Speakers: Adrian Scrase, Head of the Mobile Competence Centre, 3GPP Hank Kafka, Vice President Network Architecture, AT&T Copyright 2010. WiseHarbor. All rights reserved. May 4, 2010 Keith Mallinson Founder, WiseHarbor ATIS Webinar: Moving to LTE Page 3 Copyright 2010. WiseHarbor. All rights reserved. Outline Next generation technology adoption lifecycles from 1G to 4G Drivers and barriers to next generation adoption Outlook for LTE Page 4 Copyright 2010. WiseHarbor. All rights reserved. Mobile Technology Adoption Lifecycles From Launch to Peak Demand TAC S TDMA WiMAX LTE Advanced CDMA2000 9 years 9 years WCDMA/HSPA Forecasts Peak Sales Volume 16 years Launch LTE GSM NMT 1 9 8 0 1 9 8 5 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 1 0 2 0 1 5 2 0 2 0 2 0 2 5 2 0 3 0 PD C 1G 2G 3G AMPS 16 years Launch 9 years Peak Sales Volume cdmaOne 9 years between launches for leading mobile technology generations 16 years from initial commercial launch to peak volumes for leading technologies Demand for established technologies continues in predominantly multi-mode devices Page 5 Copyright 2010. WiseHarbor. All rights reserved. 3G versus 2G: What was Revolutionary in 2004? Real-time video telephony, video on demand Networks: UMTS 2100/GSM 900/GSM 1800 Dimensions: 95 x 50 x 26 mm Weight: 132 grams Talk time: up to 180 minutes Samsung Z105 3G Phone Motorola RAZR V3 2G Phone MPEG 4 video clips and 22kHz polyphonics Networks: GSM 850/900/1800/1900 Dimensions: 98 x 55 x 14 mm Weight: 95 grams Talk time: up to 430 minutes Page 6 Copyright 2010. WiseHarbor. All rights reserved. Comparing Drivers and Barriers for UMTS and LTE UMTS in 2004 2100 MHz 3G spectrum could only be used for UMTS Massive spectrum costs (e.g., $150 bn in Europe) Economic, tech and telecom sector collapse in 2001 Embryonic data services ecosystem Weak demand for data services except SMS Disappointing data speeds with Release 99 Handsets clunky, costly and with poor battery performance Lower volumes, need for dual mode made and above limitations made WCDMA products significantly more costly to buy and to subsidize But consumers were not willing to pay a premium initially due to the limitations and few benefits LTE in 2011 Technology neutrality allows HSPA etc in new spectrum New spectrum is key digital dividend 700/800Mhz and 2.5/2.6Hz in particular Will carriers overpay again? Economic collapse in 2008 Emerging ecosystems (eg, iPhone App Store) Exponential growth in demand for data Will LTE perform any better than HSPA+? Will MIMO work in phones? Handsets somewhat similar to their existing 3G counterparts? Lower volumes and need for dual mode with multiple antennas could make LTE products significantly more costly Consumer price premium? Page 7 Copyright 2010. WiseHarbor. All rights reserved. Outlook for LTE Mobile broadband has the opportunity to repeat for Internet access and data the success achieved by cellular in connecting 4 billion people for voice and text Prospects for LTE and LTE Advanced are excellent with high capacity, performance, and low cost per bit WiMAX will be eclipsed with introduction of LTE-TDD LTE adoption and success should be measured over a decade not just a year or two LTE will be substantially about devices other than phones and dongles Substantial amounts of new spectrum at reasonable costs are essential Page 8 Copyright 2010. WiseHarbor. All rights reserved. Keith Mallinson Founder WiseHarbor Phone: +1 617 418 3977 +44 20 7193 0339 Email: kmallinson@wiseharbor.com Thank You WiseHarbor is publishing an extended forecast on mobile broadband, LTE and WiMax for phones and other devices including units sold, average prices and market revenues. Email kmallinson@wiseharbor.com for further information or visit www.wiseharbor.com around May 19, 2010 for launch announcement. 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 9 Movingto Movingto LTE LTE Adrian Scrase Head of 3GPP Mobile Competence Centre 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 10 What Does 3GPP Specify? 3GPP Specified Radio Interfaces 2G radio: GSM, GPRS, EDGE 3G radio: WCDMA, HSPA, LTE 4G radio: LTE-Advanced 3GPP Core Network 2G/3G: GSM core network 3G/4G: Evolved Packet Core (EPC) 3GPP Service Layer GSM services IP Multimedia Subsystem (IMS) Multimedia Telephony (MMTEL) Support of Messaging and other OMA functionality Emergency services and public warning Etc. 10 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 11 3GPP Release Concept 11 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 R99 R4 R5 R6 R7 R8 R9 R10 High Speed Accesses IP Core Network Services U M T S H S P A D L H S P A U L L T E L T E A d v H S P A + E P C C o m m I M S I M S M M T e l 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 12 Evolution on all Fronts Radio Interfaces Higher Data Throughput Lower Latency Improved Spectrum Efficiency and Flexibility Reduced CAPEX and OPEX IP Core Network Support of non-3GPP Accesses Packet-Only Support Improved Security Greater Device Diversity Service Layer More IMS Applications (MBMS, PSS, mobile TV now IMS-enabled) Greater Session Continuity 12 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 Evolution of the Radio Interface EDGE EDGE+ W-CDMA HSPA HSPA+ 2000 2000 LTE LTE-Advanced 13 2010 2010 384Kb/s 1Mb/s 384Kb/s 42Mb/s 18Mb/s 100Mb/s 1000Mb/s Standards Availability 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 UMTS Evolution (HSPA) Improved spectrum efficiency (modulation 16QAM, Reduced radio frame lengths New functionalities within radio networks (including re-transmissions between NodeB and the Radio Network Controller) Latency reduced (100ms for HSDPA and 50ms for HSUPA) 14 240 Operators in >100 countriesForecast 1 billion subscriptions by 2011 3GPP R5 & R7 added MIMO antenna and 16QAM (Uplink)/ 64QAM (Downlink) modulation 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 15 3GPP LTE Release 8 (March 2009 version) forms the basis for the commercial deployment of LTE 3GPP testing activities (i.e., the development of formal test descriptions and scripts using TTCN) are based on that version LTE Release 8 provides: Significantly increased data throughput (downlink and uplink) Improved spectral efficiency Reduced latency Major economic advantages (CAPEX and OPEX) Reduced latency and much more.. Results of widespread testing and early deployment indicate that all performance targets have been met and in many cases exceeded 15 www.3gpp.org/releases 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 16 LTE Network Deployments April 7, 2010: The number of mobile operators who have committed to deploy LTE advanced mobile broadband systems has more than doubled in the past year. There are now 64 operators committed to LTE network deployments in 31 countries, according to the Global mobile Suppliers Association (GSA). 16 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 17 3GPP LTE (Release 9) Release 9 is now functionally frozen (with some minor exceptions) For LTE, Release 9 provides: Continued integration of the Femtocell concept (Home eNodeB) Self Organizing Network (SON) functionality Positioning support (LCS) Addition of new spectrum bands (e.g., 800 MHz and 1500 MHz) Broadening of LTE deployment scenarios And much more In addition, Release 9 takes account of the feedback from the first LTE deployments 17 www.3gpp.org/releases 17 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 18 Dispelling Some Myths About LTE 18 Myth 1: LTE is Data only Reality: Support of voice was one of the key considerations in designing LTE. The voice solution for LTE is IMS VoIP and it is fully specified. Myth 2: SMS isnt supported over LTE Reality: LTE and EPS will support a rich variety of messaging applications - including SMS. The solution is twofold, covering both the full IMS case and a transition solution for those networks that do not support IMS. Myth 3: IMS isnt ready for prime time Reality: IMS was first developed as part of Rel 5 in 2002. It is based on IETF protocols such as SIP and SDP that are very mature. These technologies have been embraced by the industry as the signalling mechanism for multimedia applications. Myth 4: LTE doesnt support emergency calls Reality: VoIP support for emergency calls (incl. location) in Rel 9. A transition solution fall back to 3G/2G - has existed since IMS was introduced (Rel 5). 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 19 Smooth transition from 3G to 4G Support for wider Bandwidth (Up to 100MHz) Downlink transmission scheme Improvements to LTE by using 8x8 MIMO Data rates of 100Mb/s with high mobility and 1Gb/s with low mobility 19 Up link transmission scheme Improvements to LTE Data rates up to 500Mb/s Relay functionality Improving cell edge coverage More efficient coverage in rural areas CoMP (coordinated multiple point transmission and reception) Downlink coordinated multi-point transmission Uplink coordinated multi-point reception Local IP Access (LIPA) & Enhanced HNB to allow traffic off- load LTE LTE-Advanced 3G 4G
LTE-Advanced (Release 10) 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 20 Convergence(Technology) 20 3GPP LTE is a point of convergence, to unite the worlds operators on a common technology platform 2009 CDMA Development Group (CDG) join 3GPP as a Market Representation Partner (MRP) TD-SCDMA Forum pave the way for TD-LTE Public Safety Agencies announce that LTE meets their requirements (See APCO, NENA, NPSTC announcements) 2010 3GPP/Broadband Forum workshop on fixed/mobile convergence 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 21 Convergence (Fixed-Mobile) 3GPP is working with the Broadband Forum to support Fixed-Mobile Convergence using the Evolved Packet Core Convergence addresses IP session mobility, authentication, and policy 3 Phase plan adopted Phase 1 is basic interworking between fixed and wireless Phase 2 provides offloading of traffic Phase 3 provides convergence of network nodes Phase 1 target is 3GPP Rel 10 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 22 3GPP Convergence (Scale) Machine-to-Machine Intelligent Transport Systems Smart Grids Smart Cards, eCommerce, USB, High Speed Interface mHealth RFID Multi-Standard Radio (MSR- BS) 22 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 Machine Type Communications (Release 10) 14 MTC Features identified Low Mobility Time Controlled Time Tolerant Packet Switched (PS) Only Small Data Transmissions Mobile Originated Only Infrequent Mobile Terminated Focus on the general functionality required to support these features Overload control (Radio Network Congestion use case, Signalling Network Congestion use case and Core Network Congestion use case) Addressing Identifiers Subscription control Security MTC Monitoring Priority Alarm Message (PAM) Secure Connection Location Specific Trigger Network Provided Destination for Uplink Data Infrequent Transmission Group-Based MTC Features 23 Picture source: Guzer.com Predictions indicate that there may be as many as 50 billion devices (subscriptions) connected to mobile networks by 2020 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 24 Conclusions HSPA is, and will remain, hugely successful 3GPP LTE is set to be built on that success and to become the major enabler for mass market mobile broadband The first commercial LTE Networks have been launched based on 3GPP Release 8: many more will follow during 2010 LTE is an evolution path which unites the GSM/UMTS, TD-SCDMA, and CDMA families as well as the fixed/mobile communities There is a much bigger picture: LTE and LTE-Advanced will enable new services & innovation on a never before seen scale 24 3GPP 2010 ATIS Webinar, Moving to LTE, 4 May 2010 25 More Information www.3gpp.org contact@3gpp.org 25 Operating Partners: Market Representation Partners: Leveraging Standards to Serve Growing Customer Needs Hank Kafka Vice President, Architecture AT&T Exceeding Expectations Circa 2001 - 27 - Past Style Voice 3G Meeting Expectations Circa 2010 - 28 - Style Present Video Social Networking Postpaid Subscribers with Integrated Devices - 29 - U.S. Ahead in Smartphone Sales - 30 - U.S. Mobile Broadband Deployment *Source: Strategy Analytics, Global Smartphone Sales Forecast by Country, Aug. and Oct. 2009 Smartphone Sales by Major Country 2010E (in millions) Took the global leadership position in 2008 and projected to maintain it through 2013 with 28% CAGR ** the U.S. smartphone market is currently the worlds most important ... Strategy Analytics * ** Source: IDC, Worldwide Converged Mobile Device 2009-2013 Forecast Update: December 2009, Doc # 221081, December 2009 U.S. Ranks 1st in World in 3G Subscribers U.S. has 18% of worlds 3G subscribers * U.S. leads in most advanced 3G networks HSPA and EV-DO with 33% of global subscribers * U.S. led the world in 3G net adds in 2009 (through 3Q), with about 1 in 5 new 3G subs ** - 31 - **Source: Morgan Stanley, Mobile Internet Report, Dec. 15, 2009 Estimated 3G Subscribers in Major Countries Worldwide 2009 (in millions) *Source OVUM, Mobile Technology Forecast, Dec. 2009 HSPA and EV-DO 3G is Key to Success of Mobile Internet* PNDs Digital Cameras/ Camcorders Tracking Devices Computing Entertainment Devices (Gaming, Media) In-Car, Telematics Picture Frames Media Player A New Generation of Connected Devices Smart Meters Healthcare The AT&T Networks Wireless + Broadband Wi-Fi + U-verse eReaders - 32 - 2008 2009 2010 2011 2012 2013 2014 Navigation Devices Notebooks Netbooks Mobile Internet Devices Gaming Consoles E-Books Media Players MP3 Players Digital Cameras Emerging Devices Taking Off and Expected to Maintain Growth - 33 - U.S. Per Unit Sales of Wirelessly Enabled Portable Devices (in millions) ~6M ~86M *Source: Strategy Analytics, U.S. Connected Device Forecast, Jan. 2010 By 2014: About 86 million devices More than a quarter of emerging devices in the world projected to be in U.S. ** Annual U.S. retail market value of wirelessly enabled consumer devices estimated to be $39B * In 4Q09, U.S. led the world in e-book downloads. *** U.S. Mobile Broadband Deployment ** Source: Strategy Analytics, U.S. Connected Device Forecast, Jan. 2010 and Strategy Analytics, Wireless Consumer Electronics Global Market Forecast May 2009 ***Source: Wattpad, Global 4Q09 Ebook Metrics Reports, Dec. 2009 Wireless Data Growth at AT&T 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 5000% growth over 12 quarters - 34 - Smartphones Smartphone Data Consumption - 35 - Other Device Data Consumption Notebooks, Netbooks, Smartbooks, ... - 36 - Mobile broadband growth outpaces every other platform ** Pew estimates that by 2020, mobile devices will be the primary Internet devices for most people in the world *** The average smartphone user generates 10 times the amount of traffic generated by the average non-smartphone user * Customer Demand Surging - 37 - *Source: Cisco, VNI Mobile, 2010 **Source: CTIA, Written Ex Parte to FCC, Sept. 29, 2009 ***Source: Pew Internet & American Life Project, Dec. 2008 90,000 Terabytes Cisco Forecasts 3.6 Million Terabytes per Month of Global Mobile Data Traffic by 2014 (TB per Month) 108% CAGR 2009 - 2014 3,600,000 Terabytes U.S. carriers projected to spend $45 billion in total cap-ex in 2010 ** Mobile broadband drives fiber investments and wireline broadband investments enhance mobile broadband U.S. carriers projected to spend $22-23 billion in wireless cap-ex in 2010 * 38 38 - 38 - Estimated Percentage of Wireless Cap-Ex Spent on Mobile Broadband 2010E U.S. Leading in Mobile Broadband Investments *Source: GSM Association, Deutsche Bank Global Markets Research, Feb. 2010 **Source: Oppenheimer, 4Q09 Post View, March 2010 Major Wireless Initiatives Delivering Results Focus New York City 2009 Added 900 new carriers to increase 3G capacity Added 7,000 T1s and 238 DS3s to ease congestion 2010 Plans Adding 40 new cell sites Upgrading ~70 cell sites to 3G Continuing backhaul improvements 2009 National Voice Quality (Composite Quality Index) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Up 22% 3G Dropped calls Down 22% 3G Blocked calls Down 25% YoY Improvement* - 39 - Dec - 40 - U.S. Wireless Industry Needs a Sustainable Model to Meet Demand Keys to a sustainable model: Increasing available spectrum Accelerating network efficiencies Capitalizing on complementary technologies Ensuring application efficiencies Growing need for spectrum Operator Spectrum Requirement Busiest Markets - 41 - Accelerate Network Efficiencies - 42 - LTE inherently a more efficient technology LTE more efficient than HSPA* Improvements in architecture and signaling reduce round- trip latency* LTE can co-exist with earlier 3GPP radio technologies, even in adjacent channels.* *3GPP Source: AT&T Efficiency of Wireless Technologies Spectral Efficiency (bits / Hz per site) AT&T 3G Microcell Deployment Continues Page 43 A mini cell tower in your home HSPA: Simultaneous voice and data Rollout continuing - 44 - Wi-Fi complementary to mobile broadband and enhances ubiquity Wi-Fi increasingly connecting devices in homes, businesses and schools ** Usage soaring in U.S. 56% use mobile devices to connect * Projected leadership in Wi-Fi devices *** Public Wi-Fi Hot Spots in Major Countries 4Q09 (in thousands) U.S. Significantly Ahead in Wi-Fi *Source: JiWire, Mobile Audience Insights Report, Oct.-Dec. 2009 **Source: Morgan Stanley, Mobile Internet Report, Dec. 15, 2009 ***Source: IDC Worldwide Wi-Fi-Enabled Mobile Phone 2009-2013 Forecast, Doc # 219628, August 2009 Texting Growth Unabated SMS Traffic on AT&T Network - 45 - LTE is an all I.P. Mobile Network IMS based solution the foundation for rich voice/data services Industry efforts promotes scale, reduces complexity More than 40 companies participating Voice Over LTE - 46 - 2G/3G/4G compatibility 3G/4G simultaneous voice/data Flexibility, with evolving capabilities in all areas Convergence Global ecosystem 3GPP Advantages - 47 - Leveraging Standards to Serve Growing Customer Needs Hank Kafka Vice President, Architecture AT&T Moderator: Keith Mallinson, Founder, WiseHarbor Speakers: Adrian Scrase, Head of the Mobile Competence Centre, 3GPP Hank Kafka, Vice President Network Architecture, AT&T