GSMA HSPA and LTE market update - March 2011

GSA Secretariat
Email: info@gsacom.com

GSM/3G and LTE Market Update
March 3, 2011

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GSM/3G and LTE Market Update – March 3, 2011 Slide no. 1/64

Recent press releases from GSA
Press releases:
www.gsacom.com/news/index.php4

February 9, 2011: GSA Confirms 63 LTE User Devices have launched
www.gsacom.com/news/gsa_320.php4

February 7, 2011: GSA updates HSPA Devices survey: 2,922 HSPA products launched, including 92 HSPA+ devices

February 4, 2011: GSA study confirms Mobile HD Voice services expanding globally

January 26, 2011: HSPA+ is now mainstream, says GSA: 103 operators launched in 57 countries

January 12, 2011: GSA confirms LTE as the fastest developing system in the history of mobile telecommunications,
180 operators now investing

FAST FACTS (regularly updated)
www.gsacom.com/news/gsa_fastfacts.php4



LTE: the fastest developing mobile system
technology ever !

LTE operator commitments are developing faster
than they did for HSPA, which until now had been
the fastest developing mobile communications
system. By comparing the number of operator
commitments 6 months and 12 months after first
commercial system launches for HSDPA,
HSUPA, HSPA+ and LTE respectively, LTE
proves to be the fastest developing mobile
communications system technology ever.

Alan Hadden, President of the GSA, said: “LTE
made excellent progress in 2010 to become the
fastest developing mobile system technology
ever. We expect that the introduction of LTE
systems and user devices will significantly
quicken in 2011.”

Chart available as a PDF: www.gsacom.com/gsm_3g/info_papers.php4
or JPEG file: www.gsacom.com/news/statistics.php4



GSA surveys referenced in this report

Status of the LTE ecosystem report February 9, 2011

Mobile HD Voice using W-AMR February 2, 2011

UMTS900 Global Status March 1, 2011
All are available as free
Digital Dividend Update November 5, 2010 downloads via the links
on www.gsacom.com
HSPA Devices Survey February 7, 2011
60+ maps and charts
3G/WCDMA-HSPA, HSPA+ and LTE Fact Sheet March 2, 2011 www.gsacom.com/news/statistics.php4

WCDMA-HSPA Launches Worldwide January 24, 2011 Log-in first

HSPA Operator Commitments January 24, 2011
Not registered?
Global HSPA+ Network Commitments & Deployments January 24, 2011
It only takes a minute at
www.gsacom.com/php/register_form.php4
Evolution to LTE report January 12, 2011

Mobile broadband growth – reports from HSPA operators February 24, 2011

EDGE Fact Sheet August 19, 2010



Mobile broadband success stories globally
Traffic, revenue, profit growth across the world

AT&T: 2010 PCCW: 1H 2010
Post-paid data ARPU growth 18% 3G data = 45% service revenue

SmarTone-Vodafone : 2Q 2010 Vodacom South Africa : FY 2010
Mobile data revenue up 38% YoY Data traffic up 58%

MOBISTAR: 1H 2010
Mobile data revenue = 31%

Turkcell: 3Q 2010
Mobile Internet revenue up 83.7% YoY

There are dozens more examples

Download: Mobile Broadband Growth report (February 2011)


GSM/WCDMA-HSPA success in all regions

Mobile subscriptions growth charts and maps
for all regions and key markets available at
www.gsacom.com/news/statistics.php4



3G growth

In Europe

 2012: 3G subscriptions will outnumber GSM

 2014: around 70% of mobile subscriptions will be 3G

In emerging markets

 First wave of launches
 Several network deployments
 Low-cost 3G devices being introduced



WCDMA subscriptions growth worldwide
 regional breakdown: Q2 2010

Q4 2010 (provisional): 632 million WCDMA globally including 342 million HSPA subscriptions

(data provided by Informa Telecoms & Media as at January 27, 2011 and is subject to change)


3GPP radio access evolution

LTE Evolution
LTE
HSPA+
HSPA
3G/WCDMA

D/L peak rate 384 kbps 14.4 Mbps 21/28/42/84 Mbps > 150+ Mbps 1 Gbps target




GSM/3G and LTE Market Update – March 3, 2011 Slide no. 12/63Slide no. 12/64

WCDMA is the leading 3G system globally

Over 99% of WCDMA operators have
commercially launched HSPA on their networks


GSM/3G Market Update – August 9, 2010


Slide no. 16/30
Slide no. 16/64
GSM/3G and LTE Market Update – March 3, 2011

HSPA mobile broadband eco-system - mainstream

59% of devices support peak DL data
speed of at least 7.2 Mps

945 HSUPA devices

92 HSPA+ devices

Smartphones (i.e. HSPA with WiFi) is
the main growth device segment

526 UMTS900 devices supporting HSPA

Excluding notebooks and e-book readers, 21% of
book
HSPA devices operate in the 900 MHz band

GSA HSPA Devices Survey Key Findings – Faebruary 7, 2011
www.gsacom.com




GSM/3G Market Update – August 9, 2010

GAMBoD: GSA’s analysis tool for HSPA devices
A GSA Member Benefit www.gsacom.com/gambod

Comprehensive analysis of every
launched HSPA device, as confirmed by
GSA‟s latest HSPA Devices survey, and
personalized to individual needs, can be GAMBOD is a search and analysis tool
undertaken by registered users of GSA developed by GSA for mobile broadband
member organizations and network devices (HSPA, HSPA+, LTE) allowing
operators using GAMBOD searches by supplier, form factor, features,
www.gsacom.com/gambod peak downlink/uplink speeds, and operating
frequency. The feature support for HD Voice
(W-AMR) is now included. Results are
presented as a list or spreadsheet, or in
charts which may be inserted into
documents or presentations, subject to
accreditation of GSA as the source. An RSS
feed can be activated to alert when new
devices are added by GSA to its database.

Qualification to use GAMBoD:
You need to be employed by a member
organization of GSA to use GAMBOD and have
registered on www.gsacom.com with the corporate
email address. GAMBoD is also accessible to
network operators who have also have registered
on www.gsacom.com with the corporate email
address.



EDGE contributes to mobile broadband success
 Most HSPA networks combine with EDGE

The majority of WCDMA-HSPA networks are complemented with GSM/EDGE for
service continuity in areas where WCDMA-HSPA coverage is not available, to ensure that
users will receive a good experience of most 3G services
295 HSPA network operator commitments (72.3%) also committed to EDGE

EDGE can today deliver user data speeds up to 300 kbps peak; more comes with
EDGE Evolution

2,053 HSPA user devices (84%) also support GSM/EDGE
(excluding notebooks and e-book readers)



GSM/EDGE: a global, mature technology
 Over 80% of commercial GPRS networks have committed to EDGE

543 GSM/EDGE
commitments
in 198 countries

531 commercial
GSM/EDGE networks
in 196 countries

Source: GSA EDGE Fact Sheet - August 19, 2010
www.gsacom.com/gsm_3g/edge_databank.php4#EDGE_Fact_Sheet


EDGE Evolution
 Evolved GERAN: drivers and goals

Operators stress service continuity as being very important

WCDMA evolution to HSPA is a key driver for EDGE Evolution (GERAN Evolution) since
reducing the performance gap is the priority

EDGE Evolution - potential benefits:
 2 – 3 times increase in EDGE bit rates
 2 – 3 times spectral efficiency gain (for voice & data capacity)
 Halve the latency (roundtrip time)
 All achieved with low impact on the GSM/EDGE network

Standardized in 3GPP Release 7

Leading manufacturers committed



Dual Carrier
 The first step in evolving EDGE

Dual Carrier is the first step in evolving EDGE,
bringing the prospect of doubling today’s EDGE
speeds to 592 kbps on existing EDGE-capable
networks. Commercial downlink Dual Carrier
solutions are expected to be introduced in 2009

EGPRS-2 level B+ is standardized in the
newly-released 3GPP Release 8, providing a
wider pulse shaping filter to enable higher
average end user throughput, and therefore
better coverage compared to level B

EDGE Evolution capabilities are being
deployed – download GSA information paper
“EDGE Evolution” for latest updates, via the
link on www.gsacom.com
GSA Information Paper “EDGE Evolution”
www.gsacom.com/gsm_3g/info_papers.php4


UMTS900: HSPA deployed in the 900 MHz band
 Cost reduction in rural/suburban areas
 Improved in-building penetration

UMTS900 operator case study
Elisa, Finland
Increased coverage
Significant CAPEX, OPEX savings
Re-use existing sites
Faster rollout
Improved voice service
Improved in-building penetration

UMTS900 Operator Case Study on Elisa
www.gsacom.com/gsm_3g/info_papers.php4

UMTS900 has an economic motivation –
it is a business decision

Slide no. 25/64

Improved user experience of mobile broadband
and voice with UMTS900

UMTS900 operator case study “Site optimization gave customers a kick up in performance
Optus, Australia for 2G service as well as access to UMTS900”

“The extended reach of 900 MHz means we can deliver
better quality and wider coverage across sparsely
populated areas, as well as enhanced depth of coverage”

“UMTS900 has been critical in bringing up the depth of
coverage into people’s homes, so they get a similar
experience in both voice and data coverage, making it a
more economically feasible solution for expansion”

“By having a technology that allows us to get into more
places at a lower cost, we can deliver more services. For
example, we can grow our small and medium business and
consumer market penetration”
UMTS900 Operator Case Study on Optus “Amongst other applications, UMTS900 implementation is a
www.gsacom.com/gsm_3g/info_papers.php4 case study for how we will utilize new spectrum arising
from the Digital Dividend”



UMTS900 operator insights – Elisa FI

Recommended download – www.gsacom.com

UMTS900 Update: New Operator Insights

Presentation by Dr Eetu Prieur, Elisa Finland
Developing A Fully Inclusive Mobile Broadband
Strategy: Bringing Mobile Broadband To Remote And
Rural Areas

Elisa launched the world's first UMTS900 (HSPA)
system in Finland in November 2007 and are now
upgrading to HSPA+. In his presentation Dr Eetu Prieur
explains why UMTS900 is “a 100% clear go”.



HSPA850 networks in commercial service
 Launched in Australia, The Philippines, Latin America

UMTS850 commercial launch: October 06

World’s largest UMTS 850 network. Telstra's
Next G™ network covers more than 1.9 million
square kilometres. The Next G™ network
provides mobile broadband access to 99 per
cent of Australians, spanning city to country
including many remote coastal and rural
communities (www.telstra.com.au)

Commercial UMTS-HSPA networks launched throughout the
Americas; most operate in the 850 MHz band

A robust UMTS850 ecosystem exists today which includes
1,125* HSPA devices which operate in the 850 MHz band
(*excluding notebooks and e-book readers)

Source: GSA HSPA Devices survey – February 7, 2011



The roadmap for LTE

Excellent Mobile Broadband Today Enhanced User Experience
Voice and full Range of IP Services Improved voice and data capability

Rel-99 Rel-5 Rel-6 Rel-7 Rel-8 Rel-9 & beyond

WCDMA HSPA HSPA+ (HSPA Evolved)
Rel-8 Rel-9 Rel-10
LTE leverages new, wider
and TDD spectrum
LTE LTE - A

2009 - 2010 2011+ - - - - - - - - - >



The industry direction is to LTE
- LTE is needed to accommodate huge traffic growth

Year 2010: LTE performance
Peak downlink: > 150 Mbps
Mobile broadband is gaining momentum from Typical user speed: 10-30 Mbps
10-
widespread 3.5G deployments, flat rate data Typical user UL rate: 5-50 Mbps
5-
tariffs, and availability of internet friendly mobiles
Spectrum flexibility
Traffic rising/revenue falling Can use new or re-farmed spectrum, FDD and TDD
Variable channel bandwidth
40x – 100x traffic increase
May need to be supported Improved performance
across several frequency bands Higher capacity, peak and user data rates
Higher bandwidth
Much lower latency
“always on”; enhanced user experience

LTE is essential to take mobile Lower cost
IP-based flat network architecture; Low OPEX
broadband to the mass market High degree of self configuration/optimization
High re-use of assets including sites

Complements 3G/HSPA
Addresses high capacity requirements
Seamless service continuity/multimode devices
Next generation solution for 3GPP and 3GPP2


The LTE ecosystem is building
Source : GSA Report: Status of the LTE Ecosystem
Issue #1: February 9, 2011
Free download via the link on www.gsacom.com



Spectrum for LTE deployments

 An operator may introduce LTE in ‘new’ bands where it is easier to deploy 10 MHz or 20 MHz
carriers for maximum benefits of using LTE

 2.6 GHz band (IMT Extension band)
 Digital Dividend spectrum 700, 800 MHz
 or in re-farmed existing mobile bands e.g. 850, 900, 1700, 1800, 1900, 2100 MHz

 Eventually LTE may be deployed in all of these bands – and others later

 2.6 GHz (for capacity) and DD 700/800 MHz (wider coverage, improved in-building) is a
good combination

 LTE offers a choice of carrier bandwidths: 1.4 MHz to 20 MHz; the widest bandwidth will be
needed for the highest speeds



Other spectrum candidates for LTE

LTE FDD
LTE FDD will most likely in future be deployed in LTE TDD
existing cellular bands too, including:
Early TDD Spectrum for LTE (LTE TDD
 850 MHz
 900 MHz  IMT Extension Center Gap 2570–2620 MHz
 AWS (1700/2100 MHz)  2.3 TDD i.e. 2300–2400 MHz Future TDD possibility
 1800 MHz = 3.6 GHz
 1900 MHz
 2100 MHz Future possibilities:
 450 – 470 MHz
 3.6 GHz



2.6 GHz: key LTE band for APAC, Europe, MEA, LatAm

 Telenor and Netcom acquired 2.6 GHz spectrum and are building LTE networks in Norway
 TeliaSonera launched LTE commercial service in Oslo launched on December 15, 2009

 Teliasonera, Elisa and DNA have been granted licences and 2.6 GHz spectrum and will
build LTE networks in Finland (operators may also use 1800 MHz re-farmed spectrum for LTE)
 TeliaSonera Sweden has launched LTE beginning in Stockholm in December 2009; now
continuing deployment in more cities using nationwide 2 x 20 MHz 2.6 GHz spectrum
 Tele2 Sweden and TeleNor Sweden have both launched LTE on a jointly-built network
(Net4Mobility) which includes spectrum sharing in 900 MHz and 2.6 GHz
 In Hong Kong, 2x15 MHz blocks of 2.6 GHz FDD spectrum were auctioned and won by
China Mobile, Genius Brand and CSL Limited. CSL has launched an LTE/DC-HSPA+ network

Europe: 2.6 GHz spectrum has also been awarded in Austria, Denmark, Germany and The Netherlands
More auctions of 2.6 GHz spectrum are planned in the coming months

Asia: 2.6 GHz spectrum consultations, trials are on-going in many markets including Australia, Indonesia, Malaysia, Singapore,
Taiwan, The Philippines
MEA: Deployments, trials underway e.g Saudi Arabia, Jordan, South Africa, UAE

Latin America: Brazil, Chile and Mexico plan auctions of 2.6 GHz.
In Colombia one of the operators has been allocated 2.6 GHz and will deploy LTE in this band


LTE1800: a promising option

First commercial
LTE1800 system
launched
(in 20 MHz bandwidth)
Mobyland & CenterNet
Poland

LTE1800 operator trials and
deployment activities e.g.:

Elisa (FI)
Bouygues Telecom (FR)
Orange (FR)
Cosmote (GR)
Optus (AUS)
VHA (AUS)
Used with permission of Elisa
CSL Ltd (HK)
SmarTone-Vodafone (HK)
T-Mobile (selected markets)

Telstra has announced plans to commercially launch LTE1800 in major cities across Australia by end 2011


LTE1800: a promising option

There is growing interest and momentum towards deploying LTE in re-farmed 1800 spectrum
Regulatory obstacles are removed in many markets, however more work is needed

An ecosystem of chipsets, platforms and user devices is needed to support growing operator
requirements

Early signs are that there will be a choice of several devices by end 2011 – however more
commitments are needed.

PRESENTATIONS from the 1800 MHz Mobile Broadband seminar at MWC „11 are available to download
Log into the GSA website first – then visit www.gsacom.com/programs/mwc2011.php4
Presentations from GSM Association (GSMA), GSA, Ericsson, Telstra, Qualcomm



Digital Dividend spectrum

Digital Dividend refers to the spectrum that becomes freed up as a result of the switchover from
analog to digital terrestrial TV

Digital Dividend spectrum is in the UHF range (200 MHz and 1 GHz) and excellent for
extending mobile broadband to rural and semi-urban areas. This spectrum band offers an
excellent balance between transmission capacity and distance coverage. It has very good
propagation characteristics i.e. improved in-building performance in built-up areas

Digital Dividend offers an unprecedented amount of spectrum which can be utilized for
extending mobile broadband services to all, including to the most rural areas, and to speed up
rollout. By applying the Digital Dividend for mobile broadband services, enormous benefits will
ensue around the world in terms of social impact and increased productivity



Digital Dividend bands

New UHF Digital Dividend spectrum is becoming available in all regions
 Region 1 (Europe, Middle East and Africa) identified 790-862 MHz for mobile services
 Region 2 (Americas) identified 698-806 MHz
 Region 3 (Asia) some countries (China, India, Japan) identified 698-862 MHz; others identified 790-862 MHz



Digital Dividend Update report from GSA
 Regulatory plans, auctions, deployments globally
 See GSA’s Digital Dividend Update, free download from www.gsacom.com

Digital Dividend offers an unprecedented amount of
spectrum which can be utilized for extending mobile
broadband services to all, including to the most rural
areas, and to speed up rollout. By applying the Digital
Dividend for mobile broadband services, enormous
benefits will ensue around the world in terms of social
impact and increased productivity

Digital Dividend Update
This report from GSA provides an update of the present
situation in all regions of the world regarding the Digital
Dividend opportunity.

Digital Dividend Update
Published by GSA – November 5, 2010
www.gsacom.com



LTE system design

Downlink based on OFDMA: Orthogonal Frequency Division Multiple Access, for
improved spectral efficiency, capacity etc
QPSK, 16QAM and 64QAM modulation schemes supported
Uplink based on SC-FDMA: Single Carrier – Frequency Division Multiple Access.
Technically similar to OFDMA but better suited for uplink from hand-held devices
(battery power considerations)
BPSK, QPSK, 8PSK and 16QAM modulation schemes supported
Designed for both paired and unpaired spectrum use
Designed for FDD and TDD use
Macro-diversity (soft handover) no longer required
Circuit-switched connectivity no longer supported



3GPP LTE standard

LTE Release 8 Major Parameters

Access Scheme UL DFTS-OFDM

DL OFDMA LTE-Release 8 User Equipment Categories
Bandwidth 1.4, 3.5, 10,15, 20MHz

Minimum TTI 1msec

Sub-carrier spacing 15kHx

Cyclic prefix length Short 4.7usec

Long 16.7usec

Modulation QPSK, 16QAM, 64QAM

Spatial multiplexing Single layer for UL per UE
Up to 4 layers for DL per UE
MU-MIMO supported for UL and DL

LTE is specified in 36 series technical specifications
The LTE Release 8 specifications can be found on www.3gpp.org

™ ETSI has registered "LTE" as a trademark for the benefit of the 3GPP Partners



Evolution of the 3GPP core network

The 3GPP core network has also undergone System
Architecture Evolution (SAE) in the same timeframe The architecture is based on an
as LTE, optimizing it for packet mode and, in particular, evolution of the existing GSM/WCDMA core
for the IP-Multimedia Subsystem (IMS), which supports network, with simplified operations and
all access technologies, including fixed wire-line access. smooth, cost-efficient deployment

This allows:
 Improvements in latency, capacity, throughput
Simplification of the core network, and optimization for
IP traffic and services, and expected growth
Simplified support & handover to non-3GPP access
technologies

The result is the evolved packet system (EPS) that
consists of the core network part, the evolved packet
core (EPC) and the radio network evolution part, the
evolved UTRAN (E-UTRAN), i.e. LTE. The EPS is Source: Ericsson
also standardized within 3GPP Release 8 (March 2009) There are two nodes in the SAE architecture user plane; the LTE base
and is the baseline for implementations. station (eNodeB) and the SAE Gateway. This flat architecture reduces the
number of involved nodes in connections. LTE base stations are
connected to the core network over the S1 interface



Voice over LTE

Industry update:
Verizon Wireless announced the company is likely to add VoLTE functionality to its 4G smartphones next year,
and demonstrated the technology at MWC „11 with the LG Revolution smartphone



LTE TDD

The LTE market will include LTE TDD as well as FDD systems

The China Mobile TD-SCDMA system covered 284 cities by end 2009. China Mobile announced it had
22.63 million 3G/TD-SCDMA subscribers at end January 2011
LTE TDD is positioned as the next evolution in TD-SCDMA family and a natural progression
 From 3GPP standards perspective: commonality with FDD
 From vendor perspective: increasing use of software defined radio techniques
 From operator perspective: spectrum availability, flexible base stations

Early LTE TDD trials
 China Mobile showcased it’s complete end-to-end LTE TDD network at the World Expo in Shanghai
from May to October 2010
LTE TDD dongle supported streaming of 24 simultaneous video streams
at a total data rate of 20 Mbps
 In Ireland, LTE TDD testing has been performed with the authorization of
regulator ComReg under its trial and test licence program

LTE TDD deployment outside China
Spectrum suitable for LTE TDD deployments was auctioned in India following the recent BWA auction.
Qualcomm won one slot of 20 MHz TDD spectrum in the 2.3 GHz band covering the key telecom circles of
Delhi, Mumbai, Haryana and Kerala and will deploy LTE TDD networks in these areas.
www.qualcomm.com/news/releases/2010/07/29/qualcomm-announces-collaboration-global-holding-corporation-and-tulip-telec



LTE TDD is maturing towards commercialization

LTE TDD was showcased by China Mobile and leading industry partners at the World Expo 2010, Shanghai .The large-
scale trial network covered the whole 5.28 square-km site, outdoors and in 9 pavilions and 2 demonstration centers.
Several products supporting the trial network are launched or planned including WWAN cards, routers and dongles.
Key milestones achieved in the trial include:
 Demonstration of LTE TDD HD video telephone in single 20 MHz spectrum with peak DL speeds of up to 80 Mbps
 Demonstration of VOD, video communication, and other high-speed mobile broadband apps
 Demonstration of 24-channel video streaming
 Mobile HD video conferencing between the trial network and another location
 Inter-Operability Test of multiple LTE TDD USB dongles in a single mobile network cell

 China Mobile is deploying further trial LTE TDD networks in 3 major cities (Qingdao, Xiamen and Zhuhai ).
Deployment in each city will be 100+ base stations. Smaller trial networks will also be deployed in Beijing and Shanghai
 China Mobile is also partnering with foreign operators to establish trial LTE TDD networks overseas, e.g.Taiwan

India is a key market for LTE TDD following the BWA spectrum auction. Qualcomm through its JV with local
partners is committed to LTE TDD and anticipates commercial service from 2011. Some other BWA spectrum
winners are finalizing their technology choice, so more winners may also choose LTE TDD.



LTE TDD trials in 2011

 Clearwire (USA) has requested 3GPP to standardize LTE TDD for operation in 2496 – 2690 MHz and is
undertaking technology trials of both LTE TDD and LTE FDD

 In Germany, E Plus has announced plans to undertake a trial of LTE TDD together with China Mobile

 Vivid Wireless has finished trials and aims to launch LTE-TDD on Australian east coast within 18 months

 The launch of the Global TD-LTE Initiative at MWC ’11 by China Mobile, Bharti Airtel, Softbank Mobile,
Vodafone, Clearwire, E-Plus, and Aero2 aims to accelerate the LTE TDD ecosystem development

 See GSA’s Evolution to LTE report for latest updates (www.gsacom.com)

 LTE TDD is expected to be commercially launched in 2011, beginning in China and India



LTE: the main direction for the industry

 LTE is the next generation network beyond 3G for mobile broadband, standardized by 3GPP
 LTE networks provide the capacity to support demand for connectivity from a new generation of consumer
devices tailored to those new mobile applications
 LTE is the next step in the user experience which enhances more demanding applications
 LTE is essential to take mobile broadband to the mass market
 LTE support new services and features which require higher levels of capability and performance
 LTE brings new efficiencies including support for a full IP-based network and harmonization with other radio
access technologies
 LTE means new spectrum for mobile services – particularly for mobile broadband
 Current implementations of LTE support instantaneous downlink peak data rate of at least 100 Mb/s within 20
MHz allocation and instantaneous uplink peak data rate of 50 Mb/s

LTE is market reality today
17 systems commercially launched



LTE: the single global standard

 LTE is on track, attracting global industry support.
 The first LTE systems launched in 2009

 LTE is the natural migration choice for GSM/HSPA operators. LTE is also the next generation mobile
broadband system of choice of leading CDMA operators, who will be in the forefront of service introduction

 As a result of collaboration between 3GPP, 3GPP2 and IEEE there is a roadmap for CDMA operators to
evolve to LTE

 The key spectrum bands for new LTE spectrum are 2.6 GHz and digital dividend bands (700, 800 MHz)
 Re-farmed 1800 MHz spectrum enables LTE1800 to provide 2 times coverage compared to LTE2600

 The LTE TDD mode (LTE TDD) is a real complement to LTE FDD and the perfect choice for providing high
speed mobile broadband access through unpaired radio spectrum.
LTE TDD provides a future-proof evolutionary path for TD-SCDMA

 With LTE we have one single global standard, securing and driving even higher economies of scale and
importantly, simplifying roaming



LTE-Advanced

3GPP made a formal submission to the ITU in October 2009,
proposing that LTE Release 10 & beyond (LTE-Advanced) be
evaluated as a candidate for IMT-Advanced. The submission
was made jointly in the name of the 3GPP Organizational
Partners: ARIB, ATIS, CCSA, ETSI, TTA and TTC. GSA
supported this a Market Representation Partner of 3GPP.

The ITU has now formally recognized LTE and LTE-Advanced
as a future-proofed roadmap for mobile operators who are
deploying more and more advanced mobile broadband
services.

In October 2010 the ITU announced it had accepted and
officially designated LTE-Advanced as an IMT-Advanced (4G)
technology. IMT-Advanced provides a global platform on which
to build the next-generations of interactive mobile services that
will provide faster data access, enhanced roaming capabilities,
unified messaging and broadband multimedia

3GPP plans to complete its work on LTE-Advanced
specifications by 2011

ITU website: Overview - Development of IMT-Advanced
www.itu.int/itunews/manager/display.asp?lang=en&year=2008&issue=10&ipage=39&ext=html



Data traffic growth exceeded all expectations
….. and will grow a lot, lot more!

Mobile operators moving to usage-based pricing models
 to relieve network congestion
 contain the cost of funding next-generation networks

In mature markets
 48% predict mobile operators will develop new pricing models over the next three years
 55% agree tiered pricing is the future
 47% argue “all-you-can-eat” data plans threaten revenue
Source: Telecordia Technologies presentation at GSA Mobile Broadband Forum – London, September 2010
(referencing the Freshfields ‘mobile challenges survey’, completed in June 2010)

Penetration of mobile broadband
percentage of total broadband subs



Flat rate pricing

 Operators have slashed prices by up to 90% within the space of 2 to 3 years

 Depending on the country, different pricing schemes are offered by 3G operators

 Most operators price by data volume with a stated amount e.g. 5 Gbytes or use the term
“unlimited, subject to fair use”

 For prepaid customers some operators offer unlimited usage for one day

 Pricing by download speed is rarer, e.g. in Singapore

 Pricing by duration of connection is also rare, and used, for example, in Italy

 Some operators charge a premium rate for corporate users



Business model innovation: some possibilities

 Bandwidth based tiers e.g. watch HD Video, user initiated, upsell and promotion opportunities
 Application based
 3rd party payment
 “Turbo boost”- on demand bandwidth
 Value added offers to drive revenue
 Flat rate browsing (data speed penalty) e.g. Vodafone Spain Tarifa Plana Navegación
 Off-peak pricing to move traffic e.g. Optus Australia
 monthly cap double for off peak usage
 once data has been exhausted no excess charges apply and customers can still access
unlimited Optus web mail, Optus Zoo and Facebook until the end of the billing month
 Sept 2010: Vodafone Germany announced tiered data bundles tied to service speeds for LTE

 EUR39.99: 7.2 Mbps download speeds,10GB cap
 EUR49.99: 21.6 Mbps maximum download speeds, 15GB cap
 EUR69.99: 50 Mbps download speeds, 30GB cap
 When data allowance used, download speed automatically reduces to 384 kbps until new month begins



Summary and outlook

 The new Internet is mobile; wireless connectivity is extending into new applications and environments

 Smartphones will soon dominate the mobile broadband landscape

 The outlook is for continuing strong data growth; video will be a major component

 HSPA+ is enabling operators to deliver an improved user experience with higher data performance, reduced
latency at lower cost, and position for growth

 LTE is the next step in the user experience and essential for taking mobile broadband to the mass market
and to achieve the full potential of mobile broadband

 LTE TDD technology is quickly maturing and may present interesting possibilities

 LTE and HSPA/HSPA+ will co-exist for several years

 Business model innovation is needed

 Access to new spectrum is crucial
 2.6 GHz for capacity; sub 1 GHz (digital dividend) for coverage and improved in-building performance
 Re-farmed spectrum e.g. 1800 MHz will give some operators an additional option for migrating to LTE



Mobile HD Voice gaining momentum

15 operators commercially launched mobile HD Voice

Trials running on a number of networks

26 HD Voice phones launched by major brands

See GSA’s latest report on HD Voice based on the AMR Wideband technology www.gsacom.com
ALSO AVAILABLE: World map of countries where mobile HD Voice services are commercially launched
CHART: Mobile HD Voice compatible user devices



GSA’s Mobile HD Voice resources: www.gsacom.com

 GSA report: Mobile HD Voice service using AMR Wideband technology
 World map where mobile HD Voice services are commercially launched
 CHART: Mobile HD Voice compatible user devices



Key events supported by GSA

Stockholm, 12-13 April, 2011
www.lteforum2011.com/eng/index-uk.php

Amsterdam, 17-19 May, 2011
http://ws.lteconference.com

Rio de Janeiro, June 2011
www.mobile-broadband-event.com/847/

Discounts available to GSA members at these events
See Events page for more details plus links to organizers’ websites
www.gsacom.com/events/index.php4



Events supported by GSA

Discounts available to GSA members at most events
See Events page for more details plus links to organizers’ websites www.gsacom.com/events/index.php4


GSA members white papers
 Thought-leading
 Produced in association with GSA
 Free downloads via links on the home page www.gsacom.com

Abstract: With mobile broadband becoming
more available all the time, and the
introduction of smart phones and more
applications and content, mobile broadband
usage is poised to explode. Some would
argue the wave has already hit the market.
But if you think that means an automatic
windfall for operators, you may be in for a
rude awakening. They are challenged to
manage this traffic growth, which is
increasing at a much faster rate than
revenues and creating profitability and
customer experience challenges. And they
are challenged to identify whether their
mobile broadband strategy is to be a bit-pipe
access player or to be a value-added player.
In this paper, we’ll look at the imminent
opportunity of mobile broadband, and
assess the competitive threats every
provider must grapple with. We’ll also
explore ways operators can insert
themselves into the value chain, protecting
their relationships with their customers, and
giving themselves every chance to cash in
on what needs to be a significant source of
future revenue potential.



Follow GSA on Facebook, LinkedIN, Twitter

News, technology and market updates

www.facebook.com/pages/Global-mobile-Suppliers-Association-GSA/123462771012551
Invitation to join the GSA Group on LinkedIN
www.linkedin.com/groups?gid=2313721
1800 Feb 11, 2011
1,686 Members 1600
1400
Discussions 1200
Members

1000
Networking 800
600
400
Subgroups on:
200
UMTS900, LTE1800, HD Voice 0 Sep 2009

GSA LinkedIN Group members growth
www.twitter.com/gsacom
650 followers



Visit the website to download key GSA reports –
free of charge
EDGE, HSPA, HSPA+, LTE: networks, devices
Spectrum including Digital Dividend, 2.6 GHz, re-farming (900/1800 MHz)
60+ maps, charts at www.gsacom.com/news/statistics.php4

The Global mobile Suppliers Association (GSA) represents leading GSM/EDGE/WCDMA-HSPA and LTE suppliers, providing trusted,
widely referenced reports, facts, analysis and information explaining market developments and trends. GSA advises governments,
regulators and policy-makers on the optimum conditions for market development. Briefings are given to media and analysts. GSA-
organized seminars facilitate enhanced dialog between operators, members and developer communities. GSA is a 3GPP Market
Representation Partner and co-operates with other key organizations worldwide.
The website www.gsacom.com is targeted to the industry and is the main channel for distribution of information and news. We
welcome visitors to the site annually from over 200 countries. The website has over 37,000 registered users which grows every day.
15,000 – 18,000 reports, surveys, information papers , charts, maps etc. are downloaded from the GSA website each month.
Website: www.gsacom.com
RSS newfeed: www.gsacom.com/rss/gsanews.php4
GSA LinkedIN Group: www.linkedin.com/groups?gid=2313721
Twitter: www.twitter.com/gsacom
YouTube: www.youtube.com/GSAMOBILESUPPLIERS

For more information on joining GSA
please contact marketing@gsacom.com
or telephone +44 1279 439667


GSMA HSPA and LTE market update - March 2011

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