GSM Association

First in GSM, second in WCDMA: Where will Europe be with LTE?

Keith Mallinson — Tue, 24 Nov 2009 14:47:58 -0500

Most European operators will trail significantly behind major commercial LTE deployments elsewhere. Transition to the mainstream 3GPP technology track for non-HSPA operators and new spectrum availability are the driving forces for LTE front-runners in America, Asia and Scandinavia.

Next generation network implementation plans vary enormously worldwide. For example, India has yet to auction spectrum for legacy 3G technologies, while Verizon Wireless in the U.S. will start its transition from CDMA2000 to the dominant 3GPP technology track with LTE on its newly acquired spectrum in commercial deployments next year. While travelling west and east to chair conference tracks on mobile broadband at Informa's LTE Americas in Dallas and GSMA's Mobile Asia Congress in Hong Kong this month, I've been able to assess LTE strategies and deployment plans first hand with a total of 11 operators in my panel sessions, while quizzing and listening to several more.

Europe created GSM and deployed it first. Japan blazed the trial with WCDMA for a couple of years before European pioneering deployments began in earnest by 3 in the U.K. and Italy with market entry using new spectrum. This time around with the LTE transition, the most fertile conditions for adoption are mostly in China, Japan and the U.S. With the exception of Scandinavia where TeleSonera and Telenor are likely to launch commercial services in Norway and Sweden next year, these conditions do not yet exist in most of Europe. Major European multinational operators Vodafone, Telefonica and T-Mobile will do little more than just trials during 2010 and seek fresh spectrum for most of their national operators.

Migration from 3GPP2 to 3GPP in the U.S.

In the U.S., LTE provides the timeliest opportunity for CDMA operators Verizon Wireless, Metro PCS and Leap to get onto the mainstream in network technology. Flush with new spectrum from 1700 MHz and 700 MHz auctions, these operators will deploy LTE in allocations that are currently unoccupied by cellular technologies. There are no preexisting mobile devices with any technology for the 700 MHz band. Whereas Verizon Wireless plans to launch and rollout LTE aggressively in 2010 and cover virtually all its current nationwide 3G footprint by yearend 2013, America's other top-two operator, AT&T, will use its new stash of 700 MHz and 1700 MHz spectrum to follow with its deployment approximately starting one year later.

Leapfrogging 3G in China

China Mobile is the wild card among LTE early-movers. The operator drew the short straw in this year's 3G technology allocations with a requirement to implement the immature TD-SCDMA technology. China Unicom and China Telecom were awarded WCDMA and CDMA2000 respectively. It is already too late for much ever to come of TD-SCDMA. Whereas the TD-SCDMA mandate serves as a face-saver for China, the opportunity to establish China Mobile as a world leader in next generation technology is with LTE in its TDD form. This technology has some valuable commonalities with TD-SCDMA including the frame structure. Huawei was boasting a van drive demo for TD-LTE at the Hong Kong show. The vendor will also benefit from resurgent interest in TDD technology outside of China following its lackluster adoption as a UMTS technology in the rest of the world.

PCCW in the dynamic Hong Kong market is eager to use its paired "LTE spectrum" recently obtained in auction and will likely launch FDD-based LTE commercially in a couple of years time.

Refarming 2G in Japan

Japan has world-leading mobile data use at around 40 percent of ARPU and with 90 percent of subscribers already using 3G technologies. Success in 3G with such heavy use in this densely populated nation makes the case to trade up to LTE is most compelling. In addition to new spectrum allocations for LTE, plans to close down 2G PDC within the next year or so will ensure significant additional spectrum to refarm for use with LTE.

DoCoMo suffered by going it alone for several years with WCDMA but is undeterred in its desire to lead with LTE. Among other difficulties with WCDMA early on from 2001 until the middle of the decade, DoCoMo's FOMA customers had poor coverage due to absence of backward compatibility with 2G PDC. Meanwhile KDDI performed better in 3G with CDMA2000, benefitting from volume shipments in the US, Korea and from backward compatible with cdmaOne. In Japan and elsewhere worldwide, multimode devices with backward compatibility to legacy 3G technologies will prevail with LTE.

Waiting game in Europe

Whereas European 3G operators can cautiously upgrade all the way to HSPA+ in existing 3G spectrum, LTE will in practice require separate allocations that are not yet generally available. Although it is theoretically possible to substitute LTE for GSM or HSPA spectrum usage, that is unappealing at this stage and some operators have already undertaken to reallocate some 900 MHz spectrum to UMTS with HSPA. With the exception of limited new allocations, such as in Scandinavia, European operators are waiting for 2.5/2.6 GHz and the so called digital dividend spectrum in the 800 MHz band. It will be years before the latter is allocated and generally available for use.

It is no tragedy for the rest of Europe that the U.S. and Asian operators will be driving early LTE volumes, supplemented by deployments in the relatively small Scandinavian region. Front-runners have the new spectrum resources to make the change efficiently and some have a particular desire to switch technology that makes LTE deployment urgent. The early years of 3G were unpleasant for European operators with onerous spectrum fees, clunky and costly terminals with disappointing performance. European operators will benefit from LTE technology and terminal improvements in commercial use elsewhere because most do not yet have the additional spectrum to deploy commercially themselves. Meanwhile, HSPA and HSPA+ provide the natural upgrade path on existing spectrum.

Keith Mallinson is a leading industry expert, analyst and consultant. Solving business problems in wireless and mobile communications, he founded consulting firm WiseHarbor in 2007.

LTE 'One Voice' initiative gains wide support

Paul Rasmussen — Fri, 06 Nov 2009 12:25:27 -0500

A powerful grouping of major operators and equipment vendors have put their combined weight behind an initiative to agree a common method for handling voice and SMS traffic over LTE. Labelled One Voice, the group is looking to promote its preferred specifications for providing interoperable voice over LTE with the intention of convincing the GSMA and 3GPP to formally recommend its adoption.

Notably absent from the One Voice group - which includes AT&T, Orange, Telefonica, TeliaSonera, Verizon, Vodafone, Alca-Lu, Ericsson, NSN, Nokia, Samsung and Sony Ericsson, is T-Mobile. The operator has been a firm advocate for VoLGA (Voice over LTE via Generic Access) which was proposing an interim LTE voice concept that tunnelled circuit-switched voice traffic through the packet-based LTE network.

However, while VoLGA supporters still maintain that the concept will fulfil a useful role, the weight behind the One Voice initiative seems set to dictate the future direction to ensure voice over LTE interworking and roaming using 3GPP specifications for IMS. The specification includes E-UTRAN, evolved packet core, user equipment and IMS core features that the group considers essential to interoperable IMS voice.

However, One Voice assumes that operators and vendors have taken it as read that moving to LTE and SAE in the RAN and core network will also mean moving to IMS in the control plane. According to Sandro Tavares, converged core marketing manager at NSN, operators could migrate by using a method such as NSN's Fast Track, which introduces IMS functionality to non-IMS elements. Tavares said that Fast Track was completely compliant with the One Voice profile, while operators who wish to use LTE purely as a data network could still use CS Fallback to handle voice and SMS traffic to LTE devices.

For more on this story:
Mobile Europe

Industry and EU partner on emergency service

Ian Channing — Wed, 09 Sep 2009 12:11:10 -0400

The GSM Association has joined forces with the European Union to push the deployment of a Europe-wide in-vehicle emergency service known as eCall.

European Information Commissioner Viviane Reding and GSMA CEO Rob Conway have signed a Memorandum of Understanding which will encourage cooperation between vehicle manufacturers, mobile operators and the EU as well as interested parties such as insurance companies.

eCall is an emergency call generated either manually by vehicle occupants or automatically via in-vehicle sensors in an emergency situation. When activated, the eCall system establishes a voice connection with emergency services. The service sends data including time, location, direction of travel and vehicle identification, to speed response times by the emergency services. The European Commission believes that eCall, which will be a free service, could potentially save up to 2,500 lives every year.

For more on this story go to Mobile News

Wireless power charging consortium gains strength

Paul Rasmussen — Fri, 29 May 2009 13:26:39 -0400

In what might be seen as a challenge to the GSMA's initiative on a common charging plug for handsets, the Wireless Power Consortium (WPC) has announced four new members, including Samsung and Duracell, bringing the total number of companies involved to 13. The WPC aims to create an international standard for devices of up to five watts that can be recharged by simply being placed on a charging station.

While the GSMA would seem to have received the backing from a majority within the cell phone industry to adopt the mini-USB interface as a common charging interface, the WPC--which was only formed six months ago--has attracted NatSemi, TI, Logitech, Sanyo and Philips among others to support the new standard.

According to the WPC, a universal standard in wireless power charging is within the top 20 per cent of what people want from their portable gadgets, and the plan is for mobile products to carry a logo when they're capable of being wirelessly charged. There are also developments underway for the WPC standard to support high power devices and equipment.

However, the WPC will need to work hard on recruiting the major handset vendors to ensure success over the GSMA-sponsored plan.

For more on this story:
TG Daily

Nokia and Intel notably absent from US$1bn mobile broadband push

Paul Rasmussen — Wed, 01 Oct 2008 12:11:22 -0400

While 16 of the largest mobile operators and technology providers have banded together to support the worldwide roll out of 3G mobile broadband across a diverse range of products, Nokia and Intel (an ardent supporter of WiMAX) were notable absentees.

The initiative, unimaginatively labelled "Mobile Broadband", has a staggering US$1 billion promotional budget which will be provided by the founding members--this includes the 3 Group, AsusTek Computer, Dell, Ericsson, Gemalto, Lenovo, Microsoft, Qualcomm, Telecom Italia Mobile, TeliaSonera, T-Mobile, Toshiba and Vodafone.

Little has been made public as to where this enormous promotional budget might be spent, although the first devices, a range of laptops bearing the new Mobile Broadband logo, will appear before Christmas.

The apparent objective of this new GSMA-led group is to try and make 3G connectivity as unobtrusive and as simple as possible, with the ultimate goal of having an instantaneous connection. "There is a lot of alphabet soup coming around the corner," said Ton Brand of the GSMA. "Whether it's HSPA, evolved HSPA or LTE, we wanted one single brand that would get consumers' attention."

The GSMA's initiative will be expanded to include USB dongles, and other devices with embedded 3G modules like cameras, MP3 players and even refrigerators.

For more on this story:
- go to Unstrung and IT ProPortal

Related articles:
Intel, Nokia and Nokia Siemens Networks Collaborate on Global WiMAX Interoperability. WiMAX story
Intel: WiMAX/WiFi chip coming in ultramobile PCs. Intel story

EU looks to halt per-minute billing 'abuse'

Paul Rasmussen — Fri, 29 Aug 2008 11:21:48 -0400

The policy of some European operators to round up mobile calls to the nearest minute has become the latest attention of focus for the telecoms bureau of the European Commission (EC).

The EC telecoms spokesman, Martin Selmayr, claims that this action by operators means high bills for users--on average 24 percent more than the minutes they actually use and 19 percent for calls received. "We see that consumers are charged more because in some cases operators are charging a call of one minute two seconds for two minutes."

Selmayr said the commission may address the problem when EU telecoms Commissioner, Viviane Reding, presents plans in four to six weeks time to tackle the cost of mobile phone calls made while abroad within the EU. "But this latest per-minute charging is an interesting and worrying phenomenon that the commission and national regulators have identified."

Suggestions that operators resorted to per-minute charging following the imposition of a roaming pricing cap 12 months ago have been denied by the GSM Association.

For more on this story:
- go to Cellular News and AFP

Related article:
GSMA responds to Euro Commission proposals to regulate SMS roaming. EU story

EU to impose heavy cuts to SMS roaming charges

Paul Rasmussen — Mon, 14 Jul 2008 14:43:04 -0400

European mobile operators are expecting the worst when the EU's Telecoms Commissioner, Viviane Reding, announces plans (scheduled for 15^th July) for tighter regulation of SMS roaming tariffs. While no specific price caps are anticipated in this first recommendation, Reding has previously mentioned a figure of €0.12 per text, although a study by the Danish government has stated that a price nearer €0.04 should be the target. Brussels insiders believe the proposal is likely to seek a price cap between these two figures. The average SMS roaming tariff today is around €0.30 per text message.

Most national telecoms regulators have accepted that price caps need to be refined, and talk has centred on a 'Eurotariff' of between €0.11 to €0.15 per text which, they claim, allows for full recovery of costs and gives mobile operators a reasonable return. The GSMA, the mobile operator trade association, claims that the majority of European operators have already reduced their SMS roaming charges, either through a reduction of their standard SMS rates or the launch of specialised packages aimed at roamers. According to the industry body, text message pricing had dropped at an annual rate of 18 per cent in April, while the cost of mobile Internet had fallen 25 per cent.

Industry experts estimate that roaming fees generate five per cent to 20 per cent of the SMS sales of most mobile operators.

For more on this story:
- go to the International Herald Tribune and Unstrung

Related stories:
T-Mobile cuts data roaming charges. Data roaming story
European roaming charges falling--official. Regulators viewpoint
Worldwide SMS revenues to hit $67bn. SMS report

Spanish cellphone charges continue to fall, says regulator

Paul Rasmussen — Wed, 02 Jul 2008 12:12:45 -0400

The tariff for Spanish mobile phone calls will decline more steeply this year than during 2007, according to the country's telecoms regulator. The average cellphone call fell by six per cent last year to €0.172 per minute, but a higher percentage drop is predicted this year as EU rulings on roaming charges and the Spanish regulator's reduction of wholesale termination rates take effect.

This continued decline has prompted Telefonica, which has around 45 per cent of the Spanish mobile subscriber base, to call for any more EU-imposed cuts to be delayed or forgotten--hoping that the new French presidency of the EU will introduce a number of revisions to the regulatory package for the mobile sector proposed by Reding.

The GSM Association has also become involved with this battle against Reding's proposal, citing that data from a study by management consultants claims the industry's return on capital employed was as low as seven per cent in 2007, or less than half that of other significant sectors such as steel and software. The GSMA believes that further regulatory moves could seriously damage mobile operators' ability to make much needed capital investments in 4G networks and services.

For more on this story:
- go to Guardian, Easybourse and Money.CNN

Related story:
EU looks to slash termination rates by 70 per cent. Termination rates story