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Mobile Broadband in the 1800Mhz Band July 2011

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Mobile Broadband in the 1800Mhz Band July 2011 Mobile Broadband in the 1800MHz Band July 2011 Meeting the rising demand for Mobile Broadband services Mobile Broadband in the 1800MHz Band July 2011 Mobile Broadband in the 1800MHz Band July 2011 Executive Summary 1800MHz today Why 1800MHz Deployment plans n Approaching half of the world’s mobile n The 1800MHz spectrum band could n Telstra trialled LTE in June 2010. The operators already have 1800MHz significantly enhance Mobile Broadband plan to offer LTE via refarming of spectrum: 351 mobile operators in 148 capacity, if it were used to deliver LTE 1800MHz and the upcoming release countries have licenses to use 1800MHz and HSPA/HSPA+ services, as well as of 700MHz and 2.6GHz. The launch of spectrum, according to the GSMA. GSM. commercial services will be following Australia’s switch off of analogue n n Today, the vast majority of operators’ In many markets, the 1800MHz band channels which are not due until the end 1800MHz spectrum is used to provide contains the widest bandwidth allocation of 2013. GSM services. of spectrum mobile operators have. n CSL, Deutsche Telekom and Telstra are n n Mobile operators typically have wide Mobile Broadband services at 1800MHz among the operators that plan to launch channels, well-suited to capacity for can be delivered by adapting existing LTE services in the 1800MHz band this Mobile Broadband services, in the GSM base stations, reducing the need for year, while France Telecom Orange plans 1800MHz band: more than 60% of new site deployment, lowering costs and to launch HSPA/HSPA+ services at 1800MHz spectrum in France, Germany, limiting the environmental impact 1800MHz this year. Italy, Spain, and the U.K. is available n in slots of 10MHz or wider, according The 1800MHz band offers significantly to Qualcomm (sourcing the European better geographic and in-building Communication Office. coverage than the 2600GHz band, Device availability which is being used for many LTE n LTE 1800MHz devices are becoming deployments. LTE at 1800MHz provides available: 10% of the 98 commercial twice as much coverage as LTE at LTE devices announced by March 2011 Demand for Mobile Broadband 2600MHz, according to tests by Elisa, a supported 1800MHz, according to the n Global Mobile Broadband connections mobile operator in Finland Global mobile Suppliers Association are set to grow an average of 50% a year (GSA). for the next three years, according to the n 1800MHz can be used for LTE services in GSMA. countries where no other suitable bands n Several HSPA 1800MHz and dual- are available. mode HSPA/LTE 1800MHz devices n As a result, data traffic on mobile will be launched in 2011, according to networks is growing exponentially Qualcomm. and many mobile operators need more capacity. CSL in Hong Kong, for example, has seen data traffic grow 100 fold since March 2009. Decision criteria Mobile operators’ decision on whether to use 1800MHz for LTE, HSPA+ or just GSM depends on: n Their existing spectrum allocation n Legal and regulatory conditions n Future potential spectrum allocations n Competition and the market environment n The availability of equipment 1 Mobile Broadband in the 1800MHz Band July 2011 Introduction This paper explores the potential to 1800MHz today use the 1800MHz spectrum band to The 1800MHz band is widely-used to provide mobile services. Approaching half of the world’s 800 mobile operators (351 mobile operators in 148 countries) already have licenses help meet rising demand for Mobile to use the 1800MHz band, according to the GSMA. Some 151 of the 1800MHz operators are Broadband services. It is based on in Europe, 73 in Africa, 72 in Asia-Pacific, 34 in Latin America and 21 in the Middle East (see map opposite). the presentations and subsequent discussion at the 1800MHz HSPA/ The vast majority of these operators are using the 1800MHz spectrum to provide GSM services, but in many countries, GSM usage has peaked, or is about to peak, as more and LTE Workshop hosted by the GSMA more people buy Mobile Broadband devices that give them fast access to the Internet and and the Global mobile Suppliers other online services. As consumers select devices that support HSPA (as well as GSM), the number of GSM-only devices in use is now in decline in Western Europe and North Association (GSA) in London during America, according to Wireless Intelligence. The research firm expects Latin America and March 2011. Eastern Europe to reach the same tipping point early in 2013, with the rest of the world following suit by the first quarter of 2015. 1800MHz – Licences today International Western Europe Eastern Europe Operators: 10 Countries: 26 Countries: 27 Operators: 75 Operators: 76 Americas Africa Middle East Asia Pacific Countries: 22 Countries: 36 Countries: 12 Countries: 25 Operators: 34 Operators: 73 Operators: 21 Operators: 72 2 The mobiledataexplosioncontinues open upourcapacityforsmartphones.” LTE, thatisgoingto traffic onto Ifwecanmovethedongle/homebroadband broadband. said. “Halfofourtrafficisbeinggeneratedbysmartphonesandhalfdongles/home goingtohitthe3Gwallintwoyearstime,whichwewouldlikeavoid.”he really are 1800MHz workshop.“Itisstartingtoconcernus,intermsofstrainingthenetwork.W PlanningatCSL,toldthe SeniorManagerforTechnology PaulWang, year-on-year, fourfold networkisstillgrowing thedata trafficonCSL’s Even afterthatdramaticsurge, (see chartbelow). 2009 serviceinHongKongMarch fold sincethelaunchofitsNextGMobileBroadband 100 subsidiaryCSL,forexample,hasseendatatraffic grow Telstra online simultaneously. numbersofpeoplego large capacity inhotspotswhere mobile operatorsnowneedmore indatatrafficonmany mobilenetworks.Some drivingexponentialgrowth connections are totheGSMA.Thesenew years,according anaverageof50%ayearforthenextthree grow issetto andLTE) HSPA+ connections(HSPA, thenumberofMobileBroadband Worldwide, smartphones. donglesand LTE alsobeginningtopurchase nowlive,peopleare networksare LTE where network).Inthe19 countries (USB modemsthatcanbeusedtoconnectalaptopanHSPA smartphones, tablets,netbooksanddongles buyingHSPA-enabled dothat,theyare To corporate applications,emailandmanyotherInternet-basedserviceswhileonthemove. Both consumersandbusinessusersnowwanttoaccesssocialnetworks,websites, Demand forMobileBroadband Relative Daily Data Usage 100 110 10 20 30 40 50 60 70 80 90 0 07/08 I I I 08/08 Data Data Data 09/08 Next GLaunch Tr Tr 10/08 Tr affic >85%oftotalnetworktr affic stillgrowing4X affic >100XsinceNextGlaunchinMa 11/08 12/08 01/09 02/09 03/09 04/09 YOY 05/09 06/09 affic 07/09 08/09 W orld Cup r- 09/09 iPhone4 09 10/09 11/09 12/09 L 01/10 TE/DC-HSP 02/10 03/10 04/10 A+ Launc Original chartcontentsuppliedbyCSL 05/10 06/10 07/10 h 08/10 09/10 10/10 11/10 12/10 01/11 e 02/11 03/11 Mobile Broadband inthe1800MHzBand Mobile Broadband July 2011 3 Mobile Broadband in the 1800MHz Band July 2011 Why 1800MHz? One way to create more capacity for Mobile Broadband services would be to use the 1800MHz band to provide HSPA/HSPA+ or LTE services, as well as GSM. In many markets, the 1800MHz band has been licensed on a technology-neutral basis, making it appropriate to refarm for Mobile Broadband services. Moreover, the 1800MHz band is is made up of 75MHz uplink and 75MHz downlink, according to Ericsson, which means it often accounts for the largest available slice of spectrum available to mobile operators. Deutsche Telekom, for example, says its largest chunk of paired spectrum above 1GHz is in the 1800MHz band in most of the markets where it operates. France Telecom also says the 1800MHz band is the largest band it has in the majority of its markets. “So, if we want capacity, that is the band,” Glyn Roylance, Head of New Radio Technology at France Telecom Orange, told the workshop. “The capacity issues and requirements are here today and we think HSPA 1800 devices should be quite easy, cheap and fast-to- market….We regard 1800 now as the sweet spot. We could not think of a better band for Mobile Broadband. We are advocates of HSPA in the 1800 band. We see HSPA in the short- term and LTE in the longer-term.” Moreover, in most countries, the 1800MHz band has been divided up in a way that means that individual mobile operators each have wide channels, well-suited to increasing capacity for Mobile Broadband services: more than 60% of 1800MHz spectrum in France, Germany, Italy, Spain, and the U.K. is available in slots of 10MHz or wider, according to Qualcomm (sourcing the European Communication Office, see chart below). This factor is particularly important for LTE, which needs channels of 20MHz to achieve its full potential performance. More than 60% of 1800MHz spectrum in top 5 EU markets available in slots of 10MHz or wider >10 …and >40% available in slots >15 of 20MHz or wider >20 Channel bandwidth (MHz x 2) 0% 10% 20% 30% 40% 50% 60% 70% % of spectrum Source: “ECO Report 03 – The Licensing of ‘mobile bands’ in CEPT,” 24 January 2011. Markets include France, Germany, Italy, Spain, U.K. Original chart content supplied by Qualcomm 4 Mobile Broadband in the 1800MHz Band July 2011 Mobile Broadband services at 1800MHz can be delivered by adapting existing GSM base stations, removing the need for new site deployment, reducing operators’ costs and environmental impact. Deutsche Telekom, which plans to launch LTE services at 1800MHz in the summer of 2011, describes 1800MHz as “the most attractive spectrum to bring capacity to urban areas, without new site deployment, meaning minimized OPEX (operating costs) and minimized environmental impact.” Some mobile operators say the 1800MHz band also has the potential to
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