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CONVERGENCE OF LTE & WIMAX

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Table of Contents

Table of Figures

Executive Summary 03

Wireless Broadband Landscape 04

Present Wireless Broadband Ecosystem 05

Adoption of WiMAX/LTE 06

Need for Convergence 06

Are WiMAX and LTE really moving towards convergence? 07

How can WiMAX and LTE complement each other? 08

Operator Perspective 08

Implications for Operators 09

Conclusion 10

Figure 1: Mobile Crossover 03

Figure 2: WiMAX Vs LTE 04

Figure 3: Wireless Broadband Ecosystem 05

Figure 4: 4G Subscribers Forecast 06

Figure 5: Advantages of Convergence 06

Figure 6: Growing Support for Convergence 07

Figure 7: Similarities 07

Executive SummaryIn an increasingly interconnected world, consumers demand

high speed communication, ease of access and flexibility. This has

spawned off next generation networking technologies that offer

anytime, anywhere, any device access to web/data and provide better

communication capabilities. In fact, digital convergence, an outcome of

this technology evolution, is revolutionizing the way data is delivered

and consumed. However, the challenge here is to track evolving

consumer demands and meet the expectations for faster and more

sophisticated capabilities.

Fourth Generation (4G) wireless networks are set to transform the

telecom sector with their promise of providing greater speed and

handling higher volumes – a priority for most enterprises today. Long

Term Evolution (LTE) and Worldwide Interoperability for Microwave

Access (WiMAX) are the two wireless broadband technologies poised

to dominate next generation networks. These technologies were

developed in response to market demand for interoperability across

networks and integration of earlier wireless network technologies.

Earlier perceived as competing technologies, LTE and WiMAX

are increasingly viewed as capable of complementing each other.

Therefore, an appropriate question today is how much and how soon

they will converge.

This paper explores the need for convergence of LTE and WiMAX,

factors driving it, stakeholder efforts underway to actualize it and the

best strategy operators can adopt to capitalize on this union. The

paper ends with recommendations for operators on the path to take,

the high potential sectors and applications for 4G networks and a

study of emerging markets from this perspective.

03

Convergence of LTE & WiMAX

Source: OVUM

2005

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02006 2007 2008 2009 2010 2011 2012

Fixed Broadband

Mobile Broadband

The Mobile Crossover!

Sub

scrip

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Figure 1: Mobile Crossover

04

Much has been written about the exacting requirements in a

highly connected world and changes triggered subsequently in

the communications network landscape. Some of the key changes

witnessed are:

• High demand for wireless multimedia services such as data, voice

and video has ensured widespread growth of broadband wireless

networks. This is further spurred by advancements in standards

and technologies. The growth of wireless broadband networks is

expected to gradually outpace Asymmetric Digital Subscriber Line

(ADSL) connections.

• Mobile operators today are addressing exponential growth in traffic

with the help of packet evaluation for Third Generation (3G) and all

Internet Protocol (IP) from 4G.

While 3G technology delivers much higher bitrates, there is still a need

for wireless operators to address the growing demand for “wireless

broadband”, lower latency and multi-megabit throughput. Consequently,

this spells out a new revenue opportunity from a growing pool of

untapped consumers, enterprises and retail businesses that can only

be satisfied with next generation networks, i.e 4G. LTE and WiMAX

are enhanced versions of high-speed 3G wireless networks and are

considered to be 4th generation technologies.

The wireless broadband ecosystem comprising of equipment

manufacturers, operators, developer and users, drives a positively

correlated cycle attracting new users and increasing usage of

broadband services.

Wireless Broadband Landscape

Equipment vendors and handset manufacturers

Vodafone, Ericsson, Siemens

ISVsIntel, Cisco, Google

3GPP IETF

Figure 2: WiMAX Vs LTE

LTE WiMAX

Backed by

Community backing

Recent data from mobile service providers shows that the growth of packet data has surpassed voice data

05

Network Operators• Fast & reliable

networks

Innovators and developers• Compelling content

and applications

Equipment manufacturers• More capable and

powerful devices

End Users• New online users• Increased use by

existing users

Present Wireless Broadband Ecosystem

The wireless broadband ecosystem comprising of equipment

manufacturers, operators, developer and users, drives a positively

correlated cycle attracting more new users and increasing usage of

broadband services.

Some of the key trends that are altering the wireless broadband

ecosystem and reinforcing the case for LTE and WiMAX adoption are:

1. Commoditization of voice services combined with the proliferation

of technologies such as VoIP and universal WiFi is leading to declining

voice revenues. Network connectivity and data transmission/

services are expected to boost data revenues. Mobile video will

generate much of the mobile traffic growth through 2015. It is

estimated that 66.4 percentage of the mobile network traffic will

be video traffic by 2015.

2. Laptops, notebooks, smart devices and smart phones will continue

to lead mobile data traffic growth. New device categories such as

M2M and tablets will begin to account for a significant portion of

the traffic by 2015.

3. CDMA as a technology can migrate seamlessly to LTE. Therefore,

leading CDMA players would be in the best position to launch LTE

based services before anyone else.

4. It is predicted that wireless broadband connections will account

for 43% of the total broadband market by 2015. A technology-wise

break-up is shown in the graph here.

Source: Cisco VNI Mobile 2011

Source: Cisco VNI Mobile 2011

Source: Wireless Intelligence

VoIPtrafficforecastedtobe0.4%ofallmobiledatatrafficin2015.

Figure 3: Wireless Broadband Ecosystem

06

Adoption of WiMAX/LTE

Given the various propelling factors discussed earlier, WiMAX and LTE

networks are fast gaining momentum across the world. Large operators

are launching commercial services using these technologies. Europe is

mostly LTE-centric. On the other hand, there is an increasing demand

for WiMAX in Taiwan and in many emerging countries, especially the

Middle East, Africa, and India.

Need for Convergence

While LTE and WiMAX exist independently today, there is a valid case

for converging them. The union of the two technologies is expected

to allow operators the flexibility to deploy multi-mode networks

according to different scenarios.

In essence, a converged WiMAX/LTE solution is desirable to operators

as it will enable them to take advantage of the relative strengths of each

technology while downplaying its weakness.

High throughput

Greater coverage

Low latencyBest of both worlds

WiMAX for true mobile broadband experience and LTE for Voice

Increase opportunities

Reduce the multi-technology deployment risk

Protect operators’ investments

Select the most suitable solution and technology for each situation

Allows to meet data needs while protecting QoS of voice network; no excessive operational expenses

Consider more variables such as environment topography

High speed of connectivity

Plug and play

Multi-functionality

FDD and TDD on the same platform

Better equipped to handle data with larger

packet sizes

Improved end-user experience & easier

voice transport

Simple architecture resulting in low operating costs

LTE advantages Advantages of convergence

WiMAX advantages

WiMAX still enjoys a slight edge for now as LTE is relatively new.

However, it is expected that the adoption of LTE will surpass it

sometime next year mainly because LTE is backward compatible

with existing GSM and HSPA networks. This allows mobile operators

deploying LTE to continue to provide a seamless service across LTE

and existing deployed networks.

Figure 4: 4G Subscribers Forecast

Figure 5: Advantages of Convergence

07

Are WiMAX and LTE really moving towards convergence?

WiMAX and LTE are expected to converge on several levels as they

have many common characteristics and deliver similar performances. In

addition, several stakeholders are taking steps to accelerate this union.

Initially, these and other wireless networks will converge in devices

on a service level through multi-mode device integration, which

are expected to be much simpler and more effective in supporting

seamless handoff of sessions. It is believed that both WiMAX and LTE

will co-exist in certain regions, and that operators will use WiMAX for

one set of applications and LTE for another.

Strong Support from the Ecosystem for Convergence

Figure 6: Growing Support for Convergence Figure 7 : Similarities

Industry alliances and supply relationships • Intel and Nokia; Ericsson

and Sprint; the IEEE, 3GPP and other SSOs; and common proposals by WiMAX and LTE vendors for IMT-Advanced

Moving from Nokia’s Flexi tosoftware-definedradioplatforms that will support both WiMAX and LTE development• Nortel, Alcatel, Alvarion,

and Motorola

Baseband and integrated chip suppliers are supplying commercially available ICs and board level products that combine WiMAX and LTE• Broadcom, Beceem

Standards• ETF - new internet

protocols are well suited for wireless inter-technology applications

• TheIEEE802.21- access-network-independent abstraction of inter-technology handover that could be used with any pair of access network types

Telecom equipment vendors are offering RF base stations that are software upgradeabletoother4Gtechnologies such as LTE• Motorola

Orthogonal Frequency Division Multiplex (OFDM) signalling

Similar architecture and common gateways

Data driven services

This is the most important similarity between LTE and WiMAX

This commonality enables IPTV, VoIP, and other IP/SIP communications

Both WiMAX and LTE are data-driven services and rely on a VoIP style connection rather than a voice network

These commonalities and developments make the merger of WiMAX

and LTE a certainty in the near future. As the rollout of LTE begins, base

stations, handsets, and CPE equipment will be built using baseband and

RF devices that support WiMAX and LTE.

Much of the technology used for LTE is similar to that chosen for

WiMAX even though they have both evolved from two different

standards, i.e 3GPP and IEEE802.16 respectively:

08

How can WiMAX and LTE complement each other?

Overlaying a LTE network to complement existing WiMAX networks

will allow bundling of services and dual-mode devices. This will help

increase an operator’s subscriber base. Achieving this is not difficult

because:

• An LTE overlay on WiMAX would not require additional towers

• The wired network infrastructure is mostly common between

systems and network management, back-office accounting,

operations and billing

• Other functions will also be common (operator dependent)

Until LTE is rolled out, WiMAX will deliver data for 3G networks where

3G’s speeds are inadequate, while the cellular network continues to

handle voice. It is thus easy to see why and how the two technologies

could coexist in the near future and provide valuable high-speed

services to their mutual customers.

Although they offer similar standards, WiMAX and LTE require

different technology to be deployed and this comes with its own set

of challenges such as:

• Operators are likely to run up significant costs

• Manufacturing cost – effective dual-radio handsets capable of

supporting a convergent solution

• Phone and chipset manufacturers would have to develop

products with the capability of supporting both technologies at

a reasonable cost

• Taking a decision on the timing and modalities of migrating device

markets to multi-mode capabilities

However, some progress has been made on this front with Huawei

already launching multiple convergent LTE/WiMAX offerings. The

operators’ thoughts on the convergence of the two technologies and

the options available follow.

First major operator support - Sprint Nextel Corp’s “Network Vision” plan which supports the LTE and WiMAX convergence

Operator Perspective

Operators believe that convergent end-to-end solutions can avoid the

risks of technology choice and network evolution, maximize the value of

key assets, release the pressure from increase of mobile broadband traffic

and help realize business success. The WiMAX/LTE network decision

will be less complex if multimode devices are available and there is a

migration path for the operator. The decision process may still be unclear,

but it gives them the flexibility, so that it does not matter so much.

Initially, since LTE focused more on frequency division duplexing (FDD)

spectrum and WiMAX on time division multiplexing (TDD) spectrum,

their parallel existence seemed suitable to meet the market demand.

However, two developments have changed this, forcing WiMAX

operators to reexamine their long term plans for WiMAX:

1. The increasing support for a TDD-version of LTE, known as time-

division LTE (TD-LTE), thereby competing with WiMAX directly.

2. A powerful LTE ecosystem with a greater choice of subscriber

devices and competitive equipment prices is rapidly emerging,

driven by a growing market and increasing commitment from most

tier-one mobile operators.

Most WiMAX operators today are therefore exploring the

opportunities that LTE offers—either as a complementary technology

or as an alternative to WiMAX.

With more reliable convergent mobile broadband networks and

increased adoption of multi-mode devices, the industry is likely to

switch to a combined WiMAX- LTE network. The main issue remains

the financial difficulty of hosting these two different wireless standards

and the sufficiency of resources to support both networks.

09

Implications for Operators

Operators are in an excellent position to leverage the combined

power of today’s widely deployed WiMAX and emerging LTE

standards to deliver anywhere, anytime wireless broadband

communications bolstered by a sound ecosystem and economies of

scale. A convergent WiMAX/LTE approach improves flexibility as well

as the bottom-line while allowing operators to migrate seamlessly to

future technologies and protect their investment.

However, despite the success of recent operator trials, a commercially

viable TD-LTE ecosystem is still several years away. Therefore, the two

most important factors for operators planning to deploy WiMAX or

TD-LTE, are their business model and the timing of implementation.

• For existing WiMAX operators: Continuing on the same path while

incorporating new upcoming features from enhanced versions and

ensuring continuity of service is likely to be a successful strategy.

This is most appropriate for operators who own 3.5GHz spectrum

since it is not well suited for complete mobility and does not have

defined TD-LTE spectrum profiles yet.

• For new operators: For those with plans to deploy immediately or

over the next two years, WiMAX is the best option. The chief reason

is that the WiMAX ecosystem is well established with low/declining

costs of infrastructure and devices. This will hold true in cases

where mobility is not a primary factor. Where mobility is important,

TD-LTE may be the better option to pursue than WiMAX.

Conclusion

It can be concluded that only the combined power of WiMAX and LTE will be able to handle the growing demand for broadband services. Each of

these technologies comes with its own strengths that are further enhanced by strong independent ecosystems. Hence, the way forward for those

interested in developing their 4G footprint, is to look at how these two technologies can converge and how the combined capabilities can be best

capitalized on. To maximize revenue, vendors must be flexible and deliver cost-effective solutions today that can scale to support a mix of WiMAX and

LTE tomorrow. The LTE market is expected to be at least five times the size of the WiMAX market in the coming years, and vendors cannot afford

to miss this opportunity.

10

About Wipro Infotech

Wipro Infotech, the India, Middle East and Africa business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing

company, that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience

and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognized globally for its

comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro’s IT

business has over 130,000 employees and clients across 54 countries.

About Wipro Consulting Services

Wipro Consulting Services (WCS) is a division of the Wipro Ltd (NYSE: WIT), a $7 billion enterprise that employs around 136,734 employees across

the globe. WCS offers Business Advisory, IT Consulting and Risk and Compliance services designed to improve business performance, drive operational

efficiency and maximize ROI. With 1350+ consultants based in Western Europe, North America, India, Asia Pacific and the Middle East, our integrated

Consulting, IT, BPO and Product Engineering services combine the benefits of expert proximity, with global leverage to provide technology edge and

speed to your strategic programs.

This whitepaper was authored by Padman Kumar, Senior Manager - Business Transformation Practice, at Wipro Consulting Services. He is based in Bangalore and can be reached at [email protected]

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