IDATE - LTE 2012 : Deployments stepping up

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LTE Deployments stepping up Markets & trends

28 February 2012 Contact: Frédéric PUJOL

+33 (0)4 67 14 44 50 - [email protected]

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LTE commercial services

LTE subscriptions - forecasts

Devices

MNOs’ strategies - Conclusions

Content

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World LTE market : a watch servie from IDATE

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LTE deployment roadmap

Geographical mapping of early LTE commercial deployment

Major operators LTE commercial deployment schedule

Source: IDATE

Canada and USA

Europe

Asia

3GPP WCDMA

Operators

TD- SCDMA

3GPP2

CDMA

operators

2009 2010 2011 2012 2013

At the end of 2011 there were close to 10 million

LTE subscriptions worldwide.

More than 60% of the LTE subscribers were in

the USA and Verizon Wireless was representing

close to 90% of this figure - 160 M pop. at mid-

2011 - nationwide by 2013

Today more than 50 commercial LTE networks

– both FDD and TDD

USA, Japan and South Korea are leading the

pack

Rank MNO Country Subscribers

1 Verizon Wireless USA 3 165 000

2 NTT DoCoMo Japan 388 600

3 SK Telecom South Korea 250 000

4 TeliaSonera Sweden 200 000

5 Tele2 Sweden 105 000

LTE subscribers 3Q 2011

Source: IDATE

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Review of LTE devices availability

Early LTE handsets:

Samsung Craft and

Galaxy Indulge

Voice supported on 3G networks

HTC Thunderbolt,

Verizon, first LTE

Smartphone

Dongles and personal hot-spot devices prove to

be popular

Tablets are an important part of the device offer Routers for rural areas (Germany, Verizon)

Novatel MiFi 4510L mobile hotspot

Dongles & mobile hot-spots

Tablets

Mobile handsets & smartphones

Other connected devices

Motorola Xoom tablet ZyXEL LTE fixed router Sierra Wireless M2M LTE gateway

Samsung’s first LTE dongle

AT&T’s first mobile

hotspot and dongle

AT&T’s first

smartphones

Samsung’s GalaxyTab 10.1

►30 Modules, 11 Tablets, 10 Notebooks, 2 PC Cards, 27 Smartphones, 70 Routers, 47 Dongles - Source: GSA 11/2011

►700 MHz: 106, 800 MHz: 42, 1800 MHz: 41, 2600 MHz: 52, 800/1800/2600 MHz: 32, AWS: 35

HTC Velocity

first LTE

Smartphone

in Europe

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LTE subscriptions forecasts

Source: IDATE (February 2012)

► By the end of 2016, we forecast, there will be more than 830 million LTE subscriptions worldwide

► Of these, Asia-Pacific will represent 37.2% of the total, North America 23.8% and Western Europe 16.9%

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LTE tariffs

Name and

scope of

rate plan

Speed/

‘Surfzone

’ hotspot

speed

USB-

modem

(for contract

of 24 months)

Data

volume

Monthly

rate

(SEK)

Monthly

rate

(EUR)

Mellan 4G

(Intermediate

4G’)

Up to 20

Mbps

Included 10 GB 249 28

Stor 4G

(‘Grand 4G’)

Up to 40

Mbps

Included 20 GB 349 39

Total 4G

(‘Total 4G’)

Included 30 GB 499 56

Germany

Plan Monthly

rate

(USD)

Monthly

data

allowance

Overage fee

(USD)

4G mobile broadband

plans (for 4G USB

modems and MiFi)

50 5 GB 10 per 1 GB

80 10 GB 10 per 1 GB

4G data plans for LTE

smartphones

(no tethering)

30 2 GB 10 per 1 GB

50 5 GB 10 per 1 GB

80 10 GB 10 per 1 GB

4G data plans for LTE

smartphones with

tethering

50 4 GB 10 per 1 GB

70 7 GB 10 per 1 GB

100 12 GB 10 per 1 GB

Plan Monthly rate

(EUR)

Network Data

cap

Device

Mobile Internet

flat 50

65 LTE 20 GB Dongle

Mobile Internet

flat 21.6

45 Includes use of

LTE

10 GB Dongle

Mobile Internet

flat 14.4

35 Includes use of

LTE

7.5 GB Dongle

Source: IDATE (February 2012)

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The LTE wholesale model

Source: IDATE

Sells Mobile

WiMAX

capacity

Will sell LTE

capacity

Provides cells

sites and

helps building

theterrstrial

LTE network

Build a common GSM and LTE

network (Sweden)

Will sell LTE

capacity to

MVNOs and

distributors Sells LTE

capacity

Sharing

agreement?

Sells LTE

capacity?

Builds a wholesale LTE network in

the 2.3 GHz band for rural areas

Builds a wholesale LTE network in

the 1800 MHz band (Poland)

Plans to build a wholesale LTE

network in the S-band (USA)

Many actors using new spectrum (satellite L-Band, S-band, 2.3 GHz…)

Consolidation likely in the USA & LightSquared out of the game

Difficulties in Russia

Sharing and wholesale model can be combined

?

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Conclusions

Mobile sector still dynamic in the USA & Asia, struggling in Europe

Devices: > Smarphones representing a growing part of devices shipments

> LTE devices coming slowly to the market

> The US market is currently the priority for LTE device manufacturers

LTE networks: > RAN available, LTE commercial networks in 2010

> IMS core networks being built, key to VoLTE offering

> LTE delivers the expected data rates and latency

> LTE-Advanced: probably earlier than expected

LTE is seen as a solution to congestion and saturation network issues in

dense areas

LTE can be a differentiating tool in very competitive markets

LTE spectrum: > Fragmentation risk

> Regional harmonization likely

MNOs strategies: > New technology path

> More capacity / higher data rates

> Network sharing developing and wholesale operators appearing

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Thank you!