.   Altair’s  FourGee-­‐3800/6300  chipset  supports  eMBMS,  and  is,  according  to  the  company,  suitable  for   deployment  in  most  types  of  device.    It  has  been  working  with  middleware  provider  Roundbox  to   deliver  a  package  of  interoperable  LTE  Broadcast  eMBMS  chipsets  and  device  software.     Intel  demonstrated  a  platform  running  Expway’s  eMBMS  middleware  on  its  Intel  XMM  7160  modem   at  MWC  2014.  It  currently  lists  three  4G  LTE  platforms  as  eMBMS  compatible.  These  are  the  XMM   7260,  the  XMM7262,  and  its  newly  launched  XMM  7360.  The  first  devices  based  on  the  XMM7360   are  expected  before  the  end  of  2015.     Marvell’s  ARMADA  mobile  platforms,  including  the  PXA1802,  PXA1920,  PXA1928,  PXA1908  and   PXA1936  have  all  been  enhanced  to  support  eMBMS  technology.  Its  PXA1918  has  also  been   introduced  with  eMBMS  support.  Marvell  has  demonstrated  the  interoperability  of  its  chipsets  with   Expway’s  middleware.   GCT  lists  several  modems  that  support  eMBMS:  the  GDM7243Q:  Advanced  FDD-­‐TDD  LTE  Cat.  5/6/7;   the  GDM7243M:  Multi-­‐Mode  FDD-­‐TDD  LTE  +  WiMAX  devices;  and  the  GDM7243S:  FDD-­‐TDD  LTE,   Cat.  4.   All  of  these  vendors  have  announced  the  launch  of  devices  containing  their  chipsets.  A  full  list  is   contained  in  the  table  in  Annex  A.   Middleware  is  also  available  for  most  of  these  chipsets.  For  instance,  Expway  reports  that  its  eMBMS   middleware  supports  chipsets  from  Altair,  Intel,  Marvell,  Qualcomm  and  Sequans,  and  we  are  aware   of  at  least  25  devices  that  have  been  tested  /  certified  /  trialled  with  Expway  middleware.  Expway’s   middleware  runs  on  a  variety  of  operating  systems  including  Android,  Linus,  iOS  and  Windows.   Meanwhile,  Qualcomm  provides  its  own  eMBMS  middleware  and  SDK  and  states  that  it  has  rolled   this  out  to  support  all  of  its  eMBMS  compatible  chipsets.     Even  if  a  device  has  a  compatible  chipset  and  has  been  demonstrated  with,  or  certified  as   compatible  with  LTE  Broadcast  middleware,  it  still  needs  to  be  eMBMS-­‐enabled.  This  is  starting  to   happen,  often  with  devices  enabled  for  eMBMS  via  a  software/firmware  upgrade  following  service   launch.   One  operator  we  spoke  to  stated  that  it  was  aware  of  20  compatible  devices,  that  14  of  them  were   being  used  in  its  network  and  were  all  capable  of  firmware  upgrade  to  support  eMBMS.  It  said  three   of  those  were  already  present  in  sufficient  volumes  to  justify  that  firmware  upgrade.  
  • 16.     Separately  we  understand  that  Verizon  has  certified  at  least  ten  eMBMS  compatible  devices  for  use   on  its  network,  with  around  five  more  due  before  the  end  of  2015.  The  company  has  enabled  the   use  of  a  variety  of  these  devices  for  eMBMS  via  software  upgrades.   Our  research  has  identified  97  devices  in  a  variety  of  form  factors  that  have  either  been  used  in   demonstrations  or  trials  (some  of  them  customised  specifically  for  the  trial),  or  are  being  sold  with   eMBMS  compatible  chipsets  and  so  could  be  used  to  provide  services.  Of  those,  63  devices  have   been  identified  as  having  been  demonstrated  with  or  certified  as  compatible  with  commercially   available  eMBMS  middleware.   One  notable  absence  from  the  LTE  Broadcast  community  is  Apple.  Apple  is  generally  perceived  to  be   a  crucial  player  as  far  as  the  success  prospects  of  LTE  Broadcast  is  concerned.  We  understand  from   operator  sources  that  Apple  has  so  far  shown  no  clear  interest  in  enabling  eMBMS  in  its  devices.  Nor   has  it  confirmed  to  the  GSA  whether  it  plans  to  enable  eMBMS  in  its  handsets.     The  device  availability  barrier  could  relatively  easily  be  overcome  by  the  vendor  community.  When   asked  What  device  penetration  must  eMBMS  achieve  in  order  for  operators  to  seriously  consider   introducing  LTE  Broadcast  services?  respondents  to  the  survey  of  GSA  community  readers  generally   indicated  they  thought  between  10%  and  50%  device  penetration  is  needed  before  operators  can   consider  launching  services,  with  the  10%  to  25%  range  getting  the  most  responses.  The  average  of   the  penetration  scores  indicated  was  just  under  30%.       Figure  8:  LTE  Broadcast  device  penetration  requirements     Question  asked:  What  device  penetration  must  eMBMS  achieve  in  order  for  operators  to   seriously  consider  introducing  LTE  Broadcast  services?  Base  123  respondents   Given  device  churn  rates  (on  average  as  frequent  as  once  every  two  years  in  some  markets,  with   many  customers  changing  device  every  year),  this  would  not  take  long  to  achieve  if  there  is  a  good   range  of  compatible  devices  to  offer  customers.  Going  forward  we  expect  more  vendors  to  enable   their  devices  for  eMBMS  at  the  request  of  network  operators.  For  many  existing  smartphones,   eMBMS  can  be  enabled  through  an  operating  system  firmware  upgrade.     One  issue  that  must  be  considered  is  spectrum  band  support,  though.  Devices  that  have  been  made   available  to  support  KT’s  service  in  Korea  are  not  usable  in  Western  markets  because  they  support   spectrum  bands  that  will  not  be  used  by  operators  in  the  West  to  provide  LTE  Broadcast  services.  
  • 17.     Nonetheless,  in  many  cases  we  regard  the  main  barrier  to  introduction  of  eMBMS-­‐capable  devices  to   be  an  economic  one.  Either  the  operator  or  the  device  vendor  must  decide  it  is  worth  the  cost  to   activate  the  capability  in  the  chipsets  and  to  deploy  the  middleware.     Network  upgrade  requirements   Operators  planning  to  deploy  LTE  Broadcast  in  their  network  will  need  to  make  some  technical   adjustments  to  their  networks  to  enable  services.  Figure  9  depicts  the  key  network  elements   required  to  deliver  LTE  Broadcast  services.     Figure  9:  LTE  Broadcast  network  infrastructure     The  key  elements  are:   • Content  encoders  /  transcoders.  While  not  critical  if  appropriately  encoded  content  is   sourced  from  third  parties,  generally  speaking  content  will  need  to  be  encoded  using  H.265,   or  when  it  is  introduced  in  networks,  HVEC,  to  ensure  the  content  is  sufficiently  compressed.   Better  compression  means  less  bandwidth  and  spectrum  is  needed  to  deliver  the  service  (or   more  can  be  delivered  using  the  same  spectrum).   • Ericsson  reported  that  trials  with  Telstra  showed  HVEC  reduced  bandwidth  required  to   deliver  high  quality  video  by  30-­‐40%  compared  with  MPEG-­‐4  AVC  coding.     • Streamed  video  would  need  to  use  MPEG-­‐DASH  (the  standard  for  Dynamic  Adaptive   Streaming  over  HTTP),  which  is  standardized  for  eMBMS  live  streaming.     • Synchronization  -­‐  required  in  order  that  cells  forming  part  of  the  same  MBSFN  Area  can   broadcast  in  a  synchronized  fashion.   • MBMS  Coordination  Entity  (MBMS  CE)  –  schedules  resources,  allocating  time  and  frequency   to  eMBMS.  Manages  eMBMS  session  admission.  This  function  is  located  in  the  eNodeBs  and   will  require  either  a  software  or  hardware  upgrade.   • Broadcast  Multicast  Service  Centre  (BM-­‐SC)  –  manages  functions  such  as  authentication,   authorization,  and  content  packaging  for  transport  (using  FLUTE),  content  synchronization   and  application  layer  forward  error  correction.     • Multimedia  Broadcast  Gateway  (MBMS  Gateway)  –  delivers  content  to  the  relevant   eNodeBs  for  broadcasting,  and  manages  E-­‐UTRAN  session  control  signalling  (via  the  MME).      
  • 18.     Timelines  for  adoption   Numerous  operators  have  now  completed  trials  of  eMBMS  in  live  networks,  with  live  customers.   Most  trials  have  been  technical  in  nature,  rather  than  commercial.  The  table  below  lists  the  known   trials.  Where  cells  are  blank,  we  have  no  information.   Figure  10:  Operator  trials  of  LTE  Broadcast     Participants Details Lead operator / broadcaster Vendors and others Country Date Trial data 3 Samsung UK Technical trials in Maidenhead UK   AT&T Ericsson, Qualcomm (middleware), ESPN, MobiTV (streaming app), Samsung (handsets) US Jan 2015 Feb 2015 Trials in Texas of live football game offering extra content feeds with new camera angles and bonus content. Trial aimed at minimizing network congestion     Trial at SuperBowl 2015 involving 40 LTE Broadcast enabled Samsung Galaxy Note 3 Android smartphones. 5MHz per cell reserved for delivery of three channels   Bayerischer Rundfunk, IRT Nokia Germany July 2014 Trial in Munich broadcasting content over a 200 km 2 area using Nokia Flexi Multiradio 10 base stations deployed at four sites   Bell Mobility Expway Canada China Mobile Huawei, Expway Ericsson, Qualcomm China Hong Kong Feb 2013 Sept 2014 Demonstrated at MWC Demonstrated at LTE Summit   China Telecom Huawei, ZTE, Expway China Aug 2014 Pre-commercial trial at the 2014 Summer Youth Olympic Games (YOG). The service provided live feeds to the YOG Control Centre and the temporary business hall in the Youth Olympic Village, as well as Hohai University campus and Nanjing University of Posts and Telecoms campus, in Nanjing. In addition, China Telecom made 18,000 Huawei C8817 eMBMS- enabled device units available to YOG service volunteers so that they could watch HD YOG games on their mobile terminals anytime, anywhere, and free of charge China Telecom (Wuxi Telecom) ZTE China Nov 2014 Wuxi Telecom has launched eMBMS at Jiangnan University, Wuxi Business and Vocational School, and Wuxi Technology Institute (New District). On-site tests showed that the network could deliver high-quality mobile videos, and IP RAN multicast services to a reliable millisecond level   EE BBC, Qualcomm, Huawei, plus UK May 2014 and May Technical trial at Commonwealth Games, with content from three Commonwealth Games events. Games shown live in
  • 19.     EVS and Intellicore (FA Cup trial), Expway 2015 Glasgow’s Science Centre on handsets, and live broadcast streams sent to trial handsets running the BBC’s iPlayer application FA Cup Final - one broadcast stream of live footage, and others to show multiple camera angles and replays – to tablets Etisalat Alcatel Lucent UAE Mar 2014 Known to have trialled. Alcatel Lucent network deployment contract deal reported to include capability for eMBMS   Globe Telecom Huawei Philippines Sept 2014 Demonstrated the technology at the Globe Innovation Forum   RAI, TDF Expway, GatesAir, Nokia France and Italy April 2015 Trial to test convergence potential of eMBMS with DVB. Two data streams in the trials in France and Italy share the same UHF channel using time division multiplexing. One carries conventional DVB broadcast for TVs, and the other carries LTE broadcast signals for smartphones, laptops and tablets. The French trial (at the Eiffel Tower) is testing pre-download of popular content to mobiles; the Italian trial (in the Aosta Valley) is testing mobile video streaming (four channels with HVEC coding) KPN Ericsson, Samsung, IBM, Amsterdam Arena NL May 2014 Football match in Amsterdam, Netherlands, between Ajax and NEC KT Samsung, Expway Nokia Korea Germany Feb 2013 Nov 2015 Demonstrated at MWC Demonstrated at Nokia Research Center in Germany their jointly developed ultra- low latency (<1s delay) delivery of HD video from camera to smartphone over eMBMS.   Megafon Huawei Russia Sept 2014 Laboratory technical testing   Meo Huawei Portugal   MTS Ericsson, Qualcomm Russia 2015 Technical trial: several channels of video content delivered to smartphones in Russia from distribution centre in Germany Orange Alcatel Lucent, Samsung, Expway, Sequans, Qualcomm France May / June 2014 French Open tennis. Four live channels at 2.5 Mbit/s in 6MHz of downlink capacity (in the 2.6GHz band) Demonstration tablets were used, running Expway middleware on Sequans chipsets PCCW (CSL) Huawei Hong Kong Internal tests Trial at the Hong Kong Rugby Sevens Polkomtel Plus Ericsson, Samsung, Polsat Poland Sept 2014 Four channels showing different camera angles delivered throughout the stadium to 300 devices during the Men’s Volleyball championship in Warsaw RJIL Samsung, Expway, Marvell India RJIL is using Expway’s LTE Broadcast middleware for TV and push VOD, and traditional LTE for fixed and mobile voice,
  • 20.     as well as for Internet   Singtel Ericsson Singapore June 2015 Trial at 28th South East Asian (SEA) Games designed to demonstrate commercial viability for businesses. Multiple mobile devices ran the Singtel TV GO app, displaying live broadcasts of sporting events.  The demonstration also presented drone videography of the men’s and women’s 500m 12-crew traditional boat race - the aerial footage was uplinked through Singtel’s high-speed LTE network and streamed to the mobile devices using LTE Broadcast technology   SK Telecom Nokia Korea Oct 2015 Reported to be co-developing an eMBMS solution for disaster communications Smart Communica tions Huawei Also in Feb 14 TV5, Cignal Digital TV Philippines Nov 2013, then Feb 2014 In Nov 2013 multicast preloaded videos via LTE stations to ten LTE tablets. In Feb 2014 tested live feeds of performing bands and two live TV channels, at a music concert delivered to demo LTE tablets   Smartfren Indonesia Dec 2015 Trial planned Telecom Italia Mobile Huawei, Expway Ericsson, RAI, Samsung, Qualcomm Italy April 2015 October 2015 Live streaming via tablets to supporters of an AC Milan football match, of three matches taking place elsewhere At Expo 2015, a live broadcast of concert music (at a definition of 4K), plus streamed music channels and on-demand TV, across the whole exhibition area to selected trial users with mobile phones. A second demonstration involving RAI occurred at the end of the show Telstra Ericsson, Expway Australia Jan 2014 & 2015 Three high-quality, live-video feeds offering live coverage, highlights and statistics delivered to multiple users at the Melbourne Cricket Ground Additional trials at a racing carnival in 2014 and various sporting finals in 2015. T-Mobile Huawei Germany   Verizon Ericsson, Qualcomm, Samsung and MobiTV, D- Link, Altair and Roundbox Expway US 2014 and 2015 Demonstrated LTE Multicast at NFL stadia (for the Super Bowl 2014) and at Indy Car race tracks. Has also demonstrated operated LTE Multicast for M2M (digital signage at CTIA 2014 and MWC 2015) and for distribution of software updates and in-car entertainment to car fleets (with Visteon) at CES and MWC 2015. Vivo Expway Brazil Vodafone Expway Portugal Vodafone Huawei, Valencia CF, Quickplay, Thomson Video Networks Spain June 2015 Five HD format channels of content from the game broadcast at a football match including a live content feed, 3D recreations of the game in real-time, stats channel, fan recordings uploaded at the event, and a social channel for tweets, photos and comments
  • 21.     Vodafone Ericsson, Qualcomm, Samsung Huawei Germany Feb 2014 July 2014 LTE Broadcast test at Borussia Mönchengladbach football match in Germany Live broadcasting of the Kieler Woche sailing event using two DBS3900 distributed base stations; signal broadcast to smartphones and tablets held by audience members   We  can  expect  further  trials  in  the  future.  Our  survey  of  the  GSA  community  showed  that  many   operators  are  planning  to  test  eMBMS.  33%  of  the  network  operators  that  answered  a  question   about  their  intentions  stated  that  they  were  trialling  now,  or  would  trial  eMBMS  within  a  year.  Over   50%  plan  to  run  trials  within  two  to  three  years.  Over  10%  indicated  they  have  deployed  eMBMS  or   have  plans  to  deploy  within  the  year.   Figure  11:  eMBMS  -­‐  operator  trial  and  launch  plans     Question  asked:  How  advanced  is  your  planning  for  LTE  Broadcast  infrastructure  rollout?  51  respondents     Even  amongst  those  operators  without  definite  deployment  plans,  there  is  a  general  optimism  about   the  likelihood  of  service  introduction.  As  Figure  12  shows,  nearly  40%  of  those  who  answered  the   question  said  they  expected  to  launch  services  within  the  next  two  years,  and  60%  of  them  within   three  years.              
  • 22.     Figure  12:  eMBMS  -­‐  operator  launch  plans     Question  asked:  What  is  your  best  estimate  of  when  LTE  Broadcast  services  might  start  on  your  network?   Choose  the  answer  that  fits  best.  53  respondents     A  select  few  operators  have  gone  further  and  committed  to  commercial  launches  of  eMBMS.  We   believe  that  two  operators  have  now  launched  services  (KT  in  Korea  and  Verizon  in  the  U.S.).  Figure   13  below  shows  operators’  publicly  announced  commitments  and  launches.  Our  research  suggests   there  are  two  other  networks  with  eMBMS  deployed  but  not  announced  (and  hence  not  listed  in  the   table  below);  one  of  which  is  understood  to  be  planning  to  launch  commercial  services  soon.   Figure  13:  LTE  Broadcast  -­‐  operator  launches  and  launch  commitments   Operator   Country   Timetable  and  details   KT   Korea   Live.  Launched  services  in  Jan  2014.  Provides  Olleh  Mobile  TV   services  (including  two  channels  of  HD  TV  plus  on  demand  TV)   within  larger  bundles  mobile  subscription  bundles.   Samsung  provides  a  dynamic  cell  activation  algorithm  which   emulates  what  the  MOOD  standard  is  ultimately  expected  to   provide.  Delivered  on  Galaxy  Note  3   Telstra   Australia   Planned.  Launch  during  2015;  Ericsson  technology  being   progressively  deployed  in  Telstra’s  network   EE   UK   Planned.  Technology  deployment  planned  for  2016   Globe  Telecom   Philippines   Planned.  Expected  to  be  commercially  available  in  selected   areas  within  2015   Verizon   U.S   Launched  its  Go90  service  in  September  2015.  This  supports   eMBMS  (as  did  Verizon’s  Indy  Car  2015  application),  although   we  understand  it  does  not  always  use  it.  Devices  are  available   commercially  from  Verizon  with  eMBMS  support   China  Telecom   China   Planned  service  launch  in  2015     AT&T   U.S.   Planned  service  launch  in  2015    
  • 23.     Quickplay,  a  distributor  of  linear  OTT  TV  with  a  reach  of  over  a  billion  viewers,  and  which  has   introduced  multiscreen  video  services  for  AT&T,  Rogers,  Singtel,  Telus,  and  Verizon,  has  also   announced  support  for  LTE  Broadcast.  It  recently  acquired  Roundbox,  a  provider  of  TV  delivery   software  including  eMBMS  middleware  (its  Roundbox  Client  for  4G  LTE  Broadcast).   The  operators  that  have  run  trials,  and  those  that  have  introduced  services,  have  all  been  using   different  spectrum  bands.  They  have  of  course  been  influenced  by  the  spectrum  assets  they  already   own.  For  instance  Plus  Poland  has  been  using  spectrum  at  1800MHz.  Smart’s  trials  in  the  Philippines   have  been  run  at  2.1GHz.  Nokia’s  trials  with  the  Bavarian  company  Bayerischer  Rundfunk  used  part   of  the  700MHz  band  (Band  28)  which  is  not  yet  used  by  Germany  mobile  operators  for  LTE.  Some   operators  have  used  FDD  and  some  TDD  frequency.  Some  operators  and  vendors  are  pressing  for   the  next  wave  of  digital  dividend  spectrum  to  be  set  aside  for  LTE  Broadcast.     Forecasts  for  service  availability   Based  on  interviews  with  operators  and  vendors,  public  statements  about  deployment  plans,  and   research  with  members  of  the  GSA  readership,  we  have  forecast  the  availability  of  LTE  Broadcast   services.     Figure  14:  Forecasts  for  global  LTE  Broadcast  subscriber  coverage     By  the  end  of  2020  we  expected  LTE  Broadcast  coverage  (i.e.  the  number  of  people  with  access  to   LTE  Broadcast  services  within  some  locations  in  their  country)  to  be  reaching  nearly  2  billion  people.   This  does  not  match  geographic  coverage  –  which  will  be  much  lower  than  that  for  other  LTE   services  because  LTE  Broadcast  is  unlikely  in  the  near  future  to  be  deployed  across  most  or  all  of  any   given  network.  It  will  be  deployed  where  the  need  is  greatest,  or  where  users  are  most  found  (i.e.  it   will  be  deployed  in  those  cells  for  which  it  makes  economic  sense).   Evidence  from  our  research  suggests  there  will  be  a  small  number  of  anchor  business  cases  for  the   deployment  of  LTE  Broadcast.  In  most  markets  these  will  be:   • ‘Stadium’  services   • Mobile  TV  services  (linear  and  live)   • Pre-­‐download  content  services.  
  • 24.     In  selected  instances  emergency  service  network  projects  are  expected  to  drive  initial  deployments.     Once  LTE  Broadcast  has  been  deployed  in  an  area  to  support  one  service,  the  business  case  for   deploying  additional  services  will  be  much  easier  to  prove,  so  we  anticipate  multiple  LTE  Broadcast   service  types  to  emerge  in  activated  networks.   Forecasts  for  global  service  provider  revenue   The  following  section  provides  forecasts  for  potential  global  revenue  from  a  number  of  LTE   Broadcast  services  between  2016  and  2020.  The  services  modelled  are  those  for  which  we  can   envisage  a  reasonable  prospect  of  consumers  paying  extra  to  receive  the  services  concerned  (though   the  business  case  does  not  depend  on  this).  We  have  not  modelled  other  market  opportunities   where  the  cost  of  services  would  be  funded  by  other  parties  -­‐  for  instance  the  government  or  public   sector,  or  advertisers,  or  enterprise  customers  seeking  to  improve  the  services  they  provide  to   customers,  or  the  network  operators  themselves.  However,  we  expect  the  potential  revenue  from   these  services  to  be  significant  for  many  operators.   We  have  tested  propensity  to  buy  the  modelled  services  with  a  group  of  UK  mobile  phone  users,  and   have  used  the  data  from  this  survey,  and  other  research,  to  guide  the  forecasts.   The  forecasts  make  the  following  assumptions.   Many  services  will  either  be  provided  free  of  charge  by  the  network  operators  in  order  to  sustain   user  experience  and  to  contain  network  capacity  usage;  or  they  will  be  provided  as  part  of  a  large   service  bundle  with  the  revenue  from  the  LTE  Broadcast  essentially  indistinguishable  from  other   data  services  revenue.  (KT  in  South  Korea,  for  instance,  already  provides  mobile  TV  using  LTE   Broadcast,  with  the  service  provided  as  an  element  of  its  service  bundle  for  higher  paying   customers.)     Only  a  subset  of  customers  will  be  prepared  to  pay  extra  for  LTE  Broadcast  services.  We  have   modelled  the  extra  revenue  that  can  be  captured  from  those  customers  willing  to  spend  a  little   more.  Paying  customers  will  pay  only  a  small  percentage  on  top  of  their  existing  spend  to  access   services.  We  have  assumed  a  typical  premium  of  5%-­‐10%,  varying  by  country  and  service  type.   The  total  user  base  is  limited  by:     a) Availability  of  LTE  Broadcast  services.  We  have  assumed  more  services  will  start  to  become   available  from  2016,  with  the  proportion  of  LTE  networks  offering  some  element  of  LTE   Broadcast  service  rising  to  nearly  40%  by  the  end  of  2020.   b) Availability  of  LTE  Broadcast  capable  devices.  We  have  assumed  that  services  will  be  offered   on  smartphones,  tablets,  specialised  home  gateway  /  set-­‐top-­‐box  devices,  and  some   dongles.       c) We  have  assumed  that  service  revenues  will  be  partially  additive.  In  other  words,  some   customers  will  buy  more  than  one  service  –  either  explicitly  or  as  part  of  a  bundle.  Not  all   customers  will  buy  all  services.      
  • 25.     Figure  15:  LTE  Broadcast  –  global  forecast  for  incremental  mobile  service  revenue,  selected   services  to  2020     We  forecast  the  total  market  for  the  five  LTE  Broadcast  services  modelled  will  reach  around  $14   billion  globally  by  the  end  of  2020.  Although  that  seems  large,  the  figure  only  amounts  around  a   1.5%  uplift  on  total  global  mobile  revenues.  We  would  expect  revenue  from  LTE  Broadcast  services   to  become  more  important  in  subsequent  years.  There  is  also  considerable  upside  in  the  form  of   revenue  generated  from  advertising  (not  counted  here)  and  revenue  generated  through  two-­‐sided   business  models  (i.e.  charging  content  providers  for  delivery  of  their  content  via  LTE  Broadcast  to   ensure  a  better  user  experience,  but  not  charging  end  customers).      
  • 26.     Business  case  for  deployment  of  LTE  Broadcast  services   As  our  research  above  shows,  operators  are  in  the  process  of  exploring  the  business  case  for   eMBMS.  The  following  section  provides  an  overview  of  the  types  of  issues  that  operators  need  to   consider  when  they  are  preparing  their  business  cases.  It  then  works  through  the  business  case  for   deployment  of  a  subset  of  services  within  a  hypothetical  operator’s  network  (broadly  based  on   Western  European  costs  and  ARPUs).   Business  case  checklist   Operators  thinking  through  the  case  for  LTE  Broadcast  must  consider  a  wide  range  of  factors.  The   following  checklist  identifies  some  of  the  most  crucial  elements  of  the  business  case  and  talks   through  how  we  deal  with  them  in  the  subsequent  business  case  example.     Factor  to  consider   Details   Business  model   Operators  considering  the  introduction  of  LTE  Broadcast  can  choose  from  a   wide  range  of  business  models.  Operators  might  choose  to  charge  explicitly   for  some  LTE  Broadcast  services;  some  services  might  be  bundled  in  as   components  within  premium  subscription  deals;  some  might  be  advertising   or  sponsorship  funded;  some  might  simply  be  offered  free  in  order  to  save   network  capacity  (cost)  or  to  improve  user  experience.  The  business  cases   will  be  different  under  each  of  these  scenarios.  In  this  paper  we  have   considered  the  scenario  in  which  operators  explicitly  charge  for  LTE   Broadcast  services.  Primary  research  we  have  undertaken  suggests  there  is  a   significant  minority  that  will  pay  what  they  consider  to  be  a  reasonable  fee   for  services  based  on  LTE  Broadcast.  It  is  instructive  to  analyse  whether  these   customers  alone  can  justify  the  cost  of  LTE  Broadcast  investment.   Content   availability   Where  an  operator  is  planning  to  introduce  a  mobile  TV  service  to  stream   one  or  more  channels  of  linear  or  live  TV  direct  to  end  user’s  devices,  or  to   offer  content  pre-­‐downloads,  one  of  the  critical  factors  in  the  business  case  is   the  cost  of  acquiring  the  content.  Some  mobile  operators  planning  mobile  TV   services  using  eMBMS  belong  to  larger  corporate  groups  that  also   encompass  broadcasters,  or  other  content  providers  /  owners.     Our  analysis  of  the  business  case  for  introducing  LTE  Broadcast  considers   three  scenarios:     1. Where  operators  already  own  the  content  and  distribution  rights   2. Where  content  ownership  resides  within  related  group  companies   and  the  operator  shares  revenue  from  the  sales  of  that  content  on  a   50:50  basis   3. Where  the  operator  must  acquire  the  content  from  third  parties.  As   there  is  a  large  range  of  potential  scenarios  and  business  models,  for   simplicity’s  sake,  we  have  assumed  the  operator  would  enter  a   revenue  share  agreement  and  retain  33%  of  the  sales  of  the  content.       Availability  of  content  will  also  have  a  significant  impact  on  the  time-­‐to-­‐ market  that  can  be  achieved  by  a  mobile  operator.  Creation  of  content  and   acquisition  of  content  rights  is  a  complex  and  time  consuming  activity.  Those   with  existing  internal  expertise  will  be  able  to  get  to  market  much  faster.   Those  with  existing  capabilities  probably  also  have  access  to  a  library  of   resources  they  might  choose  to  use,  thereby  saving  time.    
  • 27.     RAN  status   The  capabilities  of  an  operator’s  RAN  will  have  a  significant  impact  on  the   business  case.  If  an  operator  is  ordering  a  new  LTE  network  anyway,  the  cost   of  having  LTE  Broadcast  capability  included  within  the  initial  specification  is   almost  irrelevant.  In  other  circumstances  the  RAN  must  be  upgraded  –  for   instance  to  include  the  MBMS-­‐CE  and  to  support  synchronization  if  that  is   not  already  included.  If  an  operator  can  upgrade  the  RAN  with  software   upgrades  the  cost  is  less  significant  than  if  new  hardware  is  required  (for   instance  to  support  new  spectrum  bands,  or  where  new  cards  must  be   added).     Core  costs   As  described  above,  operators  wishing  to  deploy  LTE  Broadcast  services  will   need  to  invest  in  several  new  network  functions  for  the  core  network.  These   include  the  MBMS  Gateway;  the  BM-­‐SC,  encoding  and  caching  equipment.   Although  these  costs  are  not  enormous  in  the  context  of  the  whole  business   case,  they  nonetheless  represent  a  significant  value.  Our  business  case   assumes  a  capex  cost  of  $11  million  for  a  European  tier  one  network.       Cost  of  network   Even  where  the  operator  has  a  brand  new  network,  fully  capable  of   delivering  LTE  Broadcast  services,  the  business  case  must  still  factor  in  the   cost  of  setting  aside  a  significant  proportion  of  the  total  network  capacity  for   the  sole  provision  of  LTE  Broadcast  (either  on  a  profile-­‐driven  basis,  or  once   MOOD  is  available,  on-­‐demand).  The  business  analysis  here  assumes  that  the   operator  is  delivering  numerous  channels  of  HD  mobile  live  and  linear  TV,   and  so  must  set  aside  a  substantial  percentage  of  its  spectrum  capacity  to   deliver  services.  We  have  assumed  up  to  60%  of  all  the  network  capacity  in   eMBMS  active  cells  is  set  aside  for  LTE  Broadcast  during  peak  traffic  periods,   with  an  average  of  40%  of  capacity  dedicated  to  LTE  Broadcast  across  the   whole  day.  (The  model  assumes  the  operator  has  20MHz  of  LTE  capacity.)   Availability  and   cost  of  attractive   LTE  Broadcast   capable  handsets   Operators  will  need  to  consider  the  availability  of  attractive,  cost  effective   LTE  Broadcast  capable  handsets.  Our  model  makes  the  assumption  that   these  are  widely  available.  There  is  likely  to  be  a  cost  for  enabling  the   eMBMS  capability  in  the  chipset,  and  for  installing  the  middleware  which  will   either  have  to  be  assumed  by  the  handset  vendor  or  the  operator.  We  have   assumed  this  is  less  than  $0.5  per  handset.   Backhaul  costs   In  some  markets  operators  will  need  to  add  extra  backhaul  to  cope  with  the   distribution  of  the  content  to  towers  –  particularly  where  LTE  Broadcast  is   used  for  delivery  of  numerous  HD  TV  channels.  In  other  instances,  use  of  LTE   Broadcast  will  reduce  pressure  on  backhaul  by  replacing  multiple  unicast   streams  with  a  single  broadcast  stream.  We  have  assumed  that  no  backhaul   upgrades  are  required  for  the  purposes  of  this  model.     Cell  site  coverage   Operators  will  need  to  consider  how  much  of  their  network  should  be  LTE   Broadcast-­‐enabled.  This  decision  will  be  influenced  by  the  services  they   choose  to  offer.  A  stadium-­‐based  service  has  an  obvious  geographic  focus.   Mobile  TV  services  or  content  pre-­‐download  services,  or  implementations   designed  to  reduce  spectrum  usage  (unicast  to  multicast  offload)  will  need  to   be  made  available  in  areas  where  there  is  a  denser  concentration  of  urban   users.  Vendors  also  report  that  LTE  Broadcast  works  less  well  where  cell   towers  are  further  apart  (>5km)  due  to  signal  propagation  and   synchronization  challenges.  It  may  also  be  unnecessary  to  enable  all  cell  sites   within  a  local  area  with  LTE  Broadcast  in  order  to  provide  good  coverage.   The  business  case  modelled  here  assumes  half  of  the  operator’s  cell  sites   have  LTE  Broadcast  enabled  -­‐  roughly  enough  to  cover  most  urban  and   suburban  areas.    
  • 28.     Service  implementation  business  case  -­‐  revenues   The  business  case  we  have  modelled  involves  a  hypothetical  operator  with  about  one-­‐third  share  of   a  market  of  60  million  subscribers.  It  offers  three  paid  services  –  mobile  TV,  stadium  TV  and  content   pre-­‐downloads.  The  model  is  not  explicit  about  how  the  fee  is  charged  (it  could  be  based  on  a  daily   rate  for  usage,  could  be  a  subscription  add-­‐on,  or  could  be  an  allocated  a  proportion  of  the  revenue   of  a  premium  package  including  other  service  elements).  Take-­‐up  rates  as  a  percentage  of  the   customer  base  rise  over  five  years  to  the  following  figures:   • Mobile  TV  –  25%  of  its  own  customer  base   • Stadium  TV  –  13%  of  its  own  customer  base   • Content  pre-­‐downloads  –  26%  of  its  own  customer  base.   These  assumptions  have  been  informed  by  survey  feedback.    We  have  assumed  ARPU  uplifts  of   between  12%  and  14.5%  (again  based  on  analysis  of  the  survey  results).   We  have  modelled  three  scenarios:    one  in  which  the  operator  retains  the  whole  fee  paid  by  the   customer,  and  two  others  in  which  it  retains  either  50%  or  33%  of  the  revenue  under  content-­‐based   service  revenue-­‐share  arrangements.     The  outputs  are  shown  in  Figures  16  and  17.   Figure  16:  LTE  Broadcast  –  hypothetical  business  case  revenues     By  the  end  of  year  five  the  operator  is  generating  revenues  of  nearly  US$675  million  per  year,   keeping  between  US$222  million  and  the  full  value  of  that  revenue.  This  shows  how  important  the   content  acquisition  arrangements  are  for  the  business  case.  We  have  modelled  a  revenue  share   arrangement  as  it  is  simpler  for  the  purposes  of  this  model  than  a  wholesale  purchase  cost,  or  the   cost  for  the  operator  to  produce  content  itself.