Lack of LTE Devices, Still a Worry?

At this years Mobile World Congress, vendors were announcing LTE devices of all shapes and sizes. Besides modems, vendors showed netbooks and portable Wi-Fi hotspots that are compatible with LTE.

Perhaps the most impressive of the devices was the E398 modem unveiled by Huawei. The E398 is the world’s first triple-mode LTE modem compatible with all three major network standards: LTE, UMTS, and GSM. The triple-mode modem is based on Qualcomm's MDM9200TM chipset and will enable end users to seamlessly switch from LTE to either UMTS or GSM. The modem also supports multiple mainstream LTE frequencies.

The Huawei E398 modem will be initially launched in the world's first LTE/GSM shared network in Sweden operated by Net4Mobility, a joint infrastructure venture between Tele2 Sweden and Telenor Sweden.

Toshiba at the Mobile World Congress show this week showed off its Satellite T130 notebook PC with an integrated LTE network module from Sony Ericsson. During demonstrations at MWC the PC-maker demonstrated data download speeds of up to 16Mbps. This is significant as the PC is one of the first few with the high-speed connection option.

The AL600 from ZTE is being developed for the North American market and will operate in the 700MHz band, which Verizon will use in its upcoming network. The modem will also operate LTE in the 2.6GHz band,to cater for European operators. ZTE is also working on a portable Wi-Fi hotspot that lets users share an LTE connection using Wi-Fi.

Samsung’s new LTE netbook, bolstered with the presence of its own in-house designed LTE modem chipset Kalmia has been dubbed the world’s first LTE netbook PC. The device was also demonstrated at the MWC. Kalmia, which enables the development of a small form factor netbook with LTE capability, was brought to the fore by way of a live video streaming via the company’s own LTE network equipment on the Samsung netbook N150.

LG announced its LD100, a LTE data card, at CES in January. Anritsu demonstrated data throughput of up to 100 Mbps downlink and 50 Mbps uplink speeds on the LG device at MWC. LG also demonstrated handover between LTE and CDMA with their VD13 device. The company came up with a device for the Handover back in August, the M13, but the VD13 is an even slimmer device!

Perhaps less well known is that Ericsson is also working on integrating LTE into laptops and notebooks. The company is most known for its mobile networks, but it also sells modules for integrating mobile broadband into laptops and netbooks. Ericsson's module will operate in multiple frequency bands for LTE and HSPA. But it won't start shipping the module until LTE has become a "mass market" technology, and that won't happen until the beginning of 2012, according to Ericsson.

Huawei and ZTE will ship its modems -- the E398 and the AL600 or AL620, respectively -- by the end of the year. Samsung promises to ship its modem during the first half of 2010, according to a spokesman. But operators only expect to get their hands on a limited number of modems, with volume shipments starting in the beginning of 2011, according to Magnus Zetterberg, CTO at Telenor Sweden.

One of the things vendors have to think about more about when designing products for LTE is which frequencies they will operate on as operators will be using various frequency bands for LTE. LTE pioneers Verizon Wireless, NTT DoCoMo and TeliaSonera will all use different frequency bands for their respective LTE network. So for roaming in the U.S, Japan and Europe to work, modems will have to support 700MHz, 2100MHz and 2600MHz with more bands likely to be needed in the future.

With the GSMA focusing its efforts on roaming for LTE, this should help to encourage device manufacturers that there is sufficient momentum and demand for LTE devices. It should also make operators that think that LTE is not ready, think again...

Has Telefonica Been Lagging a Little too far Behind with LTE?

Telefonica has become the latest global operator to LTE trials and has has selected six vendors to launch test projects in six different countries in preparation of rolling out LTE-based networks

Alcatel-Lucent, Ericsson and Nokia Siemens Networks will represent Europe while Japanese vendor NEC and Chinese vendors Huawei and ZTE will fill out the remaining three slots making the selection of vendors quite the East-West mix.

Telefonica isn’t limiting its trials to Europe. In addition to building networks in Spain, the UK, Germany and the Czech Republic, Telefonica will also run trials in Argentina and Brazil, interesting as they have only recently rolled out HSPA and it seemed to most that LTE is still a really long way off. Each vendor will be given a different country and will deploy its e-Node B base stations this year for the six-month testing period. Telefonica also said that the trials won’t necessarily be limited to six vendors or six countries. It will be open to other suppliers, which could leave the door open to players like Fujitsu and Motorola of Telefonica does indeed decide to cast the net wider.

Telefonica has no projected timeline for deploying LTE and in most of its markets doesn’t even own free spectrum. In fact, Telefonica said that the results of the trials will largely inform its LTE rollout strategy rather than the other way around.

Telefonica is certainly not a leader in the the market, an example of this was when it was named and shamed in the UK for not meeting the regulator's requirement of having 80% coverage in the UK. It is more likely that they just want to have a strategy in place for when the handsets and devices are ready (leaving the voice over LTE problem for everyone else to sort out?) This could be years away, or if other operators such as Verizon Wireless continue to push for handsets and devices then this "critical mass" that needs to be reached for the followers in the industry to start deploying LTE, may be sooner than we all think.

The announcements of new devices from LG, Samsung and Nokia has probably made executives at Telefonica sit up and take notice of how the Industry is rallying around LTE - and that their competitors are perhaps a little too far ahead of them than they would like.

Feedback from the LTE Customer Consultation Day

Taking part in the LTE customer consultation day, were some of the top vendors including Ericsson, Huawei, NSN, Motorola and others including picoChip, Freescale, Signalion and Rohde & Schwarz. They attended the consultation day, as they really wanted to get involved in the LTE conferences in 2010 and to get their input into the agenda.

With regards to content, the LTE business model that the most important topic that they highlighted. Now that a lot of the technical details have been ironed, operators have committed to LTE the attention has been turned to the business model and how can operators monetise LTE.

Can we really still have flat rate data plans? We've seen the cost/revenue divergence diagram a hundred times at various conferences, but has anyone really come up with an answer as to how operators need to address this divergence and try to take control of the network? With LTE operators are able to differentiate services and charge accordingly to the customer's QoS requirements, but there is no clear indication that operators are willing to change the their pricing models.

The application and service providers are a key new entrant into the market and there needs to be a discussion on how operators can profit more from these applications and services - will LTE make operators think differently?

Who are we going to be selling LTE to beyond the average user? LTE would be attractive to vertical markets such as the public safety organisations, the healthcare industry and I as mentioned in one of my earlier blogs; the car industry.

These are certainly areas to explore and it will be interesting to get feedback from different markets, not involved in the telecommunications industry and hear about what they they think of the future of mobile broadband.

MetroPCS Picks Ericsson for Its LTE Network

MetroPCS a regional carrier in the USA and a leading provider of unlimited, flat-rate, no contract service announced today that it has selected its infrastructure and initial handset vendors for its second half 2010 LTE launch.

MetroPCS selected Ericsson as its infrastructure vendor for the launch of its LTE service. This is Ericsson's second major LTE vendor win in the US market (the first being the contract secured with Verizon Wireless) and further evidence of the company's strengthening position in North America. In addition, MetroPCS has also selected Samsung Telecommunications America, which is actually the number one mobile phone provider in the USA to provide the Company's initial LTE handset. They plan on offering LTE services and a dual-mode LTE/CDMA smartphones in their major metropolitan markets in late 2010. This will be before Verizon starts to offer its own dual mode handset, which is planned for 2011.

MetroPCS has successfully encouraged customers to "cut the cord" on their landline phones by introducing their unlimited, flat-rate, no signed contract plans. MetroPCS offers a diverse selection of service plans, which allow customers to talk 24-hours-a-day, seven days a week and currently serves 5.4 million customers. With MetroPCS, services do not require a signed contract, deposit or credit check! This type of pricing seems set to continue with the launch of LTE, even though it has been called disruptive by some in the industry. It will be interesting to see what sort of pricing plans other operators adopt for LTE and whether tariffs will be as diverse as MetroPCS's. A diverse selection of service plans should help to encourage the uptake of LTE even if there is a lack of variety with the devices available early on.

The Staff VP for LTE, Solyman Ashrafi will be speaking at the LTE Americas conference on the 4th and 5th of November in Dallas.

A Day at the Huawei Campus in Shen Zhen

My colleagues and I at Informa were invited to visit the Huawei campus in Shen Zhen last week, the day before the LTE Asia conference which took place in Hong Kong to discuss their plans for the future with LTE being central to their growth prospects.

Huawei has been an early investor in LTE and it is clear that they have been thinking ahead. Huawei launched their All-IP based FMC solutions back in 2006. To maintain a leadership position in All-IP FMC, they established an integrated core network product line, with 6,000 engineers engaged in R&D supported by a service team of 2,000 professionals around the globe dedicated to providing customers with all-round consultation, planning, delivery maintenance and training services.

Its no wonder that the campus in Shen Zhen has grown to include an administration centre, marketing centre, R&D centre, testing centre, training centre, exhibition hall, logistics and manufacturing centre and a staff condominium. Just to cater for all the staff on the campus requires a total of 9 canteens providing food for 30,000 employees, catering for all tastes and cultures. What was clear during our tour of the facilities was that Huawei does not do things by halves and why would they when they serve 36 of the world’s top 50 operators?

Huawei is a relatively young company they are continuing to gain steady recognition and acceptance from operators in more developed telecommunications markets. Although I have heard rumors about their integrity as well as to product quality ranging from the absurd to the bizarre, this has clearly not deterred their customers. To a significant degree, Huawei’s early and ongoing experience with successful deployments under the constraints of emerging markets has helped to win contracts with the now price conscious operators in most developed markets. This includes TELUS and Bell Canada’s LTE-oriented HSPA network as well as winning the world’s first LTE contract with TeliaSonera along with Ericsson.

Operators are increasingly looking at vendors that have a comprehensive, end-to-end portfolio of products and solutions for LTE. Huawei’s strength lies in the full breadth of their comprehensive, scalable and interoperable offerings for customers and so it was no surprise that Huawei was recently recognized by BusinessWeek as one of the world’s most influential companies.

Will Operators Subsidise Consumer Electronic Devices to Help Foster LTE Subscriptions?

Thomas Noren, Head of Product Line LTE at Ericsson’s Networks business, predicted that the cellular industry will one day manage 50 billion connections across the globe, with each person owning a variety of connected devices.

Although, HSPA has already enabled laptops and video cameras to have wireless connectivity, this will continue with LTE. Operators will be looking to connect numerous devices and machines to other machines or to human beings in a different way to what we’ve seen so far.

Migrating existing customers over to LTE as soon a the network is switched on will be difficult and this will have to be a gradual process. Mobile phones, computer and consumer electronic devices including notebooks, netbooks, ultra-mobile PCs, gaming devices, cameras, and PMPs will incorporate embedded LTE connectivity. LTE and multi-mode ICs and devices are scheduled to become available in 2009. The ecosystem is clearly coming together in time for the first networks due to go live in 2010.

With mobile handset sales in decline, mobile operators are using already their subsidies to push sales of other consumer electronics devices such as netbooks and e-book readers to help foster mobile broadband subscriptions. But will this trend continue with LTE devices. Operators have already indicated that they are not keen on subsidising devices in the future and are hoping that consumer electronics manufacturers will take on some of this cost, although this is not likely as the IPR costs for consumer electronics comapnies is already very high.

Thomas Noren will be participating on the executive keynote panel at the LTE Asia conference in Hong Kong on the 8th and 9th of September.

Will Huawei Make Any Headway in the US LTE Market?

It is clear that Huawei and Ericsson have been stumping the most contracts for LTE. Huawei recently teamed up with Vodafone Germany to test LTE in the digital dividend band and boasts contracts with TeliaSonera and Telenor. Rival to vofafone Germany, E-Plus also has a pilot, working with Ericsson, in the same digital dividend band.

Huawei's next target seems to be a tier 1 operator in te USA, which unlike Ericsson (with Verizon Wireless), Huawei doesn't have. It has already signed a deal with the cable company Cox Communications for a 3G network, but its the LTE contacts Huawei is after. Huawei recently opened an LTE lab in Plano, Texas and they are hoping to be in the running to become a supplier to AT&T for its LTE network although that deal is unlikely to materialize for at least another year.

Huawei's price competitieveness is putting pressure on vendors such as NSN and Alcatel-Lucent. Its seems as if its only a matter of time that before Huawei makes an impact on the US market.

LTE Will be Cheaper Than WiMAX

LTE will be for WiMAX what GSM has been for CDMA. It is all a matter of customer acquisition costs and the cost of equipment to enable WiMAX operators to compete on equal terms with UMTS/HSPA. This does not imply total abandonment of the technology, just that it has evolved from being considered as the primary access in remote zones (a market that WiMAX has been trying to champion) and into a niche technology and not achieving the economies of scale to lower the cost of deploying it.

Another important factor has been the decision by Alcatel-Lucent and Nokia Siemens Networks to concentrate their efforts on the development of LTE as the technology for 4G, following the lead of Ericsson and Qualcomm. These two vendors have had a very good level of success with WiMAX and so this has a huge impact on the possibility of WiMAX achieving economies of scale similar to those of LTE. The announcements by these manufacturers have relegated WiMAX to a niche technology position in the market.

It can already be seen that the test equipment and optimisation vendors are also following the money; toward LTE. The fact that niche WiMAX deployments that comprise of both fixed and mobile deployments means that it reduces the imperitive to test. Test equipment vendors are said to be "dabbling" in WiMAX, but see LTE as the real area to focus on. Optimisation in this case also becomes less important and niche operators deploying WiMAX cannot afford to spend vast amount of money on optimisation anyway. This may in turn lead to a poorer quality of service for customers, making it even more difficult for WiMAX to compete.

Can Nortel Survive as a Patent Business?

According to Rethink Wireless, Nortel may still have a game plan to survive Chapter XI and preserve its brand and a couple of business activities.

Most of Nortel's valuable wireless patent portfolio was excluded from the sale of LTE and CDMA businesses to Ericsson, This could arguably become the basis of a much smaller, but profitable, business focused mainly on licensing. This is only dependant on whether Nortel can raise sufficient funds from the sale of its other businesses to pay off creditors to the satisfaction of the US and Canadian bankruptcy courts. Avaya is currently looking at buying Nortel's enterprise unit. Nortel apparently plans to keep back patents from the enterprise unit sale too.

The fact that most of the IPR was excluded from the Ericsson deal would also explain the interest of RIM. RIM could see the patents as giving it a headstart over larger rivals in creating LTE BlackBerry devices and services going forward, and may also welcome the boost to its licensing arsenal, both for future revenues and also as a defensive tactic. The company has always engaged in significant patent licensing (and litigation) activity in its core mobile email markets and could aim to increase its value and its ability to 'trade' IPR with rivals.

Confusing reports have been coming from Nortel attorneys over which patents Ericsson was acquiring - one said 125 of the total portfolio of 5,500, another said 600. Ericsson will also license other Nortel IPR. Based on Nortel's estimate that the patents could command a 1% royalty on every relevant LTE device sale in the years to come. JPMorgan recently made the calculation that the patents could be worth between $950m and $2.9bn.

LTE & Connected Cars

What if every motorist could see what the drivers ahead can see? In Munich, Germany, Ericsson and German automakers recently joined with Vodafone and local universities in a major research study that showed automobile crashes can be to a large part prevented, and traffic flow can be improved, if vehicles can communicate with one another over 3G/HSPA networks.

Using Vodafone’s mobile HSPA network and German vehicle manufacturer MAN Nutzfahrzeuge’s test grounds, the Cooperative Cars (CoCar) project simulated high-risk traffic situations to test applications that transmit time-critical information on traffic conditions between specially-equipped Daimler, MAN and Volkswagen vehicles. Guido Gehlen, project manager in the CoCar project from the Eurolab R&D Center in Aachen, says that the results of the two-and-a-half year study show that cellular technologies such as mobile broadband can complement automobile communications systems with economically viable safety services.“Mobile communications can defuse dangerous situations by helping motorists coordinate and adapt to surrounding traffic,” Gehlen says. For example, when a traffic jam lies just around the bend, the system automatically reports to the forthcoming vehicles – within less than half a second – that drivers ahead are drastically decelerating.”Anders Fagerholt, Program Manager Telematics at BU Networks, says such solutions can initially be deployed on standard mobile phones or in existing navigation systems, but will reach full functionality once integrated into cars. “The initial market introduction studies, led by Vodafone, found that investment in such products can be paid back in as little as four years,” he says.

The CoCar project was initiated by Adaptive and Cooperative Technologies for Intelligent Traffic (Aktiv), a German government research initiative that includes Ericsson and 28 other partners from the automotive industry, as well as transportation authorities, and electronics and ICT companies. The study concluded that if deployed in Germany alone, automobile coordination solutions could save EUR 500 million per year in costs to society such as those resulting from medical care and property damage. Costs to consumers could be kept low using special tele-data tariff rates that could be bundled in a one-time service charge.Gehlen says the solution tested in the CoCar project also works in EDGE and LTE networks, and could be easily combined with the planned introduction of new mobile communications-based services such as eCall, a regulatory initiative from the European Commission intended to bring rapid and accurate assistance to motorists involved in a collision anywhere in the European Union from 2011 on. These CoCar findings will also be presented and demonstrated during the upcoming ITS World Congress 2009 to be held in Stockholm, Sweden, September 21-25.A follow-up study is planned to explore further ways society can benefit from the use of mobile communications and IT in automobiles.

“This project opens up all kinds of possibilities for new connected-car applications, especially, if you consider nationwide coverage of LTE,” Gehlen says.