The Road Ahead for Telecom Landscape LTE in India Mobile Broadband - PowerPoint PPT Presentation

The Road Ahead for Telecom Landscape – LTE in India

Mobile Broadband is here to stay  Broadband has become a ‘must have’ for both businesses and consumers.  Way in which consumers and businesses use communications services is evolving.  Growing need for business continuity and enhanced productivity resulted in surge in wireless broadband penetration among enterprises.  Real-time multimedia applications such as online gaming, content sharing, etc. have increased the demand for broadband.  Introduction of smartphones, tablets and other connected multimedia devices have contributed to the surge in data usage. Data growth continues to drive networks to near full limits, forcing operators to invest in technology upgrades 2

The Mobile Data in 2011  Global mobile data traffic grew 2.3-fold in 2011, more than doubling for the fourth year in a row  In 2011, mobile data traffic was eight times the size of the entire global internet in 2000  Mobile video traffic was 52% of total mobile data traffic at the end of 2011. Moreover, mobile video traffic exceeded 50% for the first time in 2011.  Mobile network connection speeds grew 66% in 2011  In 2011, average mobile network downstream speed increased to 315 kbps (from 189 kbps in 2010)  Average smartphone usage tripled in 2011  The average amount of traffic per smartphone in 2011 was 150 MB per month, up from 55 MB per month in 2010  Smartphones represented only 12 percent of total global handsets in use, but they represented over 82 percent of total global handset traffic 3 Source: CISCO VNI, 2012

The Mobile Data in 2011  In 2011, tablets connected to the mobile networks tripled to 34 million  Each tablet generated 3.4 times more traffic than the average smartphone.  There were 175 million laptops on the mobile network in 2011  Each laptop generated 22 times more traffic than the average smartphone.  Mobile data traffic per laptop was 2.1 GB per month, up 46 percent from 1.5 GB per month in 2010. 4 Source: CISCO VNI, 2012

The Mobile Data in 2016 Mobile data is projected to grow exponentially over next five years 5 Source: CISCO VNI, 2011

Mobile Data Growth Estimations  By the end of 2012, the number of mobile-connected devices will exceed the number of people on earth, and by 2016 there will be 1.4 mobile devices per capita .  Mobile network connection speeds will increase 9-fold by 2016 .  In 2016, 4G will be 6 percent of connections, but 36 percent of total traffic . In 2016, a 4G connection will generate 9 times more traffic on average than a non-4G connection.  By 2016, 39 percent of all global mobile devices could potentially be capable of connecting to an IPv6 mobile network . Over 4 billion devices will be IPv6-capable in 2016.  Mobile-connected tablets will generate almost as much traffic in 2016 as the entire global mobile network in 2012 . The amount of mobile data traffic generated by tablets in 2016 (1.1 exabytes per month) will be approximately equal to the total amount of global mobile data traffic in 2012 (1.3 exabytes per month).  The average smartphone will generate 2.6 GB of traffic per month in 2016, a 17-fold increase over the 2011 average of 150 MB per month . Aggregate smartphone traffic in 2016 will be 50 times greater than it is today, with a CAGR of 119 percent.  By 2016, over 3.1 exabytes of mobile data traffic will be offloaded to the fixed network by means of dual-mode devices and femtocells each month . 6

The (Mobile) Internet of Things  Globally, M2M traffic will grow 22-fold from 2011 to 2016, a compound annual growth rate of 86 percent, with M2M traffic reaching 508,022 terabytes per month in 2016. M2M will account for 5 percent of total mobile data traffic in 2016, compared to 4 percent at the end of 2011. The average M2M module will generate 266 megabytes of mobile data traffic per month in 2016, up from 71 megabytes per month in 2011  The Asia Pacific region will lead the M2M category in 2016 with 259.7 petabytes per month and a CAGR of 88 percent between 2011 and 2016. The Middle East and Africa region will experience the highest CAGR of 90 percent from 2011 to 2016 with 23 petabytes per month of M2M traffic in 2016.

Robust Growth Projected for India as well Mobile Broadband service connections expected to grow significantly from 2010 to 2015 8

LTE – Long Term Evolution

Mobile Broadband Evolution DL: ~141Mbps UL: ~50Mbps LTE DL: ~42Mbps UL: ~11Mbps ~ 100 ms DL: ~14.4Mbps HSPA+ UL: ~5.76Mbps HSPA ~70 ms DL: ~384Kbps UL: ~384Kbps ~45 ms 3G-WCDMA ~15ms 2005 2006 2007 200 2009 2010 2011 2012 or later 8 Increasing Bandwidth Decreasing Latency

What is LTE ? • Completed by 3GPP in February 2008, the LTE standards are designed to enable the rollout of high capacity mobile networks capable of delivering very high speed and low latency. • Designed to be backwards-compatible with GSM and HSPA , LTE incorporates Multiple In Multiple Out (MIMO) in combination with Orthogonal Frequency Division Multiple Access (OFDMA) in the downlink and Single Carrier FDMA in the uplink to provide high levels of spectral efficiency and high data rates • 3GPP has ensured compatibility with these existing widely- used technologies , enabling a smooth handover of voice calls and data sessions between 3GPP networks and building on the international roaming capabilities of GSM and HSPA today.

Lower cost per bit, Higher Capacity, and Greater Flexibility  LTE utilizes OFDM radio access technology and MIMO antenna technology to deliver up to four times the spectral efficiency of HSPA  LTE delivers peak data throughput up to 173 Mbps in the downlink and 86 Mbps in uplink, an improvement over HSPA by a factor of over 10  Enhances the end-user experience - ensuring that real-time bandwidth-hungry applications such as interactive TV, VoIP and online gaming are available and delivered with an exceptionally high QoS  LTE supports next generation core network architecture for LTE called SAE (System Architecture Evolution)  Enables improved data latency and ensures better real-time communications  LTE leverages all IP core networks (SAE), substantially reduces per-megabyte cost of delivery Technological advantages of LTE will have a significant impact on businesses and will ultimately transform LTE into a key business differentiator, delivering operational as well as revenue benefits to the early adopters! 12

Benefits of LTE • LTE efficiently delivers best user experience of broadband and smart device services due to increased data rates, reduced latency and scalable flat all-IP network architecture. • LTE offers a number of clearly identifiable benefits in comparison to other mobile technologies and these are:  Significantly increased peak data rates.  Reduced latency  Scalable bandwidth  Compatibility with earlier releases  Reduced CAPEX/OPEX.  Improved spectrum efficiency • LTE will gain traction and the coming years will see greater deployment of LTE. These deployments will be in both TDD and FDD versions. We expect that the growth in LTE will outpace the growth in Wimax.

Current Scenario • With 72 commercial LTE networks already launched in 37 countries, LTE Network deployment is attracting global industry support, (s ource- Global mobile Suppliers Association (GSA)-May, 2012). • At least 134 LTE networks are anticipated to be in commercial service in 57 countries by end of 2012. • Hence the increasing amount of growth in data traffic will be catered to by the LTE deployments. And in the emerging markets like Asia Pacific, the demand for LTE services will initially come from corporate and SMEs. • As the technology adoption evolves and the network deployments increase, LTE services will percolate down to the larger population in the Asia Pac region. • From a regional perspective, the market share will drastically shift from a North American lead market to the Asia Pacific region, which will account for over 68 % of the revenue by 2015.

LTE in India - Challenges • Issues around the security clearance (for a new technology/ applications). • Given the impact on network performance/ user experience, Quality of device will increasingly become important. • India being a price sensitive market, price points/ tariffs will be one of the key determinants of growth. • Availability of content in vernacular language will also be a key determinant for take-up of service; especially in rural areas. • Lack of adequate backhaul and spectrum could emerge as a bottlenecks as the take-up of service increases. • In the medium to long term these challenges will be overcome and we will see a robust growth in LTE in India.

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