Mod 1 - Intro To LTE

Informa Telecoms and Media
Introduction to LTE and 4G Wireless
CONTENTS
Module Aims and Objectives
SECTION 1 CURRENT TRENDS IN THE MOBILE MARKET
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Lesson 1 Factors Influencing Revenues

13
Introduction ......................................................................................................................... 13
General Mobile Market Trends ............................................................................................ 13
Mobile Revenue Trends ...................................................................................................... 14
Voice Revenues .................................................................................................................. 14
Non-Messaging Data Revenues ......................................................................................... 15
ARPU (Average Revenue Per User) ................................................................................... 16
Operators Device Revenues .............................................................................................. 16
Roaming and Interconnect Revenues ................................................................................. 17
Mobile Operator Revenue Outlook ...................................................................................... 18
Self-Assessment Multiple Choice Questions (Lesson 1) ................................................. 19
Self-Assessment Multiple Choice Answer Grid (Lesson 1) ............................................. 20
Lesson 2 Factors Influencing Profitability
21
EBITDA Trends ................................................................................................................... 21
Pricing Trends ..................................................................................................................... 22
Traffic Trends ...................................................................................................................... 24
Lesson 3 Global Mobile Broadband Market Trends
28
Subscriber Trends............................................................................................................... 28
Device Trends ..................................................................................................................... 29
Network Trends................................................................................................................... 34
Lesson 4 Mobile Data Revenues and Pricing
39
Global Revenue Trends ...................................................................................................... 39
Mobile Data Revenues Gain in Significance........................................................................ 41
Pricing and Data Usage ...................................................................................................... 42
FixedMobile Substitution for Broadband Data ................................................................... 42
Pricing for Mobile Broadband Services ............................................................................... 44
Regional Pricing .................................................................................................................. 48
Section 1 Assignment ..................................................................................................... 53
Section 1 Practice Paper ................................................................................................ 54

Self-Assessment Multiple Choice Answer Grid (Section 1) ............................................. 56
SECTION 2 3G WIRELESS SYSTEMS AND EVOLUTION
57
Lesson 1 Background to 3G Development

59
The Service Delivery Imperative ......................................................................................... 59
Separation of Network Operation and Service Delivery ....................................................... 60
Increased Access Speeds ................................................................................................... 60
Move to Global Standardisation .......................................................................................... 61
3GPP Background, Membership and Structure ................................................................ 62
3GPP2 Background, Membership and Structure .............................................................. 64
Lesson 2 3GPP Specifications and Evolution
68
3G Early Releases .............................................................................................................. 68
3GPP Evolution R6 and R7 .............................................................................................. 69
LTE/SAE (3.9G) Concept .................................................................................................... 71
HSPA (High-Speed Packet Access) .................................................................................... 72
Lesson 3 3GPP2 Evolution and Future Options
78
CDMA Evolution 19952005 ............................................................................................... 78
CDMA2000 Service Capabilities ......................................................................................... 78
CDMA2000 Evolution .......................................................................................................... 79
Future Options .................................................................................................................... 82
Lesson 4 IEEE Technologies
86
The IEEE 802 Committee ................................................................................................... 86
WPANs (Wireless Personal Area Networks) IEEE 802.15................................................ 87
WLANs IEEE 802.11 ........................................................................................................ 89
WMANs 802.16 ................................................................................................................ 89
The Future of WiMAX.......................................................................................................... 93
Lesson 5 Technologies for Evolving Wireless
97
Digital Systems ................................................................................................................... 97
Modulation, Impairment and Coding.................................................................................... 97
Multiple Access Mechanisms ............................................................................................ 100
OFDM (Orthogonal Frequency Division Multiplexing) ........................................................ 102
Advanced Antenna Systems ............................................................................................. 103
MIMO (Multiple Input Multiple Output) ............................................................................... 104
SONs (Self-Organising Networks) ..................................................................................... 105
Self-Assessment Multiple Choice Questions (Lesson 5) ............................................... 106
Self-Assessment Multiple Choice Answer Grid (Lesson 5) ........................................... 107

Section 2 Assignment ................................................................................................... 108
Section 2 Practice Paper .............................................................................................. 109
Self-Assessment Multiple Choice Answer Grid ............................................................. 111
SECTION 3 THE ROADMAP TO 4G AND BEYOND
113
Lesson 1 The ITU 4G Framework and Timelines

115
3.9G Deployment .............................................................................................................. 115
IMT-2000, IMT-Advanced and IMT.................................................................................... 116
3GPP LTE Advanced ..................................................................................................... 117
Migration to 4G ................................................................................................................. 118
NGMN (Next-Generation Mobile Networks Alliance) ......................................................... 119
Lesson 2 Candidate 4G Technologies
123
Key Characteristics of IMT-Advanced Systems ................................................................. 123
3.9G/4G Core Technologies.............................................................................................. 124
OFDMA (Orthogonal Frequency Division Multiple Access) ............................................... 124
MIMO (Multiple Input Multiple Output ) .............................................................................. 125
Small Cells ........................................................................................................................ 127
Software Aspects .............................................................................................................. 129
LTE-Advanced 3GPP Release 10 .................................................................................. 130
Lesson 3 4G Services, Applications and Devices
135
4G Services ...................................................................................................................... 135
4G Applications ................................................................................................................. 136
4G Devices ....................................................................................................................... 137
And Then? 5G .............................................................................................................. 138
Section 3 Assignment ................................................................................................... 143
Section 3 Practice Paper .............................................................................................. 144
Self-Assessment Multiple Choice Answer Grid ............................................................. 146
GLOSSARY OF TERMS
147
TABLE OF FIGURES
Figure 1 Global Mobile Voice and Data Revenues and ARPU, 20122017 ...................... 15
Figure 2 Global Mobile Broadband Operators Non-SMS Data Revenues ...................... 15
Figure 3 Global Voice and Data ARPU, US$/Month ......................................................... 16
Figure 4 Handsets and Smartphone Predictions 20122018............................................ 17
Figure 5 Total Roaming Revenues 20112016 ................................................................ 18
Figure 6 Service Revenues Forecast, 20122017 ............................................................ 18
Figure 7 Selected Operating Groups EBITDA 201011 ................................................... 21
Figure 8 The RevenueProfitability Gap........................................................................... 24
Figure 9 Mobile Broadband Penetration by Region, Q4 2012........................................... 28
Figure 10 Top 10 Global Mobile Broadband Markets, Q4 2012 ........................................ 28
Figure 11 Mobile Broadband Penetration Forecast, 2018................................................. 29
Figure 12 Device Types ................................................................................................... 29
Figure 13 Smartphones as a Percentage of Total Connections (2013) ............................ 31
Figure 14 The Affordable Handsets Market ...................................................................... 32
Figure 15 Pros and Cons of Handset Subsidies ............................................................... 33
Figure 16 O2 MyHandy An Alternative to the Handset Subsidy ..................................... 34
Figure 17 LTE Network Commitments and Launches, 2013............................................. 35
Figure 18 HSPA/HSPA+ and CDMA2000 1x EV-DO Compared ...................................... 35
Figure 19 WiMAX vs LTE Global Subscription Growth, 201216 ..................................... 36
Figure 20 Global Broadband Subscribers by Fixed and Mobile, 20122018 .................... 39
Figure 21 Mobile Broadband Penetration, 2013 ............................................................... 40
Figure 22 Mobile Broadband Subscribers by Technology, 2018 ....................................... 40
Figure 23 Service Revenue Forecasts, 200916 .............................................................. 41
Figure 24 Regional Mobile Broadband Subscriptions (LTE), 20122018.......................... 43
Figure 25 Regional Fixed Broadband Subscriptions (FTTx), 20122018.......................... 44
Figure 26 Approaches to Pricing Mobile Data .................................................................. 45
Figure 27 A Differentiation Toolbox for Mobile Broadband ............................................... 46
Figure 28 Verizon 'Share Everything' Data Plans ............................................................. 47
Figure 29 Average Prices per MB of Data (Integrated Services Plan), 4Q12 .................... 48
Figure 30 Average Wholesale Handset Prices (Global), 2012 .......................................... 50
Figure 31 3G Services ..................................................................................................... 59
Figure 32 3G Target Bit Rates ......................................................................................... 60
Figure 33 The IMT-2000 Family ....................................................................................... 61
Figure 34 Global and Regional 3G Standardisation Bodies .............................................. 62
Figure 35 3GPP Organisational Structure and the TSGs ................................................. 62
Figure 36 3GPP Organisational Partners ......................................................................... 63
Figure 37 3GPP MRPs (Market Representation Partners) ............................................... 64
Figure 38 3GPP2 Organisational Structure ...................................................................... 64
Figure 39 3GPP2 SDO Partners ...................................................................................... 65
Figure 40 3GPP2 MRPs ................................................................................................... 65
Figure 41 3GPP2 TSGs ................................................................................................... 65

Figure 42 Early 3GPP Releases....................................................................................... 69
Figure 43 3GPP R6 and R7 ............................................................................................. 70
Figure 44 3GPP R8 to R10 .............................................................................................. 70
Figure 45 3GPP R11 to R13 ............................................................................................ 71
Figure 46 3GPP LTE and SAE Evolution ......................................................................... 72
Figure 47 Characteristics of HSDPA ................................................................................ 73
Figure 48 HSPA and HSPA+ Compared .......................................................................... 74
Figure 49 Features of HSDPA, HSUPA and HSPA+ ........................................................ 75
Figure 50 CDMA Evolution 19952012+ .......................................................................... 78
Figure 51 CDMA2000 1xEV-DO Rel. 0 Features ............................................................. 80
Figure 52 CDMA2000 1xEV-DO Rev. A Features ............................................................ 81
Figure 53 CDMA2000 1xEV-DO Rev. A Features ............................................................ 81
Figure 54 The Basic Building Blocks of DO Advanced ..................................................... 82
Figure 55 3GPP/3GPP2 Technology Evolution A Comparison ...................................... 83
Figure 56 The IEEE 802 Committee Working Groups ...................................................... 86
Figure 57 Wireless Area Networks ................................................................................... 87
Figure 58 IEEE 802 Working Groups and Industry Alliances ............................................ 87
Figure 59 Wireless Personal Area Networks .................................................................... 88
Figure 60 IEEE 802.11x and Proprietary WLAN Standards .............................................. 89
Figure 61 Initial WiMAX Implementations ......................................................................... 90
Figure 62 Further WiMAX Applications............................................................................. 90
Figure 63 The 802.16d and 802.16e Standards ............................................................... 91
Figure 64 WiMAX versus Cellular Technologies............................................................... 93
Figure 65 LTE and WiMAX Subscribers 2015 .................................................................. 94
Figure 66 Advantages of Digital Networks ........................................................................ 97
Figure 67 Digital Modulation............................................................................................. 98
Figure 68 Adaptive Modulation ......................................................................................... 99
Figure 69 Error Control Coding ...................................................................................... 100
Figure 70 FDMA and TDMA ........................................................................................... 101
Figure 71 Code Division Multiple Access ....................................................................... 101
Figure 72 OFDM and OFDMA Subcarrier Allocation ...................................................... 103
Figure 73 Beam-Forming Antennas) .............................................................................. 104
Figure 74 MIMO ............................................................................................................. 104
Figure 75 Self-Organising Networks (SONs) .................................................................. 105
Figure 76 LTE Commercial Deployments 20092013 .................................................... 115
Figure 77 Proposals for IMT-Advanced .......................................................................... 116
Figure 78 The ITU-R, IMT-2000 and IMT-Advanced ...................................................... 117
Figure 79 3G and Broadband Wireless Technology Evolution ........................................ 117
Figure 80 Market Trends and Technology Requirements ............................................... 118
Figure 81 IMT-Advanced Timeline ................................................................................. 119
Figure 82 NGMN Roadmap............................................................................................ 120
Figure 83 Orthogonal Frequency Division Multiplexing (OFDM) ..................................... 125
Figure 84 2x2 MIMO Example ........................................................................................ 126
Figure 85 Small Cell Types ............................................................................................ 127
Figure 86 Macrocells vs. Small Cells .............................................................................. 128
Figure 87 Femtocell Deployments by Type (2013) ......................................................... 129

Figure 88 Carrier Aggregation ........................................................................................ 131
Figure 89 Relay Nodes .................................................................................................. 132
Figure 90 ITU-Defined Applications and Service Classes .............................................. 137
Figure 91 LTE Devices Products Launched (2013) ..................................................... 138
Figure 92 5G Timeline.................................................................................................... 139
Figure 93 Capacity Crunch............................................................................................. 140
Figure 94 Limitless Communication and the 'Internet of Things' ..................................... 140
Module Aims and Objectives

The roll-out of 3.9G and 4G networks and discussions about the possibility of a future fifthgeneration mobile technology make this an exciting time for the mobile-communications
industry. This module is designed to introduce you to the key concepts of 3.9G and 4G, in
terms of industry trends, core technologies, and the standardisation process.
By the end of this module, students will be able to:
Discuss the short- and long-term challenges that operators face globally
Describe current trends in the industry in terms of technology uptake, revenues,

ARPU, devices and pricing
Understand how network are evolving from WCDMA to HSPA and LTE, and also
how CDMA2000 networks are evolving from 1xEV-DO Rel. 0 to DO-Advanced
Explain the standardisation process for both LTE and CDMA2000 networks, and list
the standards bodies involved in this
Name and describe a range of IEEE technologies including WLANs, WPANs and
WMANs
Compare LTE with competing technologies such as CDMA2000 and WiMAX
Describe core technologies that are fundamental to the operation of LTE, including
OFDMA, MIMO and self-organising networks
Discuss software aspects of LTE networks, including turbo coding, advanced

modulation and coding schemes, and software-defined radio
Describe how networks are evolving towards LTE-Advanced, and the technologies
that are fundamental to this
Suggest services and applications that may become available with LTE-Advanced
Discuss how networks could evolve beyond 2020, and the benefits that this may be
expected to bring in terms of service offerings and availability
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SECTION 1
CURRENT TRENDS IN THE MOBILE MARKET
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Lesson 1 Factors Influencing Revenues

Introduction
The global telecoms industry is going through turbulent times. Telecoms businesses all
around the world are grappling with short-term pressures such as competition, price wars,
churn, regulatory pressures, ARPU (Average Revenue Per User) and market share, and with
significant long-term challenges such as capital expenditure and investment decisions,
market strategy and business models.
Each region, country and operator faces different pressures, but there are some common
threads. In this lesson we take a look at some of the major factors influencing the telecoms
industry at a global level.
General Mobile Market Trends

The operating climate for mobile operators around the world is difficult. Not only are many of
the worlds telecoms markets intensely competitive, but they are also facing up to an
ongoing rebalancing of the global economy. Some mobile operators have adapted
themselves to this environment better than others.
Of course, most mobile operators will survive this challenging operating climate, not least
because mobile telecoms spend has become non-discretionary for many customers.
However, mobile operator revenues will continue to face significant pressures both from the
macro-economic environment and from changes in how they generate revenues in future.
The most significant trends impacting global operators revenue streams are:
A decline in core voice and SMS revenues
Changes in the regulatory environment, leading to increased competition and further

price declines
A slow-down in subscriber growth rates as most markets have reached (or are
nearing) maximum addressable market penetration levels
Increase in take-up of non-messaging mobile data services, especially since 2008
Adoption of smartphones as web browsing via mobiles increases in popularity
Although it may appear that the outlook for mobile operators is bleak, the industry is
remarkably resilient far more so than many others. While basic mobile voice services have
become a commodity in many markets, there is evidence of a significant rise in demand for
mobile data products in both developed and emerging markets.
Operators view this as an opportunity to push more advanced technologies such as HSPA+
(evolved High Speed Packet Access) and LTE (Long Term Evolution) in an attempt to offset
slowing voice revenues and to differentiate from their competitors. The problem for operators
is how best to balance the cost of upgrading networks to support future demand for mobile
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broadband services and build sustainable competitive advantage, while at the same
maintaining profitability.
Mobile Revenue Trends

Revenue streams for mobile operators have historically come from the following main
sources:
Retail voice minutes
Retail SMS and other non-voice services
Retail handset and device sales (in markets where operators are involved in this)
Roaming and interconnect revenues
Airtime and capacity wholesale sales
Voice Revenues
Despite a rise in the uptake of data services, voice is still a major revenue driver for
operators in both developed and developing countries. However, revenues from core voice
services have been falling globally, and existing voice revenues are threatened. This is due
to several factors, including:
Increased competition from other mobile network operators as a result of

deregulation, leading to price wars in many markets
The arrival of MVNOs in some markets (especially in Europe) that have taken control
of the extremely price-sensitive end of the market and significantly impacted the
premiums that operators can charge for voice services
Price-sensitivity of many consumers due to macro-economic conditions, with

customers seeking value tariffs and cheaper deals and promotions where possible
Reduced usage of mobile phones among some users, such as prepaid customers,
who are topping up less frequently or churning to other providers
The availability of substitutes, such as VoIP (Voice over IP) and messaging
The proliferation of flat-rate, all-you-can-eat bundles of minutes, which has reduced

the effective revenue per minute that operators are able to generate
The proliferation of data-centric smartphones
OTT (Over The Top) players offering alternative service that compete with, and
cannibalise, operators service offerings and in some cases out-perform them
Voice services by operators have remained stagnant for some time while OTT
players are offering an increasing number of rich-voice services
Nonetheless, voice is expected to remain a key service for mobile operators in the future.
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Figure 1 Global Mobile Voice and Data Revenues and ARPU, 20122017
Non-Messaging Data Revenues

The mobile broadband market has taken off to the extent that it is fast becoming one of the
most important segments of the mobile telecoms industry. In fact, Informa Telecoms &
Media research finds that the mobile industry will effectively become the mobile broadband
industry by 2016.
The mobile industry has long tried to boost non-SMS data revenues in a bid to offset
declining voice revenues, but the rise of mobile broadband meant 2008 was the year when
its efforts finally started to deliver significant results. More than 20 operators globally
reported non-SMS data revenues that represented more than 50% of their total data
revenues in 3Q08 ten of these operators had non-SMS data revenues in excess of 60% of
their total data revenues, and this trend is increasing such that several operators are now
reporting non-SMS data revenues above 80% (as a percentage of total data revenues).
Figure 2 Global Mobile Broadband Operators Non-SMS Data Revenues
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ARPU (Average Revenue Per User)

The combined effect of these factors is that ARPU is flat or even declining. Revenues from
SMS and other non-voice services are generally increasing, due largely to the expansion of
mobile broadband services, but the pace of the increase is not yet fast enough to offset the
decline in core voice revenue, so total ARPU is declining overall. In addition, revenues per
data bit are falling, due largely to the huge uptake of flat-rate data plans (where these are
available) and to competitive and substitution effects.
Figure 3 Global Voice and Data ARPU, US$/Month
Operators Device Revenues

Over recent years, handset sales have suffered from macro-economic pressures on
consumers discretionary expenditure, such as the decreased availability of credit, and
overall handset revenues for operators fell accordingly. Despite rising numbers of
smartphone acquisitions, many customers have been seeking lower-price handsets or even
not replacing handsets. In emerging markets, sub-US$10 handsets are widely available, as
are reconditioned handsets from developed countries.
However, from 2010 the mobile handset market began to bounce back, with device sales
rising 12.8% to 1.23 billion. This increased into 2011 with an 11% year-on-year rise to 1.36
billion. Continued growth is predicted across all major world regions, especially in the
smartphone sector, and Informa Telecoms & Media predicts that global device sales will
exceed 1.7 billion by 2016.
The causes of this upturn in the market include:
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Continued increase in mobile-subscription numbers in developing regions and

countries
Active replacement of handsets for devices with leading designs and enhanced
technical and data capabilities
The continued fall in handset prices in most segments, with devices with greater
capabilities now available at a lower price point
Smartphones accounted for around 21% of all total connections in 2012 (19% of the
population), and Informas predictions suggest that this figure will nearer 50% (52% of the
population) by 2018.
Figure 4 Handsets and Smartphone Predictions 20122018
Roaming and Interconnect Revenues

Pressures on roaming and interconnect revenues are significant and include:
A reduction in business travel
New regulatory requirements in terms of termination rates for both voice and data
services (for example, in the EU)
The introduction in some regions of cross-border single networks that reduce the
need to roam (for example, Zain in Africa)
A drive by competing operators to force customers onto on-net tariffs, leading to

reduced opportunities for interconnect and termination revenues.
However, there is great potential for data roaming, and this is regarded as a potential growth
area for the future.
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Figure 5 Total Roaming Revenues 20112016
Mobile Operator Revenue Outlook

Overall, mobile operator revenues are likely to show slow growth for the foreseeable future.
Data is key: next-generation mobile broadband networks should enable new business
models that will provide alternative revenue sources and some EBITDA (Earnings Before
Interest, Taxes, Depreciation, and Amortisation) upside for many mobile operators and their
partners.
Figure 6 Service Revenues Forecast, 20122017

As a result of continuing pressures on revenues, operators also need to reduce costs and
drive new business models that will enable them to deliver innovative, customer-centric
solutions while maintaining both revenues and profitability in the long term. It is to this
environment to which mobile operators need to adapt, and it is not an easy task.
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Self-Assessment Multiple Choice Questions (Lesson 1)

Q1.
Since which year has mobile broadband had a significant effect on operator
revenues?
a) 2008
b) 2009
c) 2010
d) 2011
Q2.
What is predicted to be the most important source of retail revenues for mobile
operators globally by 2016?
a) Voice
b) SMS
c) Non-messaging mobile data
d) Handset sales
Q3.
Which of the following statements is correct?

a) Handset sales are generally falling across all world regions
b) Handset sales have stagnated, mainly in developing countries
c) Handset sales are increasing, but only in developed countries
d) Handset sales are increasing across all world regions
Q4.
Smartphone penetration is expected to exceed 50% by which year?

a) 2014
b) 2015
c) 2016
d) 2017
Q5.
What is likely to happen to revenues in the foreseeable future?

a) They will remain flat
b) They will rise slowly
c) They will decline
d) They will remain flat, then rise as 4G networks roll out
Which of the following statements is true?

a) Voice ARPU is falling, while data ARPU is rising, with a general downwards trend
b) Voice and data ARPU are falling, with a general downwards trend
c) Voice and data ARPU are rising, with a general upwards trend
d) Voice ARPU is falling, while data ARPU is rising, with a general upwards trend
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Self-Assessment Multiple Choice Answer Grid (Lesson 1)

Transfer your answers onto the grid for easy assessment and future reference.
Name...
Question set
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Lesson 2 Factors Influencing Profitability

EBITDA Trends
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) levels have been
steadily declining across the telecoms industry for a number of years, although their absolute
level depends on the maturity of the market. The general trend of decline can be seen in the
following table although note some exceptions, such as Telia Sonera and BT Group.
Figure 7 Selected Operating Groups EBITDA 201011

The trend towards lower EBITDA appears to be accelerating, as maintaining revenues is
becoming increasingly difficult for the reasons outlined above. For example, in the UK,
EBITDA levels among the main network operators is down to around 30%. Many operators
around the world have to face up to the reality of doing business in an environment where
profitability may be under threat. As a result, many operators are turning to short- and longterm cost management measures to maintain EBITDA ratios.
Mobile operators face something of a paradox. On the one hand, cost-cutting at opex level is
central to operator planning to maintain profitability levels in an environment where revenues
are under severe pressure. Many operators first recourse is to cut non-fixed or discretionary
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costs such as temporary staffing, consulting services and marketing (even though successful
marketing should have a positive impact on revenue generation and profitability!).
If short-term opex reductions are not sufficient to maintain EBITDA levels then operators
start looking at cutting fixed costs. Mobile operators are tracking a series of early-warning
signs, which include the emergence of bad debts, higher churn and customers migrating to
lower-priced tariffs, as indicators that fixed cost adjustments may be needed to reflect a
long-term change to their underlying business models. Fixed cost adjustments may include
steps such as network-sharing, outsourcing of part or all of the network design, maintenance
and management, and, in extreme cases, delays or cancellations of planned network
upgrades.
One way of avoiding having to put on hold future network build-out (for example, of WiMAX,
HSPA+ or LTE networks) entails the increasingly popular trend towards network sharing and
the outsourcing of network management tasks. The cost and investment pressures being
piled on operators have strengthened the need for strategies such as network sharing, and
around the world infrastructure sharing and joint network development announcements are
increasing. There is an accelerating trend towards outsourcing, whereby networks are
(often) managed by equipment providers. Although strict cost management at opex level is a
fact of life for most operators, conversely, the increase in demand for data services means
there is still a requirement for continued capital investment in network upgrades if operators
are going to develop advanced services and remain in business in future.
The most basic form of network sharing involves the use of common sites or towers. At the
other extreme, full network sharing involves the building of a single network from which two
(or more) licensed operators lease capacity. In this model, the mobile operators are to all
intents and purposes taking the roles of MVNOs, becoming customers of a separate
network entity.
Most network-sharing agreements involve the radio access network. Typically, two or more
mobile operators agree to build and own access networks jointly in rural areas where there is
insufficient traffic and revenues to justify several competing networks.
The approach is common not just in developed markets but also in emerging markets, where
mobile operators need to reach out to new low-ARPU segments to keep expanding their
businesses.
In spite of the importance of this strategic investment for the future viability of mobile
operators, a decline in revenues has in many cases actually forced a reduction in capex and
deferral of investment decisions. This is a decision of last resort for many operators, since
access to next-generation mobile broadband networks is critical to staying in business.
Pricing Trends
A number of new tariff and service strategies are being introduced that are designed to
enhance loyalty and therefore reduce churn rates. The most successful strategies will not
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only help to retain existing business but also serve to assist in taking market share away
from rivals in the long term, or to create entirely new revenue streams. The issue for
operators is to balance a complex set of customer- or segment-specific tariff plans that
respond to customer requirements in terms of delivering value for money, while at the same
time maintaining transparency in the eyes of customers. At all costs, operators should avoid
price wars, since the practices of heavy discounting and special promotions to win
customers in the short term have severe negative effects on revenues, EBITDA and
sustainability in the long term.
Some of the main pricing trends include:
The expansion of SIM-only deals, whereby access to the network operator is offered
separately from the device or handset
No-frills pricing, whereby operators address existing and low-potential customers with
undifferentiated, basic services (usually voice and SMS only) this strategy is
common among MVNOs but can be dangerous for operators unless their cost base
is low enough and unless they can build sufficient economies of scale to maintain
margins
Increase in bundled offers, for example, bundles of voice, SMS and mobile Internet
access, or bundles across networks, such as TV, fixed broadband, fixed telephony
and mobile telephony, which makes pricing transparency difficult
Flat-rate pricing, which removes many of the barriers to adoption of mobile data
services
In the prepaid market, availability of very-low-denomination top-ups, as a mechanism

for attracting very-low-income customers
Also in the prepaid market, increased validity of airtime credit, shared airtime and
attractive deals for on-net pricing
Variable pricing is extending beyond the traditional time-based methods (for

example, evenings/weekends and peak hours) into new areas, such as capacitybased pricing (for example, prices are lower when networks are less busy and vice
versa).
All-you-can-eat pricing models are starting to be replaced by tiered pricing and

multi-device plans
The overall trend for mobile prices (both voice and data) is downwards overall, and this is
starting to create major headaches for operators in terms of revenue, ARPU and profitability,
but also in terms of traffic management and network dimensioning and associated capex
and opex.
Informa Telecoms & Medias research indicates that a number of interesting new business
models have emerged and the customer now lies more towards the centre of operator
thinking, a necessary development. The provision of new, different and relevant services is
what makes operators offerings attractive to customers, and market-focused agreements
with the right partners can be effective in terms of building a sustainable strategy, especially
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in the face of the OTT threat. Operators that adapt their strategies to meet new consumer
demands will be the most likely to lead the way as new services and applications emerge
based on next-generation mobile broadband networks.
Traffic Trends
One of the main drivers of vastly-increased mobile broadband traffic on 3G and 3.5G
networks was the proliferation of all-you-can-eat flat-rate tariffs for mobile data, which largely
replaced the per-MB price plans that had previously existed.
In competitive markets, something of a price war broke out when operators began offering
ever-lower prices on flat-rate tariffs. However, since mobile data services have proved to be
very price-elastic, the low prices caused a monetisation gap between the amount of traffic
generated and revenues to the operators. Many mobile operators have experienced
increases in traffic that far outweigh the associated increase in subscriber numbers and
revenues in effect, traffic surged but revenues did not, resulting in significantly increased
network-related operating costs that were not matched by revenue increases.
This gap is not only significant in terms of mobile data revenues: mobile data was supposed
to be the way that operators would replace declining revenues from voice and SMS services.
In fact, what seems to have happened is that mobile data price erosion has occurred even
faster than that observed in the voice and SMS markets.
Figure 8 The RevenueProfitability Gap

The runaway success of mobile broadband and its associated increase in traffic means that
the profitability of mobile broadband networks is starting to become a serious issue for many
operators. However, mobile-broadband networks will contribute to improving profitability (if
correctly implemented) because they incur significantly lower prices per MB than 3G and
3.5G data services. Furthermore, the inherent flat architecture and greater spectral
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efficiencies provided by LTE mean that the network can be used more efficiently.
However, the migration to full LTE networks will take many years, and in the meantime
operators need to find a business model that enables them to deliver data profitably based
on their legacy mobile data infrastructure alongside any LTE deployments that may occur.
Operators need to finely tune their marketing strategies and pricing in order to maximise the
increase in data usage.
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Q1.
EBITDA is generally:
a) Increasing
b) Decreasing
c) Remaining stable
d) Showing an upturn after a period of decline
Q2.
If short-term opex reductions are not sufficient to maintain EBITDA levels, then what
steps should operators take?
a) Cut staffing levels
b) Cut the marketing budget
c) Cut fixed costs
d) Raise prices
Q3.
Operators who adopt which of the following policies will be likely to lead the way in
the future?
a) Adapt strategies to meet new consumer demands
b) Cut prices, and increase capacity on the network
c) Offer great deals, such as free high-end smartphones
d) Enter price wars with other operators
Q4.
Given the gap between revenue and profitability, one of the key business model
challenges faced by operators is:
a) Keeping operating costs as low as possible
b) Keeping capex as low as possible
c) Keeping prices as high as possible
d) Maximising revenue per MB while minimising costs per MB
Q5.
What is generally considered to be the long-term impact of price wars on operators

revenue levels?
a) No significant change to revenue levels
b) Helps increase revenue over the long-term
c) Significantly reduces revenue over the long-term
d) Defers the revenue opportunity
Q6.
Mobile-broadband networks will contribute to profitability because:

a) The services they offer are more attractive to subscribers
b) They incur lower prices per MB than 3G and 3.5G data services
c) The network architecture is less expensive than it used to be
d) New pricing models will increase ARPU
26

Name...
Question set
27
Lesson 3 Global Mobile Broadband Market Trends

Subscriber Trends
The effect of the early roll-out of mobile-broadband networks in the USA can be seen in the
subscriber numbers, as the USA has the greatest number of subscribers to mobilebroadband networks and the USA/Canada region as a whole has the greatest mobilebroadband penetration globally, the figure standing at 79.1% at the end of 2012.
Although the USA is followed by China and Japan in terms of subscriber numbers, as a
whole the AsiaPacific region has shown less development, with penetration of just 17.7%.
Africa lags behind significantly, with only 8.4% penetration.
Figure 9 Mobile Broadband Penetration by Region, Q4 2012
Figure 10 Top 10 Global Mobile Broadband Markets, Q4 2012
28
Mobile broadband subscriber numbers are predicted by Informa Telecoms & Media to
exceed 6 billion by 2018, with the majority of subscribers being in the Asia-Pacific region.
Figure 11 Mobile Broadband Penetration Forecast, 2018
Device Trends
Mobile-Broadband Device Types
The mobile broadband market is made up of two key segments based around portable and
mobile devices. The portable segment started to take off in 2007 with the arrival of USB
modems or dongles, while in many markets the mobile segment took off in mid-2008 with
the arrival of the iPhone 3G and the wave of competing mobile Internet-oriented devices
(smartphones) it inspired.
Figure 12 Device Types
29
One of the most important aspects of the portable segment is that it is a new market that is
already delivering significant new data revenues for mobile operators. Although operators
have long offered mobile services to notebook computers, these were usually expensive
niche services targeted at niche vertical markets such as logistics. That picture changed
dramatically in late 2007 and 2008 with the arrival of affordable mobile broadband networks,
devices and services. It has since changed again with the introduction of the iPad and the
other tablet devices that have followed.
Overall, the ubiquity of wireless connectivity is giving rise to broad range of new device
types, and a growing need for faster connection speeds is generating a range of electronics
goods from mobile handsets to laptops to CE (Consumer Electronics) that offer
broadband wireless data transfer . The wireless world faces a number of significant
challenges to meet this demand, but the opportunities are abundantly clear. Some of the key
questions are:
Will new device segments be born, and which high-speed wireless technologies will
win out?
What applications and services will these devices have to offer in order to convince
subscribers to buy?
What will be the device costs, distribution and retail strategies, and hardware and
software roadmaps?
Smartphones
A key trend within the mobile sector is the rapidly growing popularity of smartphones
According to UK operator Everything Everywhere, 65% of their postpaid subscribers now
own a smartphone, with 85% of new subscribers opting for a smartphone over a traditional
mobile phone. It is advantageous to operators if their subscribers choose smartphones over
the alternatives, because smartphone users are likely to be heavier users of data, hence
generate more revenues. If operators can get their content and device strategy correct, nonvoice services can become a central plank to their strategies. Key points to note are:
A desire to access the Internet while mobile is causing a behavioural shift in mobile
subscribers, and stimulating smartphone adoption
Applications too are driving smartphone adoption with end users demonstrating an
appetite to pay for and download apps
The availability of low-cost smartphones is enabling operators to target specific

segments of the market but operators must make sure they do this profitably
Subsidies are a concern smartphones are attractive to end users if they are highly
subsidised, but operators must think about how they will recoup their investments
This upsurge in the popularity of smartphones is clearly affecting revenue positively. Almost
a third of operators are seeing an 1120% increase in ARPU when users migrate from a
non-smartphone to a smartphone, and 94% of those say they are seeing some form of
ARPU uplift. However, this may be affected by a number of factors such as overall market
30
characteristics, segments penetrated, the level of smartphone adoption, tariff strategies, and
the types of smartphone sold in the marketplace.
In some regions, such as South America and Africa, the poor take-up of smartphones by
large portions of budget-conscious, low-end users is constraining the growth of mobile
broadband services. However, smartphone connections in these regions are predicted to
grow quicker than the rest of the world due to the anticipated demand for entry-level
smartphones.
Figure 13 Smartphones as a Percentage of Total Connections (2013)

Affordable Handsets
Emphasis on the smartphone market can lead us to forget that there is a significant market
for lower-end devices aimed at those on a lower budget or who are technology-sceptics and
prefer to use a simpler handset. Operators should not therefore concentrate only on highend smartphones, but should remember that there are different smart phones, or feature
phones for different categories of user.
Since 2010, an emerging theme has been the race to the bottom, in terms of expanding
device portfolios to include low-cost smartphones and feature phones. End users now have
access to an improved range of cheaper devices, which may boast less functionality than
high-end smartphones but which have more capabilities than their 2G/2.5G predecessors.
Although the key aim may be to push these low-end devices into emerging markets, there is
space for them in developed markets too.
31
Figure 14 The Affordable Handsets Market

Value and low-end segments are set for the quickest and largest growth in the affordable
handsets market, and some traditional OEMs, such as Nokia, Samsung, LG and
BlackBerry, are being challenged already by micro-brand assemblers such as Little Chili,
Xolo and Meizu, which are offering affordable handsets with technology that is comparable
to the offerings from traditional OEMs, but at lower price points.
These handset manufacturers tend to have lower opex and fewer overheads (for example
R&D and marketing costs), which makes it harder for the likes of Nokia and BlackBerry to
match these low prices and still make an operating profit. And while assemblers lack the
credibility of established vendors, then can rely on brand cache of the OS and component
integration, such as number of processors to compensate.
Companies such as ZTE, Lenovo and Huawei, which come from assembler backgrounds,
are already garnering a significant corner of this market segment.
Key questions for operators are:
How do I attract and then retain high-value smartphone customers?
How do I drive smartphone adoption into new segments, especially in the prepaid
segment?
How do I maximise the customer lifetime value of smartphone customers?
Some operators have turned to subsidising high-end smartphones phones in an attempt to

ensure future revenue growth from greater data usage and increases in traffic. However,
handset subsidies and in particular smartphones, which have a higher wholesale price
than simpler models increase SAC (Subscriber Acquisition Costs) considerably and are
therefore having a negative impact on EBITDA margins.
32
There are both negative and positive arguments about the handset subsidy, some of which
are listed in the figure below. Giving the positive view, Zeinal Bava, CEO of Portugal
Telecom, stated in 2013 that the handset sales and subsidies are picking up a bit simply
because we are trying to push smartphones in our customer base. We believe that this is the
avenue that we have to take to promote data usage and continue to reduce churn which
is very important in terms of a customer lifetime value driver. Putting the case for the other
side, Stephane Richard, Chairman, Chief Executive Officer and Chairman of the Strategy
Committee of Orange, stated that when you enter subsidy, you enter into a business
approach that is no longer lean and it's quite costly on the profit and loss and the cash
situation.
At present, however, the increase in data spend is not sufficient to counter the high SAC
associated with smartphones, and particularly super-smart phones.
Figure 15 Pros and Cons of Handset Subsidies

Some operators are already moving away from the handset subsidy model. Since 2008,
nearly 30 European operators have introduced handset-financing programs.
As an example, in an attempt to reduce SAC, in 2008 Telefnica O2 launched a service
called MyHandy, which enables consumers to purchase any of its full range of handsets or
tablets through a finance plan, without signing a contract. They can opt out at any time
without penalties, providing they pay the balance on the handset; the phone is not SIMlocked. This can represent a convenient payment option to subscribers, while it enables the
operator to separate equipment revenues from services by eliminating the handset subsidy.
MyHandy is a model financing program in several key ways (see the figure).
33
Figure 16 O2 MyHandy An Alternative to the Handset Subsidy

Another company that has been offering handset purchase by instalments is Danish
operator TDC, with their TEC Rate service. Within two quarters, TDC reported that more
than half its postpaid customers had migrated to TDC Rate contract, and that there had been
a significant drop in SAC as a result.
Network Trends
LTE (Long-Term Evolution)
The first commercial deployment of LTE was in Sweden at the end of 2009 by TeliaSonera,
and there are now over 200 commercial LTE networks, with many more networks committed
to rollout in the future.
Although there has been a lot of buzz around LTE deployment, a number of operators have
admitted that their LTE deployment timelines have slipped by several years. This is partly
due to the economic downturn and the resulting need to delay major network upgrades until
better times, and partly due to the increasing realisation that HSPA+ upgrades will often be
cheaper than deploying LTE, and will provide enough performance to carry operators
through the next several years.
Of course, operator strategy varies considerably, depending on competitive dynamics and
other factors, which helps to explain why not all operators are delaying their LTE deployment
plans. For example, Verizon Wireless, which launched LTE services in 2010, has proven an
aggressive competitor in the market, with a good subscriber take-up of the service. In May
2013, Verizon had a total of 26.3 million 4G LTE subscriptions, which approximates to
around 28% of its postpaid base.
34
Figure 17 LTE Network Commitments and Launches, 2013

HSPA (High-Speed Packet Access) and CDMA 1x EV-DO (Evolution Data Only)
The delays in LTE rollouts highlight the strength of HSPA, and cement its position as the top
mobile broadband system worldwide.
Historically, CDMA 1x EV-DO was the top mobile broadband system, largely because it was
deployed four years before HSDPA (High Speed Downlink Packet Access), but HSDPA
caught up fast. All WCDMA (Wideband Code Division Multiple Access) operators have now
launched HSPA, and the number of UMTSHSPA subscribers exceeds the number of
CDMA subscribers by over three million.
Additionally, more networks are now rolling out HSPA+, and again, comparing HSPA+ with
CDMA 1x EV-DO Rev. A, the number of HSPA+ networks is greater.
Figure 18 HSPA/HSPA+ and CDMA2000 1x EV-DO Compared

The statistics highlight that, while technology battles still rage in the mobile industry, the
major wars between rival radio access networks have been settled. HSPA has emerged as
the top mobile broadband system in the short to medium term, and in the long term LTE has
become the clear winner among next-generation mobile networks, after it gained the backing
of most of the worlds largest mobile operators including Vodafone, China Mobile, Verizon
Wireless, AT&T, NTT DoCoMo and KDDI. However, with a subscriber base in excess of
90% of the worlds population, 3GPP technologies GSM, WCDMA, HSPA/HSPA+ and LTE
are continuing to monopolise the world market overall, and will continue to do so for some
time into the future.
A related development was the death of UMB (Ultra Mobile Broadband), the next-generation
version of CDMA2000, which means most EV-DO operators will now migrate to LTE.
WiMAX
There was a time when WiMAX was battling LTE to become the top next-generation mobile
network technology, but it has lost that fight and moved on. Now, however, for the most part,
its backers are steering clear of direct competition with LTE and focusing on the substantial
35
opportunity for bringing broadband to emerging markets via fixed and portable rather than
mobile devices. The result is that WiMAX will carve out a respectable niche for itself, and will
take a small but steadily increasing share of the global mobile broadband market.
Figure 19 WiMAX vs LTE Global Subscription Growth, 201216
36

Q1.
Which is the fastest-growing mobile broadband market in the world?

a) USA
b) Germany
c) China
d) Japan
Q2.
In which world regions are smartphone connections predicted to grow most rapidly?
a) USA and Canada
b) Eastern Europe
c) South America and Africa
d) Asia Pacific
Q3.
What is likely to be the short-term effect on operators profitability of offering

subsidies on smartphones and other high-end devices?
a) Significant increase in profitability due to increased data usage
b) Significant negative effect on profitability
c) No change to profitability
d) Small decline in profitability
Q4.
Which was the first network operator to deploy LTE commercially?

a) Vodafone
b) Verizon
c) TeliaSonera
d) NTT DoCoMo
Q5.
Which technology is most dominant in the world in terms of subscriber numbers?

a) WCDMA/HSPA/HSPA+
b) CDMA2000 1x EV-DO Rev. A
c) WiMAX
d) GSM
Q6.
Which of the following comprises the greatest number of network rollouts?

a) EV-DO Rel. 0
b) HSPA
c) EV-DO Rev. A
d) HSPA+
37

Name...
Question set
38
Lesson 4 Mobile Data Revenues and Pricing

Global Revenue Trends
Mobile broadband definitions vary from operator to operator, and indeed from analyst to
analyst. However, although there is no standard definition for the term broadband, it is
generally accepted to mean access rates of several megabits per second. But for end-users,
who generally take a technology-agnostic view of high-speed Internet services, mobile
broadband is a service that allows access to the Internet wherever they are.
Recent years have seen a dramatic increase in the numbers of subscribers on a global basis
who have broadband access to telecoms networks and services. These subscribers are
seeing their access rates increase considerably as new network technologies are rolled out.
For example, fibre-based access in fixed networks and LTE in mobile networks.
The advent of mobile broadband services has reinvented the business case for 3G through
the evolution of HSPA and CDMA2000 1xEV-DO networks. Indeed, the mobile broadband
market is at a key inflection point, with all WCDMA operators having launched HSPA, and a
rapidly increasing number moving into LTE.
Mobile operators understand the need to increase their data revenues given the ongoing
decline in voice prices and revenues. Data revenues are becoming integral to growth in
emerging markets as well; with 96% of the world population having at least one mobile
subscription, many markets are reaching saturation and growth is slowing down.
Figure 20 Global Broadband Subscribers by Fixed and Mobile, 20122018

Research by Informa shows that the size of the mobile broadband market has grown quickly
over the last five years. It is suggested this is the case simply because the addressable
market is so vast, and made more so by the fact that unlike fixed broadband systems, mobile
broadband services are aimed at individual consumers rather than households.
Subscriptions to mobile broadband are rising steadily, with 27.5% penetration worldwide.
39
USA/Canada and Western Europe lead the way, having around 89% and 84% connectivity
respectively. Interestingly, in Africa penetration has reached 9.5% for mobile broadband,
compared to just 1% for fixed. This is largely due to the deployment of technologies such as
WiMAX, which can take services such as mobile broadband out to areas that lack a fixedtelephony infrastructure, hence have no access to fixed-line services.
Figure 21 Mobile Broadband Penetration, 2013

According to Informa Telecoms & Media, from a base of fewer than 800,000 mobile
broadband subscriptions in 2007, by 2018 mobile broadband will be ubiquitous, with 6 billion
connections across four principal technologies.
It is worth noting that UMTS/HSPA is still predicted to be the dominant technology by some
considerable margin, with LTE slowly growing in subscriber numbers, and considerably more
than CDMA 1x EV-DO.
Figure 22 Mobile Broadband Subscribers by Technology, 2018
40
Mobile Data Revenues Gain in Significance

When global service revenues are analysed, a slow-down in the growth is evident overall.
However, when the different regions are analysed, the figures show differing growth rates. In
the developed world, the growth rate stands at around 3%, but in the developing world it
stands at 13%.
The most important change in the shape of these revenues is the balance between voice
and data services. All regions see a growth in data as a percentage of overall revenues,
although this is fastest in Europe, North America and Asia Pacific. Whilst SMS revenues
continue to be a significant element of these revenues, the launch of flat-rate data plans by
many mobile operators has also led to a surge in data traffic.
Figure 23 Service Revenue Forecasts, 200916

There is no doubt that mobile broadband services and the popularity of smartphones are
contributing largely to the rise in data revenues. The power of mobility combined with the
diversity of the Internet is creating a plethora of new opportunities for mobile operators that
allow the end-user to enjoy the traditional Internet experience anywhere, and at any time.
Particularly, it allows:
The mobile device to benefit from the PC internet market
Mobile users to access tailored applications from the open Internet (YouTube,
Google Maps)
Social networking via mobile, e.g. Facebook and Twitter
Mobile access networks to become an alternative to DSL, cable or Wi-Fi as an

access point to the Internet
The differences across the world regions create a range of challenges for mobile operators
as they seek to take advantage of the mobile broadband option. Questions for those working
in the mobile industry include:
41
How will operators tackle convergence and compete with the fixed broadband
market?
Which market segments should operators target primarily, and with which
technology, and at what price?
What is mobile broadband used for, and which applications are driving take-up?
How will operators manage the increased demands on capacity, and the reduced
profit margins that result from it?
The answers to these questions will be very different from region to region, but central to all
successful mobile operator strategies surrounding mobile broadband services is how carriers
can best differentiate their services from those of their competitors, and how they can make
money out of the mobile broadband business model.
Pricing and Data Usage

One of the points raised above is the increased demand on capacity, and the resultant
decline in revenue. Partly, this is as a result of the flat-rate plan: as the number of
subscribers to data services expands, the fact that there is no limit on data usage has led to
a substantial rise in data traffic. Furthermore, as well as increasing demands on capacity
overall, all-you-can-eat data bundles tend to attract users of high data volumes.
Unlimited pricing is leading to a significant reduction of the margin on data. In addition,
revenues have also been increasing disproportionately more slowly than the increase in data
traffic. Some operators have since moved to usage-based pricing with a monthly bandwidth
cap.
FixedMobile Substitution for Broadband Data

Findings from the UK regulator Ofcom suggest that revenue from fixed networks is declining,
due to the take-up of mobile and an increasing number of subscribers using mobile
broadband services at home. This trend look set to continue with the rise of LTE. There are,
however, serious constraints to mobile broadband usage, and it remains unclear how
operators will seek to address the weight of demand for bandwidth. Nonetheless, there is
evidence that high-speed LTE, together with the tablet and smartphone boom, is a matter of
concern for fixed broadband operators in some markets.
In Japan, for example, major fixed-broadband providers NTT East and NTT West, which
have invested heavily in their FTTH (Fibre to the Home) network, have been forced to cut
their fixed-broadband prices by 34% in order to try and prevent the steady flow of
subscribers away from fixed-line to LTE, which in that market is cheaper.
Operators who have driven towards FMC (FixedMobile Convergence), utilising capacity in
their fixed networks to offload mobile data traffic, are likely to see similar trends as they roll
their LTE networks out. NTT DoCoMo launched their LTE network in 2010, and are enjoying
rapid subscriber growth (15 million LTE subscribers at the end of July 2013, up from 10
42
million in February 2013, a rise of 1 million subscribers a month). Rivals KDDI and Softbank,
who have been pursuing their FMC solution through fixed modems to allow their customers
to make cheaper voice and data calls using their fixed broadband networks, rolled out LTE in
2012. The impact of this on their FTTH network remains to be seen.
In Poland and Hungary, too, the growth of the mobile broadband market eating into ADSL
(Asymmetric Digital Subscriber Line) growth. Mobile operators see some success on the
back of a growing consumer demand for broadband Internet access whilst on the move,
which has encouraged many carriers to launch a series of aggressive promotions and
pricing campaigns.
The case of Africa is very different. Fixed broadband is not even a possibility for the vast
majority of end users, such are the limitations of fixed infrastructures in the region. As
already mentioned, we are seeing growth in the mobile broadband market that is largely
independent of the fixed market.
It seems, however, that rather than kick-starting a substitution trend away from the fixed-line
market, as happened with voice, mobile broadband services will do nothing of the sort. What
mobile broadband can do is to help mobile operators find a new source of revenue at a time
when voice revenues are stagnating, and direct the industry further down the road to
convergence as operators look to bundle together services and differentiate offerings from
those of their competitors, often through the use of exclusive Internet content.
In the longer term, predictions are that LTE will have a significant impact on the fixedbroadband market.
Figure 24 Regional Mobile Broadband Subscriptions (LTE), 20122018
43
Figure 25 Regional Fixed Broadband Subscriptions (FTTx), 20122018
Pricing for Mobile Broadband Services

Mobile operators have been offering Internet access services for some time to mobile phone
users, bundling them with voice and messaging services. Whether the Internet service
offered is truly mobile broadband will depend on the users handset specification and the
operators 3G+ coverage. Many operators do not clearly specify whether these bundles
apply equally to slow or fast Internet access.
Mobile operators generally have a variety of options at their disposal to distinguish their
service offerings from those of their competitors. This process can begin outside the actual
tariff structure. Promotional offers and level of service are the two most important
differentiators; customer segmentation is a third. Mobile operators will frequently discount or
waive monthly fees for a limited period or advertise free equipment that enables the service.
Service levels are less clearly defined and by far the least explored by the mobile operators.
Although marketing and customer-service strategies play a vital role in the promotion of
mobile-broadband services, when considered on their own, they do not allow for a fair and
comprehensive comparison of mobile broadband service prices across individual markets.
Hence, the pricing data collected does not include information relating to either promotional
or service strategies.
Mobile operators have to both meet customers requirements and maximise their revenue,
while getting the most out of their networks. Their goals may therefore be summarised as:
44
To balance price and performance to suit all users, offering customer satisfaction
while optimising revenues
To attract and retain customers by means of good service offerings, attractive pricing
mechanisms, and quality of experience
To optimise the use of network resources
For users themselves, the speed and quality of a connection is likely to be as important as
if not more important than the cost of the subscription, the apps available, or the handset
model. In other words, there has to be a good overall quality of experience. A recent survey
by Informa Telecoms & Media has shown that operators understand this, and most of those
asked stated that the best approach for pricing mobile data will be a combination of speed
and volume i.e. higher speeds combined with larger volumes.
Figure 26 Approaches to Pricing Mobile Data

Pricing Differentiation
A pricing model based on differentiated speeds and data volumes is as yet adopted by few
operators. Most operators currently define their broadband service offerings in terms of a
fixed monthly fee or subscription and a maximum download volume. Operators who wish to
drive revenue growth have to consider a move away from traditional, flat-rate pricing models,
and embrace offerings that provide subscribers with greater levels of control and flexibility,
while offering clear-cut tariffing mechanisms.
Mobile broadband tariffs can be broken down into several generic components. When
structuring service tariffs, operators are able to make design choices that ignore or adopt
any of these components to their market environment. A differentiation toolbox, showing
how to differentiate, i.e. by maximum bandwidth, throughput, guaranteed bit rate, etc., and
when to differentiate, such as time of day and location, is illustrated below.
45
Figure 27 A Differentiation Toolbox for Mobile Broadband

An analysis of mobile broadband tariffs suggests that variation in design choices fluctuates
across these components.
Verizon in the USA and LTE forerunner TeliaSonera are two companies that have eliminated
their unlimited data packages in favour of a differentiated pricing model for their mobile
broadband services. In the words of TeliaSoneras (then) CEO, Lars Nyberg: The flat rate
was a good way to get started, so we didnt scare people off initially. But there is this
extreme difference between heavy users and normal users. There are kids who download
films, and they can take down the whole cell. We have to have some differentiation in
price. If you want to use a lot more, you need to pay a little more.
Shared Data Plans
However, some companies are moving away from the tiered model and towards shared data
plans, which are targeted at families and those with more than one 4G device. The plans
allow a number of devices to be connected to a single price plan, with a set amount of data
that can be shared between the devices.
In 2012, Verizon eliminated all of its postpaid mobile and broadband plans and replaced
them with Share Everything plans, which include unlimited voice and messaging and a
single pool of data shared among up to 10 devices.
Verizons plans include unlimited voice and messaging and are priced according to device
type and data allowance (see the figure). One subscription can cover up to 10 devices, or 25
devices for small businesses. Between 28th June and 30th September 2013, Verizon
46
transferred 13% of its postpaid base, or 11.8 million subscriptions, to the plans. At the end of
2012, after the first full quarter offering the plans, 23% of Verizons postpaid base or 21.3
million connections had been transferred.
Figure 28 Verizon 'Share Everything' Data Plans

Service Activation Charges
Service activation charges are the least used or explored by operators, as are additional
usage charges and free add-ons. When applied, all three would substantially complicate the
service offering or require customers to judge their mobile usage pattern accurately and
know what they want before purchasing the service. A less sophisticated or patient
customer would simply turn away and seek alternatives. A good example was a service
offered by Mobistar in Belgium. It offered a mobile broadband package that, at first glance,
appeared to be cheap: for a basic cost of EUR5.00 (US$6.78) per month, residential users
were signed up to a 12-month contract. However, a one-off activation charge of EUR1.00
(US$1.36) applied for each day the service was actually used.
Add-ons
Add-ons, such as free e-mail accounts, web-spaces or discounted security software, are a
very common method of differentiating services for which market take-up has peaked and
competition is intensifying; a comparison with fixed broadband services in developed
countries springs to mind. Research indicates that add-ons have not yet reached the mobile
broadband market. No doubt they will do so soon, but they may take a different form from
fixed broadband add-ons. At present, mobile broadband tariffs still tend to be bundled
together with a certain number of (or unlimited) minutes, and either limited or unlimited text
messages.
Service Download
Service download speeds sometimes play a role, too, but less frequently than would have
been expected. Arguably, current coverage and deployment stages still put limitations on
47
what can reasonably be claimed and offered to users as a maximum download speed. If that
is the case, an operator will offer the same theoretical maximum download speed with all its
mobile broadband services and not differentiate on service speed.
Regional Pricing
Contracts
Basic service charges are crucial for generating revenue. Across different countries, the
average charge per megabyte of data (integrated services plan) ranges from $0.70 to zero,
as can be seen in the table below, produced by Informa Telecoms & Media.
Figure 29 Average Prices per MB of Data (Integrated Services Plan), 4Q12

These regional average figures mask a wide variation in monthly charges, even within the
services offered by individual operators. At operator level, the main and most common
differentiator of service tariffs is usage volumes. EE, for instance, offers a variety of
packages ranging from 26 to 51 per month, with usage volumes ranging from 500 MB to
20 GB and unlimited SMS and voice calls (24-month tariffs). For 12-month plans, the
charges increase from 41 to 66 a month, offering 500 MB to 8GB. Separate plans exist for
tablets, dongles and Mi-Fi.
Mobile operators worldwide have predominantly opted for offering mobile broadband
services that lock customers into long-term contracts of anything between 12 and 30
months. This reduces customer churn, helps in subsidising devices and ensures a regular
revenue stream from data services. Whether this approach maximises profit from the service
will depend on usage volume. The monthly cost involved and contract commitment may
deter a proportion of potential users who see mobile broadband as a non-essential add-on to
their fixed broadband service at home although the surge in popularity of smartphones (up
48
to 50% of the population in developed countries) suggests that this is not a severely limiting
factor.
Given that this upsurge has occurred in a time of relative economic hardship, the emphasis
that consumers place on their phone and its services suggests that they are prepared to pay
as long as they get the required quality of service/experience.
Prepay
Prepaid mobile broadband services provide a solution with more flexibility. But these are still
far from being mainstream services. If prepaid services are offered, they tend to lack the
variety of contract services and an appeal that suggests good value for money. First, there is
the equipment charge. Globally, the average prepaid charge for a smartphone is $450
compared to $268 postpaid. Once more using EE as an example, a 4G Mi-Fi device
preloaded with 6 GB of data and valid for three months costs 90.00, compared to
25.99/month for 8 GB data/month, the device being free.
On the positive side, mobile operators do not have to recover hardware subsidies from
service revenue for prepaid offers. A few operators (e.g. Telenor in Sweden, Maxis
Communication in Malaysia) have experimented with offering free equipment to prepaid
customers. In doing so they transferred part of the incurred equipment cost on to customers
as a one-off activation fee or by raising additional usage cost above market average.
Hardware prices, of course, vary between mobile broadband devices from high-end laptops
to low-end USB modems. It stands to reason that operators will use different levels of
subsidies for different device types to make broadband services attractive to potential
customers. Striking a fine balance between subsidising devices and charging an additional
equipment charge that a customer would accept as reasonable is vital for the mobile
operators and they have deployed several strategies in order to achieve this balance.
Some mobile operators have provided customers with a range of differently priced devices,
allowing customers to select the device that meets their price expectation. This can then be
mixed and matched with a service contract that reflects their usage behaviour. However,
the most common strategy is offering straightforward stepped equipment charges that vary
with contract length, anything from charging the full cost with no contract to free equipment
on longer contracts. Almost all mobile operators offer basic access equipment (USB modem)
at no extra cost to subscribers when they subscribe to an 18-month contract or longer.
In Western Europe, for example, the average total revenue from a 24-month contract is
about US$1,200, assuming that the customer does not exceed usage limits. With an
average wholesale cost of a smartphone at around US$175 (core level), about 14.5% of this
revenue (including taxes) is needed to recover the equipment charges. In theory, for shorter
contracts, say a 12-month contract, this percentage could rise significantly when the access
equipment (here a smartphone) is fully subsidised by the operator.
49
With price competition driving down monthly charges and customers increasingly wanting
higher-end devices, equipment subsidies are eating further into basic service revenue per
user. A rise in the manufacturing cost of mobile devices, especially higher-end devices, adds
to this the average wholesale price of a smartphone was nearly four times higher than that
of a non-smartphone in 2012.
Figure 30 Average Wholesale Handset Prices (Global), 2012

To secure against further revenue decay, mobile operators bank on extra revenue from
users, or else turn to other solutions, such as handset financing schemes, leasing, renting,
or up-front purchase by the subscriber.
For data services, the main source of extra revenue is excess usage charges. So keeping
volume limits artificially low may be an answer, but it is a strategy that is difficult to justify.
50

Q1.
What is the figure for mobile-broadband penetration worldwide?

a) 3.5%
b) 17.5%
c) 27.5%
d) 13.5%
Q2.
Many operators have seen a huge surge in data traffic largely due to ?
a) Free SMS
b) The roll-out of LTE
c) Smartphones
d) Longer contract periods
Q3.
Which of the following is a trend noticed by many network operators?

a) Increase in data usage, high increase in profit margins
b) Increase in data usage, decrease in profit margins
c) Increase in data usage, no effect on profit margins
d) Increase in data usage, steady increase in profit margins
Q4.
A device can be classed as mobile broadband when it achieves data speeds of

greater than:
a) 144 kbps
b) 384 kbps
c) 3 Mbps
d) 10 Mbps
Q5.
Which of the following revenue generation mechanisms is little explored by

operators?
a) Handset finance plans
b) Charges for exceeding data limits
c) Service add-ons
d) Service activation charges
Q6.
The average wholesale cost of a core-level smartphone is:

a) US$63
b) US$175
c) US$101
d) US$325
51

Name...
Question set
52
Section 1 Assignment
These questions are designed to encourage further research
.
Q1
What are the main threats to mobile operators business models? How might these
threats differ by region?
Q2
Imagine you are a mobile network operator in a highly competitive marketplace. What
is the best way to improve your revenue outlook for the next 12 months?
Q3
You are a mobile network operator in the EU. What is likely to be the impact of the
regulators mandated cuts to your interconnection and termination charges, and how
will you respond in the short- and medium-term?
Q4
Your mobile operator organisation is attempting to encourage more usage of mobile

broadband services with a view to increasing both revenues and profitability. What
mechanisms might your organisation consider using to achieve this, and which might
be most effective over the long term?
53
Section 1 Practice Paper

Q1.
According to Informa Telecoms & Media, approximately how many mobile broadband
subscriptions will there be globally by 2016?
a) 4 billion
b) 5 billion
c) 6 billion
d) 7 billion
Q2.
Which technology is predicted to dominate the market up to 2018?

a) LTE
b) GSM
c) CDMA2000
d) WCDMA
Q3.
Which company has introduced a handset financing plan known as MyHandy?

a) Telefnica O2
b) Mobistar
c) TeliaSonera
d) Verizon
Q4.
Which country is the world leader in terms of mobile broadband penetration?

a) Japan
b) South Korea
c) USA
d) Germany
Q5.
What percentage of total connections were smartphones in 2012?

a) 21%
b) 25%
c) 30%
d) 50%
Q6.
Why are subscriber numbers for mobile broadband increasing rapidly in Africa,
compared to fixed broadband?
a) Africa has a right rate of growth overall, and mobile broadband is a part of this
b) Tariffs tend to be cheaper in Africa than in other parts of the world
c) User devices tend to be cheaper in Africa than in other parts of the world
d) The lack of a widespread fixed infrastructure in Africa pushes subscribers
towards mobile broadband
54
Q7.
For the foreseeable future, mobile operator revenues are likely to?
a) Show a loss
b) Exhibit slow growth
c) Exhibit rapid growth
d) Stay at the current level
Q8.
Over the past few years, in most markets, EBITDA levels have been:
a) Rising
b) Remaining stagnant
c) Steadily falling
d) Rapidly falling
Q9.
Which of the following was a significant factor in driving data uptake on 3G/3.5G
devices?
a) Better services
b) Colour screens
c) Improved data speeds
d) All-you-can-eat data tariffs
Q10.
Which of the following is NOT classed within the core focal point of mobile broadband
devices?
a) Mobile phones
b) Tablets
c) Data dongles
d) Laptops
Q11.
Which of the following is NOT a positive argument in favour of handset subsidies?

a) Increases customer spend
b) Increases cash flow
c) Reduces churn
d) Drives smartphone adoption
Q12.
Which of the following technologies is currently most widely deployed?

a) HSPA
b) HSPA+
c) 1x EV-DO Rel. 0
d) 1x EV-DO Rel. A
55
Self-Assessment Multiple Choice Answer Grid (Section 1)

Name...
Question set
56
SECTION 2
3G WIRELESS SYSTEMS AND EVOLUTION
57
58
Lesson 1 Background to 3G Development

The Service Delivery Imperative
3G (Third Generation) networks represented the next evolution of mobile communications
devices beyond 2G (Second Generation) systems such as GSM. In turn, 2G networks had
offered significant advances over early systems, namely digital technology, increased
security and global roaming.
Even though GSM offered some access to data services, it was primarily designed as and
has largely been used as a system that allows a user to make mobile-telephone calls. 3G
retains the advantages of 2G (as listed above), but additionally offers the opportunity of
converting the mobile device into a full multimedia terminal. The 3G end-user equipment is
generally purpose-built for the optimisation of non-voice services, including the transmission
of text, fax, images and video, which together will enable a new and innovative range of
services to be offered to mobile users.
One key factor in 3G is the concept of mobile services. The list of service possibilities is
potentially endless, but might (in addition to 2G services such as voice, and SMS) include
some of the concepts shown below.
Figure 31 3G Services
The efficient delivery of such a wide range of mobile services requires increased bandwidth
(radio spectrum), packet switching in addition to circuit switching, and an efficient means of
radio access.
59
Separation of Network Operation and Service Delivery

Within existing GSM networks it was traditionally the network operator that provided services
to the customer. That is, the network operator and the service provider have been the same
organisation.
A major part of 3G philosophy is a separation of these two functions. In 3G networks, the
network operator is likely to concentrate on the management of the network and provision of
radio bearers to customers. A wide range of service providers can then offer services to
customers via these bearers, in effect acting as wholesale service delivery partners to
network operators. Such service providers comprise a very wide range of organisations, for
example media companies, banks, ISPs (Internet Service Providers), application service
providers, entertainment providers (e.g. music download, video or games), and retail
organisations.
The danger with this approach is that service providers will offer services that are more
attractive to customers than the network operators own offerings, thus diluting an
importance source of revenue.
Increased Access Speeds

The bit rates targeted for 3G technologies are shown in the diagram.
Figure 32 3G Target Bit Rates

The 2 Mbps speed is intended for small busy islands such as office environments,
conference centres, airport lounges, and motorway service station areas. 384 kbps is
envisaged as covering wider area urban or suburban environments, and 144 kbps is seen as
providing or (approaching) national coverage.
60
Move to Global Standardisation

The ITU (International Telecommunication Union) coined the term IMT-2000 (International
Mobile Telephony 2000) to refer to an envisaged scenario whereby mobile users would use
a single system worldwide, giving them access to a much broader array of services,
including seamless convergence with the services they had available on their fixed (and
satellite) networks. The original ITU goal was to drive development of a single standard
worldwide for 3G networks, avoiding the problems incurred when trying to operate across
different countries that operate on different standards.
Figure 33 The IMT-2000 Family

In reality, research activities and the development of 3G specifications and standards based
on 2G systems had already begun at global and regional level, with a focus on improving the
efficiency of the radio interface so that scarce spectrum resources could be better utilised. A
number of standards organisations were working simultaneously, although not necessarily
together, on 3G development.
Clearly there was no benefit in having each region develop its own versions of a WCDMA
3G standard for example the parallel work at ARIB (Japan) and ETSI (Europe) and a
degree of global harmonisation was required. The ITU therefore set up two global bodies for
3G, one based on GSM/UMTS and known as 3GPP (3rd Generation Partnership Project)
and the other based on CDMA and known as 3GPP2. However, US standardisation groups
continued to work on the single carrier TDMA (Time Division Multiple Access) mode, and
ETSI (European Telecommunications Standards Institute) on multi-carrier TDMA (DECT
[Digitally Enhanced Cordless Telephony]). This created a series of complex relationships
within IMT-2000 between the various national or regional Standards Development
Organisations.
61
Figure 34 Global and Regional 3G Standardisation Bodies
3GPP Background, Membership and Structure

In countries where GSM was the 2G standard, the development and specification work for
3G standards was passed over to a 3GPP, a global group that was brought together to
ensure that specifications were developed from a global perspective.
3GPP was created to undertake the standards activity work for the UMTS system, which
was a fusion of early standards proposals that came from ETSI in Europe and ARIB in
Japan. As UMTS was to be based on an evolved GSM core network, 3GPP also assumed
the responsibility for the ongoing standards work for GSM.
The production of standards within 3GPP is the responsibility of a number of TSGs
(Technical Specification Groups) under the guidance of a PCG (Project Co-ordination
Group).
Figure 35 3GPP Organisational Structure and the TSGs
62
Standards are produced in a range of numbered series and across a sequence of releases.
The releases were previously numbered by the year of release, for example Release 99
(R99), but have subsequently been numbered as Release 4, 5, 6 and so on (R4 etc.). 3GPP
is currently working on Release 12.
3GPP has six OPs (Organisational Partners), which together determine the general policy
and strategy of 3GPP.
Figure 36 3GPP Organisational Partners

In addition to Organisational Partners, 3GPP also has a number of MRPs (Market
Representation Partners), to ensure that the specifications are developed on the basis of
market needs. The MRPs in 3GPP are shown in the table below.
63
Figure 37 3GPP MRPs (Market Representation Partners)
3GPP2 Background, Membership and Structure

In North America and in Asia Pacific countries where the 2G system cdmaOne had been
deployed, an evolution was proposed that would eventually be known as CDMA2000. This
proposal met the targets of the ITU IMT-2000 framework and was duly accepted as an RTT
(Radio Transmission Technology) in the IMT-2000 family.
Figure 38 3GPP2 Organisational Structure

Following early development work and some discussions regarding global harmonisation
with the GSM community, it was decided that a parallel partnership body to 3GPP was to be
established to harmonise worldwide specifications of the CDMA2000 aspects of the IMT2000 family, which include cdmaOne, CDMA2000 and the 1x EV standards. The
development and specification work was passed over to 3GPP2.
3GPP2 has five SDO (Standards Development Organisation) Partners, shown in the
diagram.
64
Figure 39 3GPP2 SDO Partners

In addition to SDO partners, 3GPP2 also has a number of MRPs to ensure that the
specifications are developed to meet market needs.
Figure 40 3GPP2 MRPs

Many organisations including vendors and network operators are members of 3GPP2 and
actively contribute to the standards development process. These members are associated
with one of the OPs.
Standards work is undertaken by four TSGs:
Figure 41 3GPP2 TSGs
65

Q1.
3G services are mainly delivered to end users by:

a) Equipment manufacturers
b) Network operators
c) Independent service providers
d) Other end users
Q2.
3G networks are intended to be optimised for the delivery of:

a) Voice services
b) A range of non-voice services
c) SMS
d) Video
Q3.
The target bit rate for pedestrian access to 3G networks is:

a) 512 kbps
b) 384 kbps
c) 144 kbps
d) 2 Mbps
Q4.
3GPP2 is primarily concerned with:

a) Developing 4G standards
b) Developing 3G standards based on CDMA networks
c) Developing 3G standards based on GSM/UMTS networks
d) Harmonising the global development of CDMA-based 3G networks
Q5.
3GPP and 3GPP2 are working within which common framework?

a) UMTS
b) IMT-2000
c) CDMA
d) GSM
Q6.
The latest Release currently being worked on by 3GPP is:

a) R9
b) R10
c) R11
d) R12
66

Name...
Question set
67
Lesson 2 3GPP Specifications and Evolution

3G Early Releases
Although the ETSI SMG (Special Mobile Group) had produced raw UMTS specifications at
the end of 1998, the definition of the first set of usable, public specifications was issued by
3GPP at the end of 1999, with some modifications in March and June 2000. This was the socalled Release 99, which defined the first steps in implementing UMTS from the starting
point of an enhanced GSM/GPRS network. In particular, R99 concentrated on the
implementation of a new radio interface system, the UTRAN (Universal Terrestrial Radio
Access Network).
Other key differences between the first set of 3GPP specifications (Release 99) and GSM
were as follows:
Support for higher data rates
Multiplexing services to a single user
Bearer flexibility the ability to choose appropriate radio resources to suit the
application/user requirements
Improved security
Support for multimedia messaging
Improvements in the service creation environment.
Release 00 concentrated much more on the core network for UMTS, and in particular the
process of evolution towards all-IP systems. The goal of most people in the industry was to
avoid the split of transport between separate circuit-switched and packet-switched domains,
combining both onto a single IP-based packet network once appropriate QoS (Quality of
Service) control was possible.
It was decided that rather than stick to regular yearly releases of standards, these would
instead be released whenever useful content batches were completed. Releases were
subsequently referred to by a number, rather than by the year when they were released. In
this context, Release 00 became known as Release 4.
68
Figure 42 Early 3GPP Releases
3GPP Evolution R6 and R7

The major features introduced by Release 6 of the 3GPP standards included:
MBMS (Multimedia Broadcast/Multicast Service)
WLAN/3GPP Interworking
FDD (Frequency Division Duplex) Enhanced Uplink HSUPA (High Speed Uplink
Packet Access)
Support for voice over IMS (IP Multimedia Subsystem)
Generic wireless access (for example Wireless LAN hotspots)
IMS Phase 2
As with other releases, the impact of the R6 features extended across many of the
specifications and therefore represented a major piece of work.
Release 7 introduced features that were precursors to the next-generation wireless and core
network proposals of LTE and SAE (System Architecture Evolution), particularly aspects
such as multiple antenna systems and CPC (Continuous Packet Connectivity). CPC aimed
to reduce transmission overheads, decrease latency and increase the number of HSPA
users. There was a move towards HSPA+ in this release, and Evolved EDGE (Enhanced
Data-rates for Global Evolution) was standardised.
69
Figure 43 3GPP R6 and R7

R8 to R10
Release 8 was the first release detailing LTE. A new radio interface was proposed based on
a new multiplexing scheme, OFDMA (Orthogonal Frequency Division Multiple Access), and
an all-IP network was detailed in the form of the SAE core network. The use of the advanced
antenna system MIMO (Multiple Input Multiple Output) was also defined.
Release 9 added further enhancements to HSPA+, including DC-HSDPA (Dual-Cell
HSDPA), and DC-HSDPA with MIMO, and to LTE, which included emergency-service
support, CMAS (Commercial Mobile Alert System), location services over the EPS (Evolved
Packet System), MBMS, and SONs (Self-Organising Networks).
With Release 10 comes LTE Advanced. The motivation behind LTE Advanced is to provide
higher bit rates in a cost-efficient manner, while fulfilling the requirements set out for IMTAdvanced by the ITU. Features of LTE Advanced include increased peak data rates, higher
spectral efficiency, an increased number of simultaneously active subscribers, and improved
performance at cell edges.
Figure 44 3GPP R8 to R10
70
R11 to R13
Release 11 adds further enhancements to LTE, including advanced IP interconnection of
services as well as improved M2M (Machine-to-Machine) communications and advanced
charging functionality such as QoS control based on customer spend and optimised service
charging and allocation of resources whilst roaming (using IMS).
Enhancements at R12 include SIPTO (Selected IP Traffic Offload), interworking
enhancements, and improvements to IMS services.
R13 is still in its infancy but thus far includes RAN (Radio Access Network) sharing
enhancements, application-specific congestion control, usage monitoring, and public safety
enhancements.
Figure 45 3GPP R11 to R13
LTE/SAE (3.9G) Concept

LTE is a new cellular radio standard that has been designed to allow faster, more efficient
data transfer, enabling the next generation of mobile data services. LTE prepares mobile
networks for the future both to carry existing services and to be robust enough to handle
new services as they emerge.
The LTE concept refers to a new radio interface technology, and is not really an evolution in
the sense that LTE will require the network operator to deploy a new set of base station
equipment or functionality. The proposal for the radio network was to specify a new air
interface standard that would support at least 100 Mbps in the downlink direction and 50
Mbps in the uplink direction (dependent on channel bandwidth). This will be achieved by
moving away from a CDMA-based air interface to an interface based on OFDM (Orthogonal
Frequency Division Multiplexing).
Through recent 3GPP releases the core network is evolving towards an all-IP infrastructure
with common transport for both real-time and non-real-time services.
71
This core network evolution brings new network functionality and a much flatter network
architecture. One of the main benefits is a dramatic reduction in latency.
Figure 46 3GPP LTE and SAE Evolution

3GPP LTE Targets
The targets identified by 3GPP in respect of LTE included:
Increased peak data rate to a minimum of 100 Mbps (downlink) and 50 Mbps (uplink)
Increased cell edge bit rate without the need to provide more radio sites than
existing networks
Improved spectrum efficiency (about two or four times that achieved in HSPA)
Reduce radio-access network delay below 10 ms
Reduce signalling latency with rapid transitions between mobile states
Scalable bandwidth including 5, 10, 20 and possibly 15 MHz spectrum allocations
Narrow spectrum bandwidth allocations of 2.5 MHz and possibly 1.25 MHz and 1.6
MHz to allow further flexibility
Support for interworking with existing 3G systems and non-3GPP specified systems
HSPA (High-Speed Packet Access)

HSPA is a generic term that covers three categories of high-speed packet access
technology: HSDPA (High Speed Downlink Packet Access), HSUPA (High Speed Uplink
Packet Access), and HSPA+ (Evolved High Speed Packet Access).
72
HSDPA (High Speed Downlink Packet Access)

HSPA is an enhancement to 3G that is often referred to as 3.5G. HSDPA focuses on
increasing the downlink capacity for asymmetric applications (requiring faster downlink
speeds than uplink), such as Internet access, TV, video-on-demand, and rich media file
downloads such as MP3 files.
HSDPA coexists with R99 in the same frequency band and was designed to be
approximately five times faster than UMTS R99. The theoretical maximum downlink speed is
14.4 Mbps, although the actual speed achieved depends on a number of other factors, such
as device capabilities and cell capacity.
With a shorter transmission time interval than UMTS R99, with HSPDA the system can more
quickly allocate capacity to users depending on their environmental circumstances (such as
signal strength or mobility). Furthermore, fast scheduling means the base station can
allocate as much capacity as available to a particular end-user device in line with the
devices data download requirements. This improved latency (delay) means that HSPA
networks can support near-real-time applications such as multi-user gaming, instant
messaging and collaborative working practices.
It includes AMC (Adaptive Modulation and Coding) techniques, fast cell search, HARQ
(Hybrid Automatic Repeat Request), and advanced receiver design.
HSPA networks have been widely deployed since 2006.
Figure 47 Characteristics of HSDPA

HSUPA (High Speed Uplink Packet Access)
HSUPA is a Release 6 feature in 3GPP specifications. The main aim of HSUPA is to
improve performance of dedicated uplink transport channels by increasing capacity and
73
throughput and reducing latency (delay). HSUPA offers data speeds of up to 5.76 Mbps in
the uplink and achieves its high performance through more efficient uplink scheduling in the
base station and faster retransmission control.
HSUPA uses a packet scheduler, but it operates on a requestgrant principle, whereby the
UEs request permission to send data and the scheduler decides when and how many UEs
will be allowed to do so. A request for transmission contains data about the state of the
transmission buffer and the queue at the UE and its available power margin. A total of six
new physical channels are introduced to support HSUPA.
HSPA+ (Evolved High Speed Packet Access)
HSPA+ is a Release 7 evolution of the HSDPA and HSUPA technologies, which further
enhances both uplink and downlink speeds. The main improvements are gained through the
use of high-level modulation such as QAM (Quadrature Amplitude Modulation) and MIMO
antenna systems.
Another key feature of HSPA+, in addition to improving the radio network performance, is
the creation of a flatter architecture. This allows the Node B to send UP (User Plane) data
(customer traffic) directly to the (packet-switched) network nodes without going through the
RNC (Radio Network Controller) function. The key benefit of this is that it will reduce the
network latency for customer traffic, with a target of less of 50 milliseconds proposed.
Figure 48 HSPA and HSPA+ Compared

The theoretical maximum downlink speeds of HSPA+ (42 Mbps) are rarely achievable in
practice; however, some operators are offering actual downlink speeds of 21 Mbps and
higher.
HSPA+ is a natural migration option for operators that already have UMTS R99 3G networks
in place. A further advantage of HSPA+ is that is supports legacy circuit-switched voice and
SMS, which constitute the mainstay of most operators revenues.
74
HSPA+ brings improved support and performance for real-time conversational and
interactive services such as PoC (Push-to-Talk over Cellular), picture and video sharing, and
VoIP, through the introduction of features such as MIMO antennas, CPC (Continuous Packet
Connectivity) and HOM (Higher Order Modulation).
HSPA+ provides a method for operators to migrate towards 3.9G speeds without deploying
a new radio interface, and therefore provides a tremendous advantage to operators.
Figure 49 Features of HSDPA, HSUPA and HSPA+
75

Q1.
Which release of the 3GPP specifications was concerned with the evolution towards
an all-IP core network architecture?
a) Release 99
b) Release 4
c) Release 5
d) Release 6
Q2.
Precursors to an LTE and SAE were contained within which 3GPP release?
a) Release 5
b) Release 6
c) Release 7
d) Release 8
Q3.
LTE was initially developed to meet which peak data rates in the downlink and uplink
(respectively)?
a) 10 Mbps, 5Mbps
b) 100 Mbps, 50 Mbps
c) 10 MHz, 5 MHz
d) 14.2 Mbps, 2 Mbps
Q4.
HSDPA is designed to support which data speeds in the downlink?

a) 5.76 Mbps
b) 100 Mbps
c) 14.4 Mbps
d) 1 Mbps
Q5.
HSUPA is designed to support which data speeds in the uplink?

a) 5.76 Mbps
b) 100 Mbps
c) 14.4 Mbps
d) 1 Mbps
Q6.
Which version of HSPA uses QAM and MIMO to enhance UL and DL data speeds?
a) HSPA+
b) HSUPA
c) HSPA
d) HSDPA
76

Name...
Question set
77
Lesson 3 3GPP2 Evolution and Future Options

CDMA Evolution 19952005
CDMA (also known as cdmaOne) was first launched in 1995. The use of techniques such as
soft handover and spread spectrum and the use of advanced receivers makes CDMA an
inherently reliable technology. Those who support CDMA as a technology choice point out
its spectral efficiency, especially when compared to other 2G technologies. When launched
under the IS-95A specifications, performance was similar to that of a GSM network.
CDMA2000 is the name given to represent the family of CDMA technologies that meet the
ITUs IMT-2000 requirements for 3G mobile networks.
There were originally two 1x variants, 1x EV-DO and 1x EV-DV. 1x EV-DO (Data-Only) is an
overlay network that offers asymmetric connections utilising only a 1.25MHz carrier. 1x EVDV (Data-Voice) was designed to combine data and voice. 1x EV-DV has since been largely
overtaken by EV-DO, and the capabilities of VoIP.
EV-DO technologies have evolved as shown in the figure below.
Figure 50 CDMA Evolution 19952012+
CDMA2000 Service Capabilities

CDMA2000 is described by the CDG (CDMA Development Group) as:
An efficient and robust technology capable of delivering the highest voice capacity and
data throughput in the least amount of spectrum, affording cost-efficient deployment in
both urban and rural areas.
The main characteristics of CDMA2000 are increased voice capacity (up to eight times more
than 2G); higher data throughput; multicast services multicast broadcast, TV; and support
of various mobile operating systems including Palm, Pocket PC, Java and BREW.
78
Increased Voice Capacity

The spectral efficiency of CDMA2000 1x permits high traffic deployments in 1.25 MHz of
spectrum. CDMA2000 1x can provide voice capacity of 3340 simultaneous voice calls per
sector in a single 1.25 MHz FDD through the use of variable-rate voice codecs and antenna
diversity techniques. With network enhancements, it can support up to 55 simultaneous
voice calls.
Voice capacity improvement in the downlink is attributed to faster power control, lower code
rates (1/4 rate), and transmit diversity. In the uplink, capacity improvement is primarily due to
coherent receiving techniques.
Higher Data Throughput
CDMA2000 1x networks support a peak bidirectional data rate of up to 153.6 kbps,
delivering an average user data throughput of 80100 kbps using one 1.25 MHz FDD
channel. CDMA2000 1x EV-DO enables peak rates of up to 2.4 Mbps or 3.1 Mbps on the
downlink, and 1.8 Mbps on the uplink. Average data throughput for CDMA2000 1x is 60100
kbps, and for CDMA 1x EV-DO it is 400800 kbps.
Multicast Services
With the introduction of EV-DO Release 0, and followed by EV-DO Revisions A and B,
operators have the ability to offer multicast services one to many delivery which enables
the same information to be transmitted to an unlimited number of users without the need to
rebroadcast the information multiple times.
Multicast functionality offers significant advantages to operators and users. For operators, it
allows a vast range of high-revenue-generating services with minimum network resources at
low cost. For the end user, multicast services provide access to multimedia content such as
TV broadcasts, MP3 audio files, movies, etc., and a higher quality of services.
CDMA2000 Evolution
CDMA 1xEV-DO Release 0
Rel. 0 was designed and optimised to deliver data-centric broadband services, supporting a
peak data rate of up to 2.4 Mbps in the forward direction and 153 kbps reverse within a
single 1.25 MHz FDD channel. In practice, Rel. 0 delivers around 300700 kbps uplink and
7090 kbps downlink.
Further features of Rel. 0 are an always-on user experience and IP connectivity. Typical
Rel. 0 applications include 3D gaming, video and audio download, TV broadcast and
broadband Internet.
79
Figure 51 CDMA2000 1xEV-DO Rel. 0 Features

CDMA 1xEV-DO Revision A (Rev. A)
Rev. A adds higher data rates and higher system capacity than EV-DO Rev. 0, as well as
improved QoS support for low-latency packet applications. It is a fully backward-compatible
standard and remains interoperable with EV-DO networks and devices around the world.
On the forward link, the peak data rate increases to 3.1 Mbps, while the reverse link speed
increases to a peak rate of 1.8 Mbps and is claimed to be the first commercially available
wireless technology to have delivered a true synchronised broadband experience. The
average throughput is about 6001400 kbps on the forward link and 500800 kbps on the
reverse link. The increased data rates on Rev. As physical layer enable richer applications
and services.
Rev. A offers higher sector capacity within the same 1.25 MHz frequency, allowing operators
to support more users and richer applications. It has 3.4 times the sector capacity of Rev. 0
on the reverse link and 1.2 times the Rev. 0 sector capacity on the forward link.
The advanced QoS mechanism provided by the physical layer significantly reduces latency
and improves performance of delay-sensitive applications such as push-to-talk, instant
messaging, full multimedia content and VoIP.
80
Figure 52 CDMA2000 1xEV-DO Rev. A Features

CDMA 1x Multicarrier EV-DO and EV-DO Revision B (Rev. B)
Rev. B extends EV-DO to multi-carrier operation by serving users simultaneously over
multiple 1.25 MHz carriers. By allowing user traffic to flow over more than one carrier, Rev. B
improves user data rates and transaction latencies on both the forward link and the reverse
link, in proportion to the number of carriers used. This represents a dramatic improvement in
user experience compared with a Rev. A system.
Multicarrier EV-DO supports a peak data rate of 9.3 Mbps DL and 5.4 Mbps on UL. With a
hardware upgrade to Rev. B, the downlink peak data rate can reach14.7 Mbps. These higher
rates are achieved by bundling multiple channels together, which enhances the end-user
experience and enables new services such as high-definition video streaming. It utilises
statistical multiplexing across the channels to further reduce latency, enhancing the
experience for latency-sensitive services such as gaming and video telephony. It applies a
hybrid frequency re-use, which reduces the interference from the adjacent sectors and
improves the rates that can be offered, especially to users at the edge of the cell.
Figure 53 CDMA2000 1xEV-DO Rev. A Features
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DO Advanced
DO Advanced takes into consideration two factors common to mobile broadband data: firstly,
that the traffic is never uniformly distributed in space and time, and secondly, that most data
sessions are of short duration. Using what are termed Smart Network techniques, and
without any significant changes to the existing infrastructure, DO Advanced promises to
optimise existing EV-DO networks, enabling them to operate more efficiently. These
techniques enable operators to allocate capacity dynamically, through software, as and
when needed. It can also reduce the signalling overhead associated with many devices
simultaneously attaching to and disconnecting from the network, again saving capacity.
These software upgrades (particularly beneficial because they are immediate and do not
need to form part of a migration strategy) can be applied to either a Rev. A or a Rev. B
network.
Data speeds in the downlink are increased to up to 32 Mbps, and to 12.4 Mbps in the uplink.
DO Advanced comprises three basic building blocks, comprising smart networks, enhanced
connection management, and advanced devices. The features of these building blocks are
summarised in the diagram.
Figure 54 The Basic Building Blocks of DO Advanced
Future Options
Although the 3GPP2 community historically endorsed UMB (Ultra Mobile Broadband)
technology as its candidate 3.9G/4G standard, in November 2008 Qualcomm announced
that it was dropping the UMB standard and was throwing its weight behind LTE for future
chip set development. Then in October 2009 the CDG joined 3GPP as an MRP to ensure
that the LTE standards include migration capabilities for CDMA operators. These events
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(and others) have effectively killed off the development of UMB as a viable 3.9G/4G
migration route for CDMA operators.
The debate about future 3.9G/4G standards will therefore no longer revolve around UMB
versus LTE, but around LTE versus WiMAX and it looks as if LTE is the clear winner.
Figure 55 3GPP/3GPP2 Technology Evolution A Comparison
83

Q1.
Which version of CDMA supports download speeds of up to 3.1 Mbps?

a) 1x EV-DO Rev. 0
b) 1x EV-DO Rev. A
c) 1x EV-DO Rev. B
d) Multicarrier EV-DO
Q2.
Which technology supports 2.4 Mbps in the forward direction and 153 kbps in the
reverse, within a single 1.25 MHz FDD channel?
a) 1x EV-DO Rev. 0
b) 1x EV-DO Rev. A
c) 1x EV-DO Rev. B
Q3.
Which technology supports a peak data rate of 9.3 Mbps on the downlink and 5.4
Mbps on the uplink
a) 1x EV-DO Rev. 0
b) 1x EV-DO Rev. A
c) 1x EV-DO Rev. B
Q4.
Which of the following EV-DO releases increases downlink data rates to 14.7 Mbps?
a) 1x EV-DO Rev. 0
b) 1x EV-DO Rev. A
c) 1x EV-DO Rev. B
Q5.
Which technology/architecture is not a viable migration option for CDMA operators?

a) LTE
b) SAE
c) UMB
d) WiMAX
Q6.
Which Release introduces dynamically scalable bandwidth?

a) Rev. 0
b) Rev. A
c) Rev. B
d) DO Advanced
84

Name...
Question set
85
Lesson 4 IEEE Technologies

The IEEE 802 Committee
The IEEE (Institute of Electrical and Electronics Engineers) is responsible for defining many
series of technical standards. Of particular interest to mobile broadband is the IEEE 802
committee, which is responsible for both fixed and wireless networking standards.
Most recently the IEEE 802 committee has been heavily involved in standardisation for
wireless networking technology including WPANs (Wireless Personal Area Networks),
WLANs (Wireless Local Area Networks) and WMANs (Wireless Metropolitan Area
Networks).
The IEEE 802 Committee has a number of working groups that have developed, or are
developing, wireless access technology standards.
Figure 56 The IEEE 802 Committee Working Groups

The range of wireless area networks standardised by the IEEE, together with the distances
they cover and the technologies that fall into each category, are shown in the figure below.
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Figure 57 Wireless Area Networks

The introduction of new technology can often be complicated by the existence of multiple
standards or even different interpretations of the same standard by different manufacturers.
This can create confusion in the market and therefore stall technology adoption. To alleviate
this problem, industry alliances or forums are often formed to provide product testing and, in
particular, to test aspects such as cross-manufacturer interoperability. An example of such a
body is the WiFi alliance, which promotes equipment based on the IEEE 802.11 standards,
so that certified products can be released into the market.
Figure 58 IEEE 802 Working Groups and Industry Alliances
WPANs (Wireless Personal Area Networks) IEEE 802.15

WPANs target short-range applications for personal networking and these are being
addressed in the IEEE 802.15 working group. A number of technology proposals have
resulted, including Bluetooth and UWB (Ultra Wideband).
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Bluetooth (802.15.1)
Bluetooth is a standard for small form-factor, low-cost, short-range radio links between PCs,
mobile phones and other portable devices. The Bluetooth radio is built into a small microchip
and operates in the 2.4 GHz band, a globally available frequency band ensuring
communication compatibility worldwide. It uses FHSS (Frequency Hopping Spread
Spectrum), which changes its signal 1600 times per second, helping to avoid interception by
unauthorised parties. It supports both point-to-point and point-to-multipoint connections and
provides up to 721 kbps data transfer in one direction, with 57.6 kbps in the return path
within a range of 10 meters and up to 100 meters with a power boost. Synchronous rates are
supported at a speed of 432.6 kbps.
Ultra Wideband (802.15.3a)
UWB is a technique based on transmitting very-short-duration pulses, often nanoseconds or
less, with the consequence that the occupied bandwidth is maximised. The technology uses
multiple wideband channels with a minimum effective throughput of 50 to 100 Mbps per
channel. To create the multiple channels TDMA, CDMA, FDM, and TH (Time Hopping) are
all used. UWB has a potential for 500 Mbps or more at ranges less than 10 meters,
transmitting between 3.1 and 10.6 GHz spectrum.
There are a number of technologies that can be classified as UWB, however the WiMedia
Alliance is prominent in promoting a UWB technology based largely on work by the IEEE
802.15.3a group, which subsequently became an ISO standard. WiMedia technology is
aimed at providing wireless replacement for applications such as home entertainment
systems and to support applications such as video, where very high data rates are required.
It is envisaged that WiMedia products will eventually be able to support 480 Mbps (the same
as USB 2.0) over very short distances (2 m) and lower data rates at ranges up to 10 m.
One important aspect of any UWB technology is regulatory approval. The (unlicensed)
spectrum identified for UWB technologies is occupied by many other radio systems, and it is
imperative that the UWB technologies do not interfere with these other systems. In North
America a report from the FCC in 2002 authorised the use of UWB in the 3.110.6 GHz
spectrum and set the constraints on this use, for example maximum radiated power levels.
Figure 59 Wireless Personal Area Networks
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WLANs IEEE 802.11

In the mid-1990s the IEEE created a working group to develop a standard for wireless
networking; this was the eleventh working group under the 802 standard, hence the name
802.11. The IEEE 802.11 standard has gained support through the creation of the WiFi
Alliance (formerly known as WECA Wireless Ethernet Compatibility Alliance), a body that
performs compatibility testing and certification for vendors whose products demonstrate
interworking.
The original standard, 802.11a, specified a frequency of 2.4 GHz with available data rates of
1 and 2 Mbps. However, the standard was fairly slow to take off, largely because wired
networks offered much higher data transfer rates (100 Mbps) and also because the wireless
hardware was expensive. An amendment to the standard 802.11b improved the data
rate to 5.5 Mbps and 11 Mbps. The standard has continued to evolve, offering even higher
data rates and increased coverage areas. The most recent standard, 802.11n, is capable of
supporting data rates of up to several hundred megabits per second.
Figure 60 IEEE 802.11x and Proprietary WLAN Standards
WMANs 802.16
WMANs connect buildings to one another over a broader geographic area than WLANs. The
key problem to be solved with WMANs is delivering broadband services to premises. True
broadband services require specific fixed cabling from the network to the customer, for
example coaxial cable, twisted pair (such as cat5) or even fibre in some cases. Installing
these connections can be hugely expensive, especially in a residential or rural area.
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Wireless networks represent an opportunity for solving this last mile broadband connectivity
problem. Many proprietary schemes have historically attempted to solve the issue, including
WLL (Wireless Local Loop) and FRA (Fixed Radio Access). A few of these schemes use
IEEE 802.11b or 802.11g standards to achieve their objectives. However, these standards
were designed to be used over short-range distances, and mostly indoors, so they cannot
solve all of the problems associated with long-range outdoor fixed radio access.
WiMAX
WiMAX (Worldwide Interoperability for Microwave Access) is the IEEEs solution to this
problem. WiMAX is the shorthand term for IEEE Standard 802.16, also known as Air
Interface for Fixed Broadband Wireless Access Systems. Although only fairly recently in the
public eye, the broadband wireless standard 802.16 was actually developed in the late
1990s and published in 2001.
The initial version of the 802.16 standard, approved by the IEEE in 2002, operates in the
1066 GHz frequency band and requires line-of-sight radio links. Initial WiMAX
implementations provided a point-to-multipoint transmission in order to provide Internet
access to remote users. However, scales of economy mean that cost-effective solutions are
difficult to achieve.
Figure 61 Initial WiMAX Implementations

With the development of the 802.16 standard, further applications are enabled. These
include portable mobile broadband connectivity across cities and countries through a variety
of devices; a wireless alternative to cable and DSL (Digital Subscriber Line) for last mile
broadband access; data, VoIP and IPTV (Internet Protocol Television) services (triple play);
a source of Internet connectivity as part of a business continuity plan; and smart grids and
metering functionalities.
Figure 62 Further WiMAX Applications
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The original standards have undergone many revisions and amendments, resulting in a suite
of standards that are now referred to collectively as WiMAX.
There are two main WiMAX standards: 802.16d and 802.16e.
802.16d is sometimes referred to as fixed WiMAX. The specification was released in 2004.
This version does not support handovers of any kind, so is best suited for fixed or nomadic
operation such as last-mile replacement. It is used for NLOS (Non-Line-of-Sight) operation in
the frequency range between 2 and 11 GHz.
802.16e was released in 2005 and brought in mobility through the inclusion of handovers
between base stations. At the same time this release improves on fixed access. The
intention behind this extension was to compete with other wireless technologies.
The two versions are not compatible with each other.
Figure 63 The 802.16d and 802.16e Standards

WiMAX does not use the same sharing method as Wi-Fi, since this does not allow multiple
users to access the system without reducing performance. A new multiple access method
allows up to 100 users to share a single channel. The range of the connection can be as
much as 30 miles (70 km) and support of meshing networks and smart antennas can be
used to extend the coverage still further. Given the new access techniques supported by the
WiMAX MAC (Medium Access Control) layer, QoS management is much more
sophisticated.
The WiMAX Forum
The WiMAX Forum, formed in 2001, describes itself as follows:
An industry-led, not-for-profit organisation that certifies and promotes the compatibility
and interoperability of broadband wireless products based upon IEEE Standard 802.16.
The WiMAX Forums primary goal is to accelerate the adoption, deployment and
expansion of WiMAX technologies across the globe while facilitating roaming
agreements, sharing best practices within our membership and certifying products.
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The WiMAX Forum has hundreds of members, including Intel, Motorola, Fujitsu, AT&T, and
Alcatel, all of whom support the WiMAX Forum Certified scheme, which demonstrates
product interoperability.
One of the key tasks of the Forum is to develop a baseline protocol that allows equipment
and devices from various vendors to interoperate. This will include comprehensive transport
and access solutions that will in the long term deliver a full-service, standards-based solution
for delivering data, video and voice.
Because of the range of options within the 802.11 standard it becomes necessary to define
profiles that describe a particular element or application of the standards. Profiling the
capabilities of the specification makes the task of manufacturing products easier, since it
allows the vendor to concentrate on and solve the technical issues of only part of the overall
specification. When products are presented to the forum for testing they will be certified
against one of the defined profiles (and also interoperability).
There is no global licensed spectrum for WiMAX. However the WiMAX Forum has published
three licensed spectrum profiles and these relate to the unlicensed 5 GHz band, and the
licensed 3.5 GHz and 2.5 GHz bands.
Unlicensed 5 GHz This band includes the bands between 5.25 GHz and 5.85 GHz.
This is an attractive band for WiMAX applications since in many countries
transmission of up to 4 watts are allowed on the upper part of this band
Licensed 3.5 GHz Bands around this frequency have been already allocated in
many countries for BWA (Broadband Wireless Access), except the USA
Licensed 2.5 GHz In the USA a lot of this band had been allocated to the MDS
(Multipoint Distribution Service) and ITFS (Instructional Television Fixed Service)
WiBro
WiBro technology, which was defined originally for the South Korean market, is designed to
provide full-mobility IP-based services. The specifications for WiBro now form part of the
IEEE 802.16e Mobile WiMAX specifications and therefore the two terms are sometimes
used interchangeably. WiBro is based on TDD (Time Division Duplexing) and OFDMA), and
in South Korea operates within the licensed 2.3 GHz band in a channel bandwidth of 8.75
MHz. In South Korea both KT (formerly Korean Telecom) and SKT have launched WiBro to
deliver mobile broadband services. Each base station is providing several tens of Megabits/s
of throughput and covers a radius of a few kilometres.
WiMAX vs Cellular Technologies
The main difference between cellular technologies and WIMAX is the coverage: unlike
cellular operators, WiMAX service providers do not generally have to commit to covering a
large geographic area.
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Cellular networks have been designed to support both voice and data. WiMAX provides an
IP-based data connection, but there is no inherent support for voice.
There is far greater support for cellular terminals compared to WIMAX terminals. Most
WiMAX devices are designed as fixed CPE (Customer Premises Equipment).
The other key difference is that WIMAX may in some cases be used in unlicensed spectrum,
whereas cellular is always in licensed spectrum.
Figure 64 WiMAX versus Cellular Technologies
The Future of WiMAX

Initially predicted to be a serious competitor for LTE, WiMAX is now clearly being overtaken
by its rival 3GPP technology. Trials of TD-LTE (Time-Division LTE) are being preferred to
WiMAX in many regions, and some organisations that have already rolled out 802.16e (or
802.16m) may look to migrate to TD-LTE in the future. With world leader China Mobile
heading an initiative to make TD-LTE ubiquitous worldwide, in collaboration with other
leading operators such as Vodafone, T-Mobile, Sprint, and SK Telecom, and setting out a
clear business case for TD-LTE over WiMAX, the latter looks set to struggle especially in
new markets.
Nonetheless, some analysts suggest that pending commercial implementation of TD-LTE,
WiMAX may get a hold on some markets. Whether that hold will sustain as LTE technologies
advance, remains to be seen.
It may be that WiMAX will succeed best by targeting niche markets rather than trying to
grasp the whole cherry. Japanese WiMAX operator UQ one of the largest WiMAX
operators in the world had in excess of 3 million subscribers in at the end of 2012. UQ
Executive Vice President Masanori Arita states that their focus is on mobile broadband
access for laptops, netbooks and tablets. In his words, There is no point trying to compete
with mobile operators in the smartphone market. You are not going to win that battle.
Other focuses could be on high-quality 4G data services or home users requiring fixedbroadband connections, or M2M applications. Furthermore, in the unlicensed spectrum,
WiMAX is a good option for rural areas, emerging markets, and those looking to roll out a
network without the encumbrances of spectrum auctions, permits, or vast initial outlays.
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Data produced by Informa Telecoms & Media predicts 15 million WiMAX subscribers
globally by 2015, rising from 1 million in 2011. However, with 7 million LTE subscribers in
2011, and a predicted 609 million by 2016, it can be seen that the future of WiMAX is grey
compared to the future of LTE.
Figure 65 LTE and WiMAX Subscribers 2015
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Q1.
Which of the following technologies operates in the 2.4 GHz band?

a) Bluetooth
b) WiMAX
c) WiBro
d) UWB
Q2.
The IEEE 802.11n WLAN standard supports what maximum data rate?
a) 108 Mbps
b) 600 Mbps
c) 54 Mbps
d) 11 Mbps
Q3.
IEEE 802.16m is primarily concerned with:

a) Quality of Service
b) WiBro
c) Multiple access points
d) Mobile WiMAX
Q4.
Which two technologies is WiBro based on?

a) TDD and CDMA
b) TS-CDMA and FDD
c) OFDMA and TDD
d) SC-FDMA and TDD
Q5.
WiMAX can be most effectively used as a cost-efficient substitute for which type of
network?
a) WiFi
b) Metropolitan fibre
c) Bluetooth
d) Satellite
Q6.
Which of the following are the two key WiMAX standards?

a) 802.16d and 802.16e
b) 802.15.1 and 802.15.3a
c) 802.11a and 802.11b
d) 802.11b and 802.11g
95

Name...
Question set
96
Lesson 5 Technologies for Evolving Wireless

Digital Systems
In recent decades, digital radio systems have displaced analogue systems, primarily due to
their better spectral efficiency. Although a digital radio system has the same fundamental
functions that are found in all types of radio, the difference is that the input and output
signals are digital in nature.
A complete digital radio system is a complex collection of processes and elements, which in
the transmitter are all about conditioning the baseband signal for the channel that lies ahead,
and in the receiver it is all about recovering that signal from any problem created by that
channel. Integrated electronics has made many of the complex mathematical processes
relatively cheap, which in turn leads to the widespread availability of digital systems.
Optimising the deployment of 3.9/4G LTE networks requires an understanding of the
underlying digital radio technologies involved.
The following diagram details the advantages of digital networks.
Figure 66 Advantages of Digital Networks
Modulation, Impairment and Coding

Modulation is the process of superimposing a baseband signal onto an RF carrier. The
carrier is used to convey the data through the channel and the data is then removed from the
carrier in the receiver using a demodulator. The basic digital modulation schemes use the
transitions in the baseband data instantaneously to alter the phase, amplitude or frequency
of the carrier. This leads to modulation schemes referred to as PSK (Phase Shift Keying),
ASK (Amplitude Shift Keying) and FSK (Frequency Shift Keying).
These basic modulation schemes are often only encountered in the simplest radio systems,
but PSK in particular can be enhanced to make it more efficient, and it is found in many of
todays radio technologies.
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Figure 67 Digital Modulation

A channel with a specified bandwidth will have a limited capacity related to that bandwidth
and to other factors such as the noise within the channel. This limit is normally expressed in
the number of symbols per second, which in a digital modulation scheme is referred to as a
phase state. Channel efficiency can be improved by having a modulation scheme with more
than two states, each of which can convey more than one bit of data. This means that
channel efficiency is improved through the use of so-called higher order modulation.
Increasing the channel efficiency in a radio system by increasing the number of phase states
in a phase-modulated signal has obvious limits, and after 8PSK, if further states are
necessary, then it is common to see phase and amplitude modulation combined into a
modulation scheme known as QAM (Quadrature Amplitude Modulation). Two versions of
QAM that are found in many radio systems today are 16QAM and 64QAM.
The radio channel is far from perfect and will suffer from a number of impairments, which will
reduce the quality of the signal at the receiver and may eventually lead to decoding errors.
These impairments include noise from natural and man-made sources, interference from
other radio sites and systems, and propagation effects, such as fading.
In wireless systems, the noise and interference levels, as well as the propagation effects, are
often significant due to the nature of the system, the frequencies used and the environments
covered. For this reason the radio system will normally include some degree of error control
to try to reduce the impact of any errors on the traffic passing through the system.
The use of adaptive modulation allows a wireless system to choose the highest order
modulation depending on the channel conditions. As an example, either PSK or QAM can be
employed to increase the data throughput. The different orders of modulation allow the
system to send more bits per symbol/phase and achieve higher throughputs and/or better
spectral efficiencies.
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As the range is increased, modulation is lowered, but when range reduces, higher order
modulation schemes like QAM can be utilised to increase throughput. In addition, adaptive
modulation allows the system to overcome fading and other interference. The modulated
signals are then demodulated at the receiver, where the original digital message can be
recovered.
Both QAM and QPSK are modulation techniques used in IEEE 802.16 (WiMAX); they are
also used in IEEE 802.11 (Wi-Fi), and 3G (WCDMA/HSDPA) wireless technologies.
Figure 68 Adaptive Modulation

In most cases it is expected that the radio channel will, at times, have a severe impact on the
quality of the received signal and that this may lead to errors in the transmitted traffic data.
For this reason error control coding is usually employed to remove as many errors as
possible. Error control coding involves the mathematical manipulation of data at the
transmitter in such a way that the receiver is able to use a similar process to detect and
maybe correct any errors which have occurred.
The result of manipulating the data in this way is the addition of some additional bits to the
data stream; these are often referred to as overhead. Generally, the more powerful the
error coding (in other words, the more errors it can protect against), the larger the overhead,
so error coding is one of the many points at which compromise is sought in overall radio
network performance.
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Figure 69 Error Control Coding

There are a number of error control coding mechanisms used in digital radio systems. These
are described below.
ARQ (Automatic Request for Retransmission)
In ARQ systems, the process used at the transmitter allows the receiver to detect the
presence of errors but not their position, and therefore the receiver has to request that the
transmitter retransmits the erroneous data. ARQ can only be used when there is a backward
channel from the receiver to the transmitter; this supports the retransmission requests.
FEC (Forward Error Correction)
In FEC systems, the data stream is manipulated at the transmitter and an overhead added,
but this processing allows the receiver not only to detect errors but also to correct them. FEC
tends to involve more complex processes than ARQ, but delivers the benefit of error
correction locally in the receiver.
Combined Error Coding
In many systems a combination of coding schemes is used to achieve the best balance
between efficiency and overhead, and it is very common to combine both ARQ and FEC.
FEC is used to correct errors at the receiver, but when there are too many errors for the
process to cope with, the ARQ scheme will indicate that errors are still present and that the
data should be retransmitted.
Multiple Access Mechanisms

Multiple access mechanisms are employed in telecommunications systems to allow several
users to share the same limited resource. For example, in a cellular network, each cell only
has a small number of channels, so when a user makes a call they will be allocated one of
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these channels, if available. A multiple access system enables the allocation of channels in
this case, and uses a protocol such as MAC (Medium Access Control) for this purpose.
In transmitting different signals within a given frequency allocation, there are two basic ways
in which the spectrum can be divided within a multiple access system: FDMA (Frequency
Division Multiple Access) and TDMA (Time Division Multiple Access).
FDMA schemes divide a spectrum allocation into smaller frequency segments, allocating
each signal a different frequency. Simple first-generation systems used this method. TDMA
allows signals to be transmitted on the same frequencies, but not at the same time each
signal is given its own time slot within this frequency band.
Some systems, such as GSM, use a combination of both of these schemes. Network
Operators are allocated a portion of spectrum that is divided into radio carrier frequencies
spaced a fixed distance apart (FDMA). Each carrier frequency band is then divided into a
number of separate timeslots (TDMA). In GSM, carrier frequencies are spaced 200 KHz
apart this is then divided into eight timeslots.
Figure 70 FDMA and TDMA

A third access scheme, CDMA, allows all signals to share the same frequency and time
domains. In order to distinguish signals at the receiver, unique codes are attached to each
signal. CDMA is the technology used in third-generation mobile systems such as UMTS.
Figure 71 Code Division Multiple Access
101
OFDM (Orthogonal Frequency Division Multiplexing)

OFDM is a multi-carrier transmission technique that has been recently recognised as an
excellent method for high-speed bidirectional wireless data communication. Its history dates
back to the 1960s, but it has recently become popular because economical integrated
circuits that can perform the high-speed digital operations necessary have become available.
OFDM is similar to FDM, but much more spectrally efficient in that it spaces the subchannels much closer together (until they are actually overlapping). This is done by finding
orthogonal frequencies, which means that they are perpendicular in a mathematical sense,
allowing the spectrum of each sub-channel to overlap another without interfering with it.
OFDMs high spectral efficiency and resistance to multipath propagation make it extremely
suitable to meet the demands of wireless data traffic. OFDM is used in such systems as
ADSL and WiMAX, and for wireless digital audio and video broadcasting. However, its use in
mobile systems came later. It was considered, and then rejected, for both GSM and UMTS,
as at that time the processing power required was too great, and the cost prohibitive. Today,
signal processing costs are lower, and it is now sufficiently commercially viable to have been
chosen for use in LTE.
OFDMA (Orthogonal Frequency Division Multiple Access)
OFDMA, which incorporates some elements of TDMA, allows some subcarriers to be
assigned to different users. These groups of sub-carriers are known as sub-channels.
Scalable OFDMA allows smaller FFT (Fixed Fourier Transform) sizes to improve
performance (efficiency) for lower bandwidth channels. This applies to IEEE 802.16-2004,
which can reduce the FFT size from 2048 to 128 to handle channel bandwidths ranging from
1.2520 MHz. This allows subcarrier spacing to remain constant independent of bandwidth,
which reduces complexity while also allowing larger FFT for increased performance with
wide channels.
OFDMA enables subsets of the subcarriers to be allocated dynamically among different
users on a channel, resulting in a relatively robust system and greater capacity.
LTE uses OFDMA in the downlink direction.
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Figure 72 OFDM and OFDMA Subcarrier Allocation
Advanced Antenna Systems

Beam-Forming Antennas
So-called smart antennas, or beam-forming antennas, describe technologies that permit
an antenna system to direct its beam onto a desired signal. Such directional technologies at
the base station brings a number of advantages, in particular a reduction in interference from
other signals.
Using such techniques also can have a significant practical effect in increasing the capacity
of a wireless system, since it is effectively possible to isolate specific regions in a cell, and
even reuse spreading codes within the same cell, between different isolated regions of that
cell.
Increasing the number of users in a system increases the overall interference level, and so
reduces the spare capacity/cell size. If an antenna is able to exclude some of these users by
directional capability, then clearly it allows the overall system capacity to be increased, and
means that more users can be added to the cell overall before other measures such as
handover are required.
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Figure 73 Beam-Forming Antennas)
MIMO (Multiple Input Multiple Output)

MIMO technology improves both the capacity and the data rate on the downlink in a cell.
MIMO makes uses of multiple transmit and receive antennas, while a combination of space
and time diversity techniques are used to improve the received signal and the data rate.
MIMO can be used to increase either the effective range of a system or the channel
throughput (without increasing bandwidth). This improvement is linearly related to the
number of antennas used. Two or four antennas can be used at the base station and at the
UE: thus a MIMO system with two transmit and two receive antennas can support twice the
throughput compared to a single-antenna system in the same channel bandwidth.
There are certain limits to MIMO, however. It only works in the downlink, and it will not work
everywhere; it needs an urban environment.
Figure 74 MIMO
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SONs (Self-Organising Networks)

The SON is a key concept in LTE network standardisation, and has been included in the
standards since Release 8.
The idea of the SON is to remove as much human intervention as possible from network
configuration by providing plug-and-play functionality in the base stations. This has
numerous benefits for network operators, not least in that it speeds up network deployment
while reducing capex by up to 50% and opex by up to 30%.
The scope of SON functionality is evolving with each new version of the standard. Release 8
provided the functionality for equipment installation and roll-out, including automatic
inventory, automatic neighbour relation and automatic software download. Release 9 SON
aspects deal with operational issues such as added mobility procedures and handover
optimisation, and Release 10 adds further SON features such as energy savings, coverage
and capacity optimisation, and self-healing functions.
Figure 75 Self-Organising Networks (SONs)
105

Q1.
Which common modulation scheme is most commonly found in todays radio

technologies?
a) PSK (Phase Shift Keying)
b) ASK (Amplitude Shift Keying)
c) FSK (Frequency Shift Keying)
d) DSK (Digital Shift Keying)
Q2.
What is the effect on adaptive modulation of a reduction in range?

a) Modulation decreases
b) Modulation stays the same
c) Modulation increases
d) No effect
Q3.
Error coding is used to:

a) Improve latency
b) Improve data accuracy
c) Improve throughput
d) Improve the systems overall effectiveness
Q4.
The key benefit of OFDM (Orthogonal Frequency Division Multiplexing) is:

a) Reduced latency
b) Improved throughput
c) Improved spectrum efficiency
d) Improved data accuracy
Q5.
Smart antennas are used to:

a) Increase the effective capacity of cells
b) Improve data accuracy
c) Improve spectrum utilisation
d) Increase cell size
Q6.
The multiplexing scheme used in the downlink direction in LTE is:

a) FDMA
b) OFDMA
c) CDMA
d) TDMA
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These questions are designed to encourage further research as well as to consider the
practical implementation issues associated with next-generation wireless systems.
Q1
Assess the importance and effectiveness of the contribution of the ITUs

standardisation bodies to the development of global next-generation wireless
systems.
Q2
What are the commercial advantages and disadvantages of rolling out a WiMAX
network? Why might an operator consider implementing WiMAX rather than LTE?
Q3
Compare CDMA2000 with HSPA+, and suggest reasons why operators are moving
towards adopting HSPA+/LTE rather than CDMA2000 technologies.
Q4
What are the drivers and barriers to the commercial deployment of LTE networks?
Q5
Imagine you are a network operator who covers an largely under-developed region of
Africa. Which technologies would you consider in respect of rolling out your 3.9G/4G
network? Give reasons for your answer.
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Q1.
The target bit rate for 3G access at <150km/h is:

a) 512 kbps
b) 384 kbps
c) 144 kbps
d) 2 Mbps
Q2.
The primary purpose of 3GPP is to:

a) Develop 3G standards based on GSM networks
b) Harmonise the global development of evolving technologies
c) Develop 4G standards
d) Develop 3G standards based on CDMA networks
Q3.
Which 3GPP specifications comprise the first LTE Release?

a) Release 7
b) Release 8
c) Release 9
d) Release 10
Q4.
The standards specifications contained within 3GPP Release 10 are often collectively
referred to as:
a) 4G
b) 3.9G
c) 3.5G
d) 3G
Q5.
HSPA+ is designed to support which data speeds in the downlink?

a) 10.8 Mbps
b) 100 Mbps
c) 14.2 Mbps
d) 42 Mbps
Q6.
Which version of CDMA supports peak downlink speeds of 14.7 Mbps?

a) CDMA 1x EV-DO Rel. 0
b) CDMA 1x EV-DO Rev. A
c) CDMA 1x EV-DO Rev. B
d) Multi-carrier EV-DO
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Q7.
Which IEEE committee is responsible for the development of Wi-Fi standards?

a) 802.15
b) 802.20
c) 802.16
d) 802.11
Q8.
By 2015, approximately how many WiMAX subscribers does Informa Telecoms and
Media predict globally?
a) 5 million
b) 15 million
c) 25 million
d) 50 million
Q9.
The technique commonly used to increase the number of users that can access a
single cell is referred to as:
a) Modulation
b) Multiplexing
c) Error control coding
d) Time-sharing
Q10.
The multiplexing scheme used in 3G radio systems is:

a) FDMA
b) OFDMA
c) TDMA
d) CDMA
Q11.
How does the use of MIMO affect the performance of a cell?

a) Improves spectrum efficiency
b) Reduces the number of errors
c) Improves capacity and data rate
d) Reduces latency
Q12.
Which 3GPP Release adds mobility procedures and handover optimisation to SON
functionality?
a) R8
b) R9
c) R10
d) R11
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Self-Assessment Multiple Choice Answer Grid

Name...
Question set
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SECTION 3
THE ROADMAP TO 4G AND BEYOND
113
114
Lesson 1 The ITU 4G Framework and Timelines

3.9G Deployment
In recent years, a number of equipment vendors and network operators have claimed to be
deploying 4G (Fourth Generation) wireless technology, based on LTE technologies.
However, it is difficult to justify some of these claims. While numerous operators have
deployed LTE, and while the numbers are rising rapidly, it is not yet confirmed as qualifying
as 4G. LTE is generally referred to as a 3.9G technology; LTE-Advanced, specified from
Release 10 of the 3GPP standards, is referred to as a 4G technology.
Early adopters began to deploy LTE networks in 2009. So far, operators have moved
cautiously in respect of LTE subscription uptake. According to Informa Telecoms & Media, a
number of factors contribute to this: high service prices, a limited number of LTE-enabled
smartphones, and the lack of a clear value proposition. Initial LTE deployments have tended
to concentrate on urban hotspots.
Some operators are taking a more aggressive approach towards LTE rollout. In the UK, as
of mid-September 2013, EE, claiming to serve 98% of the population, had coverage in 105
towns and cities compared to Vodafones one city and O2s three. In 20 of the cities EE had
doubled the average speed to 2430 Mbps, with peak rates of 150 Mbps. Just ten months
after launching (end-2012), EE had 1 million subscribers which, according to EE, is one of
the fastest adoption rates in the world.
Overall, despite immature networks and service propositions that have yet to be fully
defined, LTE subscription growth is faster than for any preceding cellular technology
uptake is particularly strong in Korea, Japan, and the US.
The following graph shows commercial launches note that many more networks around
the globe have committed to LTE and expect to roll out in the near- to medium future.
Figure 76 LTE Commercial Deployments 20092013
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IMT-2000, IMT-Advanced and IMT

The lead for 4G standardisation at a global level came from the ITU, who have repeated the
3G framework and technology evaluation process for the 4G project. The project title being
used is IMT-Advanced and, along with IMT-2000, this is now considered under a single
umbrella title of IMT.
The ITU defines IMT-Advanced systems as follows:
IMT-Advanced systems support low to high mobility applications and a wide range of
data rates in accordance with user and service demands in multiple user environments.
IMT Advanced also has capabilities for high quality multimedia applications within a wide
range of services and platforms, providing a significant improvement in performance and
quality of service.
The key requirements for IMT-Advanced are:
A high degree of common functionality worldwide
Flexible and cost-effective support for a wide range of services and applications
Service compatibility within IMT and with fixed networks
Interworking capability with other radio access systems
High-quality mobile services
Globally compliant UEs
User-friendly applications, services and equipment
Worldwide roaming capability
Enhanced peak data rates 100 Mbit/s for high mobility and 1 Gbps for low mobility
In order to meet these requirements, in 20082009 the ITU-R invited submissions for
candidate RITs (Radio Interface Technologies) or SRITs (Set of RITs) from IMT-Advanced
(4G) candidates.
By the end of 2009, six candidate technology submissions had been received, all revolving
around LTE-Advanced and IEEE 802.16 (WiMAX).
Figure 77 Proposals for IMT-Advanced
116
During an evaluation phase, the ITU-R monitored progress and responded to problems or
requests for guidance in order to assist in building consensus. Then, at the end of 2010, the
ITU-R announced which technologies it considered to be qualified as IMT-Advanced. These
were LTE-Advanced and WirelessMAN-Advanced.
The result of this process is an IMT-Advanced 4G family, which is globally recognised as
being able to grow to a marketplace, while retaining compatibility with existing 3G networks.
Figure 78 The ITU-R, IMT-2000 and IMT-Advanced

The following figure shows the evolution path of 3G and broadband wireless technologies
towards the IMT-Advanced 4G Family.
Figure 79 3G and Broadband Wireless Technology Evolution
3GPP LTE Advanced

3GPPs mission is to further develop existing LTE standards towards LTE-Advanced. The
technology is specified in Release 10.
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The focus of Release 10 is to provide higher bit rates in a cost-efficient manner, and to
completely fulfil the ITUs requirements for IMT-Advanced while retaining compatibility with
Release 8.
A summary of LTE-Advanced includes the following:
Evolution from LTE
Flexible bandwidth up to 100 MHz
Higher spectral efficiency
Speeds in excess of 1 Gbps achievable (downlink) for low-mobility terminals
Greater efficiency (8x8 MIMO and 64QAM)
Heterogeneous networks
A greater number of simultaneously active subscribers
Improved performance at cell edges
There are three main new functionalities in LTE-Advanced: CA (Carrier Aggregation),

enhanced use of multi-antenna techniques, and support for RNs (Relay Nodes).
Migration to 4G
Interest in LTE has increased considerably following the first rollouts in 2010. Operators are
starting to experience capacity shortages in their existing networks following the mobile
broadband explosion. HSPA and EV-DO networks are being upgraded, but these can only
perform up to a certain point, so mobile operators are now seeking to upgrade to faster
technologies by either evolving current networks or disrupting the current CDMA/WCDMA
systems and upgrading to LTE.
Beyond this, market trends such as the upsurge in data requirements and new applications
will continue to put pressure on networks, and put extra demands on technology
requirements.
Figure 80 Market Trends and Technology Requirements
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Despite this, although the choice of LTE is nearly unanimous among mobile operators, many
are still assessing whether they should perform incremental technology upgrades (e.g. from
HSPA to HSPA+) or wait for LTE to come to market. HSPA is now ubiquitous across all
WCDMA operators, and a growing number are upgrading to HSPA+.
However, some network operators are already looking towards deployment of 4G technology
in their networks. South Korean operator SK Telecom was the first operator to launch LTE-A,
when the service went live in July 2013; in the same month Ericsson also successfully
deployed an LTE-A commercial network for the South Korean wireless service provider LG
U+, and other networks are following suit.
The following IMT Timeline shows the progress of IMT-Advanced from the early stages of
spectrum identification to initial rollouts in 2013.
Figure 81 IMT-Advanced Timeline
NGMN (Next-Generation Mobile Networks Alliance)

The purpose of the NGMN is to complement and support standardisation bodies (such as
the ITU and IEEE) and provide a consistent view of the requirements for the next-generation
networks and services that mobile operators plan to launch.
Although the NGMN Alliance has in the past stated that it is technology-agnostic, it now
openly focuses on LTE.
Among the stated aims of the NGMN Alliance are:
To establish clear performance targets and fundamental requirements, including

spectrum and deployment scenarios
To give guidance to equipment developers and standardisation bodies, working

towards a cost-effective network evolution
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To drive implementation of NGMN recommendations and to avoid duplication of work
To provide a forum for the industry for presentation and early assessment of new
technology trends and application enablers as they apply to the LTE/EPC
environment
To share experiences and lessons learnt from initial network deployments
To actively drive communication, raising public awareness on the technologys

performance, availability and customer benefits
There were only two standards that could potentially fulfil the requirements that the NGMN
Alliance has published: LTE and WiMAX. The NGMN Alliance has endorsed LTE which
can fulfil all of their stated requirements. By doing so, the NGMN Alliance will promote the
evolution of the standard and help vendors develop hardware for the new technology. With
the notable exception of WiMAX backer Sprint, most other mobile operators have been
lobbying for the acceptance of the LTE standard and NGMNs move was widely expected. In
any case, it is now accepted that LTE will be the technology of choice for next-generation
mobile broadband networks and mobile operators are currently assessing deployment
scenarios and associated business models.
The NGMN has developed a roadmap for their scope of work over the coming years,
focussing on key technology and industry challenges. This is shown below.
Figure 82 NGMN Roadmap
120

Q1.
Which of the following correctly describes LTE?

a) 3.5G
b) 3.75G
c) 3.9G
d) 4G
Q2.
A WCDMA network operator seeking to upgrade to an LTE network would usually

consider which migration route?
a) WiFi
b) cdmaOne
c) TD-SCDMA
d) HSPA+
Q3.
Which technology standard does the NGMN Alliance endorse?

a) BWA
b) WiMAX
c) WiBro
d) LTE
Q4.
What downlink data rate does the 3GPPs LTE-Advanced standard require?
a) 3 Gbps
b) 1.5 Mbps
c) 1 Gbps
d) 3.5 Mbps
Q5.
What uplink data rate does the 3GPPs LTE-Advanced standard require?
a) 10 Mbps
b) 100 Mbps
c) 1 Gbps
d) 50 Mbps
Q6.
Which 3GPP Release specifies LTE-A?

a) R8
b) R9
c) R10
d) R11
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Lesson 2 Candidate 4G Technologies

Key Characteristics of IMT-Advanced Systems
The ITU is at pains to stress that the development of IMT-Advanced systems should be in
line with consumer and market demands, and also with rapidly evolving trends in the
telecommunications sector. At a high level, these include:
Significantly increasing demand for mobile services in both developed and emerging
countries
More sophisticated user requirements in developed economies, coupled with greater

awareness of the potential of mobile platforms to deliver non-voice services that
underpin personal and national economic development
A greater array of services and applications available on mobile devices, given that it
is almost impossible to predict exactly which types of services and applications IMTAdvanced will be required to support
To deliver a platform that is capable of supporting these demands, the IMT project specifies
a number of characteristics that submissions for IMT-Advanced consideration must adhere
to. These include seamless connectivity between IMT-Advanced and at least one of the
other IMT-2000 technologies, to support user mobility and access. This means that IMT
technologies must address issues such as:
Mobility management (including transparent management of user transitions between

low-speed and high-speed environments, such as walking or driving)
Interoperability between different technologies (such as IMT and CDMA 1x EV-DO)
Always-on connectivity (for example, to support networked security monitoring

services)
Scalability (for example, through modulation or error coding)
High security to ensure the integrity of customer data for applications such as
m-banking, and user authentication for applications such as VoIP
Application prioritisation for time-sensitive or mission-critical mobile applications,

such as disaster management
Location-awareness to support the delivery of location-based applications, such as

mapping
Presence to inform end-users about the communications status of other potential

users (for example, availability of friends in a social network)
Broadcast and multicast support, for example, for point-to-multipoint transmission of

broadcast information to closed-user groups (such as collaborative working) and to
the general public (such as video)
Ease-of-use of all 4G mobile services, so that customers can access the services
and applications they want, when they want. This may involve enhanced support for
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human-to-machine interaction, such as voice recognition technology and for userfriendly technologies such as touchscreens
4G is also required to be equipment-agnostic, and be able to operate not only across
multiple network technologies, but across multiple end-user devices, such as PCs, laptops,
smartphones, cameras, e-readers and tablets.
3.9G/4G Core Technologies

Given that 4G standards are required to be backwards-compatible with 3.9G standards, the
technologies that are core to the effective implementation of 3.9G networks will form the
basis for effective 4G deployment.
The technology foundations of the LTE standard can be grouped in two broad areas. The
first is new technology aspects of the radio layer that have not been available in previous
standards, including OFDMA, MIMO and turbo coding.
The second broad area is existing technology components that are already implemented in
HSPA and HSPA+ are also used in LTE, including AMC (Adaptive Modulation and Coding),
advanced scheduling and several other building blocks that have already been tried and
tested in the market.
OFDMA (Orthogonal Frequency Division Multiple Access)

OFDMA/OFDM has been widely used in other communication areas, including cable, ADSL
and powerline communications. It is a radical change from previous wireless communication
technologies such as CDMA, and its implementation in mobile radio networks has been a
challenge, since infrastructure components have not had the computational power to run the
new technology.
As implemented in LTE, OFDMA divides the available spectrum into thousands of small
carriers that operate on different frequencies. Each of these carriers takes a different part of
the signal, which is assembled in the receiver. The figure shows that in the frequency
domain, data is modulated onto each independent multiple adjacent subcarrier. Then in the
time domain, guard intervals are inserted between each symbol to prevent inter-symbol
interference at the receiver.
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Figure 83 Orthogonal Frequency Division Multiplexing (OFDM)

In general, OFDMA offers three general advantages for mobile operators:
It can use spectrum more efficiently this applies to large, small and irregular blocks
of spectrum
It can support more users in multi-cell environments and increase data rates
considerably, resulting in a better user experience
It brings down the cost of implementing high data rates in the radio network.
On the negative side, OFDMA is a new air interface that requires hardware changes in the
majority of base stations. Apart from the latest generation of SDR (Software-Defined Radio)
base stations, most cell sites will need to be overhauled to support LTE, either through
forklift upgrades (completely replacing the whole base station) or through hardware overlays
(by installing additional, independent hardware to run LTE which will need to interface with
legacy networks).
MIMO (Multiple Input Multiple Output )

In general, OFDMA offers three general advantages for mobile operators:
It can use spectrum more efficiently this applies to large, small and irregular blocks
of spectrum
It can support more users in multi-cell environments and increase data rates
considerably, resulting in a better user experience
It brings down the cost of implementing high data rates in the radio network.
On the negative side, OFDMA is a new air interface that requires hardware changes in the
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majority of base stations. Apart from the latest generation of SDR (Software-Defined Radio)
base stations, most cell sites will need to be overhauled to support LTE, either through
forklift upgrades (completely replacing the whole base station) or through hardware overlays
(by installing additional, independent hardware to run LTE which will need to interface with
legacy networks).
Figure 84 2x2 MIMO Example

Wireless communications are inherently vulnerable to errors between transmitter and
receiver; however, by transmitting a signal through multiple antennas and also receiving the
signal the same way, the performance of the link is increased (since additional information is
received from the two paths).
The implementation of MIMO is a benefit for average throughput, with spectral efficiency for
2x2 MIMO near 1.58 bps/Hz and 4x4 MIMO producing 3.04 bps/Hz.
Although MIMO will increase spectral efficiency and improve data rates, its implementation
in the radio network implies that base station hardware needs to be upgraded to support 2x2
or 4x4 MIMO. Some advanced base stations (especially in Western Europe) already use
cross-polarised antennas (two antennas positioned in an X pattern to introduce diversity
gain), which can be used for 2x2 MIMO. However, the vast majority of cell sites will need to
be upgraded with newer antennas, especially for 4x4 MIMO, which would imply heavy
additional capex.
The benefits of deploying MIMO have already been proven with HSPA+; it has been
anticipated that by using MIMO, an operator could double throughput speeds, improving
such applications as music and video streaming, mobile TV, interactive gaming, and video
conferencing.
MIMO also presents implementation challenges in user terminals, especially in small user
equipment such as USB modems. This problem could be resolved by building LTE modems
126
directly into the user equipment. In this case, MIMO can be implemented by building several
antennas behind the screen much in the same way as Wi-Fi antennas are implemented.
However, given that an attractive design is an important factor for handsets, building two or
more antennas into them is a serious challenge.
Small Cells
Even with the introduction of LTE, the pressure on mobile networks due to the rising
popularity of smart phones and mobile data services will only increase, especially in areas of
high demand. Although network enhancements can go some way to meeting these needs,
traditional macrocell architectures are likely to be unable to meet demand, and operators
need to find other solutions. Small cells could go some way to alleviate the problem.
Small cells have a range of around 10200 metres and encompass femtocells, picocells,
microcells, and metrocells cells for urban areas.
Figure 85 Small Cell Types

Small cells can be used, firstly, for capacity hotspots (mostly for stationary users), providing
additional, targeted capacity and providing other benefits such as spectral efficiency and
cell-edge performance, as well as traffic-management advantages and reduced capex and
opex. Secondly, they can be deployed in clusters to provide a new capacity layer where
required in larger areas, reducing load on the macrocell.
Small cells have a number of advantages over macrocells, especially in rural areas.
Reduced load on macrocells is an important consideration for rural areas with lower
subscriber numbers, where coverage is notoriously difficult and potentially expensive. Rural
macrocells require effective frequency planning and complex installation, and maintenance
costs can be high. Small cells in rural locations could be deployed more cost-effectively,
enabling smaller, more outlying areas and villages to receive coverage.
127
Figure 86 Macrocells vs. Small Cells

Despite their predicted advantages, numerous challenges face operators if they plan to
deploy small cells. The principal disadvantage is cost operators looking for a quick return
on investment from LTE may be wary about expending large amounts of money on small
cells. There are also backhaul issues: metrocells would require backhaul of hundred of
megabits per second, causing the established T1/E1 lines to strain under heavy traffic.
Furthermore, integration with macro level would require improved radio planning, smarter
handover, and improved cell-load management. Interoperability between products and QoS
are other issues that concern operators.
The case for small-cell deployments is strong, and has widespread operator support and
commitment from the major network vendors. However, the speed of adoption and degree to
which small cells will be deployed in the network is still open to debate, due to the problems
outlined above. There were around 15 million small cells in use in 2013; Informa Telecoms &
Media predicts that the number will rise to around 91 million by 2016, driven largely by the
consumer market, which is expected to be the most profitable small-cell market segment.
As can be seen from the graph, small-cell deployments have focused on consumer
femtocells, compact, low-power base stations that are placed in the home environment and
communicate with the mobile core network through a fixed broadband connection.
Femtocells have been rolled out by a number of operators in order to improve coverage and
to offload data traffic from the macro network. The result is a better customer experience,
and a freeing-up of network capacity.
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Figure 87 Femtocell Deployments by Type (2013)

Already, some operators are facing bottlenecks in the backhaul of HSPA networks and are
replacing T1/E1 lines with microwave, metro Ethernet or hybrid solutions. However, there will
be cases where flexibility cannot be achieved at a reasonable cost in order to connect base
stations with faster backhaul links. On the other hand, femtocells use home broadband
connections for backhaul, effectively alleviating these restrictions. However, home
broadband lines may also be lower speed and can be a bottleneck to the LTE user interface.
The NGMN Forum partnered with the Femto Forum in order to incorporate femtocells into
LTE networks at an early stage as a mechanism to address the backhaul problems
associated with very high data rates.
Many mobile operators remain impartial towards LTE femtocells, but if the popularity of
femtocells does increase through LTE, mobile operators are expected to propose a minimum
data speed requirement on broadband subscriber lines to ensure that femtocells operate
effectively.
Software Aspects
There are several important aspects of the LTE radio interface that are secondary to
OFDMA, MIMO and femtocells, but that still offer increased performance compared to
existing technologies. In contrast to femtocells, MIMO and OFDMA, which require hardware
upgrades and therefore can incur significant capital expenditure, most other aspects of the
LTE interface completely reside in software. This means that current base stations may be
upgraded to support these assuming that they are software-reconfigurable.
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Turbo Coding
Turbo coding relates to high-performance, error-correcting codes that are widely used in
deep-space communications and in error-prone channels. They have been designed to be
used in channels where significant noise/interference is present, and their use significantly
improves the performance of LTE through advanced error correction and data compression.
Turbo codes are also used in HSDPA and subsequent standards.
Advanced Modulation and Coding Schemes
64QAM is used in HSPA+ and in LTE. It does require a high-quality channel between
transmitter and receiver. 64QAM usually performs only when users are near the centre of
the cell and in line of sight, but it provides significant increases in speeds and capacity.
SDR (Software-Defined Radio)
SDR base stations are the latest development in radio equipment and allow operators to
upgrade current networks through software upgrades. Chinese vendors Huawei and ZTE
claim a lead in the use of SDR in their base stations, many of which are now reconfigurable
and able to run two technologies in the same platform (for example GSM and WCDMA in a
single hardware platform). In several cases, SDR will provide cost benefits in the long term,
but SDR base stations are expected to cost 2030% more than single-technology ones, as
hardware platforms are more advanced in a bid to ensure compatibility with future standards.
There are several issues that restrict the upgrade of current SDR base stations to LTE. SDR
allows hardware reuse only if LTE is deployed in the same frequency band as current
networks. For example, a Western European mobile operator that operates a GSM network
at 900 MHz and a WCDMA network at 2.1 GHz will not be able to reuse the same hardware
for an LTE deployment at 2.6 GHz. This is primarily due to the restricted bandwidth of power
amplifiers (the most expensive, power-consuming component of base stations). It is
estimated that, even if a mobile operator has SDR base stations, an LTE network at a
different frequency range will still require 80% of the original LTE capex to upgrade the SDR
base station.
Nevertheless, infrastructure vendors are progressing and researching advanced power
amplifiers and relevant technology. The maximum bandwidth for power amplifiers in base
stations is currently 20 MHz but is expected to increase. In the meantime, mobile operators
will increasingly deploy SDR to consolidate legacy infrastructure, but are not expected to
invest large capital to deploy LTE through SDR.
LTE-Advanced 3GPP Release 10

3GPP LTE Release10 and beyond LTE Advanced aims to meet, and exceed, the
requirements of IMT-Advanced, while providing a network that can cope with the demands of
the wireless marketplace in the future. Over time, it is also anticipated that lower both capex
and opex.
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Key features of 3GPP Release 10, and enhancements to Releases 8 and 9, are as follows:
Support of wider bandwidth (CA [Carrier Aggregation]) improves peak data rate by
extending bandwidth up to 100 MHz and offers backward compatibility with Releases
8 and 9
Advanced MIMO techniques improve the peak rate and capacity
Relay improves coverage and capacity and flexibility of service area extension
There are also enhancement to MBMS and SON.

CA (Carrier Aggregation)
Carrier aggregation is vital if LTE-Advanced is to meet IMT-Advanced requirements. CA
meets the requirement to support larger bandwidths than are currently supported in LTE,
while at the same time ensuring backwards-compatibility with LTE.
Carrier aggregation works by effectively leveraging spectrum assets it aggregates
spectrum within a band to create a fatter data pipe, resulting in higher peak data rates and
user data rates, hence an enhanced user experience.
Carrier aggregation can take place across multiple carriers and multiple bands.
Figure 88 Carrier Aggregation

Advanced MIMO Techniques
A major change in LTE-Advanced is the introduction of two new TMs (Transmission Modes).
TM9 enables 8x8 MIMO in the downlink direction; TM2 enables 4x4 in the uplink direction.
Adaptive MIMO can be used to accommodate higher data rates and wider coverage. SUMIMO (Single-User MIMO) improves peak user data rates, MU-MIMO (Multi-User MIMO)
enhances the average data rate, and Collaborative/Network MIMO boosts the cell-edge
users data rate.
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RNs (Relay Nodes)

The RN concept enables the forwarding of traffic and signalling between the eNB and the
UE, to improve coverage at cell edges and for high-data-rate applications. It also extends
coverage to heavily shadowed areas within a cell, and to areas beyond the cells range. By
providing enhancements at cell edges RNs enable operators to keep macrocell sizes fairly
large, hence potentially reducing opex and capex.
Figure 89 Relay Nodes
132

Q1.
One of the requirements of the ITUs IMT-Advanced specifications is for seamless

connectivity. To what does this primarily refer?
a) Connections between operators using the same network standard (e.g. LTE)
b) Connections between operators using different network standards (e.g. LTE and
WiMAX)
c) Connections between LTE/4G and at least one 2G network standard (e.g.
cdmaOne)
d) Connections between LTE/4G and at least one IMT-2000 network standard (e.g.
CDMA 1x EV-DO)
Q2.
Which technology improves the performance of LTE through advanced error

correction and data compression ?
a)
OFDMA
b) Turbo coding
c) Transmit Diversity
d) SDRs
Q3.
Which existing networking standard already incorporates OFDMA?

a) EV-DO Rev. A
b) HSUPA
c) 802.16e
d) WCDMA
Q4.
Which 4G technology works by leveraging spectrum assets?

a) Relay Nodes
b) Small cells
c) 4x4 MIMO
d) Carrier Aggregation
Q5.
What is the main barrier to deploying SDRs in large-scale LTE network

deployments?
a) Inherent cost of upgrading power amplifiers in legacy base station equipment
b) Lack of significant cost savings
c) Unsuitable for large-scale LTE network deployments
d) SDRs are only available through Chinese vendors
Q6.
Which of the following would NOT be classed as a small cell?

a) Picocell
b) Microcell
c) Macrocell
d) Femtocell
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Lesson 3 4G Services, Applications and Devices

4G Services
The ITU has established that services offered via 4G networks should be available taking
account of various market-driven requirements. These include the following.
Affordability
Users will only buy mobile services that are affordable, given their individual economic
circumstances. Although the proportion of personal disposable income spent on
telecommunications annually is increasing globally, the pressure on the cost per packet is
immense, given the increased data rates associated with 3.9G/4G services. For 4G
applications to be affordable and widely adopted, the underlying networks must support
vastly reduced costs per packet.
Speed
Applications such as wireless video will need networks that are fast enough to deliver
acceptable performance in terms of anytime, anywhere availability in a manner that is
transparent to the end user.
Convergence
Applications will need to be available across multiple networks and devices, including across
voice/data networks, fixed/mobile infrastructure and communications-centric/applicationscentric devices or terminals.
Personalisation
Increasingly, users will value the ability to tailor or customise their mobile services to their
own requirements at any time and in any context, without having to subscribe to a
standardised or packaged service:
Quality depending on the environment where the applications are used, different
quality profiles may be required for the same service/user, while always maintaining
an acceptable level of quality according to the application being used
Simultaneity users may wish to use several applications at the same time (such as
voice, photo upload and mapping information), and even across several
synchronised devices, and the networks must be able to facilitate those requirements
Context this means that the network must be aware of the environment within
which the user is performing the various tasks undertaken, so that it automatically
configures services in line with changing contexts rather than the user having to do
this manually.
135
4G Applications
The list of potential applications that could run on 4G technologies is endless. However, the
ITU has identified a number of applications that it considers critical for the success of 4G.
The key point is that 4G is viewed as an enabler for the development of new, innovative
mobile applications; in other words, that such applications could not be fully developed and
widely adopted without the successful implementation of the underlying 4G networks and
associated services.
The ITU considers that innovative 4G applications will develop in line with a number of
market trends, some of which have already been observed as a result of 3G and 3.5G
technology implementation, but which are expected to accelerate and proliferate once 4G
networks and related services are in place. These include the following.
Personal and Home Networking
This refers to the connection of multiple devices within an end-users own environment.
These may include office-based devices, such as PCs, laptops, mobile phones,
smartphones, printers and other peripherals, as well as home devices, such as televisions,
alarm systems, cameras, etc.
The crucial element is that these devices should be able to work together seamlessly and
that connecting and removing devices should be transparent to the end-user so that the
personal networking configuration is tailored to contextual requirements at all times.
As a result of this, the seamless transfer of information between devices becomes the centre
of a number of new applications, such as real-time photo-sharing, Internet searching from
devices other than PCs and smartphones, synchronised content delivery to multiple devices,
remote control, voice-activated video, etc.
Intelligent Transportation
This refers to a range of technologies that are applied to transportation systems to improve
their performance in relation to the environment within which they are functioning. These
include applications such as safety, security, fuel efficiency, sustainability, toll collection,
emergency vehicle notifications, fleet communication systems, traffic enforcement, collision
avoidance systems, etc.
Virtual Communities
This refers to a group of people who interact via the Internet. Applications such as the social
networking site Facebook have already begun to expand beyond simple user profiles, photo
uploads and instant messaging into areas such as context- and location-awareness and
presence-based services.
136
The ITU has further defined a number of examples of existing and potential future services
that may expand once 4G standards and technology infrastructures are in place. These have
been categorised according to user experience (conversational, interactive, streaming and
background), which in turn defines the class of service (for example, in terms of latency/jitter,
throughput, burstiness, information loss, etc.) required to deliver a satisfactory end-user
experience. Some services may require multiple classes of service (such as e-Education
and Consultation), whereas others may require system functions such as number portability
and priority service.
Figure 90 ITU-Defined Applications and Service Classes
4G Devices
Some operators are reporting slow LTE subscription growth, and one of the reasons cited is
the lack of choice of LTE devices, compared to the availability of devices for existing
technologies. Informa Telecoms & Media predicts that it will be smartphones that drive LTE
uptake, which is largely borne out by the statistics; as shown in the graph, the number of
LTE-enabled smartphones is greater than any other device type, followed by
routers/personal hotspots.
137
Figure 91 LTE Devices Products Launched (2013)

As can be seen, the number of devices on the market is increasing rapidly, with over 200%
increase in the number of available devices between mid-2012 and mid-2013. Between 2012
and 2013 the number of LTE-enabled tablets rose by 154%. Clearly, this, along with
smartphones, is set to be an important market for LTE going forward. As market-leading
devices such as the iPad and iPhone continue to come onto the market with LTE
functionality, and where this is supported by the network operators, there is likely to be an
upsurge in consumer uptake of the new technology.
And Then? 5G
With just a handful of network operators having launched an LTE-A network, the talk is
already about what comes next, and the potential service offerings of a 5G (fifth-generation)
mobile network. Some CTOs are optimistic enough to predict a 5G network launch within the
next five years, although more conservative estimates suggest that any such technology will
not be in place until at least 2020.
138
Figure 92 5G Timeline
Why do we need 5G?
The data boom already underway in many global regions (Ofcom, the UK regulator,
reported a 55% year-on-year rise in data usage across mobile networks in 2012) is
predicted to leave 4G networks unable to cope with a capacity crunch, necessitating
network upgrades and the release of more spectrum for mobile communications.
The term 5G is very loose at the moment, with research in its infancy and no standards yet
developed. However, aims would be expected to include:
Very high data rates across wider areas
Ultra-high capacity
Higher spectral efficiency
Improved battery life
Lower latency
Greater number of supported devices
Lower infrastructure costs
Energy efficiency and sustainability
Super-reliable communication
This is expected to come to fruition through the evolution of existing technologies, which may
be enhanced by new technologies for specific use cases.
139
Figure 93 Capacity Crunch

Possible 5G Applications
Possible applications resulting from a 5G rollout include smart cities, an massive increase
in the number of M2M communications, smart traffic management systems, proximity
services (including traffic safety, national security and public safety), connected cars, multihop communication, inter-vehicular communication, and so on in short, a connected
society supporting a global, wireless internet of things where information is shared
anywhere, at any time, to any one and any thing.
Regarding data speeds, Samsung claims that data speeds in excess of 1 Gbps are possible,
and report that their equipment is already capable of this at distances of up to 2 km.
Figure 94 Limitless Communication and the 'Internet of Things'
140

Q1.
According to the ITU, what type of functionality would context-based services be

expected to deliver in a 4G network?
a) Scalable according to the location of the device
b) Automatic, network-driven reconfiguration of devices in line with context
c) QoS levels in line with signal strength in different locations
d) Security of user information
Q2.
According to the ITU, which type of 4G application would require an interactive, lowdelay class of service?
a) Instant messaging
b) e-mail
c) Location-based services
d) File transfer
Q3.
What type of 4G device does Informa Telecoms & Media predict will give rise to LTE
subscription growth?
a) Tablets
b) USB modems
c) Data cards
d) Smartphones
Q4.
For 4G services to remain affordable to end users, what must be the primary concern
of operators seeking to implement LTE-based networks?
a) Reduce capital expenditure
b) Reduce cost-per-packet
c) Reduce operating expenditure
d) Reduce prices
Q5.
The common characteristic of 4G applications is that they must focus on:

a) Innovation
b) Vendor capabilities
c) Network utilisation efficiencies
d) Spectrum utilisation efficiencies
Q6.
Instant messaging can be categorised as which type of application?

a) Conversational
b) Streaming
c) Background
d) Interactive
141

Name...
Question set
142
These questions are designed to encourage further research as well as to consider the
practical implementation issues associated with next-generation wireless systems.
Q1
What recommendations would you make to an operator in a developing market in

terms of migration to a 4G network?
Q2
What are the main barriers to deployment of 4G networks?
Q3
What do you consider to be the main weaknesses of the ITUs approach to

standardisation?
Q4
To what extent do you believe that the 4G standards under development are truly
market driven? Justify your answer.
Q5
Do you believe that all network operators should be looking to deploy 4G networks?
Justify your answer, using examples from different countries.
143

Q1.
A 3GPP2 (CDMA) operator seeking to upgrade to a 4G network would normally

consider which migration route?
a) WiMAX
b) HSUPA
c) LTE
d) WCDMA
Q2.
What phase of the IMT-Advanced standardisation process was the ITU undertaking
in November 2009?
a) Development of candidate RITs/SRITs
b) Acknowledgement of candidate RITs/SRITs
c) Evaluation of candidate RITs/SRITs
d) Assessment of compliance of candidate RITs/SRITs with minimum IMT
requirements
Q3
Why is security one of the ITUs requirements for IMT-Advanced?

a) Need to protect network base stations from theft
b) Need to protect user data against fraud and theft
c) Need to protect banks from fraud
d) Need to guarantee the integrity of user information
Q4.
Which LTE technology is used to achieve improved spectrum efficiencies?

a) OFDMA
b) MIMO
c) Femtocells
d) SDRs
Q5.
SDR only allows hardware reuse if:

a) LTE is deployed in the same frequency band as current networks
b) LTE is deployed in a different frequency band to current networks
c) Legacy base stations support SDR functionality
d) There are two technologies running on the same platform.
Q6.
According to the ITU, which type of 4G application would require a streaming, nonlive class of service?
a) Interactive gaming
b) Location-based services
c) Remote collaboration
d) Emergency calling
144
Q7.
Where will MIMO antennas be located?

a) Inside mobile terminals only
b) Inside mobile devices and on base stations
c) On base stations only
d) Inside USB modems only
Q8.
Between mid-2012 and mid-2013, what was the percentage increase in the number
of available LTE devices?
a) 100%
b) 150%
c) 200%
d) 250%
Q9.
Which 4G technology supports larger bandwidths while ensuring backwardscompatibility with LTE?
a) Relay Nodes
b) Small cells
c) 4x4 MIMO
d) Carrier Aggregation
Q10.
Which technology enables operators to make upgrade networks through software

upgrades?
a)
OFDMA
b) Turbo coding
c) Transmit Diversity
d) SDRs
Q11.
Which of the following modulation and coding schemes is NOT supported by LTE?
a) 16QAM
b) 8PSK
c) 16QAM
d) QPSK
Q12.
Which of the following describes a femtocell?

a) Indoor, single sector antenna
b) Outdoor, three-sector or single sector antenna
c) Indoor, single-sector omnidirectional antenna
d) Outdoor, single sector antenna
145
Self-Assessment Multiple Choice Answer Grid

Name...
Question set
146
GLOSSARY OF TERMS
147
148
Term
Definition
16QAM
16-state Quadrature Amplitude Modulation
2G
Second Generation
35G
Generation 3.5
39G
Generation 3.9
3G
Third Generation
3GPP
3rd Generation Partnership Project
3GPP2
3rd Generation Partnership Project 2
4G
Fourth Generation
5G
Fifth Generation
64QAM
64-state Quadrature Amplitude Modulation
ADSL
Asymmetric Digital Subscriber Line
AMC
Adaptive Modulation and Coding
ARIB
Association of Radio Industries and Businesses
ARPU
Average Revenue Per User
ARQ
Automatic Request for Retransmission
ASK
Amplitude Shift Keying
CA
Carrier Aggregation
CDMA
Code Division Multiple Access
CE
Consumer Electronics
CMAS
Commercial Mobile Alert System
CPC
Continuous Packet Connectivity
CPE
Customer Premises Equipment
DC-HSDPA
Dual-Cell High Speed Downlink Packet Access
DECT
Digitally Enhanced Cordless Telephony
DO
Data Only
DSL
Digital Subscriber Line
EBITDA
Earnings Before Interest Taxes Depreciation and Amortisation
EDGE
Enhanced Data-rates for Global Evolution
EPS
Evolved Packet System
ETSI
European Telecommunications Standards Institute
EV-DO
Evolution Data Only
FDD
Frequency Division Duplex
FDMA
Frequency Division Multiple Access
FEC
Forward Error Correction
FFT
Fixed Fourier Transform
FHSS
Frequency Hopping Spread Spectrum
FMC
FixedMobile Convergence
149
Term
Definition
FRA
Fixed Radio Access
FSK
Frequency Shift Keying
FTTH
Fibre to the Home
Gbps
Gigabits per second
GSM
Global System for Mobile Communications
HARQ
Hybrid Automatic Repeat Request
HOM
Higher Order Modulation
HSDPA
High Speed Downlink Packet Access
HSPA
High-Speed Packet Access
HSPA+
Evolved High Speed Packet Access
HSUPA
High Speed Uplink Packet Access
IEEE
Institute of Electrical and Electronics Engineers
IMS
IP Multimedia Subsystem
IMT-2000
International Mobile Telephony 2000
IP
Internet Protocol
IPTV
Internet Protocol Television
ISP
Internet Service Provider
ITFS
Instructional Television Fixed Service
ITU
International Telecommunication Union
kbps
kilobits per second
LTE
Long Term Evolution
LTE-A
Long Term Evolution Advanced
M2M
Machine-to-Machine
MAC
Medium Access Control
MBMS
Multimedia Broadcast/Multicast Service
Mbps
Megabits per second
MDS
Multipoint Distribution Service
MHz
Megahertz
MIMO
Multiple Input Multiple Output
MRP
Market Representation Partner
MU-MIMO
Multi-User Multiple Input Multiple Output
MVNO
Mobile Virtual Network Operator
NGMN
Next-Generation Mobile Networks
NLOS
Non-Line-of-Sight
OEM
Original Equipment Manufacturer
OFDM
Orthogonal Frequency Division Multiplexing
OFDMA
Orthogonal Frequency Division Multiple Access
150
Term
Definition
OP
Organisational Partner
OTT
Over The Top
PCG
Project Co-ordination Group
PoC
Push-to-Talk over Cellular
PSK
Phase Shift Keying
QAM
Quadrature Amplitude Modulation
QoS
Quality of Service
RAN
Radio Access Network
RF
Radio Frequency
RIT
Radio Interface Technology
RN
Relay Node
RNC
Radio Network Controller
RTT
Radio Transmission Technology
SAC
Subscriber Acquisition Cost
SAE
System Architecture Evolution
SDO
Standards Development Organisation
SDR
Software-Defined Radio
SIM
Subscriber Identity Module
SIPTO
Selected Internet Protocol Traffic Offload
SMG
Special Mobile Group
SMS
Short Message Service
SON
Self-Organising Network
SRIT
Set of RITs
SU-MIMO
Single-User Multiple Input Multiple Output
TDD
Time Division Duplexing
TD-LTE
Time-Division Long Term Evolution
TDMA
Time Division Multiple Access
TH
Time Hopping
TM
Transmission Mode
TSG
Technical Specification Group
UE
User Equipment
UMB
Ultra Mobile Broadband
UMTS
Universal Mobile Telecommunications System
UP
User Plane
USB
Universal Serial Bus
UTRAN
Universal Terrestrial Radio Access Network
UWB
Ultra Wideband
151
Term
Definition
VoIP
Voice over Internet Protocol
WCDMA
Wideband Code Division Multiple Access
WECA
Wireless Ethernet Compatibility Alliance
WiMAX
Worldwide Interoperability for Microwave Access
WLAN
Wireless Local Area Network
WLL
Wireless Local Loop
WMAN
Wireless Metropolitan Area Network
WPAN
Wireless Personal Area Network
152

Mod 1 - Intro To LTE

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Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Lesson 1 Factors Influencing Revenues

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Section 1 Practice Paper ................................................................................................ 54

Lesson 1 Background to 3G Development

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Self-Assessment Multiple Choice Answer Grid (Lesson 5) ........................................... 107

Lesson 1 The ITU 4G Framework and Timelines

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Figure 41 3GPP2 TSGs ................................................................................................... 65

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Figure 87 Femtocell Deployments by Type (2013) ......................................................... 129

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Module Aims and Objectives

Describe current trends in the industry in terms of technology uptake, revenues,

Compare LTE with competing technologies such as CDMA2000 and WiMAX

Discuss software aspects of LTE networks, including turbo coding, advanced

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Lesson 1 Factors Influencing Revenues

General Mobile Market Trends

A decline in core voice and SMS revenues

Changes in the regulatory environment, leading to increased competition and further

Increase in take-up of non-messaging mobile data services, especially since 2008

Adoption of smartphones as web browsing via mobiles increases in popularity

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Mobile Revenue Trends

Retail voice minutes

Retail SMS and other non-voice services

Roaming and interconnect revenues

Airtime and capacity wholesale sales

Increased competition from other mobile network operators as a result of

Price-sensitivity of many consumers due to macro-economic conditions, with

The proliferation of flat-rate, all-you-can-eat bundles of minutes, which has reduced

The proliferation of data-centric smartphones

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

Non-Messaging Data Revenues

Figure 2 Global Mobile Broadband Operators Non-SMS Data Revenues

Informa Telecoms and Media

Introduction to LTE and 4G Wireless

ARPU (Average Revenue Per User)

Figure 3 Global Voice and Data ARPU, US$/Month

Operators Device Revenues

Continued increase in mobile-subscription numbers in developing regions and

Informa Telecoms and Media