Are Device Manufacturers Ready for LTE?

At CES this year, Verizon Wireless launched a series of devices, including four Smartphones: the LG Revolution, the HTC Thunderbolt, the Motorola Droid Bionic and the Samsung SCH-I520. A few other devices, a couple of hotspots - job done.

Speaking to many device manufacturers over the years, usually they wait at least six months after a network has launched before they even start to think about developing devices on any kind of scale. A key difference between 3G and LTE deployments is the time between the first tests and network launch is much smaller, so there is much less time for testing the network, QoS and devices. Operators will still be finding protocol and interoperability issues and will continue lab testing of devices and services because everything is new. So if network maturity has always been key, then why rush to get so many devices out into the market so early?

There are a few possible reasons. Samsung LG and HTC have been the most agressive device manufacturers for LTE and are keen to gain a piece of the smartphone market in which Apple so far has dominated. Samsung has already launched the first LTE dual-SIM smartphone with MetroPCS, so are keen to develop devices and be seen as leaders in the industry.

The more likely reason is that Verizon Wireless is keen to close the gap on AT&T in the US smartphone market, where AT&T has built a sizable lead largely due to the iPhone. In fact in 3Q10 AT&T had more than twice as many smartphone subscriptions as Verizon, with 49 million compared to 20 million at Verizon, according to Informa Telecoms & Media data.

It is an interesting strategy from VZW, as they have always touted the fact that the quality of thier network is far superior to that of AT&T, although this is unlikely to be the case early on with thier LTE network. One would have expected the likes of VZW to take their time to get the network to a good standard before they launching lots of devices. Instead they seem to have taken a leaf out of AT&T's book. Perhaps they have realised that customers don't care about the network or which technology an operator uses - its all about the devices.

Will LTE Signal the End of GSM?

At the end of last year NTT DoCoMo launched their LTE network. They had announced back in May, at the LTE World Summit that they have a roadmap in place to migrate remaining customers on thier 2G network to 3G and LTE and plan to swich off the 2G network within 2 years. So we're looking at a switch off date of May 2012. This isn't as agressive and anmitious as it seems, as DoCoMo has an unusually high proportion of its subscrbers already on 3G. Coupled with the fact that DoCoMo uses the rather niche PDC technology for its 2G network, you can understand why they want to part ways with it.

So why aren't other mobile operators in mature markets as keen as NTT DoCoMo is on this strategy? Surely the cost of running a 2G, 3G and LTE network is not sustainable given declining revenues? The first reason is that no operator will switch of their GSM network until there is complete ubiquity of at least 3G. Secondly, GSM provides an excellent voice service and in markets such as the UK where customer bases are polarised either towards being very smartphone savy or just wanting a very basic mobile phone to make phone calls. In this case why should UK opeators go to the effort of migrating everyone to 3G/LTE when 65% of their revenue still comes from voice and the GSM network is so reliable? The third reason is that even though the difference in QoS between EGDE and 3G is considerable, EDGE is still good enough for basic web browsing etc (remember the first iPhone?)

If we start to see 99% coverage requirements for 3G as they have in France, then this will make the case for operators to commence a roadmap for 2G switch off. This however will not happen overnight. Coverage requirements such as the example in France can only really come in to place after the regulators have re-farmed the 900MHz band for UMTS or the 800MHz digital dividend band for LTE - or as in France's case, both.

Operators seem to be resigned to the fact that for now they will have to operator 3 different networks (4 if they operate a series of WiFi hotspots!). In this situation optimising traffic-flows across different networks and having the right policies in place for managing capacity effectively is essential.

If DoCoMo is successful then operators may think again, but for now is seems that GSM still has a long life ahead.

Has the WiMAX Camp Surrendered to LTE?

The Russian operator Yota revealed plans in May to switch tack and start rolling out LTE. The company, which has always preferred to describe itself as a mobile broadband provider rather than a WiMAX operator, had been rumored for some time to be contemplating the change. It will start to deploy LTE networks in five cities later this year.

India’s 2.3GHz-spectrum auctions dealt WiMAX a second blow when it emerged that the list of successful bidders is dominated by companies pledged to launch services based on the TDD version of LTE. Among the successful bidders was Qualcomm – a longtime critic of WiMAX – which secured prime TDD spectrum covering Delhi and Mumbai, and Reliance-owned Infotel Broadband Services, which secured spectrum in all regions. It now appears that the Indian market, which had looked like the next great hope for WiMAX, might go the LTE route.

The decision by Netherlands-based WorldMax to close down its service in Amsterdam just two years after launch – due to license restrictions imposed on the company by the Department of Defense over interference concerns – removes another torch-bearer for WiMAX from the market.

The WiMAX Forum has been forced to acknowledge LTE’s growing dominance, but is still urging operators to deploy WiMAX to win market share early on.

There has been a huge effort behind TD-LTE in 3GPP, the technology trials conducted recently by China Mobile and the multivendor TD-LTE technology demonstrations at the recent Shanghai Expo, all of which point to the likelihood that TD-LTE will be commercially ready around the same time as, if not sooner than, the FDD version.

Investors and operators alike are seeking assurances that WiMAX networks are capable of migrating to LTE sometime in the future. WiMAX vendors are therefore eager to point out that the equipment they supply today can, at some future date, be converted to TD-LTE by means of a software upgrade.

Meanwhile, efforts continue to enhance the performance of existing WiMAX networks and to develop next-generation 802.16m products. But with only a small number of vendors backing 802.16m, or Phase 2 WiMAX, there must be some doubt as to whether the technology can be commercialized late in 2011 as hoped.

The risk to 802.16m is that the availability of TD-LTE, also in late 2011, might make that the preferred technology route for WiMAX operators.

How Heavily Will Policy Control Feature in the Operators' LTE Strategy?

Operators planning to deploy LTE are looking for intelligent traffic management systems as well as ways to create a more personalised service for users in an increaslingly competitive market. As the mobile operators find themselves dealing with growing volumes of data traffic, new applications and services on the network on top of pressured margins, operators have seen that providing a bigger pipe with the introduction of LTE may not be enough. Policy control and its role in service and subscriber management, has emerged as one of the key talking points in the telecoms industry in the past year.

There have been a flurry of telecoms software companies offering (to use the 3GPP terminology) Policy and Charging Rules Function (PCRF) which is a central point for managing network infrastructure costs and enabling subscribers to enjoy a wide variety of services and a high quality experience. The Policy Controller can also be deployed in conjunction with Deep Packet Inspection (DPI) solutions.

Companies such as Starent, Bridgewater Systems, Camiant, Blueslice Networks, Sandvine and Allot Communications are just some of the companies that have landed deals with large operators.

However, some operators think that introducing tiered pricing will go a long way to deliver enhanced user experience for customers that are willing to pay more for mobile broadband. The Head of OSS from Telenor in Norway said recently at Informa's Broadband Traffic Management conference that operators should keep it simple and LTE should be able to manage all the data traffic that operators will have on thier networks in the next few years.

Is keeping it simple, the best way to managing the network? With the expectation that there will be a vast number of different services that are available on the network, perhaps a more sophisticated solution is necessary. However, after simplifing the network in order to reduce latency, is adding the policy control feature like going backwards and bringing back more complexity into the network?

What Advanced Applications Will We See On The LTE Network?

Verizon Wireless announced that it is updating its specifications for LTE devices that will run on the network. These new specifications are aimed at helping developers to design products and services that will run on the operators' LTE network, which is scheduled to launch in 2010 in 25 to 30 US markets.

Verizon Wireless said the updated specs will address network access, SMS requirements and data retry test plans. In addition, new information about lab and signaling conformance, open development device approval will be included. The new specs will be outlined in a webcast on the 20th of January.

What will be interesting to see after the webcast is what new applications and business models the application developers come up with. VZW wants the LTE network to expand existing types of applications while opening up entirely new classes of applications at the same time. One example that has been pointed out by VZW is the possibility of appliances such as refrigerators being fitted with wireless monitoring devices. A missing part, for instance, could be pinpointed via a wireless link, cutting service costs. Innovation in advanced video and gaming services are also envisioned by VZW.

It will be interesting to see if other operators deploying LTE at the moment push as hard for new devices and services for LTE as VZW has. TeliaSonera for instance, who have already launched their LTE network, has an agreement with Samsung who is providing it with a USB dongle. There does not seem to be a plan for anywhere near the same level of activity that we have seen with VZW when it comes to launching new devices and apps. So do operators need to go to all the trouble the VZW is?

Alcatel-Lucent and Ericsson are the "founding participants" at VZW's LTE Innovation Center in Boston, MA. A group of venture capital firms are also participating in the core working group at the center. In addition to Alcatel-Lucent and Ericsson, other participants in the core working group include Charles River Ventures, Northbridge Venture Partners, Norwest Venture Partners, New Venture Partners, and Redpoint Ventures.

An interview with Tony Malone, CTO of VZW can be found on the LTE World Series You Tube channel. Tony spoke at the LTE Americas conference in Dallas in November 09.

Is the LTE Performance Gain Simply Due to Wider Frequency Bands?

There have been various LTE trials going ahead in 2009 and of course the surprise LTE network launch by TeliaSonera who have estimated LTE user data rates to be in the range of 20-80 Mbps. Similar figures have been promoted in other operator trials.

Quite often operators and system vendors refer to the achievable peak rates, ranging from 100 Mbps to as high as 250 Mbps. However, in cases where LTE is deployed in high density, metropolitian areas, these peak data rates are unlikely to be achieved.

Omnitele has just announced that it expects actual data rates to be a lot less than the figues above. Through analysing LTE performance in technical studies and simulations using Omnitele’s state-of-the-art network planning tool analysis on the performance gain of LTE compared to HSPA technology comes mainly from the wider frequency band (up to 20MHz compared to 5 MHz for UMTS). Switching from CDMA to OFDM also has an effect, as does MIMO according to Omnitele. However, significant expectations being put on the performance of MIMO and yet the most critical element of performance which remains under the control of the designer is the antenna, The 3GPP is still proposing how to define requirements for MIMO antennas and it is a pretty complex topic with apparently little consensus developing so far.

Actual LTE user data rates are highly dependent on radio conditions and number of users sharing network resources. Most of the first commercial LTE deployments are said to utilise 20MHz bandwidth and 2x2 MIMO antenna schemes. When breaking down the performance of LTE features in different channel conditions and simulating them in a realistic metropolitan network environment, Omnitele estimated the achievable average LTE user data rates to be in the range of 15-25 Mbps per 20MHz frequency bandwidth.

LTE outperforms the current baseline HSDPA in terms of data rates by a factor of ten and HSPA+ technologies by a factor of 3-4. But it will take more than improved radio performance to really get the best out of LTE.

Is Network Sharing and Joint Ventures the Best Model for LTE Deployment?

With the joint venture announced between Telenor and Tele2 in Sweden, is it just too expensive for operators to be building their own LTE networks?

Operators such as Orange and T-Mobile in the UK are already looking to merge their 3G networks, at great cost. £600m-£800m is the estimated cost that will be taken up by decommissioning redundant duplicate radio network infrastructure, as well as reducing the number of retail outlets and combining the customer service centres and general administration functions. T-Mobile will contribute the 50% share of their joint radio network with Hutchinson 3G to the pot, (who incidentally already use Orange’s 2G network for fill-in coverage). Assuming T-Mobile and 3 put both their radio networks into the joint venture, you’ll end up with the interesting situation of 3 using a joint 3G network shared with Orange and T-Mobile, and a GSM network operated by Orange and T-Mobile.

So what does a joint venture between two operators look like? The Telenor and Tele2 merger seems a lot more simple. They have created Net4Mobility, a company that is a product of the joint venture that will build and manage the joint network for the two operators, have a competely new infrastructure (radio, backhaul, core, OSS etc). The joint venture will be 50/50 between the two operators. Net4Mobilty will be using its own 2.6GHz spectrum and will also use both Telenor's and Tele2's 900MHz spectrum.

Sharing spectrum and network infrastructure massively reduces the CAPEX and OPEX when compared to the investment that would need to made if the two operators deployed LTE seperately. But is this also a move to compete on customer experience and product differentiation? The Swedish market is one of the most competitive for mobile broadband and perhaps the operators have decided that they simply cannot continue to compete on who has the cheapest flat rate plan for data.

DoCoMo LTE Launch Date Finalised

Japanese carrier NTT DoCoMo will launch commercial LTE service in December of next year, skipping the interim upgrade to HSPA+ which many operators have decided to do and delay the launch of LTE to when the devices are ready and when there is some real feedback from operators that have trialed and deployed LTE.

NTT DoCoMo President and CEO Ryuji Yamada made the announcement yesterday at the GSMA Mobile Asia Congress. Yamada said that it would be most efficient to go straight to LTE. DoCoMo have invested heavily in LTE to make sure that it works for them and HSPA+ would just be a distraction especially as the amount of data traffic on its network has been doubling every year according to Yamada. HSPA+ in that case will only be a very short term solution.

The LTE network is expected to considerably boost the operator's data revenues, which should comprise more than half its overall sales by 2011. DoCoMo will spend $3.4 billion on the deployment, initiating the buildout in high-traffic areas, where it will overlay its existing 3G network with LTE. The operator will first offer its LTE service on data cards and LTE-capable handsets are slated for 2011.

DoCoMo plans to turn off its 2G network in 2012, so needs to migrate all of its customers onto 3G and LTE before then. This again is a different strategy to other operatrors that see 2G as being around for at least another 10 years.

Operators Don't Just Want to be a Dumb Pipe

The net neutraility argument continues. The FCC is due to vote on new net neutrality rules tomorrow whilst Verizon has warned the commission not to pass rules barring operators from favouring certain types of content or applications over others or from degrading traffic of Internet companies that offer services similar to those of the carriers. But does net neutrality understate the role of sound network management practices and ignore the real benefits that smart networks deliver?

Most operators are now seriously attacking the idea that they should be considered "dumb pipes" whose sole job is to neutrally push traffic from content providers. With user experience and the personalisation of services expected to be a key differentiator between networks, when operators do decide to invest in LTE, they plan to generate revenues from offering tiered pricing and an extensive API offering. Knowing what the customer is using his/her data for will be crucial to offering the right service to the right customer.

Taking away the operators' ability to favour certain content and to create tiered services may take away the financial incentive to invest in network upgrades. Again this is the argument being put forward by Verizon, if it is not able to make a return on the huge investment being made in it LTE network, then it seriously impacts on future investments and the future quality of service that operators can provide.

TeliaSonera Offers a Single-Mode Modem Only for Its LTE Launch

TeliaSonera has signed a deal for LTE modems from Samsung for its launch in Sweden and Norway in the first half of 2010. The reason behind this single mode LTE only modem is simply because that's what's currently available.

Because the Samsung modem is LTE-only, TeliaSonera customers will need to use a second modem, either built into the computer or a separate USB dongle to access the Internet when they are not in an area covered by LTE, which at first will be limited to major cities. It's too early to say how the hand-off between the two modems will work, according to TeliaSonera. However, the operator expects that users in the inner-city parts of Stockholm and Oslo will be able to move around and surf using just the LTE modem.

TeliaSonera will have enough modems for a commercial launch, but isn't willing to provide exact quantities. It is hoped that the use of an LTE-only modem is a temporary measure. Samsung is working on a modem that will come out next year and support a multitude of mobile broadband technologies. Obtaining a supply of next-generation modems and phones continues to be the biggest challenge when it comes to rolling out new mobile technologies and is the main reason that operator are cautious of deploying LTE early. AT&T, NTT Docomo and Telefónica are just a few operators to have voiced concerns about vendors' ability to have modems ready by the end of next year.

TeliaSonera said its LTE launch will happen during first half of 2010, but wouldn't provide a more exact timeframe.

Cisco Wants a Piece of the LTE Market

Cisco Systems announced today its second multibillion dollar deal this month: a definitive agreement to acquire Starent Networks for about $2.9 billion. The buyout comes on the heels of Cisco's roughly $3 billion buyout of videoconferencing leader Tandberg announced just under 2 weeks ago

Starent makes products that manage access from 2.5G, 3G and LTE networks to a operator's packet core network. Starent's products are deployed in CDMA2000 (1X, EV-DO), UMTS/HSPA, LTE, Wi-Fi, and WiMAX networks.

Cisco has a significant investment in WiMAX, having bought Navini Networks in 2007 for $330 million, and winning a supply contract with Clearwire earlier this year. Lately, however, Cisco's been making overtures to address the LTE market. This is undoubtedly because almost all of the main tier 1 operators have committed themselves to LTE and they have much deeper pockets that the smaller or greenfield operators have to spend. Verizon and AT&T have already made public their plans to adopt LTE over mobile WiMAX.

Cisco claims that its maneuvers are "access agnostic" rather than a hedge on an earlier bet that may not pay off expected dividends. That may be where Starent fits in, its products have been deployed by over 100 mobile operators in 45 countries. And this is probably a good move for Starent too. One of the problems Starent has had is market reach, Cisco should be an enabler for Starent to take its technology global.

Under terms of the agreement, Cisco will pay $35 per share in cash in exchange for each share of Starent Networks and assume outstanding equity awards for an aggregate purchase price of approximately $2.9 billion. The acquisition has been approved by the boards of directors of both companies. The acquisition is expected to close during the first half of calendar year 2010; however, the close date is subject to customary closing conditions and regulatory reviews. Prior to the close, Cisco and Starent will continue to operate as separate companies.

Calculating the Cost of LTE, Can Operators Afford LTE in the Economic Downturn?

We have seen in the last 6 months or so that some tier 1 operators have been quietly delaying their plans for LTE, some by a few years. T-Mobile is a good example, having stated their plans to roll out LTE in 2010 and replace 3G, they are now looking to stick with HSPA for a little longer.

Aircom launched their LTE cost calculator and published estimated capex investments facing a tier one mobile operator in the first year of rollout in each of four regions. The figures will of course vary by region, the legacy equipment operators have in place and the spectrum they have available. The estimated cost in the US came to $1.78bn, Europe $880m the Middle East $337m and Asia Pacific lowest with $232m.

The economic crisis is the main reason for operators seeking to limit CAPEX committments, but this is also leading to operators taking a differnent approach to LTE network roll out, with network sharing cited as an example alongside the automation of key optimisation processes through the roll out of self-organising networks (SON) and the deployment of femtocells to cost effectively provide macro network offload capabilities as well as indoor coverage. Operators don't want to deploy LTE unless it can be shown that it will save them money in the long term and selling LTE to shareholders can't be easy right now. HSPA is becoming an increaslingly attractive interim solution.

LTE has the potential to become the first radio access technology that is used by all the world's major mobile operators, which means that it could eventually gain massive economies of scale. Some operators may be thinking that it might be worth waiting for the costs to go down before deploying LTE. If the operator's current base stations were deployed fairly recently, they may also be able to move to HSPA+ with just a software upgrade. Operators with a relatively new HSPA network are likely to upgrade it to HSPA+ to ensure they maximise their ROI on HSPA and again this makes it difficult to justify the cost of LTE.

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.

LTE World Series YouTube Channel!

Informa has just launched its YouTube channel featuring an archive of interviews that have been conducted over the space of a year at the LTE World Summit events!

Interviewees have included the top tier 1 operator speakers at the LTE World Summit events with thier thoughts and vision for LTE and mobile broadband and a host of vendors with specific insights into thier field. Most notable interviews are by Franz Seiser, Head of Core Networks at T-Mobile, Dan Warren, Director of Technology at the GSMA and interviews from the recent LTE Asia conference includes and interview with the CEO of CSL, Tarek Robbiati.

The LTE Americas conference with includes speakers such as Tony Melone, CTO of Verizon Wireless and Kris Rinne from AT&T will also be taking place on the 4th and 5th of November in Dallas

Will LTE Be Reliable When it is First Launched?

“We can build all the bells and whistles and make lots of bold claims, but none of it will matter if the network - and all of the underlying infrastructure that supports the network - isn't fundamentally reliable," This was the comment made by the Verizon CTO, Tony Melone.

Can operators ensure that it will be a smooth evolution to LTE? The launch of the early 3G networks will certainly be in the back of operator’s minds, and with Verizon's promise that LTE will be launched in 25-30 markets next year, and everywhere by the end of 2013; ensuring that everything works when they press the “on” button is no small task.

LTE is expected by some in the industry to have lots of glitches to start with and that it will take some time before the engineers learn how to get the best out of the network, even with all of the trials that have been taking place.

According to Melone, Verizon will focus on delivering the most reliable next-generation LTE wireless network in the USA, and they have already taken a proactive approach on the matter. Various collaborative initiatives are already in place, including:

• Open Development, meant to offer developers the possibility to come up with devices that will work on its network, with more than 55 devices certified to date;
• Verizon LTE Innovation Center, also focused on the development of products based on Verizon Wireless' 4G LTE network;
• Verizon Developer Community and V CAST Apps; a group of application developers focused on helping Verizon on delivering new applications to its users on the upcoming network (V CAST Apps should become available before the end of the year)
• Joint Innovation LabDesignated M2M Focus for Important Market Segments

Another important message to the vendors was the importance of partnerships between operators, vendors and all other LTE industry players, in order to everyone to benefit. But can they all get together to keep costs low in order to reach the mass market?

Tony Melone with be giving an exclusive keynote at the LTE Americas conference on the 4th and 5th of November in Dallas.

Do Operators Want Net Neutrality?

The chairman of US communications authority the Federal Communications Commission (FCC) has vocalised his support for net neutrality as a way of preserving the free and open internet. The (FCC) chairman, Julius Genachowski outlined the steps he believes the Commission must take to ensure all net traffic, services and applications are treated equally.

The call for neutrality expands upon the FCC’s previous drive behind four open internet principles supporting consumers’ ability to access the lawful internet content, applications, and services of their choice, and attach non-harmful devices to the network.

The addition of two new principles would prevent internet access providers from discriminating against content or applications, while allowing for “reasonable network management”. The second principle would ensure that internet providers are transparent about the network management practices they use.

Governments around the world acknowledge that the internet is an extraordinary platform for innovation, job creation, investment, and opportunity and so the FCC wants to ensure that the internet is free and open. They have even launched a website at www.openInternet.gov to encourage public participation in the move.

The concept of net neutrality is a hotly debated and controversial issue, with the content and application providers of the internet world accusing broadband network operators of acting as gatekeepers, preventing consumers from enjoying the full range of innovation and choice available through the open internet.

To date, the issue has only been seriously contested in the USA, where a union of web companies including YouTube, Skype, Google and eBay have been lobbying the FCC (with some apparent success) to take a stronger role in promoting a neutral and open internet. Barak Obama is a known supporter of net neutrality, a stance which may have broad ramifications for both fixed and mobile operators that provide internet access and data services. So how does net neutraility affect operators, especially ones looking to deploy LTE? Operators will be able to vary the QoS to customers depending on how much they pay and will also be able to use DPI to ensure the real time content such a video is prioritised or that P2P traffic clogging up the network is slowed down. Will the FCC allow this kind of activity?

"Operators need to have the ability to compete" according to Helen Ponsford, Programme Director for Informa's Broadband Traffic Management conference. "They need to have the ability to control the network otherwise user experience will be impaired and with high bandwidth applications, this have never been so important" For operators having this control is more about ensuring user experience. Deploying LTE provides the opportunity to fully upgrade the network in this way in addition to providing additional capacity. What "reasonable network management" is, I am not quite sure.These complex issues will be discussed and debated the the Broadband Traffic Management conference on the 17th and 18th of November in London.

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.

Will India Get LTE? (Part 2)

I blogged a few weeks ago about whether India would get LTE and I had the opportunity to meet with a few of the the indian regulators at the LTE Asia conference last week.

They confirmed that that auction would go ahead this year on December the 7th, but since there have been so many delays and setbacks already, who knows... The WCDMA auction kicks off first, with the CDMA and WiMAX auctions taking palce 2 days later. I was also told that the FDD spectrum will only be allowed for 3G networks and TDD will likewise be for WiMAX deployments only. The TDD spectrum is expected to sell for a much lower price than FDD spectrum - no surprises there.

Its does indeed seem that the Indian regulators are keen on WiMAX and this is simply down to the infrastructure cost. Currently in India, the ARPU from a subscriber in the cities is $4 and just $2.50 in rural areas! Although the WCDMA networks are likely to be upgraded to LTE at some point, can LTE ever be affordable for India?

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.

T-Mobile Focusing on LTE Performance & QoS

T-Mobile has carried out LTE trials with Huawei base stations and the first test of multi-user broadband services with mobility on a Next Generation Mobile Network (NGMN) using LTE in the city of Innsbruck in West Austria.

The project is the largest European test network covering 60 radio cells and has been running since the beginning of July 2009. The focus of this test network was to gain customer experience insights as well as technology testing and verification. In particular, T-Mobile is focusing on aspects such as quality, stability and reliability in a variety of environments ranging from the inner city to highways in and around Innsbruck.

T-Mobile was the first company to successfully demonstrate NGMN capabilities under real life conditions and was able to achieve data rates of up to 150 Mbit/s and during a showcase in Vienna, Austria earlier this year, T-Mobile also achieved a speed of over 130 Mbit/s over the air with four modems registered in a cell at the same time.

Clearly, superior customer experience is at the heart of what T-Mo wants to achieve with its LTE network, especially in Austria, a country that is at the leading edge of European mobile data usage, with market leader Mobilkom Austria deriving one third of its revenues from mobile broadband services.