World LTE Trends LTE INDONESIA: TECHNOLOGY, REGULATION, ECOSYSTEM & APPLICATION MASTEL Event, July 16 th Guillaume Mascot

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1 World LTE Trends LTE INDONESIA: TECHNOLOGY, REGULATION, ECOSYSTEM & APPLICATION MASTEL Event, July 16 th Guillaume Mascot 1

2 AGENDA 1 Worldwide and regional Trends 2 enodeb Spectrum & & eutran Eco-system solution 2

3 THE EMERGENCE OF MOBILE BROADBAND 30x traffic growth during next 5 years! Internet over mobile 70% of mobile data by billion smart connections by 2015 Source: Bell Labs analysis Facebook: 600+ million users, 200+ million access via mobile devices YouTube = top online video content million unique viewers in December Mobile devices are primary means of access for 75% of YouTube users Source: Nielsen Three Screen Report

4 DEVICE AND OPPORTUNITY EXPLOSION WNG analysis of device usage in operator network WW Connected Devices installed base Percentage of Subs BBs = 1 iphone 10 iphones = 1 Datacard ~2-3 iphones = 1 ipad All Devices IPhone Blackberry Mbytes Data card Nexus One Connected Devices will grow x4 times over 5 years from 1.2B up to 5B Connected TV will grow x11 times over 5 years Tablets will grow x5 times over 5 years M2M (utilities, security, automotive, healthcare) will grow x5 over 5 years NEW DEVICES DRIVING EXPONENTIAL INCREASE IN CONSUMPTION 4 Sources: Informa, Datamonitor, Machina Resarch 2011

5 APAC: A STRONG REGION FIXED BROADBAND CONNECTIONS 257 Million 477 Million FTTX CONNECTIONS 79 Million 206 Million INTERNET TRAFFICE FUELED BY ONLINE VIDEO 67,000 Petabyte 530,000 Petabyte TOTAL MOBILE PHONE SUBSCRIPTIONS 2.9 Billion 4.2 Billion SMARTPHONE SALES (UNITS) 154 Million 584 Million NFC-BASED MOBILE WALLET 7.5 Million 207 Million THE NUMBER OF MOBILE BB CONNECTIONS WILL INCREASED BY 19 IN INDONESIA 5 Sources: Pyramid Research, ABI, Informa Telecoms & Media

6 DAILY VIDEO VIEWING AROUND THE WORLD GLOBAL ASIA PACIFIC 28% 6% 11% 8% 41% 15% 9% 9% Mobile Phone Handheld multimedia device Tablet In-home video game system Mobile Phone Handheld multimedia device Tablet In-home video game system NORTH AMERICA 20% 6% 13% 8% Connected citizens watch video on device daily EUROPE 15% 6% 4% 3% Mobile Phone Handheld multimedia device Tablet In-home video game system Mobile Phone Handheld multimedia device Tablet In-home video game system 6

7 COMPARING 3G AND LTE - OVERALL TRENDS MORE TECHNOLOGY SAVVY USERS WITH BETTER DEVICES USE MORE OF EVERYTHING! 7

8 MORE USERS, MORE TRAFFIC, MORE SPECTRUM NEEDED Example: South Korea Traffic [PB] GB /user/month Average throughput per user expected to double in MHz BW additionally required by 2015 (65MHz auction in Apr. 2013) CDMA LTE WiFi* WCDMA WiBro Unlimited Data service Started in LTE <Source : Korea Communications Commissions and Service Providers> 275Mhz Additional in 5 years 1200Mhz Cumulative by

9 4G LTE ENABLING NEW CONSUMER & ENTERPRISE APPLICATIONS Consumer Application Connected Car Live Messaging Next Generation Music Enhanced Mobile Video Multi Party Video Calling Image Enabled Search Location Based Service Mobile Video Monitoring Mobile Gaming Mobile Advertising Mobile Payment & Banking Technology Fit LTE HSPA Enterprise Application Secure/Manage Data on Devices Mobile Collaboration Multi Party Video Calling Mobile Cloud Computing Wireless Broadband Branch Office Location Based Comm. & Services Navigation Helper Interactive Digital Signage M2M Public Safety Surveillance Technology Fit LTE HSPA Source: * Alcatel-Lucent Market & Customer Insight Europe 10 X SPEED VS. 3G // 3-5X LOWER LATENCY Very Good Good Not Good 9

10 DISRUPTIVE CHANGES IN PROGRESS The explosion of mobile data traffic - Unanticipated phenomenon by industry, but at the eve of mobile internet - Rapid adoption of mobile: 1 terminal for 6 people in the world in for 10 in % of mobile "Internet" in 2010 and 70% in The 400 most dense cities in the world: 400 per km2 smart phones in in % of video traffic will be in In 2015: 1 out of 5 smart phone simultaneously connected to a speed of 800 kbs = increased connectivity 2Gbs / km2 against 16 Mbs / km2 today - An increase in traffic by a factor of 30 in the next 5 years! Data traffic will drive demand / smart phones will be everywhere, even in rural zones, in less dense populated areas / need for backhauling 10

11 AGENDA 1 Worldwide and regional Trends 2 enodeb Spectrum && eutran Eco-system solution 11

12 DOMINANT INITIAL LTE SPECTRUMS (FDD AND TD-LTE) Deployment Strategy Varies Upon Spectrum Availability North America 700MHz,2.6GHz, AWS(1.7/2.1 GHz), 850MHz, 1900 MHz Europe, Middle East & Africa 2.6GHz (FDD, TDD), 800MHz, 1.8 GHz, 2.1 GHz, 900 MHz South America N. America/Europe Freq bands Asia Pacific 700 MHz, 2.1 GHz,2.6 GHz (FDD & TDD), 1.8 GHz; 2.3 GHz (TDD), 850 MHz, 900 MHz, 1.7 GHz 1.4MHz 3MHz 5MHz 10MHz Frequency bands are FDD unless noted 20MHz Key FDD Bands: 700 MHz, AWS (1.7/2.1 GHz), 2.6 GHz, 800 MHz,1800 MHz Key TD-LTE Bands: 2.3 GHz, 2.6 GHz New spectrum for LTE 2G spectrum 3G spectrum New spectrum for LTE and/or 2G spectrum 2G spectrum refarming and/or 2G spectrum refarming 3G spectrum 700/800 MHz 900 MHz 2100 MHz 2.6 GHz 850/900/ 1.9/2.1 GHz 850/900/ 1.9/2.1 GHz 2.3 also for TDD 1800 MHz 1800 MHz 12

13 SPECTRUM CONSIDERATION 1 Capacity Typically, higher frequency bands have larger available bandwidth Band 12 Band 13 Band 5 Band 8 Band 3 Band 1 700MHz 700MHz 850MHz 900MHz 1800MHz 2100MHz 2 x 18MHz 2 x 10MHz 2 x 25MHz 2 x 35MHz 2 x 75MHz 2 x 60MHz Band MHz 2 x 70MHz KEY CONSIDERATIONS 2 Co-existence and Ecosystem Interference and spectrum regulation (guard band, FDD, TDD) The right combination of frequency bands and technology is key, especially in the initial phase 3 Coverage The lower the frequency band, the better WiMAX WCDMA LTE GSM 13

14 TD-LTE AND LTE FDD BASIC DIFFERENCES Time FDD TDD FDD: Frequency Division Duplex TDD: Time Division Duplex Uplink Downlink Up & Downlink Frequency FDD - Symmetrical and separated Uplink & Downlink Channels Time Frame Split Options TD-LTE there is a flexibility to allocate more or less resources to Uplink or Downlink Uplink Downlink Uplink Downlink Uplink Downlink Frequency 14

15 CURRENT STATUS OF 700/800MHZ DIGITAL DIVIDENDS 15

16 BENEFITS OF DIGITAL DIVIDEND ( MHZ) BANDWIDTH FOR RURAL BETTER SIGNAL PROPAGATION RF signal propagation in 700Mhz improve considerably Increased coverage range and throughput Improved coverage into indoor environment RURAL ACCESS More efficient coverage of sparsely populated areas Fixed Broadband Access for communities (education, government and Tele-health) Mobile Broadband Access for all (mobile banking, payment, multimedia, etc.) CONTIGUOUS MOBILE BROADBAND PUBLIC SAFETY BROADBAND New applications: M2M, telemetry, metering, tracking & payment systems, etc. LTE integrates with traditional voice Land Mobile Radio (LMR), to enhance emergency response The US FCC dedicated spectrum for LTE nationwide interoperable Networks-would allow regional interoperability and economies of scale 16

17 RIGHT TECHNOLOGY FOR RIGHT SPECTRUM BAND CURRENT FUTURE FOR 700 MHz TV Broadcast LTE Coverage 900 MHz 2G 3G+ Coverage 1800 MHz 2G LTE Coverage+Capa city 2100 MHz 3G 3G+, LTE & Small Cells Capacity 2.3/2.6 GHz Various LTE Capacity throughout the Region (Rural, Urban, Indoor) 17

18 GLOBAL LTE TERMINAL UPDATE - GSA (Status 2013/03/27) Source: GSA Status of the LTE Ecosystem, 27 th of March,

19 SPECTRUM & ECO-SYSTEM KEY TAKEAWAYS RIGHT TECHNOLOGY RIGHT SPECTRUM AFFORDABILITY 19

20 20

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