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© Copyright All Rights Reserved Maravedis-Rethink 2012 Converging LTE networks Caroline Gabriel Research Director, Maravedis-Rethink www.maravedis-bwa.com & www.rethinkresearch.biz

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Page 1: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Converging LTE networks

Caroline Gabriel

Research Director, Maravedis-Rethink

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 2: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Agenda   The emergence of TD-LTE

  From WiMAX migration to FD integration

  The race for spectrum capacity

  TDD milestones and business benefits

  Global case studies

  Devices and other challenges

  Forecasts

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 3: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

TDD context   Unpaired asymmetric

spectrum

  Small role in 3G, except China

  Main functions   TD-SCDMA   Broadcasting

  Few devices, limited business case

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 4: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

TDD breakthrough   Data models – TDD more relevant

  Parallel though competing trends   Chinese efforts for TDD roadmap   WiMAX – the PC industry fights back

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 5: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

TD-LTE progress   Standard maturing, narrowing

gap

  China and India

  April: 35 commitments, 21 contracts 8 commercial networks   Aero2 (Poland)   STC (Saudi Arabia)   Mobily (Saudi Arabia)   Bharti Airtel (India)   Softbank Mobile (Japan)   3 (Sweden)   SKY (Brazil   NBN (Australia)

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 6: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Just WiMAX escape route?   Initial drivers

  WiMAX migration   China

  Epitomy – Clearwire/China Mobile alliance

  BUT   Initial deployments

non-WiMAX carriers

www.maravedis-bwa.com & www.rethinkresearch.biz

Source: GTI

Page 7: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Converged networks Key driver – more capacity for new services Key challenge – capacity outruns spectrum Available TDD spectrum = headstart (or desperation) TDD suits some business models

www.maravedis-bwa.com & www.rethinkresearch.biz

Parallel networks Offload eg KDDI, Optus Dedicated eg utility Partnership eg Sprint, Softbank

Full convergence/roaming Hi 3G China Mobile HK

Supplementary eg AT&T

Broadcasters eg Sky

Page 8: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Spectrum: key factor   Race for spectrum

  Some available and low cost

  Carriers look to unlikely bands   2.5GHz   3.5GHz   WCS   1.4GHz   700MHz

  High bands – but aggregation, small cells

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 9: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

3.5GHz   Global band, TDD

everywhere

  FCC considering 100MHz

  Small cell roaming layer   HetNet   TD-LTE as backhaul

  UK Broadband

  ZTE influence

  Semi-licensed

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 10: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Supplementary downlink   Carrier aggregation makes TD/FD more usable

  Enhanced in LTE-A

  AT&T/Qualcomm example

  Orange trials   Future use of L-band   40MHz of 1.4GHz free

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 11: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Other advantages

www.maravedis-bwa.com & www.rethinkresearch.biz

  Suited to download heavy applications

  Dynamic allocation

  No UL/DL guard band

  Better beamforming

  Integrated backhaul

Source: Qualcomm

But: Latency Covers smaller areas

TDD and FDD are complementary

Page 12: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Convergence milestones

www.maravedis-bwa.com & www.rethinkresearch.biz

  Standards support common packet core

  Call for common device platform

  2011:   Clearwire alliance   First FD/TD roaming demo

China

  2012:   First bidirectional handover

HK   GTI and NGMN   Dual-mode device chipsets

Source: ZTE

Page 13: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Hi3G and Europe   Hi3G first fully converged

network

  European 2.6GHz band plan: 50MHz TDD, 20MHz FDD

  TDD neglected except 3

  European carriers – 50% in second wave

  Rise in TDD purchases eg Vodafone Germany, Telia, Telekom Austria

  Broadcasters and wholesalers

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 14: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

China   350,000 BTS by 2014

  First terminal tender 2012

  Regulatory issues

  HK roaming with FD-LTE

  Driving standards and roaming

  Interworking issues – domestic, partners

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 15: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

TD-LTE base will reach 67 million by the end of 2017

Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

Multimode (2G/3G/TD-LTE) device price to reach US$50 may take more than two years

FDD-LTE at 700 MHz spectrum by 2015 in rural areas

Source: India 4G and Cellular Market Analysis and Forecasts, 2012-2017 – 6th Edition (June 2012)

India

Page 16: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Mexico • Telcel  1.7/2.1GHz

Dominican  Republic • Wind  Telecom  2.6GHz Nicaragua

• America  Movil  700MHz

Peru • Telefonica  700MHz

Bolivia • Entel  Movil  700MHz

Chile • Entel  2.6GHz

Brazil • Oi  2.6GHz

Argen;na • Telecom  Personal  2.6GHz • Telefónica 1.7/2.1GHz

PUERTO RICO (FDD) AT&T, November 2011 In the 700MHz Open Mobile, December 2011 In the 700MHz

COLOMBIA  (FDD)  UNE,  December  2011  In  the  2.6GHz.

BRAZIL  (TDD)  SKY  Brazil,  December  2011  In  the  2.6GHz. URUGUAY  (FDD)

Antel,  December  2011 In  the  2.6GHz.

3.5GHz

Over 70 deployments in Latam. Fixed and nomadic services.

2.5GHz

Over 19 deployments in Latam. Nomadic and mobile services. Mobility restrictions in some countries.

LTE

Two of the LTE commitments in Latin America are TD-LTE including SKY Brazil and Movilmax (Venezuela), both in 2.6GHz.

16

Latin America

Page 17: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

Challenges   Interference

  Roaming standards

  Interworking

  Key challenge: devices   GSA: 68 of 417 TD-capable   18 chip and device firms

investing   Initial focus on dongles,

questions over voice   TD iPhone?

  2017: 83% devices capable of TD/FD (4G Counts)

www.maravedis-bwa.com & www.rethinkresearch.biz

Page 18: Converging LTE networks - TeleSemana.comTD-LTE base will reach 67 million by the end of 2017 Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

© Copyright All Rights Reserved Maravedis-Rethink 2012

The future

0

500

1000

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5000

2010 2011 2012 2013 2014 2015

$m

FD-LTE TDD-LTE LTE-A

TD-LTE critical mass 2015

Impact of LTE-Advanced

WiMAX3

www.maravedis-bwa.com & www.rethinkresearch.biz Source: Maravedis-Rethink