The LTE Opportunity Connected Devices Meet LTE Introduction

A new generation of mobile broadband has arrived, and its name is LTE. Differences of opinion remain regarding whether the three main cellular technologies now rolling out in the marketplace—HSPA+, WiMAX, and LTE—can technically be called “4G,” and even what 4G actually means.1 But one thing is clear: A critical mass has been reached, and the next evolution of high-speed mobile broadband technologies is no longer “on the horizon.” It’s happening right now. And LTE has emerged as the long term leader in mobile broadband network evolution.

The list of stakeholders that will be affected by this technology evolution includes original equipment manufacturers (OEMs), application developers, engineering system designers and integrators, and many others. Technologies that will take advantage of LTE networks include smartphones and mobile computing devices, as well as a growing array of commu- nication-enabled utility meters, health meters, consumer appliances, vehicles, and many other connected devices. However, some significant challenges must be overcome to real- ize the full potential of LTE networks and devices.

The most important requirement will be accounting for the diverse LTE technologies and varying stages of deployment in different regions around the world. It will not be enough to simply build an effective LTE solution. Operating in a world with pockets of LTE access separated by large areas of 3G coverage will require practical multi-mode/multi-frequency solutions. Developing LTE-capable products for global distribution will also require support for an even larger number of radios and frequencies—further increasing the complexity and costs of development. Just as OEMs must grapple with these complexities, it is important for product and application developers to understand them as well, so they can assess their communications requirements appropriately and assure their products meet target customers’ needs and budgets.

This paper examines the unique requirements of LTE devices in today’s dynamic marketplace. It discusses the forces driving growth in LTE technology, and the business considerations associated with building LTE-enabled devices and applications. It also discusses

1 The term “4G” can encompass several high-speed mobile systems, and including three now being deployed: WiMax, HSPA+, and LTE. Industry experts have debated the true definition of 4G for some time, but in December 2010, the International Telecommunication Union (ITU) expanded its definition of 4G to include these evolved 3G technologies, as well as emerging standards such as LTE-Advanced (LTE- A). See: http://www.itu.int/net/pressoffice/press_releases/2010/48.aspx

© 2011 Sierra Wireless Inc. 2 some guidelines and best practices that OEMs and system integrators should consider when incorporating high-speed cellular communications into their products to ensure they can deliver a superior user experience over LTE networks. A Growing Market for LTE-Connected Products and Applications

Whatever debate may remain around the various 4G technologies currently rolling out worldwide, the marketplace is rapidly coalescing around LTE. The Global Mobile Suppliers As- sociation (GSA) reports that, as of March 2011, 196 operators in 75 countries are investing in 3GPP LTE systems. In fact, GSA reports that, when compared with recent mobile system rollouts such as those for HSDPA and HSUPA, LTE is the fastest developing mobile system technology in the history of the industry. Even among network operators that have migrated to or are expanding HSPA+ deployments, many now view LTE as the eventual unifying technology for their mobile broadband networks. Indeed, in some regions, LTE is expected to have an even broader reach than current cellular and fixed-line networks—opening entirely new markets.

There are good reasons for this rapid growth. The first factor is the explosive growth in worldwide mobile data traffic as more smartphones, tablets, computing devices, and connected machine-to-machine (M2M) applications are added to mobile networks. Growing adoption of cloud computing and new applications for connected products are also increasing mobile broadband adoption. These trends are driving demand for mobile broadband devices that deliver higher speeds, more capacity, lower latency, and a more seamless and consistent user experience. LTE addresses all of these concerns. LTE provides:

• Enhanced user experience: LTE-enabled devices can deliver substantially increased capacity and data rates, with theoretical peak download speeds of 100 Mbps and upload speeds of 50 Mbps. (Future generations of LTE, such as LTE-Advanced, will support even faster speeds.) LTE also provides as much as 10 times lower latency than 3G technologies, providing an immediate improvement in the user experience. (A standard web browser, for example, may require 50 messages back and forth to load a web page. When connecting over a typical 3G network with latency of 100 milliseconds, the mini- mum time to load that page is then 5 seconds—regardless of how fast the connection is.

© 2011 Sierra Wireless Inc. 3 Alternatively, an LTE-connected device can load the same page in less than 1 second.) Mobile applications also perform better due to the superior control plane and data plane system design in LTE networks. And, LTE simplifies handoffs to 2G and 3G access systems, making these handoffs transparent to users.

• Expanded flexibility: LTE’s inherent flexibility benefits connected device manufacturers, network operators, and users alike. LTE services can be deployed in existing 2G and 3G bands, in new spectrum such as 2.6 GHz, and in lower spectrum in many regions. As a result, operators can reuse 2G spectrum and shift heavy data users off of the existing 3G network—providing a better experience for both LTE users and existing 3G users, who no longer have to share resources with the heaviest mobile broadband users. LTE is also scalable to operate in multiple allocations (1.4 MHz through 20 MHz), uplink and downlink, paired and unpaired, etc. This flexibility means that those developing LTE devices and applications can enjoy higher-speed networks and more capacity, as well as greater available wireless spectrum.

• Significantly lower costs: LTE is an all-IP network technology with simplified IP-based core and transport networks, making it less expensive for operators to deploy and main- tain. The technology’s self-configuration and self-optimization capabilities also reduce rollout costs and timelines. These attributes allow for significantly lower cost per Giga- byte of data delivered—and ultimately lower the total cost of ownership for connected devices and applications. User Applications for LTE

Given these advantages, LTE can benefit a broad range of user applications and connected products, including:

• Mobile consumer devices, including mobile video, gaming, and business applications, all of which will benefit immediately from the improved capacity and more seamless user experience that LTE can provide

• Connected automobiles, which can make a wide range of broadband services available directly in the car

• Connected homes, where LTE broadband routers can potentially replace wired con-

• Enterprise networking, encompassing a range of potential applications from business continuity solutions, to temporary network connectivity, to broadband Internet services for employees, to machine-to-machine (M2M) applications and services

In addition to these, a variety of other applications can benefit from LTE, even when they do not require higher speeds and capacity. For example, some M2M connected device manufacturers are building devices with LTE embedded modules, even though they do not require LTE-scale data rates. M2M applications that require very low latency or that have low data usage but very high frequency of communications can make good use of LTE technology, benefiting from the improved resource efficiency of the optimizedTE L control plane.

LTE may also be appropriate for devices that are expected to have a long lifespan in the field. For example, if network operators are increasingly migrating to LTE because of its cost efficiencies, and an OEM is designing a connected power meter that is expected to stay in the field for a decade or more, it may make sense to build some versions of the device with LTE technology, or at least easily upgradable to LTE. Meeting User Requirements and Expectations

Clearly, LTE broadband networks hold enormous potential to optimize mobile applications and the mobile broadband user experience. Actually delivering these benefits in real-world devices and applications, however, can be a complex proposition.

The key to a successful LTE device is not simply to create a product that can achieve the highest possible peak data rates. To function in the real world, where LTE networks are being built out at different speeds in different locations, OEMs and application developers need to design solutions that can provide a consistently good user experience over the entire network—both as it is today and as it will be in the future. Ultimately, it’s not enough to simply add LTE connectivity to a device. Significant thought must be put into choosing the right LTE modem or embedded module.

The stakes for making the right decision are very high. To succeed in the coming 4G-dom- inated wireless marketplace, OEMs and solution developers need to get their products to market as quickly as possible. Failing to account for all the intricacies of successful LTE im-

© 2011 Sierra Wireless Inc. 5 plementation may mean significant delays in getting a device to customers, either because it can’t get through the network operator’s certification lab or because it’s not working the way the operator wants. To avoid these pitfalls, those developing an LTE device should carefully consider the following LTE requirements: Multi-Mode Operation

Since most operators are still in the early stages of their LTE network deployments, any practical device must be able to function with some combination of 3G, 2G, and HSPA+ networks, as well as LTE. Devices will need more than just a good LTE radio; they will need good 3G and 2G radios, in multiple combinations of spectrum bands depending on where the solution will be deployed.

This multi-mode operation is inherently complex, encompassing more components, more frequency band variation, more testing, and more possible states of operating than in the past. It is more essential than ever that an LTE modem be architected to manage these complex handoffs correctly—seamlessly and efficiently, in a manner that is transparent to the user, and that does not tie up network resources while attempting to change modes. Antenna Design

When 2G and 3G networks initially rolled out, device manufacturers made significant invest- ments in designing antenna to deliver excellent reception. As the 2G/3G market has grown over the years, good antennae design is now simply an expected requirement. With the industry moving into the era of LTE, manufacturers must once again invest time and resources into antennae design. However, LTE relies on multiple-input multiple output (MIMO) antennae, which are more complicated than those used in previous-generation modules and modems. In addition, poor design in a MIMO antenna will have a more noticeable impact on the user experience than is the case for standard diversity antennae. As a result, operators will likely be looking closely at antennae as part of the certification process for any device.

In LTE systems, balanced antenna structure and coherent distance (i.e., separation of antennae), is extremely important, as are the polarity and even directionality of the antennae. All of these considerations make antenna design a much more challenging engineering problem, whether embedding a module in a device for an M2M application or building a mobile computing product. The problem is compounded by the fact that LTE modems operate

© 2011 Sierra Wireless Inc. 6 across more bands than 3G systems. In particular, the lower spectrum bands on which LTE networks operate tend to pick up significant electrical noise from the host device or application. So antennae must be designed to not only address a more complex set of requirements, but to address them in a much noisier environment. Thermal Management and Battery Life

The multi-mode operation required in practical LTE devices requires manufacturers to support more wireless technologies—which typically means more components, more heat and more power consumption. A successful LTE modem must be designed to optimize power wherever possible, to run as efficiently as possible and to draw heat away from all vital components. Diverse Operating Environments

Unlike previous-generation technologies, LTE is very frequency-band agile and can work on almost any size spectrum. As discussed, this is a major benefit for network operators, because it makes LTE networks easier and less expensive to deploy. However, this attribute creates significant challenges for OEMs and application developers, because it means that there is much greater variation in how LTE will be deployed by different operators in different parts of the world. LTE also may be deployed in different “flavors.” Most LTE deployments now under way use paired spectrum (FDD mode). However, some markets may use unpaired spectrum (TDD mode).

So, while 2G and 3G technologies are now mature enough that any radio that complies with the standard can probably function in any live 2G or 3G network, this is not yet the case for LTE. It is therefore not enough to have a good grasp of the LTE standard. OEMs, system integrators, and other stakeholders must look for LTE suppliers that have a clear sense of how network operators are implementing LTE in a given market, and how that deployment may differ from others. Well-Designed Integration

For OEMs developing LTE USB modems, it is more important than ever to properly archi- tect the installation and assure that software installs reliably on the computing device. In- deed, the biggest problems users experience with wireless computing devices are often not

© 2011 Sierra Wireless Inc. 7 caused by the wireless technology itself, but by problems in how the software installs when first taken out of the box. Given the increased complexity of LTE operation, software and installer design are therefore even more important.

Companies bringing LTE modems to market must also avoid bottlenecks between the modem and the device. After all, given the high speeds and capacity of LTE connections, bottlenecks are unlikely to occur in the wireless modem’s connection to the LTE network. The interface between the modem and the computing device, however, is another matter. These interfaces must be designed carefully to accommodate the much greater throughput of LTE connections. A good solution should minimize the footprint to the host, and assure that the host doesn’t run out of CPU cycles just servicing that modem. Software and drivers on the host also must be written and architected very carefully to minimize CPU requirements. Extensive Testing

Given the novelty of LTE technology and the fact that many networks are still in the early stages of deployment, carrier testing for LTE is currently a work in progress. As a result, the ultimate quality of the LTE communications largely depends on testing from the supplier. OEMs and solution developers should expect to undergo a more extensive testing process than in the past. To achieve the highest quality solutions, they should also expect to work more closely with network operators and network infrastructure vendors—or with LTE suppliers that have strong relationships with these stakeholders. Best Practices for LTE-Connected Devices

Given these complex requirements, OEMs, system integrators, and other application developers should be looking for several key attributes in any LTE communications supplier with which they partner. Any LTE modem or module supplier should possess the following:

• Proven expertise addressing the technology challenges of 4G systems: Given the inherently complex multi-mode operational requirements of LTE devices, OEMs should look for vendors with broad expertise not just in LTE, but also in 2G, 3G, and HSPA+ technologies. Suppliers should have demonstrated success developing back- ward compatible modems that can successfully operate in multi-mode environment, and navigate complex multi-mode handoffs. Suppliers should also be able to provide

© 2011 Sierra Wireless Inc. 8 solutions with effective thermal dispersion and efficient power consumption, even as they incorporate more connectivity technologies and frequency bands into their product.

Since antenna testing is an extremely specialized discipline, OEMs and system integrators should seek out suppliers with expertise in this area and the equipment to perform such testing properly. For USB modems, the LTE supplier should have demonstrated success designing effective interfaces with computing devices, and good user interfaces and software installation.

• Expertise across multiple platforms: Any potential partners should know LTE inside out. Typically, that means a supplier that has developed LTE solutions across multiple types of devices—modules, USB modems, hotspots, etc. This breadth of expertise af- fords greater confidence for the OEM or application developer, but also streamlines certifications with network operators, as it is easier for carriers to work with suppliers that can leverage a range of mature products with similar testing behind them.

• Global expertise: Unlike 2G and 3G systems, LTE will operate over a number of different bands depending on the carrier and geographic region. OEMs and system integrators should therefore seek suppliers with close relationships with network operators worldwide, and access to in-depth knowledge about how different operators are implementing their LTE networks. The supplier should also have the scale to be pursuing certifications with multiple carriers worldwide, and the ability to offer pre-certified LTE solutions. Working with a global supplier will make it easier and less expensive for OEMs to develop their own global solutions—allowing them to swap out LTE modules from one market to another, so they can more rapidly bring their products to market in Europe, North America, Asia-Pacific, and other parts of the world.

• Advanced professional services, as well as technology: Unlike with mature 3G and 2G technologies, OEMs and solution developers cannot simply buy an LTE modem for their planned device. They need assistance with how to best integrate LTE communications, and how to shepherd their device through all of the various evolving certification processes that operators are still rolling out. LTE suppliers should also be forward-looking, with an in-depth understanding of how different carriers and markets are proceeding with their 4G rollouts.

© 2011 Sierra Wireless Inc. 9 • Solutions that are optimized for time-to-market: With mature 3G and 2G technologies, OEMs and system integrators may choose communications solutions that diverge in small ways from the standard. With a brand new, complex standard like LTE, however, it is important to use solutions that strictly follow the standard. Rigorously applying the LTE standard may not mean optimizing for the lowest possible manufacturing costs, but it does make it much more likely that the device will be certified and able to meet planned launch dates. And, as LTE networks and technologies mature, costs will likely come down.

Choosing LTE solutions that are pre-certified with network operators and global standards is also more important than ever. Relying on an LTE solution that will not be certified with the network operator until after it is integrated into the device may well result in delays and missed launch dates. Conclusion

Not long ago, industry analysts were still unsure if LTE would be deployed broadly, or just implemented as hotspots in select locations. It is now clear, however, that LTE coverage will be extensive in many regions, and ultimately will follow the path of every other major cellular network launch in history.

As carriers around the world make commitments for new networks and significant invest- ments in LTE systems, the pace of LTE deployment has accelerated. For OEMs, system integrators, and application developers, there should be no more debate about the viability of these technologies. To deliver successful connected product and applications over the next several years, companies need to be considering LTE connections right now, and preparing to bring them to market.

Some questions remain about how different carriers and markets will implement LTE networks, and the path that those network evolutions will take. However, by carefully considering the unique requirements of LTE technologies, and working with suppliers and vendors with the expertise to meet them, OEMs can position themselves for success.