Challenges and Opportunities for Wireless Networks

Informação proprietária WxBR

Challenges and Opportunities for Wireless Networks November, 2014


WxBR Company

• Founded in 2008

• Shareholders: Padtec (77%) and Icatel (23%)

• Expertise focusing on BWA (Broadband Wireless Access) System

• Offering Integrated E2E Solutions

• Operating in the high technology market, specializing in Wireless Solutions for Broadband Access

• Its mission is to develop, industrialize and commercialize innovative products and solutions using broadband access technologies such as LTE, WiMAX and Wi-Fi

• Long term R&D program, key wireless technologies LTE/WiMAX/Wi-Fi jointly with CPqD

• Located in Campinas City – Technology Center

Informação proprietária Wx BR

• HQ: Campinas/Sao Paulo, SP – Brasil. • Regional Offices: São Paulo, Rio de Janeiro and Brasilia • Argentina, México, France, Italy and Israel • Equipments and Solutions deployed in 40+ países.

Padtec/Icatel/WxBR


Customers - 1

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Customers - 2


Wireless Communications Market in America Latina

GSMA Report: Mobile Economy

Report Latin America 2013


Mobile Market Latin America

Mobile market in a more mature phase, but still with

potential for growth.


Mobile Market Brazil & Latin America

Latin America accounts for 10

% of the revenue of the global

mobile market, more than double

the results of ten years ago .

Revenues in mobile

telephony in the region totaled

U$107 billion, which is Latin

America„s second fastest

growing region in the world in

2012, with annual growth of 9 %

The region had 632 million

connections and 319 million

subscribers in mid-2013,

equivalent to a penetration rate

of 104 % and 52 % respectively.

Brazil had 35 % of users (112

million) by 2013 .



The mobile market is heading

towards a more mature phase,

but still with significant growth

potential in the medium term (3.5

% CAGR 2012-17), driven by

broadband and M2M connections

bandwidth .

Mobile operators have

invested significant amounts in

building networks and increased

capacity, with a total capex of

nearly U$50 billion in the last

four years.

With the need to increase

capacity and build LTE networks,

it is expected the industry to

invest even more going forward,

with a total capex forecast close

to U$64 billion by 2017 .



Challenges and Opportunities for

Mobile Operators

Support the growing demand for

broadband connections

Support the demand for M2M

connections and Smart City

Provide coverage and services to

customers in rural and remote

areas

Offer new applications such as

mHealth, mAutomotive, mMoney,

mEducation .



“Urgent need that adequate

spectrum is available for

profitable implementations of

LTE”

“The spectrum distribution by region is far behind the 1300 MHz per

country was set as a reference by the ITU in 2015, despite pressure from the

continued strong growth in connections, as well as the growing acceptance

of products and services with more intensive data”


What is M2M ?

“ At its most basic level M2M relates to connecting remote sensing,

monitoring and actuating devices. However, it is about much more than

that. Specifically it concerns enabling new business models and processes

through the application of connectivity.”

• Increase IT efficiency for business and government. Public and private sector organizations can gain significantly in terms of automated business process

management, enterprise resource planning (ERP) and streamlining of customer relationship management (CRM)

processes.

• Help products gain or maintain a competitive edge. Connectivity can facilitate the addition of new features to products and services. For instance a consumer

electronics equipment manufacturer can add a cloud storage solution for a camera, or an insurance company can

offer a real-time usage-based insurance solution. The opportunities are endless.

• Enabling companies to comply with regulation. Certain national and multi-national (i.e. EU) regulation requires either explicitly (e.g. eCall) or implicitly (e.g.

regular utility meter reading) some form of connectivity. These regulated applications provide the strongest

growth push for M2M in the next 2-3

years.

Source: Machina Research, 2012


Global M2M connections 2011-22 by technology

Source: Machina Research, 2012

The Global M2M Market: A USD1.2 trillion opportunity in 2022


M2M – More Forecasts...

By 2022 there will be 18 billion M2M connections globally, up from

approximately 2 billion today

The biggest sector in 2022 will be intelligent buildings with 37% of all

connections, dominated by heating, ventilation and air-conditioning

(HVAC) and security systems. Accounting for 32% of connections, the

second biggest is consumer electronics, including games consoles, music

players, cameras and white goods. These are followed by utilities (10%)

and automotive (8%). Short-range technologies will dominate M2M,

accounting for 73% of connections in 2022.

Cellular technologies will grow from 146 million devices at the end of

2011 to 2.6 billion at the end of 2022. Today M2M accounts for only

around 2% of cellular connections. By 2022 it will account for 22%.

Today, M2M is dominated by 2G, in particular GPRS. By 2022 3G and

LTE will between them account for almost 90% of connections,

driven by requirements for higher bandwidth applications and

demand for technology future-proofing.


Machine-Type Communication (MTC)


LTE in 450 MHz


Broadband access universalization at Brazilian rural areas (PNBL) • 16% of population living in rural areas (≈ 30 millions) • 94% of families living at rural areas without Internet access (≈ 28.5 millions) • 93% of public schools at rural areas without broadband access (≈ 80,000 schools) • Services demand: telephony, Internet, e-Gov

Social and economic Brazilian development in rural areas • Favorable regulatory scenario in Brazil • Auction of 450 MHz band (June 2012) • Two events are booting Brazilian economy:

• FIFA World Cup 2014 and Olympic Games 2016

Source: CPqD – LTE 450 - A Solution for Broadband Access Universalition – with modifications

Initial Motivation for LTE 450 MHz in Brazil (M2M and Smart Grid to come...)


Anatel (Brazilian Telecommunication Regulatory Agency) announced in June 2012 2.6 GHz 450 MHz

Source: ANATEL - Edital de Licitação de 450 MHz e de 2,5 GHz – relator Cons. Marcelo Bechara, with modifications

Auction 450 MHz and 2.6 GHz


Jun/2014

Dec/2015

Commitments of Coverage at 450 MHz (nationwide coverage)

• At least 30% of municipalities

• At least 60% of municipalities

• 100% of municipalities

• Commitments to coverage a geographical area of at least 30 km from served locations with individual PSTN accesses • Voice and Data on retail • Data Access in rural schools • Download 256 kbps • Upload 128 kbps • Monthly allowance for voice and data on retail: 250 MB • No Monthly allowance for rural schools.

Dec/2017 • 100% of municipalities

Increase throughput and monthly allowance: • Download 1Mbps • Upload 256 kbps • Monthly allowance for voice and data on retail: 500 MB


Dec/2014


Dec-2014 Jan-2014 Jan-2013

30% municipalities 1652

60% municipalities 3304

Jun-2013 Jun-2014

Auction Winners (Claro, TIM, Oi and Vivo)

Obligations: Jun 2014: At least, 30% of municipalities Dec 2014: At least, 60% of municipalities Dec 2015: 100% coverage of municipalities (DL: 256kbps, UL:128kbps)

Dec 2017: 100% coverage of municipalities (DL: 1Mbps, UL:256kbps)



LTE 450 MHz in 3GPP

Creates enviroment for LTE450 eco system – chipsets, user

devices, eNodeB, etc.


LTE 450 Standardization in 3GPP

Scope: Standardization of 450 MHz band, considering compatibility with ANATEL 558 resolution (Dec 2010) and ITU-CITEL recomendation to America (CITEL CCP.II-RADIO/doc. 2854/11 rev.2 );

Q3/2012

WI (Work Item) Approval

Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013

Coexistence Study

Band Arrangement

Determination of technical requirements of Base Station and Terminal

TR (technical report) Preparation, Identification of Modified Standards and CRs (change request) development


LTE 450 Standardization in 3GPP

Band Arrangement for LTE 450 (Band 31)


Ireland

Mozambique

Netherlands

Norway

Nigeria

Peru

Philippines

Portugal

Romania

Saudi Arabia

Sweden

Venezuela

Zambia

Mexico

Angola

Argentina

Denmark

Russia

Equator

Bolívia

Hungary

450 MHz frequency band already being used in:

Source: Commnunications Ministry of Brazil – Comunicações no meio rural – Possibilidades a partir da faixa de 450 MHz

450 MHz Outside Brazil


Final Remarks Mobile market in Latin America is now moving to a new phase of

development, with increasing market maturity and slowing revenue

and subscriber growth.

Significant growth potential remains, with future growth driven by

new services and applications and by the accelerating take up of

mobile broadband.

Coverage and services to customers in rural and remote areas

Data demand and new applications (M2M, Smart Grid and

others) to grow at high rates in the coming years

LTE in which frequencies ?

All of them ! Especially in the Digital Dividend bands,

470-698 MHz band allocation for mobile services is one of the most

important issues in the next World Radiocommunication Conference

of the ITU in 2015 in Switzerland .

3GPP Band 31 (450 MHz) already available for use in Brazil


Thank you!