IEEE Communications Magazine February 2009 44

Video, flat-rate pricing, and connected devices all contribute

to the growing demand for mobile data services.
In the world of telecommunications, people today are
more connected and more mobile than ever. We have more
devices and more ways to stay in touch with one another. The
Internet and wireline worlds are experiencing a rapid conver-
gence of IP video, audio, and data into completely new appli-
cations. Users want that same on-demand access and Internet,
multimedia experience, and content anywhere from any
device.
We are also consuming huge amounts of data while on the
go. Some HSPA operators were reporting an increase of
614x mobile data usage in 2007, and saw an increase of
3050x in the first nine months of 2008. That demand for
mobile data is quickly pushing third-generation (3G) and 3.5G
networks to capacity, motivating operators to pursue 4G solu-
tions like long-term evolution (LTE) today to maintain a com-
petitive edge and add capacity to support mobile broadband
take-up.
This unprecedented demand for mobile data is driven by
several factors: flat-rate tariffs, a proliferation of connected
laptops, devices with large screens and exciting user inter-
faces, and video. There is a video explosion with more video
content embedded on Web pages, and Web 2.0 sites that are
relying more heavily on video. Video is already driving much
higher data usage on fixed line broadband networks and will
soon make its way to mass market mobile broadband, contin-
uing to feed the growth of data consumption on mobile net-
works.
As an all-IP technology, LTE with its evolved packet core
(EPC) can interconnect and hand over between other all-IP-
based access technologies like WiFi and digital subscriber line
(DSL) to enable media mobility. The fixed/mobile conver-
gence capabilities of LTE offer possibilities for operators to
embark on a strategy that transforms them into communica-
tions providers that break the wall between home connec-
tions and the outside world allowing personalized
broadband for users.
For example, using LTE an operator can deploy a host of
integrated applications that provide media mobility, allowing
content to follow the user from one device and one location
to another. That capability to offer follow me content can
create a new source of revenue for operators and a powerful
proposition for consumers who no longer would have to stay
home to download big files or upload videos to YouTube.
Mobile devices that have more intuitive user interfaces are
also responsible for the increasing demand for mobile data.
Web-friendly smart phones are turning mobile customers into
prodigious consumers of wireless data services. We are
enabling users to do more with a mobile device than just text,
email, and voice. With the advent of Web 2.0 sites tuned for
mobile device access, the industry is bracing for an unprece-
dented increase in data traffic associated with devices capable
of accessing graphically rich Internet and video-based content.
As prices on these powerful multimedia mobiles decrease and
choice increases, they will further penetrate the mass market.
The sheer number and types of connected devices, includ-
ing new consumer electronics like digital cameras, MP3 play-
ers, and camcorders, is also fueling mobile data usage.
According to ABI Research, shipments of network-enabled
consumer devices are expected to go from 92 million in 2007
to 460 million by 2012, further driving network usage and
challenging their capacity.
Operators themselves are a key component of the equa-
tion. With the advent of flat-rate pricing, consumers are
encouraged to make the most of their devices to share multi-
media digital content, play games online, and enjoy video
while on the go. As operators provide a great mobile media
experience, users will continue to rely on their device as part
of their lifestyle.
This skyrocketing demand for mobile data presents a chal-
lenge for network operators as their existing networks become
capacity constrained. The radio access network (RAN) grid,
backhaul, radio network controller (RNC), and packet data
core (PDC) on these networks were all dimensioned for voice
and 3G data usage. So while network traffic is increasing, data
pricing is flattening.
This creates a revenue challenge for operators. They need
to upgrade their networks to offer a more compelling user
experience. What they need is a solution that offers a lower
cost per bit, higher capacity, and faster data speeds. For many
operators, LTE will be their answer.
WHY LTE?
LTE is popularly called a 4G technology. It is an all-IP tech-
nology based on orthogonal frequency-division multiplexing
(OFDM), which is more spectrally efficient meaning it can
deliver more bits per Hertz.
LTE will be the technology of choice for most existing
Third Generation Partnership Project (3GPP) and 3GPP2
mobile operators. It will provide economy of scale and spec-
trum reuse. LTE also offers smooth integration and handover
to and from existing 3GPP and 3GPP2 networks, supporting
full mobility and global roaming, and ensuring that operators
can deploy LTE in a gradual manner by leveraging their exist-
ing legacy networks for service continuity. LTE also brings
subscribers a true mobile broadband (~510 Mb/s/~15 ms
latency) that enables a quality video experience and media
mobility.
The LTE standard has been defined with as much flexibili-
ty as possible so that operators can deploy it in all current
existing frequencies as well as new spectrum. Operators can
deploy the technology in as little as 1.4 MHz or as much as 20
MHz of spectrum and grow the network as demand for data
services grows.
LTE will also appear in a number of different spectrum
bands around the world, including the new 2.6 GHz band,
which is perfect as a capacity band since operators are able to
secure up to 2 20 MHz of virgin spectrum. LTE can also be
deployed in refarmed GSM bands in 900 MHz and 1800 MHz
and digital dividend spectrum (e.g., 700 MHz in the United
States), providing superior coverage and global roaming in the
rest of the 3GPP market.
With improvements in capacity, speed, and latency, LTE
will not only make accessing applications faster, but will
enable a wealth of new applications previously available only
on a wired Internet connection. The wall between wired and
wireless will come down. And moving from one environment
to another with your content moving seamlessly will become
second nature:
Continuing to watch the latest TV series recorded on
your DVR, automatically transferred to the 4G network
as you walk out the door
3GPP LTE
THE MOMENTUM BEHIND LTE ADOPTION
BY DARREN MCQUEEN
LYT-3GPP LTE-February 1/19/09 2:52 PM Page 44
Authorized licensed use limited to: Barbara Lange. Downloaded on February 19, 2009 at 22:53 from IEEE Xplore. Restrictions apply.
IEEE Communications Magazine February 2009 45
Uploading content onto your social networking profile to
let your friends know what you are up to
The PowerPoint file you just saved on your laptop instan-
taneously becoming available on your Smartphone
Or even your LTE-enabled digital camera uploading your
latest picture onto your home server or social networking
site for your family to see
OPERATOR INVESTMENT DECISIONS
So what sort of investment should operators make to meet
this growing consumer demand for mobile broadband? Should
they continue to invest in the 3.5G technology they have
already deployed or make the necessary investments now to
move to the inevitable: an all-IP data-optimized technology
that offers ultra-fast broadband services and much improved
capacity?
The scenario is different for 2G, 2,5G, 3G, 3.5G, and time-
division duplex (TDD) operators. Motorola believes LTE will
be the technology of choice for most existing 3GPP and
3GPP2 mobile operators because LTE can be deployed in
existing and new frequency-division duplex (FDD) spectrum
bands. In addition, LTE offers smooth integration with the
ability to keep global roaming agreements and hand over calls
to existing 3GPP and 3GPP2 networks, thereby offering the
coverage benefit of existing 2G and 3G networks.
For most 3GPP2 operators, LTE is their 4G choice. With
LTE being imminent, 2G and 2.5G operators in emerging
markets that have GSM or EDGE networks may find
leapfrogging directly to LTE rather than making an interme-
diary step to HSPA a better option. With LTE, they will get
the lowest cost per bit, and the increased network capacity to
support their medium- and long-term business objectives.
TDD operators also can benefit by moving to LTE since
LTE is also capable of using TDD spectrum. That gives global
operators the ability to standardize on one mobile broadband
technology across all their markets and provide roaming
between TDD and FDD LTE.
For 3G and HSPA+ operators there are other considera-
tions. While HSPA has effectively spurred mobile data adop-
tion, the next iteration, HSPA+, brings improvements mainly
in terms of peak data rate for subscribers nearest to the cell
site, but very little in terms of capacity improvement about
20 percent over HSPA. This increased peak data rate will
benefit only the occasional geographically advantaged sub-
scribers (the ones closest to the antenna) but will not benefit
the largest concentration of users in the cell, meaning a much
smaller opportunity to drive additional revenue.
Operators with HSPA networks then face the choice of
deploying HSPA+ as an interim step to LTE or going straight
to LTE to simultaneously address the capacity, lowest cost per
bit requirement, and improved subscriber experience. These
operators will have to weigh the impact of migrating to
HSPA+ on a site-by-site basis. In some cases this is the right
natural step for those operators.
In effect, 64-quadrature amplitude modulation (QAM)
HSPA+ (as per 3GPP release 7) is possible on some of the
latest generation eNodeBs, providing a low-cost upgrade. But
going for HSPA+ 2 2 multiple-input multiple-output
(MIMO) will in most instances require new hardware and
ancillaries, making the case for a direct upgrade to LTE even
more attractive.
Another consideration is whether, despite an investment
i n HSPA+, they may sti l l be at ri sk of runni ng l ow on
capacity in the next few years (based on the predicted data
growth explosion and the limited improvement in capacity
HSPA+ provides) or/and running the risk of a competitor
making the move to LTE early and putting them at a disad-
vantage.
MARKET ADOPTION OF LTE
More than 20 operators worldwide have already stated a com-
mitment to LTE. Together, they represent more than 1.8 bil-
lion of the worlds 3. 5 billion mobile subscribers. ABI
Research forecasts more than 32 million LTE subscribers by
2013, despite the fact that LTE networks will not be commer-
cial before 2010. ABI Research comes to this conclusion
because several of the worlds largest mobile operators
NTT Docomo, China Mobile, Vodafone, Verizon Wireless, T-
Mobile, AT&T, and many others have announced plans to
deploy LTE.
Moreover, the Next Generation Mobile Networks
(NGMN) Alliance, a global group that now represents close
to 70 percent of mobile operators, has approved LTE as the
first technology that meets the requirements set by NGMN.
And in the fourth quarter of 2008, Qualcomm announced that
it is focusing on LTE rather than pursuing ultra mobile broad-
band.
In todays challenging economic times, operators have
many things to consider before making new investments. But
some things are certain. The demand for mobile data is not
abating. Users from Millennials to road warriors are consum-
ing more data while on the go, and looking for more ways to
have a personalized media experience when, where, and how
they want it.
3GPP LTE
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