Lte project report

LTE – International Experience and Growth Prospects in Mobile Data Services
LTE
International Experience and Growth Prospects in
International Experience and Growth Prospects in Mobile Data Services
LTE – Long Term Evolution
Mobile Data Services
1
1

2
2
Background
Today, in the era of High-technology, mobile phones are becoming smarter but more
complex too. There are thousands of devices out in the market that can access -
• The internet
• Music streaming
• Gaming and videos
• Integrated applications and many more.
Even after getting a step into 3rd generation network, the operators cannot meet the
expectations of consumers. Their 3G networks are not enough to handle the flow of
data and are not up to the task. The mobile broadband subscribers and mobile data
traffic both are increasing dramatically
Projected Mobile Broadband Growth (Worldwide)
Source : Ovum Strategy Analytics, Ericsson

3
3
The solution
To compete and to keep pace with the dramatically increasing demands on the mobile
data traffic, the network operators are upgrading their network but that is not worth
and cannot help them out in meeting customer’s expectations so they need something
bigger than what they already have, thus LTE is the option and can act as a savior for
mobile networks.
What is LTE?
LTE stands for Long Term Evolution and it is the primary technology behind 4G. 4G will
make mobile data services a much better one than what 3G did so far. It has been under
development for around 10 years by the 3rd Generation Partnership Project (3GPP). LTE
is the project name of a new high performance air interface for cellular mobile
communication systems. It is the last step toward the 4th generation (4G) of radio
technologies designed to increase the capacity and speed of mobile telephone
networks.
Long Term Evolution (LTE) is now clearly the technology of choice for Next Generation
Technology, a standard developed by the 3GPP. Early 3GPP technologies included GSM,
EDGE, UMTS and HSPA, all globally successful technologies based on FDD spectrum
allocations, using a separate channel for uplink and downlink. This approach of using
separate channels for subscriber information has been often used and is well
understood. It is now at a point where it is attracting global attention and providing new
possibilities. Its basic characteristics are -
• It has much faster uploading and downloading speeds than 3G. Under ideal
conditions, LTE can easily reach download speeds of over 150 megabits per second,
and upload speeds of over 80 megabits per second.
• It has more capacity than 3G; an LTE network can support more users in a single
area.

4
4
• Larger cell size - A single LTE cell tower can cover up to 30 miles while that size will
be greatly diminished in a heavy urban area, it’s still a lot better than 3G
• Compatibility - LTE is designed to be compatible with existing standards.
• Ease of upgrade - Part of the reason it has taken so long to develop LTE is that it is
planning forward a lot. The networks are being designed so that implementing
upgrades further down the line will be much easier.
What is TD-LTE and FD-LTE?
The two types of duplexing technology are used, TDD (Time Division Duplex) and FDD
(Frequency Division Duplex). The basic difference between TD- LTE and FD- LTE are as
follows.
• TD LTE does not require paired spectrum since transmit and receive occurs in the
same channel whereas in FD LTE, it requires paired spectrum with different
frequencies with guard band.
• TD LTE is cheaper than FD LTE since in TD LTE, there is no need of duplexer to isolate
transmission and receptions.
• In TD LTE, it is possible to change the uplink and downlink capacity ratio dynamically
according to the need whereas in FD LTE capacity is determined by frequency
allocation by the regulatory authorities. So it is difficult to make dynamic change.
• In TD LTE larger guard period is necessary to maintain the uplink and downlink
separation which will affect the capacity whereas in FD LTE the same concept is
referred as guard band for isolation of uplink and downlink which will not affect the
capacity.
• Cross slot interference is there in TD LTE which is not applicable to FD LTE.

5
5
Spectrum bands for LTE
The prime band for LTE deployments are emerging and the network is currently being
deployed in following bands-
• 700 MHz: Americas (digital dividend band)
• 800 MHz: Europe (digital dividend band)
• 2.6 GHz: Europe, APAC, MEA and some Latin American markets committed
• 2.6 GHz (for capacity) and DD 700/800 MHz (wider coverage, improved in-building)
is a good combination
Country wise LTE Band
The maximum deployments have been done in 2.6 GHz spectrum and the band is being
considered to be the good in wider coverage and range. Though the 1800 band is also
being considered a better choice for LTE deployments and is being encouraged for re-
farming.
Country /
Territory 700 800 900 1.5 GHz 1800 AWS 2.6GHz
Austria 2.6GHz
Denmark 2.6GHz
Estonia 2.6GHz
Finland 1800 2.6GHz
Germany 800
Hong Kong 2.6GHz
Japan 1.5 GHz
Lithuania 1800
Norway 2.6GHz
Philippines
Poland 1800
Sweden 900 2.6GHz
U S A 700 AWS
Uzbekistan 700 2.6GHz
Total 2 1 1 1 3 1 8

6
6
Deployment of LTE
The operator commitments for deploying LTE are developing faster than they did for
HSPA, which until now had been the fastest developing mobile communication system.
The graph shows the operator commitments comparison between various mobile
communication systems after 6 months and 12 months of their first commercial launch
of services.
LTE operator commitments
Source: GSA, Mobile Broadband Global Update, June 2011
The comparison shows that LTE proves to be the fastest developing mobile
communications system technology ever followed by HSDPA which was the fastest
developing mobile system until now. 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.”

7
7
20 commercial launch of LTE networks in 14 countries
CCoouunnttrryy OOppeerraattoorr LLaauunncchh DDaattee BBaanndd
Austria Mobilkom Austria Launched 19.10.10 2.6 Ghz
Denmark TeliaSonera Launched 09.12.10 2.6 Ghz
Estonia EMT Launched 17.12.10 2.6 Ghz
Finland TeliaSonera Launched 30.11.10 1800/2.6 Ghz
Finland Elisa Launched 08.12.10 1800/2.6 Ghz
Germany Vodafone Launched 01.12.10 800 MHz
Germany Duetsche Telekom Launched 05.04.11 800 MHz
Hongkong CSL LTd Launched 25.11.10 2.6 Ghz
Japan NTT Docomo Launched 24.12.10 1.5 GHz
Lithuania Omnitel Launched 28.04.11 2.6 Ghz
Norway TeliaSonera Launched 15.12.09 2.6 Ghz
Philippines Smart Communications Launched 16.04.11 -
Poland Mobyland AND CenterNet Launched 07.09.10 1800 MHz
Sweden TeliaSonera Launched 15.12.09 2.6 MHz
Sweden TeleNor Sweden Launched 15.11.10 900/2.6 Ghz
Sweden Tele2 Sweden Launched 15.11.10 900/2.6 Ghz
USA MetroPCS Launched 21.09.10 700 MHz
USA Verizon Wireless Launched 05.12.10 AWS1
Uzbekistan MTS Launched 28.07.10 2.5-2.7 GHz
Uzbekistan UCell Launched 09.08.10 2.5-2.7 GHz
Source: GSA, Evolution To LTE Report, May 2011
LTE progress in 2010 had been excellent and deployments accelerate in 2011. The
rapidly increasing mobile data traffic seen over the past 3 years, currently supported
primarily by HSPA and HSPA+ systems, is driving the interest in deploying LTE as quickly
as possible, attracting global industry support.
Investment in LTE Network by telecom operators is tremendous. According to GSA, May
2011 “208 operators in 80 countries are investing in LTE and at least 81 LTE networks are
anticipated to be in commercial service by end 2012”
1. A wireless telecommunications spectrum band used for mobile voice and data services, video, and
messaging, used in the United States and Canada from 1710 to 1755 MHz, and from 2110 to
2155 MHz.

8
8
United States
Only 2 operators have launched LTE in US, a regional carrier Metro PCS became the first
operator in United States to launch LTE on 21 September, 2010. Metro PCS launched its
first LTE services in Las Vegas and then extended to Dallas, Detroit, Boston and New
York. Initially Metro PCS is covering 9 cities in total.
• The operators is deploying service in AWS Spectrum
• Providing services at $ 55/ Month for 5GB
Another regional operator Verizon Wireless also launched LTE services on 05 December,
2010 and covering 38 US cities.
• The operator is deploying LTE in 700 MHz
• Services are being provided at $ 50/ month
Sweden
Teliasonera became the world’s first operator to launch LTE network on 15 December,
2009 in Stockholm and Norway (Oslo). Teliasonera paid SEK 854 million for licenses.
Another operator Net4Mobility1
launched its LTE network on 05 December, 2010 and
paid SEK 469 million for licenses.
• Both operators are deploying LTE in 2.6 GHz band.
• Teliasonera is providing 30 GB of data at $ 88/ month.
• Spectrum cap for digital dividend.
The auction for 800 MHz opened on February 28, 2011 and ended after 5 days and 31
rounds. All the winners said they will use the spectrum for LTE.
Winners will each pay administration charges of SEK 200,000 per spectrum block. The
regulator put a spectrum cap for digital dividend so that there should be at least 3
operators.
Hi3G Access 2x10 MHz SEK 431 million
Net4 Mobility 2x10 MHz SEK 469 million
SEK 300 million
TeliaSonera 2x10 MHz SEK 854 million
Total revenue from licenses SEK 2,054 million
A joint venture of Tele2 Sweden and TeleNor Sweden

9
9
Norway
Europe’s first 2.6 GHz auction was held in Norway in 2007. Spectrum was awarded to
the incumbent operators TeleNor and TeliaSoenra (NetCom). The total allocation was
2x90 MHz.
Teliasonera is the only operator to launch LTE network in Norway. The operator
launched LTE commercially on December 15, 2009.
• The operator is deploying LTE in 2.6 GHz band.
• Teliasonera is providing 30 GB of data at $ 118/ month.
Telecom regulator NPT (Norwegian Post and Telecommunications Authority) has also
confirmed that 790-862 MHz spectrum will be allocated for mobile broadband.
Uzbekistan
On July 28, 2010 telecom operator MTS launch its first LTE network (pre-commercial
service) in Uzbekistan The operator announced to deploy service in the CIS and Central
Asia, in Tashkent and also planning for significant expansion.
Another telecom operator Ucell (TeliaSonera) also announced its deployment of LTE
network in Tashkent on August 9, 2010.
• Both the operators are deploying in the 2.5-2.7 GHz frequency range
Germany
Vodafone Germany has launched its first rural LTE mobile broadband service across the
country on December 1, 2010. By the end of March of 2011 the operator incorporated
1500 base stations to LTE network. The operator is targeting rural Germany serving
thousands of communities.
• The operator is deploying service in 790-862 (digital dividend) spectrum
• The tariff per month is € 29.99 to € 69.99 ($ 95 )with set-up fee of € 24.99
Duetsche Telekom also launched commercial LTE service with the name “Call and Surf
Comfort via Funk” on April 5, 2011.

10
10
• The operator is providing service in digital dividend (800 MHz) spectrum
• The tariff per month is $ 54.45 (€ 39.95) with a standard landline connection &
set-up fee of € 56.95.
The operator also announced its plans in February, 2011 to launch LTE service in 1800
MHz spectrum band (LTE 1800) and 2.6 GHz band. The services will be available for
selected business customers in mid 2011.
The spectrum auction covered 360 MHz in 4 bands: 800 MHz (digital dividend), 1800
MHz, 2.1 GHz, 2.6 GHz. The 800 MHz spectrum raised €3.576 billion i.e. over 81.5% of
the auctions total value.
Poland
Mobyland and CenterNet launched world’s first commercial LTE network in 1800 MHz
(LTE 1800) band on September 7, 2010. Over 500 base stations are currently in
operations. World’s first LTE 1800 dongle was confirmed to be commercially available in
November, 2010.
To enable operators to deploy LTE, the regulator UKE (Urzad Komunikacji
Elektronicznej) launched a tender process for 2.6 GHz band and digital dividend (790-
862 MHz) spectrum; the auctions is expected to be held in mid-2011.
Japan
In Japan NTT DoCoMo and Softbank Mobile use 1.5 GHz, KDDI use 1.5 GHz + 800 MHz
and eMobile use 1.7 GHz for LTE deployments.
Japan’s first commercial LTE system was launched by NTT DoCoMo on 24 December,
2010 under the brand name ‘Xi™’. The service in initially available in Tokyo, Nagoya and
Osaka areas. Other major cities and areas will be covered later.
The operators in planning to have 15,000 base stations in operation to serve 40 % of the
population by March 2013 and 70% coverage by March 2015 and the expected spending
are over $3.6 billion on network build up.

11
11
• NTT DoCoMo launched first LT- FDD network.
• The tariff is ¥1,000 (US$12) for 3 GB.
• NTT DoCoMo expects 25 % of its 3G user base to migrate on LTE network by
March, 2015
• LTE compatible mobile phones will be available within the fiscal year April 2011.
• Voice calls will be possible using the Xi™ after the launch of LTE compatible
mobile phones.
NTT Docomo LTE Subscriber base
Source: NTT Docomo, Financial Results
The graph shows the growth of NTT DoCoMo subscriber base using LTE services. The
increase in subscription is dramatic and rapid and expected to grow at much higher rate.
Finland
2.6 GHz spectrum auction ended on 23 November, 2009 and licenses were awarded for
the same. Elisa mobile obtained a license for 50 MHz for 20 years and launched LTE
services (pre-commercial trial) in Helsinki on December 8, 2010 for corporate
customers.
• The operator is deploying LTE in 1800 MHz and 2.6 GHz.
1,200.0
5,000.0
11,700.0
25,600.0
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
December-10 January-11 February-11 March-11
No.ofsubscribers
NTT Docomo LTE Subsriber base

12
12
Another mobile operator TeliaSonera also obtained a license for 5 blocks (2 x 5 MHz) in
2.6 GHz band and launched its LTE services in the city of Turku and Helsinki on
November 30, 2010.
• TeliaSonera is Deploying LTE in 2.6 GHz
• The monthly tariff is €46 ($ 61) for 30 GB of data.
Finland was the first country in Europe to allow 1800 MHz spectrum to be used for
LTE deployments.
Denmark
The auction for 2.6 GHz (2500 MHz – 2690 MHz) and 2.1 GHz (2010-202- MHz) spectrum
completed on May 10, 2010 and the spectrum were awarded to Hi3G Denmark ApS;
TDC A/S; Telia Nättjänster Norden AB; and Telenor A/S.
TeliaSonera launched its commercial LTE network on December 9 , 2010 in Copenhagen,
Aarhus, Odense and Aalborg.
• TeliaSonera is Deploying LTE in 2.6 GHz spectrum
• Services are being provided at 399 Danish kroner ($ 71) for 30 GB
Combined LTE FDD and LTE TDD products are expected to be available from early
2012.
Austria
The auction for 2.6 GHz spectrum completed on september 20, 2010, and the Regulator
TKK raised €39.5million from A1 Telekom Austria, Hutchison, T-Mobile and Orange. 14
paired and 9 unpaired frequency blocks were sold. License conditions require coverage
of at least 25% of the population by 2013.
On Nevember 5, 2010 A1 Telekom launched LTE in parts of Vienna and St. Pölten (a
regional capital).
• The services are being deployed in 2.6 GHz spectrum band.
• The services are available at €90 ($120) per month for 30GB

13
13
A further public consultation on future spectrum allocations and the liberalization of
the 900 1800MHz bands closed on March 18, 2011.
Lithuania
Omnitel (TeliaSonera) launched its commercial LTE service on April 28. 2011 in Vilnius,
Kaunas, Klaipėda, Šiauliai and Panevėžys. LTE modems are supplied by Huawei and ZTE,
supporting LTE800/1800/2600, GSM1800, GSM/UMTS900 and UMTS2100.
• The operator is deploying services in 1800 MHz spectrum
• The monthly tariff is €99 ($139) per month for 10GB
Hong Kong
In Hong Kong SAR, 2 x 15 MHz blocks of 2.6 GHz spectrum were obtained via auction
each by China Mobile (Peoples Phone), Genius Brand (Hutchison Telecom/PCCW JV)
and CSL Limited.
CSL Limited confirmed itself as ready for deploying LTE services and launched
commercial LTE network on 25th
of November, 2010 for corporate services and
confirmed plans to offer commercial service to consumers in 2011
• The operator is deploying in 2.6 GHz
CSL also plans to deploy LTE in 1800 MHz band and plans to convert some more sites in
LTE 1800 in 2011.
Philippines
Smart Communications launched LTE commercially on April 16, 2011 in Boracay and
confirmed plans to rollout in other areas.
Other operators like Globe Telecom, Piltel are planning to deploy LTE in Philippines.

Subscribers
LTE subscribers are expected to grow at such a unexpected rate than an
data service did.
There are some industry forecasts given by analysts:
• There will be some 16 million subscribers using LTE mobile devices : ABI
Research
• In March 2011, the Global mobile Suppliers Association reported
100 LTE-ready devices
• In 2014, more than 205 million LTE mobile devices will ship, 72% of which will be
handsets.
Source: LTE World ( http://lteworld.org/news/
Worldwide LTE Subscriber Growth Forecast
Source: Business Drivers for Selecting LTE Technology,
The forecast reveals the fact that the period from 2010 to 2013 will
an average growth rate and the operators will be focusing on network build up and
infrastructure establishments for LTE deployments, thereafter the LTE users will
increase at excessively fast and migrations to 3G to LTE will also be massi
LTE subscribers are expected to grow at such a unexpected rate than an
There are some industry forecasts given by analysts:
There will be some 16 million subscribers using LTE mobile devices : ABI
In March 2011, the Global mobile Suppliers Association reported
ready devices
In 2014, more than 205 million LTE mobile devices will ship, 72% of which will be
http://lteworld.org/news/)
Worldwide LTE Subscriber Growth Forecast
rs for Selecting LTE Technology, 3G Americas
The forecast reveals the fact that the period from 2010 to 2013 will have a steady and
increase at excessively fast and migrations to 3G to LTE will also be massi
14
14
LTE subscribers are expected to grow at such a unexpected rate than any other mobile
There will be some 16 million subscribers using LTE mobile devices : ABI
In March 2011, the Global mobile Suppliers Association reported that there were
In 2014, more than 205 million LTE mobile devices will ship, 72% of which will be
have a steady and
increase at excessively fast and migrations to 3G to LTE will also be massive.

As per the report, there will be over 300 million subscribers by the end of 2015 and ove
400 million subscribers by end of 2016
Juniper Research released a report and forecasts LTE subscribers
of 2015.
Global LTE Subscribers by Region in 2015 (%)
Source: Juniper Research
The forecast by Juniper Research shows that
• Approximately 40% of LTE subscribers will be from Western Europe
• Far East and China will hold an approx of 25% LTE
• Around 25% of LTE subscribers will
• And other regions will be holding approximately 10% of share
• Western Europe and North America will consist of a approx of 70 % of LTE
subscriber base.
Credit: Juniper Research),
As per the report, there will be over 300 million subscribers by the end of 2015 and ove
by end of 2016.
Juniper Research released a report and forecasts LTE subscribers region wise by the end
y Region in 2015 (%)
The forecast by Juniper Research shows that-
Approximately 40% of LTE subscribers will be from Western Europe
Far East and China will hold an approx of 25% LTE subscribers.
Around 25% of LTE subscribers will be from North America
And other regions will be holding approximately 10% of share
Western Europe and North America will consist of a approx of 70 % of LTE
Credit: Juniper Research), http://news.cnet.com
15
15
As per the report, there will be over 300 million subscribers by the end of 2015 and over
region wise by the end
Approximately 40% of LTE subscribers will be from Western Europe
Western Europe and North America will consist of a approx of 70 % of LTE

16
16
Verizon Smart phones Growth
Source: Verizon Financial Results Q1, 2011
Verizon Wireless, a US telecom operator launched LTE in last quarter of 2010 .The
operators announced its first quarter results that shows the Smart phones sales as a
percentage of total mobile phones.
The operators had a marginal growth of 3% per quarter before launching commercial
LTE service. After the commercial launch of LTE the smart phones sales reached to
49.3% of total mobiles phones sales with a increase of 6.5 % (just double to increase In
previous quarter sales) and surprisingly the smart phones sales reached 60% of total
mobile phones sales in first quarter of 2011, 10.7% increase from previous quarter sales.
The results give the clear insight of migration of customers from 2G/3G service to LTE.
The result also reveals that Verizon LTE subscriber reached to 500,000 in first quarter
and expected to increase at a much higher growth rate. Verizon wireless is covering 38
US cities as compared to Metro PCS, another telecom operator which is covering only 9
US cities.
39.5%
42.8%
49.3%
60.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2Q 3Q 4Q 1Q
2010 2011
Smartphone sales as a % of total phones

Tariff
The monthly tariff for LTE differs from country to country and has
Verizon wireless and Metro PCS, two US telecom operator providing LTE services at $ 50
and $ 55 respectively whereas Omnitel (Teliasonera), a telecom operator in Lithuania
offering LTE services at $ 139 per month. The monthly tariff pla
are given below:
The tariff also differs as per data usage and installations and one time set up charges.
Verizon is providing only 5 GB of data usage while in other countries (Sweden, Norway,
Germany, and Austria etc) the data usage limit is 30 GB.
Some of the operators like Vodafone Germany and Deutsche Telekom also have the set
up fee (one time) and installation charges. Vodafone is charging
up fee and Deutsche Telekom is charging
Japan
U.S.
Austria
NTT Docomo MetroPCS Telekom
95
55
120
The monthly tariff for LTE differs from country to country and has a great variation.
offering LTE services at $ 139 per month. The monthly tariff plans for different countries
etc) the data usage limit is 30 GB.
up fee (one time) and installation charges. Vodafone is charging € 24.99
up fee and Deutsche Telekom is charging € 59.95.
Denmark
Finland
Norway
Sweden
U.S.
Germany
Lithuania
TeliaSoneraTeliaSoneraTeliaSoneraTeliaSonera Verizon Vodafone Omnitel
71
61
118
88
50
94
139Monthly Price (US $)
17
17
a great variation.
ns for different countries
24.99 as one time set
Lithuania
Estonia
Omnitel Emt
139
50

18
18
Capital Expenditure
The capital expenditure for upgrading to LTE network varies from region to region, as
per the network planning and optimization consultancy Aircom International, the
capital expenditure for LTE will be 7 times cheaper in Asia Pacific than the capital
expenditure for LTE in US.
Region CAPEX Cost of LTE
UK $ 750 million
US $ 1.78 billion
Gulf territories $ 337 million
Asia Pacific $ 232 million
Source: Aircom International
The capital expenditure would include the spectrum acquisition, RAN equipment,
backhaul upgrades and core infrastructure investments. The cellular companies from
Asia Pacific will spend an estimated average of $ 232 million for upgrading to LTE
network; Gulf countries (MEA) will spend an estimated average of $ 337 million while
the cellular companies from US will spend an estimated average of $ 1.78 billion. The
operators are spending 15% to 20% more than they need to upgrade to LTE on first
year.
Cost Savings
Aircom also claims that network sharing can be a great idea for cost saving and cellular
operators can save their capital expenditure by network sharing, the price saving could
be as much as $1.2 billion for an operator in the US while operators in the UK could save
up to 500 million dollars – where those in Gulf territories and APAC could save $225
million and $155 million respectively.
For Asian cellular companies, backhaul is currently the biggest cost center followed by
the network staff and network expense.

19
19
Source: AV & Co. Experience, (ATIS LTE Business Case)
Cost savings in Operating Expenditures (Impact on OPEX)
A typical wireless network OPEX is given above, where cell site and maintenance (39%)
is the biggest cost center and then network staffing costs (21%), thereafter network
expenses (13%).
Upgrading to an LTE network will save cell site maintenance, Network Expenses and
Network staffing.
Cell Site
• Fewer Sites and radios required
• Reduced maintenance and part replacement costs
Cell Site
Maintenance &
Rent
39%
Network Expenses
13%
Network Staff
21%
Network
Provisioning
6%
Other Operating
Expenses
21%
Wireless Network OPEX Breakdown

20
20
Network Expenses
• Reduced switching /transport cost.
• Better able to handle burst of data
• Reduced backhaul cost.
Network Staffing
• More remote (i.e. online)
• Fewer network elements
OPEX Comparison
UMTS HSPA (2 X 5MHz) LTE (2 X 5MHz)
Theoretical average
throughput 128-384 Kbps 1 Mbps 4 Mbps
Theoretical maximum
throughput 2 Mbps 14 Mbps 20 Mbps
Monthly downlink traffic
230 TB (5MHz) 500
TB (10 MHz) 500 TB 1800 TB
Typical cost per
(downlink) megabyte at
maximum use of network Euro 0.6 Euro 0.3 Euro 0.1
Source: Business Drivers for Selecting LTE Technology, 3G Americas
LTE can lower the operating expenses dramatically. The typical cost per megabyte at
maximum use of network would be only Euro 0.1 in LTE while HSPA and UMTS will have
Euro 0.3 and Euro 0.6 respectively
An LTE network will be able to handle 1800 Terabyte (TB) monthly downlink traffic that
is much higher than UMTS and HSPA do.
LTE is also the most efficient network in term of throughput, LTE can have an average of
4 Mbps throughput and maximum 20 Mbps while UMTS and HSPA are far behind in
throughput.

21
21
Impact of Spectral Efficiency
Without any doubt, LTE has the highest spectral efficiency. LTE can run on multiple
channels, it has the higher range than any other network and even the downlink speed
too.
LTE – 3G Comparison
Source: Ericsson, Alcatel, Qualcomm, Wireless World, AV & Co. interviews with RF engineers
LTE may have the range 1-30 miles while other 3G network only have maximum range
of 5 miles. Running on multiple channels make LTE more efficient and effective too as it
can work in 1.25-20 MHz. LTE also has the higher speed 5 Mbps than HSDPA (900 kbps).
Impact on EBITA
Switching to a LTE network will result in to 50 % reduction to backhaul cost and will have
substantial positive effect on EBITA. The up gradation to LTE network will save other
cost also and will have an increase in EBITA even without any increase in revenue. The
potential impact on EBITA can be seen with the given example with following
assumptions:
• Revenue = $40 Billion
• COGS = 40% of Revenue
• Backhaul = 25% of COGS
• Selling and other administration expenses = 20% of Revenue
• Switching to an LTE network will result in 50 % reduction in backhaul cost
Parameters LTE EVDO Rev-A HSDPA
Spectrum Efficiency ~3-5 bps/Hz ~1-2 bps/Hz ~1-3 bps/Hz
Range 1-30 Miles 1-5 Miles 1-5 Miles
Channel Bandwidth 1.25-20 MHz 1.25 MHz 5 MHz
Expected Speed DL- 5 Mbps DL - 400 Kbps DL- 900 Kbps

22
22
Impact on EBITA with cost savings
Source: Cisco, (ATIS LTE Business Case)
Predicated cost savings
If the gross margin was 60%, after upgrading to an LTE network the gross margin will
reach to 65%, the EBITA margin will increase by 5 % (40 % to 45 %), and the cost savings
will contribute the same to EBITA that will be contributed by 15% increase in revenue
(the percentage increase in EBITA which will be earned by 15% increase in revenue, the
same increase percentage in EBITA can be achieved by cost saving without any increase
in revenue)

23
23
Data Methodology and Research Design
The report on LTE has been drawn on extensive secondary data with the discussion and
comments by industry analysts.
Research Databases: The report has been prepared with the guidance and help of
industry and analyst’s reports, market updates and reviews, economic surveys and
comments by experts in the telecom industry.
Extensive Secondary Research
− Telecom regulatory bodies/authorities (FCC, TKK, NPT and others)
− Business and management databases (ProQuest, Emerald, EBSCO etc.)
− Analysts reports (Cisco, Nokia & Siemens, Motorola)
− Telecom associations (GSA, 3G Americas, 3GPP)
− Company profiles and industry reports (AT&T, Verizon and others)
− Online Library portals (GBU central library)
Limitations
The data used in the report is secondary and believed to be accurate while compilation
of the repot but the data can be general and vague. While great care has been taken in
the compilation of this information but responsibility for the accuracy cannot be
accepted.
Data Analysis
The report shows the wide scope for LTE in mobile broadband market. Operator’s
network commitment is at the highest to upgrade to LTE. The telecom regulators are
also taking initiative and coming forward to encourage telecom operators for LTE up
gradation. Though the different operators in different regions have diversified
approaches towards LTE (the next generation mobile technology) but the future trend
and target is same. The investment is long term with a high rate of return.

24
24
Executive Summary
Current Scenario of Broadband: The wireless mobile broadband is expected to grow
tremendously in future as compared to fixed broadband. The broadband consumers are
gobbling much network capacity and the step to force these consumers is needed.
Subscriber growth: Migrations of 3G subscribers to LTE will be higher than expected and
the subscriber base is expected to cross over 300 million by the end of 2015 and there
will be more than 100 LTE devices by the end of 2011.
Spectrum Auctions: The regulatory bodies of different countries, in charge of spectrum
management, are more conscious and active towards LTE deployment and they are
moving so fast towards this step. The most suitable bands (Digital Dividend, 1.5GHz,
1800MHz and 2.6GHz) are being awarded to operators and operators are spending
billions to get the licenses.
Market Penetration: Developing markets like India where mobile broadband
penetrations is just around 1% are showing great interest, the Middle East countries
where the capital expenditure for LTE is very less, are also moving rapidly.
Mobile data traffic: The increasing exponential mobile data traffic which can be the
major issue in future as there can be a deficit in spectrum. The Federal Communication
(FCC) also recommended making 500 MHz spectrum available in next 10 year.
Sharing of Network: In order to save costs and maximum utilization of spectrum mobile
operators are coming together and becoming ready to share the LTE network. AIRCOM
claims the price saving could be as much as $1.2 billion for an operator in the US.
Operators in the UK could save up to 500 million dollars – where those in Gulf territories
and APAC could save $225 million and $155 million respectively.
Economic Impact: In the Asia Pacific region, the economy could boost up to nearly
US$730 by improving spectrum management and can create two million new jobs by
2020, according to a report by Boston Consultancy Group (BCG).

25
25
Objective of the study
− Comparison of the LTE launches in different regions.
− The cost savings and other operating benefits.
− The growth prospects in mobile data services.
− The expenditure involved in different regions
Scope of the study
The operators in different regions can know about LTE and its deployments in different
regions. The study of the project can also be helpful to take personal decisions to
upgrade to LTE and the growth prospects in future.
The research will give an insight of the LTE international deployments experiences and
the regulatory policies.

Lte project report

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Lte project report

Ähnlich wie Lte project report (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Lte project report