LTE Forum 2010

Stockholm

How LTE will strengthen the user experience

April 28, 2010

Alan Hadden, President, GSA

Global mobile Suppliers Association

www.gsacom.com

GSA Group
www.linkedin.com/groups?gid=2313721

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 1/19

Scope of presentation

 Mobile broadband update

 Progress towards LTE

 Spectrum

 Environment

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 2/19

3G WCDMA provides the path to mobile broadband
 347 commercial WCDMA operators in 144 countries
 WCDMA has 75% of 3G network market share
 Economies of scale will improve further with new deployments in India

Over 98% of WCDMA

operators have upgraded
their networks with HSPA

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 3/19

Mass market mobile broadband a reality with HSPA
 341 commercial HSPA networks in 143 countries
 Well-established and robust eco-system including user devices

> 80% of HSPA networks with peak DL

speed of 3.6 Mbps or higher

54.5% support 7.2 Mbps DL or higher

100 HSUPA networks launched

(30% of networks)

36 networks support 5.8 Mbps peak UL

> 70% of HSPA operators committed to

EDGE for service continuity and the
best user experience

Source of data: GSA HSPA Operator Commitments survey – April 16, 2010

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 4/19

Sharing mobile broadband success stories
 Strong evidence of subs, traffic, revenue and profit growth

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 5/19

HSPA user devices
 in the mainstream
 2,349 devices launched in the market; 35% growth since October 2009
 230+ suppliers

Source of data: GSA HSPA Devices Survey – April 22, 2010

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 6/19

Trend is continuing strong growth

HSPA+ systems are meeting the challenge today

 103 network commitments provide the evidence

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 7/19

HSPA+ is enabling operators to deliver higher
data capacities at lowest cost per byte delivered
 Evolution to HSPA+ is the main trend in 2010

103 HSPA+ network commitments

in 51 countries

52 HSPA+ systems now launched

42 HSPA+ devices launched by 11

suppliers

GSA forecasts around 90 HSPA+

networks will be commercially
launched by end 2010

HSPA+ will be mainstream in 2010

Source of data: GSA Global HSPA+ Network Commitments and deployments – April 16, 2010
www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 8/19

 www.gsacom.com Global mobile Suppliers Association © 2010

GSA report to 3GPP PCG #23 - October 27, 2009 Slide no. 9/13
Slide no. 9/28
HSPA+ has a strong evolution path
 More performance and capacity improvements in new 3GPP Releases

HSPA HSPA+ HSPA+ Future

HSDPA HSUPA

3GPP Rel.5 Rel.6 Rel.7 Rel.8 Rel.9

Release

Combines Multicarrier
Technical Adds 64QAM 64QAM & 2x2 MIMO and other
enhancement Adds 2x2 MIMO Dual Carrier enhancements

Performance 21-28 Mbps DL 42 Mbps DL 84 Mbps DL

gain 14.4 Mbps DL 5.8 Mbps UL 11.5 Mbps UL 11.5 Mbps UL 23 Mbps UL 168 Mbps DL

User High-speed High-speed More capacity More capacity More capacity More capacity
experience downloads uploads More speed More speed More speed More speed

Lower latency

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 10/19

The industry direction is to LTE
 For the mass market and the next step in the user experience

LTE is needed to accommodate huge traffic growth

Traffic rising/revenue falling

40x – 100x traffic increase

may need to be supported

across several frequency bands

Mobile broadband is mainstream

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 11/19

Key drivers for LTE
 The next step in the user experience in the mass market
 “Always on” higher bandwidth, enhanced user experience

LTE is being driven by pervasive convenience of mobile

communications and increased penetration combined with improved
performance and the falling costs of wireless devices & services

 Broadband connectivity – access to  Mobile phones allowing anytime

more info and more entertainment anywhere accessibility

 Voice ARPU being driven down by low  Strong growth in smartphone segment
cost VoiP services

 Mobile data has become a reality

 More mobile in work/personal life
 Capture maximum ARPU
 Invention of new technologies and
business models
 Innovative data services
 High demand for bandwidth, better
quality and services tuned to own personal
profile

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 12/19

LTE is market reality
 64 firm LTE network operator commitments in 31 countries
 Systems launched in Stockholm and Oslo (TeliaSonera)
 Up to 22 LTE networks anticipated to be in service by end 2010

An additional 24 “pre-commitment” trials launched

TD-LTE:
China Mobile has inaugurated a TD-LTE network
at the site of the Shanghai World Expo 2010

LTE comprises FDD and TDD

= a single global standard

Source of data: GSA Information Paper “Evolution to LTE” – April 7, 2010

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 13/19

 LTE commercial networks performance
 Stockholm and Oslo
 outperforming many fixed broadband connections

“While still in its infancy, commercial LTE networks in Stockholm and Oslo already outperform many fixed
broadband connections, offering average data rates of 16.8 Mbps (peak = 50 Mbps) and 32.1 Mbps
(peak = 85 Mbps) in 10 MHz and 20 MHz, respectively. Measured data rates would have been even
higher if it had not been for the stringent test methodology, which focused almost entirely on vehicular
testing.”

Signals Research group, LLC, Signals Ahead, March 2010 report

Source of data: GSA Information Paper “Evolution to LTE” – April 7, 2010

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 14/19

LTE eco-system building
 more platforms and user devices announced

Mobile phones, computer and consumer electronic devices including notebooks, netbooks, ultra-
mobile PC’s, gaming devices, cameras, and PMPs will incorporate embedded LTE connectivity

Source of data: GSA Information Paper “Evolution to LTE” – April 7, 2010

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 15/19

LTE market includes TDD as well as FDD systems
 TD-LTE trials activities building

Li Yizhong, Minister of Industry and Information Technology, stated that TD-SCDMA subscribers in China are
expected to reach 80 million by 2011. According to MII, China Mobile had 7.69 million TD-SCDMA subscribers by 31
March 2010 (i.e. 43% of domestic 3G subscribers)

LTE TDD (TD-LTE) is positioned as the next evolution in TD-SCDMA family and a natural
progression
 From 3GPP standards perspective: significant commonalities with FDD
 From vendor perspective: increasing use of software defined radio techniques
 From operator perspective: spectrum availability, flexible base stations
 TD-LTE is a real complement to LTE FDD
 TD-LTE will be able to exploit global economies of scale similar to LTE FDD
 TD-LTE: the perfect choice for providing high speed mobile broadband access in unpaired spectrum
 Both TD-LTE and LTE FDD have a clear and smooth evolution path towards LTE-Advanced

On-going TD-LTE trials

 TD-LTE demonstration network is being readied for the Shanghai 2010 World Expo, opening May 1
 China Mobile also trialling experimental TD-LTE networks in Qingdao, Xiamen and Zhuhai
 Taiwanese operators FarEasTone, Vibo and Chunghwa Telecom planning or deploying TD-LTE trial
networks (via bilateral agreements with China Mobile)

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 16/19

Spectrum for LTE deployments
 LTE brings the opportunity for additional spectrum

 An operator may introduce LTE in „new‟ bands where it is easier to deploy 10 MHz or 20 MHz carriers
 e.g. 2.6 GHz band (IMT Extension band) or Digital Dividend spectrum 700, 800 MHz
 Or in re-farmed existing mobile bands e.g. 850, 900, AWS, 1800, 1900, 2100 MHz

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

 2.6 GHz (for capacity) and 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
 for example, the TeliaSonera networks in Oslo and Stockholm each utilize a 20 MHz carrier

Availability of new spectrum, particularly in the 2.6 GHz and Digital Dividend bands (700, 800 MHz)
is a crucial factor for LTE deployments in many countries, together with the regulatory conditions,
and will directly determine deployment and launch dates

Early spectrum for TD-LTE

 IMT Extension Center Gap 2570 – 2620 MHz
 2.3 TDD i.e. 2300 – 2400 MHz

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 17/19

Environmental aspects
 ICT (including the mobile industry) has a vital role to play
 LTE is a key platform for achieving sustainability targets

Mobile Industry Actions Towards Sustainability

GSA – January 2010

More papers from GSA will follow

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 18/19

Updates on LTE

More information

Evolution to LTE report

www.gsacom.com

 Network commitments
 Trials
 FDD and TDD
 Launches
 System performance
 Eco-system including platforms, devices
 Testing
 Voice over LTE

Industry market forecasts

IMT-Advanced

www.gsacom.com Global mobile Suppliers Association © 2010

Slide no. 19/19