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WCDMA Base Station: Embracing the New Generation

May 11, 2015

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Technology

dominque23

  • 1.WCDMA Base Station: Embracing theNew Generation Analyst: Frances Guan In-Stat February 2007

2. Table of Contents Executive Summary........................................................................................................ 3Methodology.................................................................................................................... 3Definition of the New Generation WCDMA Base Station ............................................. 4Introduction ..................................................................................................................... 4Development of WCDMA Market.................................................................................... 4Worldwide WCDMA Network Deployment ................................................................. 5Worldwide WCDMA Subscriber ................................................................................. 5Contract Award of WCDMA Network.......................................................................... 6Global Deployment of WCDMA Base Station ............................................................... 7WCDMA Base Station Deployment Overview ............................................................ 7Geographic Distribution of WCDMA Base Station...................................................... 9What is the New Generation WCDMA Base Station ................................................... 14Evolution of WCDMA Base Station .......................................................................... 14Features of the New Generation WCDMA Base Station .......................................... 15Benefits for Operators by the New Generation WCDMA Base Station..................... 17Future Evolution of the New Generation WCDMA Base Station .............................. 19Main Suppliers of the New Generation WCDMA Base Station .................................. 20Vendors and Their products ..................................................................................... 20Market Share of WCDMA Market by Contract Award............................................... 23Main Operators Who Have Adopted the New Generation WCDMA Base Station .... 25Main Operators ........................................................................................................ 25Business Case ......................................................................................................... 26Conclusion .................................................................................................................... 28 2 3. Executive SummaryIntensive competitions, stagnant revenue growth and enormous investments to the network bring operators many risks. So the challenges in front of operators are how to catch subscriber by more attractive services and how to cut down the cost. Now operators are realizing that a network with better performance and reduced operational cost is more and more crucial.Since the beginning of 2006, operators are committed to upgrading their network. 3G deployment will enter into a fast growing phase. Among the 3G technologies, WCDMA has a faster development: there are 139 WCDMA networks and over 300 thousands WCDMA base stations were deployed worldwide. Now most WCDMA operators are upgrading their network to HSDPA.Where is the demand, where is the driver to innovate. With limited performance, the first generation WCDMA base station launched around 2001, can no longer satisfy operators requirements. To meet these requirements of operators, many WCDMA system suppliers, such as Huawei, Ericsson, Nokia, etc. have launched their new generation WCDMA base station products since 2005.Featured with efficient integrated digital power amplifier, multi-carrier TRX, High-performance HSPA, open architecture, multi-band and IP transmission, the new generation WCDMA base station can bring benefits of large capacity and coverage, smoothing upgrading and CAPEX/OPEX cut down to operators. These new products are winning the acceptance of the industry. By far, the new generation WCDMA base station has been adopted in 74 contracts worldwide.From the aspect of technology evolution, a new generation base station product will be released in 3 to 5 years. Since the first launch of WCDMA network in 2001, now its base station product is embracing a new era: the era of the new generation WCDMA base station. MethodologyThis report was produced using primary and secondary data from a number of known reliable sources. Equipment manufacturers and wireless carriers have participated in the generation of the data presented in this report during face-to-face and phone interviews. Information from company annual reports, company web sites, as well as other publicly 3 4. available material, was used as well, only when this information was deemed to be from a reliable source.Definition of the New Generation WCDMA Base StationSystem vendors have their own roadmaps on the development of their WCDMA base station products. By learning their understanding on the technology evolution, this report defines that the new generation WCDMA base station has technology improvements featured with efficient integrated digital power amplifier, multi-carrier TRX, High-performance HSPA, open architecture, multi-band, and IP transmission.IntroductionSince the first launch of UMTS in Japan in 2001 by NTT Docomo, services such as mobile TV, video streaming and mobile email are commonplace and the public awareness of 3G network has got great progress.The challenge facing the mobile telecommunication industry today is how to improve the end-user experience by appealing services through a series of technology innovation. On one hand, operators are committed to meeting the demand by developing attractive services through upgrading their networks, 2G to 3G, for example; on the other hand, operators are concerned their investment on network construction and operation. Generally, expenditure on base station takes about 30% to 40% of total cost in network construction, so base stations with high-performance and reduced CAPEX (cost of capital) and OPEX (cost of operation) are crucial in the deployment of network.In GSM system, new generation GSM base station with improved performance has been released every 4 or 5 years, since the first commercial system was released in Europe in 1991. Similarly, the first generation WCDMA base station, released in 2001, can not meet the requirement of higher performance with low cost. At present, the mainstream vendors of the industry are delivering the new generation WCDMA base station gradually. Therefore, after 2005, the revolution of WCDMA RAN (Radio Access Network), including base station, is coming. Development of WCDMA MarketCellular operators are taking effort to roll out 3G systems. While among 3G mobile technologies, WCDMA is the most popular and used widely in Europe, Asia Pacific, Africa Middle East and North America. 4 5. Worldwide WCDMA Network DeploymentAs shown in Table 1 and Figure 1, there are 139 WCDMA systems deployed worldwide so far, making up 70% 3G deployment, with 121 commercial and 18 non commercial networks. While 62 CDMA2000 1X EV-DO systems were deployed in the last several years, with 57 commercial and 5 non commercial networks. In 2005, 35 new WCDMA systems were deployed, as well as 7 new CDMA2000 1X EV-DO systems.In terms of the number of deployments, WCDMA has a large advantage, but most carriers with WCDMA deployments are now in the process of upgrading them to HSDPA.Table 1Worldwide 3G Deployment per Technology and Commercialization Western EasternNorth SouthMiddleAsia RegionsAfrica EuropeEuropeAmerica AmericaEastPacificTotal Total CDMA2000 1xEV-DO 316161711357 CDMA2000 1xEV-DO2 000 003 5 - Not Commencial 62 WCDMA56024 1 0526 121 WCDMA- Not0 461 025 18 Commencial139 Total 1065361817847 201 201 Source: In-Stat, 02/07Figure 1 Worldwide 3G Deployment per Technology and CommercializationWCDMA- NotCommencialCDMA2000 9%1xEV-DO 28%CDMA2000 1xEV-DO -Not WCDMACommencial61% 2% Source: In-Stat, 02/07Worldwide WCDMA SubscriberWCDMA subscribers make up the largest group of 3G subscribers. By 2011, In-Stat believes that WCDMA subscribers will grow to near 500 million, with a CAGR of 26.3% from 2007 to 2011 (Table 2 and Figure 2).Table 2. WCDMA Subscriber (In Thousand) 5 6. 1000Estimated Forecast2006 - 2011 2005 200620072008200920102011CAGR Subscriber 44,400100,610 195,486 273,485 376,315 434,268 498,105 26.3% Growth rate126.6% 94.3% 39.9% 37.6% 15.4% 14.7% Source: In-Stat, 02/07 Figure 2. WCDMA Subscriber (2005-2011)In thousand 600,000140% 500,000 120%100%400,00080%300,00060%200,00040%100,000 20% 00% 2005 2006 2007 2008 2009 2010 2011 SubscriberGrowth rate Source: In-Stat, 02/07Contract Award of WCDMA NetworkThe trend in cellular infrastructure contract awards is a good indicator of cellular equipment demand and cellular handset demand. When cellular service providers are awarding new contracts to equipment makers, this is an indication that the cellular provider is either updating its equipment, expanding its coverage and/or capacity, or all of the above.Figure 3 indicates that 63 WCDMA contracts were awarded in 2005 with a growth rate of 31.3% compared with that of 2004. By 2006, the contract awards reaches to 137, this is more than the total number of 2004 and 2005.Figure 3. Global WCDMA Contract Award6 7. 160137140120100 80 63 6048 40 200200420052006Source: In-Stat, 02/07Global Deployment of WCDMA Base Station WCDMA Base Station Deployment OverviewIt is clear that the majority of base stations deployed were GSM. It is not surprising since GSM had the most worldwide subscribers in worldwide.With 3G networks spreading in worldwide, CDMA and WCDMA base station were strongly required. While WCDMA shows a faster growth. From 2006 to 2011, WCDMA base station grows at the CAGR of 17.4% (Table 3).Table 3. Worldwide Total Deployed Base Station and Forecast (Units