Impact of LTE (4G Long Term Evolution) and Information Technology on Telecom Business

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1 Impact of LTE (4G Long Term Evolution) and Information Technology on Telecom Business Content: Chapter I: IT & Cloud Technologies in Transforming Telecom Business Telecom Business Will be Data Driven Massive Growth Foreseen in Broadband Service Chapter II: Performance Core to LTE Success Competing Technologies Densification Key to LTE and Cloud Computing Chapter III: The Cloud & Mobile Networks Optimizing Existing Networks for Telecom Improving Reliability a Must for Telecom Companies Chapter IV: Distributed Cloud and Delivery of Services Conclusion Cell-centric Approach Chapter I: IT & Cloud Technologies in Transforming Telecom Business The whole ideology behind communication has changed. Behind this change is the emergence of smartphone with their interface which helps to view digital content. From being a primarily voice-centric service, telecom services are turning into a data-centric architecture. Today it is primarily used for providing connectivity and is finding new usage. At the core of all this is LTE (Long Term Evolution) and cloud technologies. The emergence of LTE has been tremendous and the change it has brought into the telecom sector is irreversible. Telecom Business Will be Data Driven The shift from voice to data architecture has created big opportunities for telecom companies providing mobile services. They are reconsidering how their networks should be built and operated. This also necessitates the need to redesign the platforms for services with a high volume of content that are compatible with computing hardware provided by the IT world.

2 Here are at least 3 major factors that will bring IT and telecom together in the future scenario. 1. Users will be demanding richer content and more sophisticated services which the telecom sector will have to satisfy. The telecom business will increasingly turn toward cloud computing to meet this demand. 2. Telecom companies will have to gear up their infrastructure to deliver services at faster rate than what they are currently doing. For which again they will fall back on cloud computing to meet this need. 3. Performance will be a critical factor with customers demanding services that have higher value and richer content. The internet and cloud based computing again will be the mainstay for meeting these requirements. Toward meeting these needs of consumers, the telecom industry is already making major investments for providing pervasive connectivity. Once the investments come through, users will be able to access superior quality of services and enhanced end-user experiences. Yet another critical area in which telecom companies will be investing their resources will be in bringing service points closer to the consumers which will help them find innovative uses for data-centric services. It also means deploying more cells that are closer to the users points of access. Global Spending on Cloud Services For this to happen telecom companies will have increase the number of cells they currently have in their network. This means they will have to design cells that can cover more areas than at present and of standards much superior as of now. There will also be an increased need to consider the variable factors and improve app coverage. In short it means that telecom companies will have to ensure that apps work the way they have been intended to through appropriately designed interfaces that take into consideration user comfort levels. Massive Growth Foreseen in Broadband Service It is envisioned that toward the end of this decade there will be at least 50 billion devices connected to the LTE broadband. Telecom companies have already recognized this fact and see it as the chief revenue drivers. It is all advantage for the telecom industry and will strengthen the hold it has in providing broadband services when linked to cloud resources.

3 Cloud Architecture For this to happen, operators must consider cloud computing as part of their strategies in future marketing efforts. Telecom companies are particularly well positioned to offer cloud services to business consumers. The reason why they can do is because they already own a network and have a pool of consumers who trust them. They will however have to offer service on simple terms along with hardware with a provision for self-service with highly user-friendly interfaces. An effective interface will help users to conduct business analytics, plan business projections and manage services. Chapter II: Performance Core to LTE Success LTE is undoubtedly the fastest growing broadband technology every devised. It had a 70 million user base in 2012 from zero in 2009, the year in which it was first launched. Indications at that the user base has since burgeoned to 150 million as we head toward end of This is a vast improvement as compared with the 3G which saw only an addition of 20 million subscribers during the succeeding 3 years of its inception in The basic tenet on which LTE grew so rapidly can be traced to the fact that they value performance more than anything else in choosing the appropriate technology. As more apps come into usage, developers are increasing taking advantage of LTE s performance factors. This has helped drive new demands and find newer uses for it. The fallout is telecom companies are making bigger investments in networks that are smarter and friendlier toward consumer expectations. Competing Technologies Here is a brief comparison of performance advantages of LTE as compared with competing technologies like 4G (WiMax) and 3G. 4G LTE upload speed 2-3 Mbps; WiMax max of 1.5 Mbps; 3G max of 500 Kbps 4G LTE download speed 8 Mbps; WiMax max of 6 Mbps; 3G max of 1.4 Mbps 4G LTE peak 25 Mbps; WiMax max of 10 Mbps; 3G max of 3.1 Mbps

4 It is now clearly established that performance is clearly linked to coverage and apps performances. It is more likely that future users will relate the working of apps with performance of the telecom s network itself. That again means there is an urgent need to bring improvements to the network. Densification Key to LTE and Cloud Computing Telco as Users & Provider The key to improving performance is in increasing the number of cell sites within a defined area, though this can also mean more interference from other cell sites. Telecom companies will therefore have to take immediate steps to counter the interference factor in their future plans. That in turn means LTE scheduler performance will need to get priority than in the past because of the densification factor and interference. This, the telecom companies will try to accomplish through smart scheduling. Typically schedulers will be able to allot more resources at critical moments when channel quality deteriorates through the use of dedicated bearers. A "smart scheduler" capable of synchronizing will be able to coordinate multiples of basebands which are enabled by IT and telecom convergence. This is of paramount importance as operators take to LTE in a big way. It is estimated that smart schedulers will become a standard feature of all networks in the immediate future. Chapter III: The Cloud & Mobile Networks In the days ahead most operators will look upon networking as a strategic resource for bringing services to customers. They will form the backbone in delivering of services to commercial users from a technical point of view. Cloud infrastructure too is making great strides in this direction. Futuristic cloud services will have the capacity to take on greater workloads and will be marketed in innovative ways. This will vastly help telecom companies to shift workloads depending upon local utilization needs and

5 performance requirements for apps. This is expected to make a critical difference in how services will be delivered. Optimizing Existing Networks for Telecom Typical Telecom Network Telecom companies are also examining methods that they can use to make best use of their existing assets and how well they can integrate the same with cloud resources. The emergence of cloud services compatible with the needs of telecom companies is also likely, as also the development of server modules for this purpose. What will emerge is a mix of centralized cloud and distributed cloud using the existing network of the telecom companies. The advantage of this development is that telecom service providers will be able to stay closer to users and be able deliver services faster; especially those services that are sensitive to delays. The advantage of placing storage points and computing resources close to users will make services appear to be faster and unique. The time taken for responding will be greatly reduced. It will generally ease network congestion and make video streams run faster from the network side. Another advantage for the network owners is that they will be able to reduce the burden placed on their core network resources. The biggest advantage however will be cost saving on staff salaries and equipment maintenance. Improving Reliability a Must for Telecom Companies The biggest challenge of all will be in making the newer infrastructure more reliable than what they are today. Toward achieving this, telecom companies will aim to integrate IT and telecom technologies in a tighter fashion. Some outages in the recent past points to this possibility. One of the major issues that the industry will need to resolve before using cloud computing for delivering services is security. The points to consider include: perceptions of users, security standards to adopt, existing strategies, who owns the cloud, location of the cloud, accessing mode etc. Chapter IV: Distributed Cloud and Delivery of Services

6 It is apparent that content and application when they are close to the user at cell sites enhances performance of service delivered, including speed of delivery. Here are some models that can achieve this objective. A server that is located in the base station but operating distinctly in a different atmosphere A server that is located in the base station as an accessory to the main equipment through the use of addable cards Modules that can be included to the base station equipment which can be added anytime Although not everyone agrees on what is best, the fact remains that they improve user experience vastly. Here are the chief benefits (1) Application performance improves because they are within the location of cell sites and access time is minimized when users access it and (2) there is a reduced burden on the network and thereby improving overall performance. Cell-centric Approach Some applications that have the potential to be kept at cell sites include video streams. The presumption is that users will be accessing the same resource several times. Once the capability of telecom companies to store content locally improves their use will extend to other areas including special applications for museums, stadiums, and malls etc that are highly demanding in video resources. Yet other uses may be found in advertising that are targeted at particular geographies, retail advertisements and couponing. They will be more specifically used for local mapping and enterprise level requirements through out a campus or building. Conclusion There is little doubt that LTE has changed the ways in which communication and interactions are taking place around the world, and the chief driving devices of the future will be smartphone, tablets and other handheld devices, including near field equipment. There is also an immense potential for wearable devices being used on a larger scale as technologies are developed. Telecom companies will be under increased pressure to improve their network performance through providing LTE access, and to give users a richer fuller experience they will have to store contact locally in cell sites to make access faster. This they will be able to do by designing equipment that can be easily integrated with IT hardware. To make all these happen, telecom companies will have to take the active support of IT industry to sustain delivery to consumers.

7 Some Projections for Asia Pacific Telecom Cell By using IT hardware and software in their equipment, development cycle can be brought down substantially and speed of delivery will see an upward rise. Central to all these is the development of local cell sites and densification of the network with each cell having higher memory capacity and computing abilities. This will also pave the way for bringing in new service products. Foreseeable Trends in Telecom Industry The following trends are due in the coming years: Telecom companies will attempt to consolidate their position as new service provider enter the fray There will be a reduction in the number of service providers with more mergers taking place Data will have precedence over voice services, especially in providing broadband services that are based on cloud computing abilities There will be a marked shift from personal computers to handheld devices, necessitating the need for highly interactive screen designs Established telecom companies will be investing more money in densification of their network

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