7 regulatory aspects to accelerate the deployment of 4 g networks in brazil

November 6th 2013

AGOSTINHO LINHARES

Advisor of the Board of Directors

National Telecommunications Agency - ANATEL

A General View of the Telecommunications Sector in Brazil

4G and Mobile Communications Trends

Challenges for Brazil

The 2.5 GHz Auction

Accelerating the Mobile Broadband Deployment – Overcoming Barriers

Final Comments

AGENDA


Population: 200 millions

Gross Domestic Product

(GDP)

US$ 2.4 trillions

GDP growth tax (2012)

0.9%

• Annual per capita income:

US$ 11,000

Some facts:


5th biggest geografic area of the world

Biggest city of Latin America – São Paulo with

11.3 millions of inhabitants

Biggest economy of Latin America

7th biggest world economy (Nominal GDP)

(2012)

6th in number of mobile cellular subscriptions

http://gilgiardelli.files.wordpress.com/2008/07/brasil.jpg

Subscriptions - Sep/2013

STFC: 44,7 millions SMP: 268,4 millions SMP (BL): 93,3 millions

SCM: 21,8 millions SeAC: 16,9 millions


SUBSCRIPTIONS (Millions)

Fixed Network Investment: ................................... R$ 83 Billions

Broadband Fixed Network Investment: ........ R$ 44 Billions

Mobile Network Investment: ................................ R$ 88 Billions

Total Investments for fixed and mobile Networks: R$ 171 Billions

Valores não atualizados monetariamente

Fonte: Telebrasil

Investment Evolution in Brazil (last 10 years)

ITU approved Recommendation ITU-R M.2012 “Detailed

specifications of the terrestrial radio interfaces of IMT-Advanced" in

January 2012.

Following a detailed evaluation against stringent technical and

operational criteria, ITU has determined that "LTE-Advanced" and

"WirelessMAN-Advanced" should be accorded the official designation

of IMT-Advanced.

For research purposes, the target transmission rates for IMT-Advanced

was set at 100 Mbit/s when used in a high mobility environment (e.g.

driving in a car) and 1 Gbit/s in a stationary environment.

The term 4G remains undefined but it is being applied to the

forerunners of IMT-Advanced technologies, like LTE, which provide a

substantial level of improvement in performance and capabilities with

respect to the initial third generation systems now deployed.


Adapted from http://www.itu.int/net/newsroom/wrc/2012/reports/imt_advanced.aspx

http://www.itu.int/net/newsroom/wrc/2012/reports/imt_advanced.aspx


New mobile devices demands much more traffic resources than standard handsets, requiring more bandwidth and storage capacity.


Projected Average Mobile Network Connection Speeds (in kbps) by Region and Country


It is essential to develop the high speed transport networks to flow the access networks' traffic. This include not only backbone, but also backhaul.

More cell sites and spectrum are needed to attend the growing demand of capacity.

Access Network

Transport Network

Improve the quality and accomplishment of the contracted bit rate.


National Backbone

Fixed Network

International Backbone

Mobile Network

Internet

Region Municipalities Municipalities

W Fiber % W/O Fiber %

North 449 121 27% 328 73%

Northeast 1.794 484 27% 1.310 73%

Southeast 1.668 1.004 60% 664 40%

South 1.188 752 63% 436 37%

Midwest 466 270 58% 196 42%

TOTAL 5.565 2.631 47% 2.934 53%

Brazil 5.565 municipalities

1073 municipalities > 30 k

4092 municipalities < 30 k

Current Scenario

with fiber

w/o fiber


Mobile Broadband

• 93.3 millions subscribers

• Average bit rate ~ 600 kbps

• Available at 3,124 municipalities

• Coverage of the main district of the municipality


The 2.5 GHz Auction

Until FDD 20 + 20 MHz

(“W” e “X”) FDD 10 + 10 MHz (“V1”

e “V2”) FDD 10 +10 MHz

(“P”)

30/4/2013 ALL cities hosting Confederation Cup 2013 games

31/12/2013 ALL cities hosting World Cup 2014 games

31/5/2014 ALL Capitals and municipalities > 500 thousand inhab.

31/12/2015 ALL municipalities > 200 thousand inhab.

31/12/2016 ALL municipalities > 100 thousand inhab.

31/12/2017 ALL municipalities between 30 and 100 thousand inhab. (1)

31/12/2017 30% municipalities < 30 thousand inhab. (2) -

31/12/2018 60% municipalities < 30 thousand inhab. (2) -

31/12/2019 ALL municipalities < 30 thousand inhab. (2) -

1) Municipalities between 30 and 100 thousand: There will be at least 1 Operator using 2.5 GHz.

2) Municipalities below 30 thousand: They will be coveraged with 2.5 GHz or other technology equivalent or superior 3G.


Personal Mobile Service – spectrum allocated and designated

Spectrum designated to IMT: 862 MHz (450, 700 MHz, 800 MHz, 900 MHz, 1700/1800 MHz, 1900 MHz/2100 MHz and 2600 MHz bands)

Coverage Spectrum (< 1 GHz): 192 MHz Capacity Spectrum (1 GHz ≤ F ≤ 3 GHz): 470 MHz Performance Spectrum (> 3 GHz): 200 MHz

Auction processes for 700 MHz is expected to occur next year. It will be established compromises of coverage.

In 2006, Anatel estimated the allocated/designated spectrum requirement for IMT: 780 MHz, 980 MHz and 1060 MHz, for 2010, 2015 and 2020, respectively.


Personal Mobile Service – The 700 MHz Band

Approved Arrangement in Brazil (A5 – ITU-R M.1036-4 / 3GPP Band 28)

M.1036-04-Ann2

45 MHz

698 MHz

A5

710 720 730 740 750 760 770 780 690 700 790 800

10 MHz

45 MHz806

MHz

3 MHz

5 MHz


Personal Mobile Service – The 700 MHz Band Auction

Order No. 14, February 6, 2013, Ministry of Communications establishes guidelines to accelerate the access to digital TV and to expand the availability of spectrum for Mobile Broadband.

Anatel must take into account the following principles , among others :

1. Promoting the digitization of broadcasting;

2. Acceleration of the coverage of large areas, periphery of urban areas and remote areas with 4G mobile broadband ;

3. Encourage the expansion of telecommunications transport infrastructure with high capacity optical fiber across the country, especially in the North , Northeast and Midwest;

4. The demand growth for mobile broadband services in the fields of security and infrastructure, expansion of service coverage on highways and service for international major events, including the Olympic Games and Paralympic Games;

5. Strengthening of the productive sector of Brazil through the acquisition of technological competence and local industrial capacity from bidders.

Accelerating the Mobile Broadband Deployment – Overcoming Barriers WRC-15 – Agenda Item 1.1 - Identification of Additional Frequency Bands for IMT

BAND 1300-1525 MHz: the band 1300-1350 MHz is allocated to Radiolocation Service in a primary basis in Brazil. Radars operating in this frequency band are used for Air Traffic Control purposes. They have been updated recently and will maintain their operability for several years. Thus, the 1350-1525 MHz range is more suitable than 1300-1350 MHz for identification to IMT.

BAND 2700-2900 MHz: The Brazilian Administration supports the sharing studies between IMT and other systems operating in the band 2700-2900 MHz bearing in mind it is necessary to guarantee enough spectrum for the operation of Aeronautical Radionavigation systems without interference.

Band 3600-3800 MHz Considering the importance and penetration of the FSS systems operating in the Brazilian territory, the Brazilian Administration does not support the identification of this band for IMT. However, the Brazilian Administration is interested in following the sharing studies between FSS and small cells systems, which operate at low power in the band 3600-3700 MHz, in order to establish technical sharing criteria to guarantee coexistence between the two systems.


Femtocell Regulation – Resolution nr. 624, October, 30, 2013

Source: http://www.fcc.gov/help/public-safety-tech-topic-23-femtocells

http://www.fcc.gov/help/public-safety-tech-topic-23-femtocells













The Bill Known as “Antennas Law”

Problem: Restrictive and heterogeneous local laws, delaying BTS installations and limiting infrastructure expansion. This bill seeks to establish standardized general regulations regarding the installation of telecommunication networks, whose final goal is to harmonize and homogenize the multiple existing standards. Currently, it is been discussed in the Congress.


Other Points to be Stressed

National Broadband Plan

Tax Exemption (infrastructure, M2M, smartphones, routers etc) – “Law of Good”

Studies related to increasing 5 GHz Band to Wi-Fi Applications

LTE 450 MHz

70/80 GHz point-to-point link

Updated Antenna Regulation – Multibeam Antenna

Operators Resources

Regulatory Updating

REVIEW OF GOALS

REVIEW OF REGIME

700 MHz AUCTION

PUBLIC FINANCING


Financing

FINAL COMMENTS

GAINS

Economics

Educational

Research and

Development

+ 10% subscriber-> + 0.1% - 1.4% GDP

Positive impact in productivity and employment

Improvement in education indicators

Growth of industry and national technology

Social Unemployment rate decrease, bridging digital

gap, access to information society

Thank you!

7 regulatory aspects to accelerate the deployment of 4 g networks in brazil

Business

mobile networks

mobile network investment

municipalities coverage

brazil access network

capacity spectrum

telecommunications sector

performance spectrum

billions r