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LTE 2012
Markets & Trends Facts & Figures
www.idate.org
Table of contents
1. LTE market forecasts (Dec. 2011) ................................................................................... 7 1.1 Market forecasts December 2011 ............................................................................ 8 1.2 Data base presentation and LTE market forecasts ................................................... 11
1.2.1 Definitions .................................................................................................................... 11 1.2.2 Information by operator ................................................................................................ 11
1.3 New LTE commercial services .................................................................................. 13 2. LTE: Strategies for MNOs............................................................................................... 14 2.1 The LTE wholesale model: high-speed dumb-pipes? ............................................... 15 2.2 LTE spectrum: already too much fragmentation ....................................................... 15 2.3 LTE network strategies and technical hurdles .......................................................... 16 2.4 Capex strategies........................................................................................................ 16 2.5 Service strategies for LTE ......................................................................................... 17 2.6 Conclusions on LTE strategies .................................................................................. 18 3. Femtocells........................................................................................................................ 19 3.1 Femtocell Momentum Returns............................................................................... 19 3.2 Vendor Evolution Accelerates................................................................................ 21 3.3 Some Hurdles, Though Surmountable .................................................................. 22 3.4 Some Recommendations ...................................................................................... 22 4. LTE devices ..................................................................................................................... 24 4.1 General trends with mobile devices .......................................................................... 25 4.2 Positioning and strategies of main LTE device players............................................. 25 4.3 Review of LTE devices availability ............................................................................ 26 4.4 Market forecasts ........................................................................................................ 27 5. Radio Spectrum ............................................................................................................... 28
LTE 2012
LTE is gaining momentum: The Digiworld Institute by IDATE predicts that, by 2016, a total of 830 million subscribers* worldwide will have access to mobile data solutions through LTE networks. Innovative services and business models, such as investment/revenue sharing, and VoLTE which can bring benefits to both operators and subscribers, need to be deployed if operators are to maximise the potential of LTE deployment, maintain ARPU levels and have their network continue to be a smart pipe. Against a backdrop of pioneer rollouts and recent announcements, several questions emerge on the topic of LTE: How do commercial LTE networks perform in the real world? What are the LTE commercial deployments scheduled by Tier1 operators? Could LTE accelerate the consolidation of the mobile market? What is the cost of deploying LTE? Which type of operator benefits the most? Will LTE accelerate changes in pricing plans for mobile data? What are the regulatory constraints for LTE deployment? How many and what type of LTE devices will be rolled out this year?
* Forecast January 2012
In this new edition of our LTE yearbook, you will find valuable data on the central components of the LTE world, along with analyses from our experts and a comprehensive round-up of the highlights of the year gone by: LTE market forecasts (Dec. 2011) LTE: Strategies for MNOs Femtocells LTE devices Radio Spectrum
Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of its teams of specialized analysts. Now, with the support of close to 40 member companies who include many of the digital economys most influential players the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity: A European forum open on the world: The DigiWorld Institute will take existing IDATE initiatives, such as DigiWorld Summit, and the monthly clubs in Paris, London and Brussels, to the next level. An independent observatory: The DigiWorld Institute will keep a close and continual watch on digital world industries, collect relevant data and provide benchmark analyses on market developments and innovations in the telecom, Internet and media sectors through its DigiWorld Yearbook and the DigiWorld Economic Journal, along with its comprehensive collection of market reports and market watch services that are published and made available online throughout the year.
Time-tested analysis and consultancy solutions: The DigiWorld Institute established its credibility
and independence by building multi-disciplinary teams of economists and engineers who regularly perform bespoke research and analysis on behalf of top-flight industry players and public authorities. We have also built a solid reputation in managing think tanks on the outstanding developments that are shaping the industrys future, drawing on the skills and knowledge of our members, our teams and outside experts.
The Verizon Wireless LTE base represents 66.1% of the top 15 LTE MNOs worldwide.
Table 2: Country USA Japan South Korea Sweden Uzbekistan Top 5 sub-total Top 15 sub-total Other MNOs (Top 16-24) Total (Top 24 MNOs)
Source: IDATE LTE Watch Service December 2011
Q3 2011 subscriber figures for the Top 5, Top 15 and Top 24 LTE networks MNO Verizon Wireless NTT DOCOMO SK Telecom TeliaSonera MTS LTE subscribers 3,165,000 388,600 250,000 200,000 100,000 4,103,600 4,789,600 112,500 4,902,100
North America
USA is by far the leading LTE market today with around 3,200,000 subscribers at end-Q3 2011. The US market is really pulling the LTE ecosystem with massive deployments by Verizon Wireless, the AT&T Mobility launch this year, the activity of Tier 2 players (Metro PCS, US Cellular) and the plans of Sprint Nextel and Clearwire for LTE technology. Even if LightSquared is experiencing technical difficulties with the interference generated by its network to the GPS devices, it still represents a very significant LTE deployment in the USA. The plans of Dish to implement a wholesale LTE network using its S-Band spectrum are also contributing to the rapid adoption of LTE technology. The switch by Clearwire switch to TD-LTE in 2013 means that more than 10 million Mobile WiMAX subscribers will migrate to TD-LTE in a one- or two-year time frame. These elements lead us to raise our 2015 forecasts. Thus, at the end of 2015, we anticipate that 138.6 million subscribers will be accessing LTE networks (compared with 117 million in our June 2011 forecasts). The USA will then continue to be the leading LTE market worldwide. Canada: Rogers Wireless launched LTE commercial service in July 2011. Our forecasts for 2011 were revised to take this launch into account. Our forecasts are now that there will be 140.5 million LTE subscribers at the end of 2015 in North America.
Latin America
The first commercial deployments will be in 2012. Latin America has already started to allocate spectrum for LTE and TD-LTE and LTE FDD deployments will be seen next year. Brazil will play a key role in this region In most Latin American countries, the digital dividend spectrum will be assigned after 2012 but various spectrum bands are planned for LTE: 2.6 GHz, 1800 MHz, AWS, PCS We forecast that there will be 31.6 million LTE subscribers in 2015 at the end of 2015 in Latin America.
Asia
Japan: the initial deployment by NTT DOCOMO was limited to only 9% of the population at the end of 2010. By 2014, NTT DOCOMO plans to provide LTE services to 50% of the population. At the end of 2015, it is anticipated that 26.5 million subscribers will be accessing LTE networks in Japan. South Korea: the two leading operators in South Korea, SK Telecom and KTF, launched LTE in 2011 but KT was barred by a class action related to the switch-off of its 2G network in the 1800 MHz band. The South Korean regulator auctioned off LTE spectrum in August 2011 in the 1.8 GHz, 2.1 GHz and 800 MHz bands. At the end of 2015, we anticipate that 18 million subscribers will be accessing LTE networks in South Korea (compared with 16.8 in our June 2011 forecasts). India: in 2010, the Broadband Wireless Access (BWA) auctions for the 2.3 GHz were technology-neutral. This spectrum will mainly be used for TD-LTE networks. The Indian Department of Telecommunications (DoT) has kick-started the sale process for spectrum in the 700MHz band with a view to selling off the frequencies in 2012. We expect to see the first TD-LTE services in India in S1 2012 and forecast close to 39 million LTE subscribers by the end of 2015. The availability of TD-LTE devices will be key to the take-up of LTE technology in India. China: grave uncertainty persists concerning the green light from the government for TDLTE deployment. We expect this decision to be further delayed as the government is still obliging China Mobile to continue its TD-SCDMA deployment. China Mobile is heavily committed to TD-LTE and building its TD-SCDMA network so that cell sites and other network elements may be re-used for the LTE network. With its massive 1.3 billion population, China has vast numbers of potential mobile subscribers. We expect that a few more than 43 million subscribers will be accessing LTE networks by the end of 2015.
Europe
Sweden: our figures were adjusted in order to reflect the subscriber figures for TeliaSonera and Tele2 + Telenor. TeliaSonera was the first mobile operator to launch LTE. However, its early deployment took place in the 2.6 GHz band and this, it turned out, did not get timely support from chipset and device manufacturers. Digital dividend spectrum was allocated in early 2011 in Sweden and this will help to establish a national footprint for LTE services. In September 2011, there were close to 300,000 LTE subscribers in Sweden. By the end of 2015, we forecast 5.4 million subscribers in the country which pioneered LTE. Germany was the first European country to auction the digital dividend spectrum in 2010 and commercial service was launched by Vodafone Germany at the end of last year. After covering rural areas using the digital dividend, operators are now implementing 1800 MHz and 2600 MHz networks and will extend LTE coverage in the digital dividend. There were fewer than 1,000 subscribers at end-2010 and a mere 78,000 at the end of Q3 2011. These figures, lower than expected, are reflected in our downwardly-adjusted December 2011 forecasts for end-2011: 325,000 LTE subscriptions instead of 541,000. Our forecast is for 86 million LTE subscribers for the end of 2015 in Western Europe.
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Table 4: Region
LTE market forecasts LTE subscriptions 2010 2 65 7 70 0 0 144 2011 1,909 1,368 46 11,672 0 126 15,121 2012 9,537 4,816 1,547 32,640 727 883 50,150 2013 30,444 15,668 3,600 61,826 3,043 3,420 118,000 2014 71,602 45,547 11,592 96,280 10,572 12,530 248,123 2015 143,274 86,405 24,286 140,555 31,574 32,266 458,360
Asia-Pacific Western Europe Central & Eastern Europe North America Latin America Africa Middle East Total
1.2.1 Definitions
The database focuses primarily on developments in Long Term Evolution Frequency Division Duplex (LTE-FDD) and Time Division Duplex (TD-LTE). We also present Mobile WiMAX developments in the USA because the strategies of both Clearwire and Sprint have a direct impact on LTE developments there, with the plans of Verizon Wireless and AT&T being influenced by the presence of the Mobile WiMAX operator. This year, Clearwire has dropped Mobile WiMAX and is going to switch to TD-LTE in 2013. Yota in Russia is also part of the database as the Mobile WiMAX operator is now implementing a LTE overlay.
11
Operators covered
The 60 mobile operators covered in detail in the database are as follows:
76 operators (64 in the June 2011 edition of the data base) are included in the other operators sheet.
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Early LTE deployments (2009-1H 2011) Country Austria Poland Hong-Kong Japan Finland Estonia USA Uzbekistan Norway Lithuania Philippines Germany Denmark Finland Norway Sweden Uzbekistan USA Germany Date 11/2010 09/2010 11/2010 12/2010 12/2010 12/2010 09/2010 08/2010 11/2010 04/2011 04/2011 04/2011 12/2010 05/2010 12/2009 12/2009 08/2010 11/2010 12/2010 Frequency band 2.6 GHz 1800 MHz 1800 MHz & 2.6 GHz 2.1 GHz 2.6 GHz 2.6 GHz 1.7/2.1 GHz (AWS) 2.6 GHz 2.6 GHz 2.6 GHz 2.6 GHz 800 MHz 2.6 GHz 2.6 GHz 2.6 GHz 2.6 GHz 2.6 GHz 700 MHz 800 MHz
H2 2011 LTE deployments Country Singapore South Korea South Korea Germany Canada Austria Canada Saudi Arabia Saudi Arabia Saudi Arabia USA UAE Australia Denmark Austria Une EPM Uruguay Date 06/2011 07/2011 07/2011 07/2011 07/2011 07/2011 09/2011 09/2011 09/2011 09/2011 09/2011 09/2011 09/2011 10/2011 11/2011 12/2011 12/2011 Frequency band 1800 MHz and 2.6 GHz 1800 MHz and 800 MHz 2.1 GHz 800 MHz and 2.6 GHz AWS bands 2.6 GHz PCS 2.3 GHz 2.3 GHz or 2.6 GHz ? 2.6 GHz 700 MHz 2.6 GHz 1800 MHz 2.6 GHz 2.6 GHz 2.6 GHz 2.6 GHz
Rogers Wireless T-Mobile Bell Mobility Mobily STC Zain AT&T Mobility Etisalat Telstra TDC Hi3G Colombia Antel
13
14
2.1
Source: IDATE
2.2
15
2.3
2.4
Capex strategies
Operators remain generally cautious in their network expenditures but their mobile capex is slightly on the rise with a growth of 0.6% in 2010. The limited capex requires innovation in investment models with operators increasingly considering network sharing. The network-sharing business model remains one way to bring down capex, as seen in Sweden with the Net4Mobility joint venture between Tele2 and Telenor. In the US, if approved by the FCC, Sprint and LightSquared are about to make a deal of USD 9 billion allowing the acceleration of the deployment of a LTE network. Mobile operators are also considering new type of network architecture for LTE deployment with heterogeneous elements composed of macro-cells and small cells. By deploying small cells, operators can meet capacity requirements at a lower cost than full deploying macrocells. LTE is driving the need to upgrade backhaul, which weighs heavily in mobile network operator costs sometimes up to 40% of network costs. Microwave and fibre are the predominant technology of choice in meeting LTE requirements. Given cost considerations, operators are thinking of the possible reuse of existing FTTH infrastructure. Moreover, the configuration of the future RAN architecture with small cells and Remote Radio Head implying a long distance of several kilometres of backhaul will favour the use of fibre. Migration to LTE can be undertaken smoothly for an operator with the integration, or the reuse, of its existing 3G infrastructure assets reducing up-front investment. LTE clearly results in lower cost per MB of capacity than 3G network can offer, and especially when taking into account a busy hour traffic load
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2.5
To handle this growth, many mobile operators will implement HSPA+ features in their networks and LTE is seen as the medium-term solution. LTE is an opportunity for operators to increase ARPU with benefits valued by the consumer. In building their offers, mobile operators must find different criteria for segmenting their offerings, namely: segmentation by bandwidth, segmentation by the volume of data that can be transferred, segmentation by usages, premium subscriptions based upon quality of service and on the longer term. Content-based pricing is also a future option for mobile operators. LTE services: most operators launched LTE data services only. LTE can be used as a tool against white spots in rural areas taking benefit from the use of the digital dividend. Other services such as connected cars, smart metering, home automations, surveillance systems are being investigated by operators. These services are actually more oriented to B2B or B2B2C, relying on a M2M business model. In Japan, DOCOMO has partnered with Ubitus and NHN Japan to provide Cloud Gaming services on its two LTE tablets from Samsung and Fujitsu. This service consists in hosting the game on servers which render games that require graphics computing on the server cloud and processes gaming media into streaming video. More generally, LTE operators eventually plan to offer their fixed broadband services on LTE. These services are a kind of over-the-top service and are often the adaptation of existing services with high definition content.
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2.6
18
3. Femtocells
Main Findings
IDATE estimates that the worldwide femtocell access point market will reach a cumulative total of 39.4 million deployed units by 2015, representing a compound annual growth rate (CAGR) of 71% between 2011 and 2015. The Americas will account for 19.8 million unit shipments, or 50.4% of the worldwide total, representing CAGR of 72% between 2011 and 2015. Europe, Middle East & Africa (EMEA) is expected to account for 6.7 million units by 2015, representing 17.1% of the worldwide total and CAGR of 64%. We estimate that unit deployments in the Asia Pacific (APAC) will amount to 12.8 million by 2015, representing 32.5% of the total worldwide and CAGR of 73%.
Figure 3: Femtocell Unit Shipments, 2010 to 2015 (000)
Source: IDATE
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Table 8: Operator AT&T Sprint Verizon China Unicom KDDI NTT DoCoMo Optus SingTel SK Telecom SoftBank StarHub Vodafone Vodafone
Commercial Femtocell Deployment Summary Country US US US Asia Pacific China Japan Japan Australia Singapore South Korea Japan Singapore Australia New Zealand EMEA UK Moldova Spain Russia Norway Portugal France Romania France Greece Hungary Ireland Italy Qatar Spain UK December 2009 July 2010 November 2009 April 2011 January 2010 December 2010 June 2010 November 2008 May 2011 February 2011 October 2010 November 2010 August 2010 May 2011 February 2011 December 2009 May 2011 May 2011 December 2009 July 2010 May 2011 February 2011 May 2011 June 2010 June 2010 July 2009 Launch Date April 2010 December 2007 January 2009
Everything Everywhere Moldtelecom Movistar MTS Network Norway Optimus Orange Orange SFR Vodafone Vodafone Vodafone Vodafone Vodafone Vodafone Vodafone Source: IDATE, various
Increasingly, a far greater degree of emphasis is being placed on outdoor (metro and rural), enterprise and LTE femtocells under the small cells heading, thereby widening the addressable market. Femtocell access point (FAP) prices have now reached EUR 100, though care needs to be taken in terms of what is encompassed by that figure. While femto-based services are broadly lacking at this early stage, AT&T, Vodafone and Sprint are currently ahead in terms of deployments.
20
Figure 4:
Source: IDATE
Source: IDATE
21
IDATE believes the femtocell sector will grow in importance over the coming years as the
small cells concept develops into an over-arching strategic approach encompassing both coverage and capacity considerations.
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so even without taking into account the fact that operators are able to deliver improved residential coverage and maintain quality-of-service for high-spending users, enabling them to reduce churn among the most lucrative customer base. IDATE believes, however, that offering femtocells free of charge on a mass scale would be a retrograde step and that it would represent, in effect, an acknowledgement of defeat. Instead, IDATE believes that operators should focus their marketing efforts on the premium nature of femtocells and actively sell the proposition as a guarantor of superior, dedicated coverage and valuable services rather than simply as a fix to the problem of poor coverage. As tiered data pricing becomes increasingly common, the concept of paying for higher data rates and guaranteed quality of service will likely take root among consumers, and this gives operators the perfect opportunity to present femtocells as a means of ensuring premium service in the home. At the same time, operators could retain the option of offering femtocells free of charge to high value customers as well as those suffering subpar coverage on a case-by-case basis.
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4. LTE devices
Main findings
The LTE ecosystem is growing from strength to strength with more than 200 operators already having announced their commitment to LTE technology. By the end of June 2011, 19 operators had launched LTE service and at least 16 more are expected during the second half of the year. The general trends to be observed with mobile devices are the rising use of sensors, increased power available at lower cost and the multiplication of third-party applications and usages enabled by application storefronts. The success of chipset manufacturers will depend on how they respond to the need of mobile devices for skills in other areas than baseband The challenges For LTE device manufacturers will be how to optimise the integration of 4G into existing devices, as well as the obvious challenges of technical issues, cost, Intellectual Property Rights (IPR) and Time To Market. For Mobile Network Operators, mobile devices are also key in promoting their new ultra fast networks. So far, Verizon has been catching most of the evolved LTE FDD devices announced, this will surely change soon, especially in Asia and, later on, in Europe. The fragmentation of LTE frequency bands across the world is proving to be a hurdle for mobile operators with specific bands. Preferred LTE bands around the world are likely to be the Digital Dividend (700 MHz in the USA, 800 MHz in Europe), 1800 MHz and 2600 MHz bands. LTE devices with a VoLTE (Voice over LTE) function will appear in 2012 and will initially be dedicated mainly to Verizon Wireless Following the early LTE dongles, mobile hotspot devices such as MiFi-like have entered the scene along with fixed LTE routers for specific markets, where LTE is presented as an alternative to fixed broadband, especially in rural areas. As for more evolved devices such as smartphones and tablets, it is only the US market that has seen products developed for it. Other kinds of devices such as eReaders, mobile gaming devices or machine-to-machine (M2M) communication modules, still await their market. With LTE ecosystem growing so rapidly, IDATE forecasts that there will be more than 379 million LTE subscribers worldwide by the end of 2015. We forecast shipments of close to 252 million LTE devices in 2015 worldwide. From a worldwide perspective, these shipments should represent 15% of all mobile device shipments by then.
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Source: IDATE
25
For Mobile Network Operators, mobile devices are also key in their promotion of their new ultra fast network. Several important choices are to be made regarding which device to put on offer, at what level of subsidisation, with which mobile OS (operating system) and with what support for legacy services such as SMS and voice. The issue here is that, on the one hand, they have to make available a sufficient range of devices to appeal to potential subscribers whilst, on the other hand, represent a sufficiently broad market for device manufacturers to dare invest in new products for their network. So far, Verizon has been capturing most of the evolved LTE FDD devices announced so but this situation can be confidently expected to change soon, especially in Asia and later on in Europe. With the TD-LTE ecosystem currently growing, we expect to see multimode handsets coming to the market in 2012: Mobile WiMAX and TD-LTE will be combined into handsets in order to provide a smooth transition path for Mobile WiMAX operators switching to TDLTE. LTE devices combining FDD and TDD capabilities are also expected for operators deploying the two duplex modes on their networks and to facilitate international roaming. Voice on LTE networks: initial LTE rollouts rely on Circuit Switched (CS) fallback for 3GPP operators meaning that voice will be carried over 3G networks. Verizon Wireless is planning to launch VoLTE by mid-2012 when its LTE coverage matches its 3G coverage. Adoption of VoLTE is expected to take many years as the transition to full-IP requires an IP Multimedia Sub-system (IMS) platform. Preferred LTE bands around the world are likely to be the Digital Dividend (700 MHz in the USA, 800 MHz in Europe), 1800 MHz and 2600 MHz bands. However, regional differences are likely to remain. This has a significant impact on the growth of the LTE device ecosystem as the selection of frequency bands is likely to be driven by national constraints first. Regional harmonisation is likely to be the next step and international roaming is expected to be a headache.
Source: IDATE
26
As far as more evolved devices such as handsets and tablets are concerned, only the US market has seen products specifically developed for it. A country such as Japan should probably also see such devices come on to its market by the end of 2011 but other markets are lagging behind for the time being. As for other kind of devices such as eReaders, mobile gaming devices or machine to machine communication modules, the market is still to be found and is not very well developed, even with the few announcements that have been made.
Table 9: Kind of device Modules Tablets Notebooks / netbooks USB dongles / PC cards / Mobile hotspots
Source: GSA, March 2011
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5. Radio Spectrum
Main findings
The main radio spectrum trends for 2011 are : Digital Dividend availability, deployment of LTE in the 1800 MHz band, allocation and use of the 2.6 GHz band, new frequency bands such as the L-Band and the advent of cognitive radios with the first white spaces developments.
Digital Dividend: auctions in many countries, first commercial services in the USA and in Germany White Spaces: first developments in the USA and in the UK
PMR
Broadcasting
Fixed services
Unlicensed
Satellite
200
223
300
380
400
430 470
500
600
700
800
790
900
862 880 915 925
960
1 GHz
VHF
410 1164 1375 1400 1479.5 1452 1492 L-Band 1350 1427 1517 450
UHF
IMT GSM
DECT 1880 1900
S-band
1980 2010
1710
1785
1805
2 GHz
1920
1 GHz
20102025
2110
2170
S-band
2200
2300
2400
2483 2500
2690
IMT
Unlicensed 2.4
IMT
3 GHz
LTE in the 1800 MHz band: growing interest in AsiaPac and in Europe 2.6 GHz band: more auctions in Europe, LTE services in Europe
Source: IDATE
28
Spectrum aggregation will be a major improvement for mobile operators. It will enable the provision of higher data rates and the use of more spectrum in the downlink in order to adapt the mobile traffic structure. It also reinforces the attraction of isolated frequency bands such as the L-Band. LTE-Advanced is gaining momentum and will probably be implemented before 2015.
Regulatory situation
The search for new spectrum is very active in Europe and in the USA in order to provide resources for the mobile broadband expansion as we observe fast-growing mobile broadband uptake New spectrum is now mainly coming from public users as evidenced in the United Kingdom The identification of new frequency bans is progressing in Europe: the L-Band is attracting some interest and the 2.3 GHz could be made available in many countries The measures outlined by regulatory and policy-making bodies in both areas are similar: more spectrum must be made available for wireless broadband and the rules applying to available spectrum will (need to) allow more flexibility. The EU faces additional challenges in achieving harmonisation in spectrum policy, as spectrum management is a competence of the Member States. One of the main points for mobile broadband at WRC-12 will be the clarification of the Digital Dividend use and cross-border coordination.
Digital Dividend
There is a growing interest in a Second Digital Dividend in Europe where mobile services could be introduced below the existing 790-862 MHz frequency band. This could provide benefits in terms of international harmonisation but is only a very long-term prospect. The analogue switch-off is under way in Europe and will be finalised by end-2011 in most countries. Auctions took place in Germany in May 2010 and in 2011 in Spain and Sweden. Other countries are following but timetables are fragmented across Europe. LTE commercial services in the Digital Dividend started in 2010 in the USA and in Germany. In the USA, the Digital Dividend spectrum was auctioned in 2008 and LTE services are developing as Verizon Wireless launched its LTE network in the 700 MHz band at the end of 2010. Interference issues with Digital TV and Cable TV networks and (Programme Making and Special Events (PMSE) still have to be solved.
Figure 8: Scenario for a Second Digital Dividend
Source: IDATE
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Spectrum refarming
Introduction of the UMTS/HSPA technology in the 900 MHz band is enabling mobile operators to increase capacity and answer to mobile broadband needs. As of mid-2011, there are more than 34 commercial networks using UMTS/WCDMA in the 900 MHz band (18 at mid-2010), spread around Europe, Latin America, Asia-Pacific, Africa and Europe. It is generally easy to free up spectrum in the 1800 MHz band as 2G traffic is moving to 3G frequency bands. Many operators in Europe and Asia-Pacific have been trialling LTE in the 1800 MHz band, and commercial launches took place in Hong Kong (CSL), Poland (Aero2) and in Lithuania (Omnitel). The European Commission is working on making the 1800 MHz band available for LTE, mobile WiMAX and 3G throughout the Union. Today, regulatory conditions have to be analysed on a country-by-country basis.
4G licenses/spectrum valuation
The latest Digital Dividend auctions in Sweden and Spain respectively reached EUR cents 31 and 54 per MHz per pop The 2.6 GHz and 800 MHz bands are being auctioned in Western Europe. We expect prices for the 2.6 GHz spectrum to be in the EUR cents 1- 3 per MHz per pop and for the 800 MHz spectrum in the EUR cents 20-80 per MHz per pop range.
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Research
Watch Services
edition
3rd
January-December 2012
www.idate.org
LTE is gaining momentum: The Digiworld Institute by IDATE predicts that, by 2016, a total of 830 million subscribers* worldwide will have access to mobile data solutions through LTE networks. Innovative services and business models, such as investment/revenue sharing, and VoLTE which can bring benefits to both operators and subscribers, need to be deployed if operators are to maximise the potential of LTE deployment, maintain ARPU levels and have their network continue to be a smart pipe. Against a backdrop of pioneer rollouts and recent announcements, several questions emerge on the topic of LTE: How do commercial LTE networks perform in the real world? What are the LTE commercial deployments scheduled by Tier1 operators? Could LTE accelerate the consolidation of the mobile market? What is the cost of deploying LTE? Which type of operator benefits the most? Will LTE accelerate changes in pricing plans for mobile data? What are the regulatory constraints for LTE deployment? How many and what type of LTE devices will be rolled out this year?
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Regulation - Major LTE regulatory issues by country Technologies & vendors - LTE-FDD - TD-LTE or LTE-TDD Market data - 2011 to 2016 - 3.9G & 4G Subscribers - LTE service revenues * - By zone and by country Operators market share - Top 3 or 5 by country - Breakdown by technology LTE projects & Commercial services - Deployment targets - Technologies: LTE FDD, TD-LTE, LTE-Advanced*, Mobile WiMAX - Geographical coverage - Main vendors: Network equipment, devices and chipsets (RAN, Core, IMS) - Voice support (3G fallback, VoLTE) - Outsourcing and sharing - Sharing contracts - CAPEX - ARPU - Services & prices Spectrum key data * - by zone and by country
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Femtocells
Offloading mobile networks (Q3 2012) This report presents the latest trends in the femtocell market, MNOs offloading & WiFi strategies. It examines also how mass-market deployment levels will be reached and what obstacles must first be overcome.
Mobile Devices
Is LTE boosting innovation? (Q1 2012) This report spotlights the value chain and the positioning of the key players. It provides data & forecasts up to 2016 (chipset, smartphone & tablets).
Radio Spectrum
Finding new spectrum for MBB (Q3 2012) This study provide readers with analyses of the current spectrum status, outcomes of the WRC 2012, LTE refarming, latest developments of the digital Dividend and a time table for a second DD as well as a focus on 4G spectrum licence issues.
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