LTE - Strategies for MNOs
IDATE
December 1, 2011 SKU: IDT6744128
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This report provides an
overview of the latest
trends in the fast growing
LTE market and the
reasons driving MNOs'
migration to LTE. It also
analyses operators' roll-out
strategies, LTE networks,
technical hurdles, the
regulatory environment and
LTE spectrum issues, in
addition to spotlighting the
key players' different
strategies and what will
change with LTE.
Key questions
- LTE ecosystem is growing fast - TD-LTE is now available
commercially. Will it complement LTE FDD? LTE Advanced will
arrive sooner than expected - what impact will this have on
MNOs' strategies?
- More than 14 frequency bands are already in use for LTE
around the World. How will operators manage LTE spectrum?
- What mobile CAPEX and strategies can we expect the different
operators?
- How are MNOs making the switch to LTE and how will their
LTE strategies differ?
- Who are the main LTE
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- 1 Executive Summary
- 1.1 The LTE wholesale model: high-speed dumb-pipes?
- 1.2 LTE spectrum: already too much fragmentation
- 1.3 LTE network strategies and technical hurdles
- 1.4 Capex strategies
- 1.5 Service strategies for LTE
- 1.6 Conclusions on LTE strategies
- 2 Methodology
- 3 Introduction
- 4 The LTE wholesale model: high speed dumb-pipes?
- 4.1 LightSquared (USA)
- 4.2 Clearwire (USA)
- 4.2.1 The LTE-Advanced switch
- 4.2.2 Market development
- 4.3 Dish (USA)
- 4.4 Yota (Russia)
- 4.5 Aero2 (Poland)
- 4.6 Kenya
- 4.7 Net4Mobility (Sweden)
- 4.8 NBN (Australia)
- 4.9 Summary: Interest is growing in LTE wholesale model
- 5 LTE spectrum: too much fragmentation?
- 5.1 LTE spectrum: fragmentation increasing worldwide
- 5.1.1 New mobile spectrum for LTE deployments
- 5.1.2 Availability dates for LTE spectrum
- 5.1.3 Frequency bands for LTE: the fragmentation risk and consequences
- 5.2 Digital dividend: “golden spectrum” for LTE
- 5.2.1 Europe
- 5.2.2 Digital dividend in rest of world
- 5.3 Refarming - Why is LTE 1800 attracting such strong interest?
- 5.4 Various strategies regarding spectrum for LTE
- 6 Network strategy and technical hurdles
- 6.1 Technology aspects: towards more complementarity between LTE-FDD and TD-LTE
- 6.1.1 The rise of TD-LTE (FDD and TDD convergence)
- 6.1.2 WiMAX to TD-LTE migration
- 6.2 LTE-Advanced: time table and early tests
- 6.2.1 Tests and early selection by mobile operators
- 6.2.2 LTE-Advanced: technical characteristics
- 6.3 Interworking with 2G and 3G networks
- 6.3.1 General options for operators launching LTE services
- 6.3.2 3GPP specifies CS Fallback
- 6.4 Voice and SMS over LTE
- 6.4.1 Technological enablers
- 6.4.2 Roadmap for VoLTE
- 7 Capex strategies
- 7.1 The access revolution: small cells and femtocells
- 7.1.1 Small cells are seen as the inevitable complementary network infrastructures to macrocells to meet the mobile broadband capacity crunch
- 7.1.2 Network equipment provider pushes small cells
- 7.1.3 The migration from macro-cells to small cells is under way
- 7.1.4 Femtocells will be a critical part of LTE network deployments
- 7.1.5 Multi-RAN adoption
- 7.2 Investments by major players
- 7.2.1 Mobile capex slightly on the rise
- 7.2.2 Several LTE investment approaches
- 7.3 Network sharing, outsourcing and wholesale
- 7.3.1 Network outsourcing
- 7.3.2 Network sharing
- 7.4 Backhauling needs and implications - LTE is driving need to upgrade backhaul
- 7.5 Migration costs
- 7.6 LTE costs: Capex + opex per MB of data
- 7.6.1 LTE: lowering the cost of capacity
- 7.6.2 LTE unit cost per MB is declining over years
- 8 Service strategies
- 8.1 Traffic forecasts - When do MNOs need to implement LTE?
- 8.1.1 Mobile traffic growth: 4G usage close to DSL usage
- 8.1.2 IDATE traffic forecasts
- 8.2 LTE pricing
- 8.3 North America
- 8.3.1 USA
- 8.4 Asia
- 8.4.1 Japan
- 8.4.2 South Korea
- 8.4.3 Hong Kong
- 8.5 Europe
- 8.5.1 Germany
- 8.5.2 Austria
- 8.5.3 Sweden
- 8.5.4 Norway
- 8.5.5 Finland
- 8.5.6 Denmark
- 8.6 LTE Service differentiation and strategies
- 8.6.1 Rather data-only services at the beginning
- 8.6.2 Available devices determines the level of service
- 8.6.3 LTE as a tool against white spots in rural areas
- 9 Cases studies
- 9.1 AT&T
- 9.1.1 Overall presentation
- 9.1.2 Investments
- 9.1.3 Spectrum
- 9.1.4 Devices and services
- 9.2 DOCOMO
- 9.2.1 Overall presentation
- 9.2.2 Investments
- 9.2.3 Spectrum
- 9.2.4 Devices and services
- 9.3 China Mobile
- 9.3.1 Overall presentation
- 9.3.2 Investments
- 9.3.3 Spectrum
- 9.3.4 Devices and services
- 9.4 Clearwire
- 9.4.1 Overall presentation
- 9.4.2 Investments
- 9.4.3 Spectrum
- 9.4.4 Devices and services
- 9.5 LightSquared: a new comer with a wholesale model
- 9.5.1 Overall presentation
- 9.5.2 Investments and agreements
- 9.5.3 Spectrum
- 9.5.4 Devices and services
- 9.6 Orange
- 9.6.1 Overall presentation
- 9.7 Telefonica
- 9.7.1 Overall presentation
- 9.7.2 Spectrum
- 9.7.3 Investments and deployments
- 9.7.4 Devices and services
- 9.8 TeliaSonera
- 9.8.1 Overall presentation
- 9.8.2 Spectrum
- 9.8.3 Devices and services
- 9.9 T-Mobile
- 9.9.1 Overall presentation
- 9.9.2 Spectrum
- 9.9.3 Investments and deployments
- 9.9.4 Devices and services
- 9.10 Verizon Wireless
- 9.10.1 Overall presentation
- 9.10.2 Spectrum
- 9.10.3 Investments and deployments
- 9.10.4 Devices and services
- 9.11 Vodafone
- 9.11.1 Overall presentation
- 9.11.2 Spectrum
- 9.11.3 Investments and deployments
- 9.11.4 Devices and services
- 9.12 Other players: Net4Mobility, MetroPCS
- 9.12.1 Net4Mobility
- 9.12.2 MetroPCS
- 10 Conclusions for MNOs
- 10.1 Total number of LTE subscriptions - 2011-2015
- 10.1.1 North America
- 10.1.2 Asia
- 10.1.3 Europe
- 10.1.4 Other regions
- 10.2 The LTE migration drivers
- 10.2.1 Costs reduction
- 10.2.2 Gain additional capacity
- 10.2.3 Increasing ARPU and potential new revenue streams
- 10.2.4 Provide higher data rates
- 10.2.5 Competitive pressure
- 10.2.6 Change technology path
- 10.2.7 LTE drivers for main LTE operators
- 10.2.8 National strategies
- 10.3 Future trends
- 11 Glossary
- 12 Annex: LTE wholesale model
- 12.1 Presentation of LTE deployment model
- 12.2 What is the cost of LTE deployment?
- 12.2.1 Setting
- 12.2.2 Base case results: EUR 5.9 billion Capex over the 2012-2022 period
- Tables
- Table 1: Main LTE frequency bands by geographical area
- Table 2: LTE commercial networks
- Table 3: LightSquared and GPS frequency bands
- Table 4: Pre-launch agreements reached by LightSquared
- Table 5: Agreements reached by new Clearwire
- Table 6: LTE wholesale and sharing agreements
- Table 7: Main LTE frequency bands by geographical area
- Table 8: Early LTE launches (September 2011)
- Table 9: Main characteristics of frequency bands for LTE
- Table 10: Availability dates of LTE spectrum
- Table 11: Most likely bands for LTE international roaming
- Table 12: Use of frequency bands by LTE device type
- Table 13: Digital dividend timetable in Europe
- Table 14: Digital dividend timetable outside Europe
- Table 15: State of LTE 1800 deployments and trials (as of September 2011)
- Table 16: Technical aspects associated to LTE 1800
- Table 17: Main TDD and FDD bands
- Table 18: TDD and FDD mode advantages and drawbacks
- Table 19: TD-LTE adoption
- Table 20: Mobile WiMAX to TD-LTE migration plans
- Table 21: LTE-Advanced performances
- Table 22: LTE fallback schemes
- Table 23: Base station shipments estimates
- Table 24: Potential gains and risks of network outsourcing
- Table 25: Benefits and risks of passive mobile sharing
- Table 26: Benefits and risks of active mobile sharing
- Table 27: Elements of potential savings to reduce network costs for a LTE network
- Table 28: Network capacity units
- Table 29: Verizon Wireless rates
- Table 30: AT&T rates
- Table 31: Clear rates
- Table 32: Rover rates
- Table 33: Sprint 4G device portfolio
- Table 34: NTT DOCOMO Xi rates
- Table 35: UQ Communications rates
- Table 36: Current major data rates
- Table 37: LG U+ LTE plans
- Table 38: SK Telecom LTE plans
- Table 39: CSL LTE data plans
- Table 40: Telia rates
- Table 41: Telenor LTE rates
- Table 42: Sonera rates - Finland
- Table 43: TeliaSonera rates - Denmark
- Table 44: AT&T data-only rates
- Table 45: AT&T smartphone data rates
- Table 46: NTT DOCOMO Xi rates
- Table 47: Clear rates
- Table 48: Rover rates
- Table 49: Telia rates
- Table 50: Telenor LTE rates
- Table 51: Sonera rates - Finland
- Table 52: TeliaSonera rates - Denmark
- Table 53: Verizon Wireless rates
- Table 54: MetroPCS rates
- Table 55: ‘National’ LTE drivers
- Table 56: Area, population and density of base case scenario
- Table 57: Sensitivity analysis
- Figures
- Figure 1: LTE wholesale players
- Figure 2: Mobile voice and data traffic 2010-2020
- Figure 3: LTE subscribers' forecasts
- Figure 4: Main LTE commercial networks
- Figure 5: LTE wholesale players
- Figure 6: Timetable for LTE spectrum in Western Europe
- Figure 7: CSL spectrum holdings in Hong Kong
- Figure 8: The 1800 MHz frequency band
- Figure 9: Site coverage in suburban areas
- Figure 10: Selected operator spectrum strategies
- Figure 11: Migration paths to TD-LTE
- Figure 12: LTE-Advanced experiment
- Figure 13: New features in LTE-Advanced
- Figure 14: LTE deployment scenario of NTT DOCOMO
- Figure 15: Moving multimode User Equipment (UE) in the network
- Figure 16: LG U+ core network evolution
- Figure 17: CS Fallback architecture
- Figure 18: Voice over IMS
- Figure 19: The Alcatel-Lucent LightRadio
- Figure 20: NTT DOCOMO RAN architecture evolution with Remote Radio Head
- Figure 21: Femtocells operator commitments and deployments
- Figure 22: Comparative power consumption of the NEC 3G and LTE base stations
- Figure 23: Comparison of cost between SingleRAN and non SingleRAN
- Figure 24: MNOs capex in value and in growth rate, 2006-2010
- Figure 25: Hybrid Terrestrial /satellite wireless network
- Figure 26: Capital expenditure phasing
- Figure 27: Evolving trends in TeliaSonera capex 2006-2010
- Figure 28: NTT DOCOMO LTE capex plan, 2010-2015
- Figure 29: Verizon rapid national rollout
- Figure 30: Comparative network outsourcing scope
- Figure 31: Passive sharing
- Figure 32: Active sharing
- Figure 33: Theoretical backhaul capacity and radio capacity requirements
- Figure 34: LTE capex lower than current mobile capex
- Figure 35: Potential costs savings for a typical MNO in developed markets (brownfield case)
- Figure 36: Comparison of performance and cost for today and LTE networks
- Figure 37: LTE increases capacity while lowering cost per MB
- Figure 38: Capex and opex per MB, eurocents (EUR), 2010-2015
- Figure 39: Mobile traffic usage is getting close to DSL
- Figure 40: Average mobile monthly traffic consumption per user observed in 2010
- Figure 41: Mobile voice and data traffic 2010-2020
- Figure 42: Mobile traffic enablers and rating trends
- Figure 43: NTT DOCOMO Xi rates (commercial launch)
- Figure 44: Number of bands used for each RAN technology in FDD mode
- Figure 45: Comparison between LTE network deployments in frequency bands and devices available
- Figure 46: LTE WLAN router and LTE modem for Vodafone LTE Zuhause service
- Figure 47: My Ford Mobile App presented at the CTIA Wireless 2011
- Figure 48: SK Telecom plans for future LTE services
- Figure 49: T-Mobile’s LTE devices
- Figure 50: Vodafone Germany LTE Zuhause devices
- Figure 51: Net4mobility deployment plans
- Figure 52: MetroPCS initial LTE coverage
- Figure 53: LTE subscriber forecasts
- Figure 54: LTE drivers for MNOs
- Figure 55: Selected operators strategic positioning
- Figure 56: Basic requirements for mass market adoption of LTE
- Figure 57: Network cost model calculation of RAN elements needed for LTE coverage
- Figure 58: Cumulated population and area in selected European countries
- Figure 59: Subscribers with LTE-enabled handset
- Figure 60: LTE population coverage over time
- Figure 61: LTE CapEx for base case scenario
- Figure 62: LTE investment breakdown for base case scenario
- Figure 63: Base case economics
- Figure 64 : Economics with 70% backhaul to RAN Capex ratio
- Figure 65: Economics with 50% RAN sharing
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