With 200,000 stations completed in 2013, network technology will grow more mature and device prices will drop dramatically. We are convinced that we can be the world s largest LTE TDD network and still deliver a top-notch experience. Li Zhengmao, China Mobile s Executive Vice President 1
VOICES FROM OPERATORS China Mobile goes big with LTE TDD Scan for mobile reading China Mobile is more or less the brand ambassador of LTE TDD, and 2013 saw its deployment exceed 200,000 base stations, making it the world s largest for the technology. This scale makes the incumbent a model for others to follow, and Li Zhengmao, its Executive Vice President, recently shared some of China Mobile s thoughts and strategies for LTE TDD technology with WinWin, covering both the domestic market and the world at large. By Li Xuefeng Well under way WinWin: China Mobile s LTE TDD deployment progress will have a significant impact on the pace of the technology s global progress. Please share with us China Mobile s deployment status and overall development strategy? Li Zhengmao: China Mobile believes that LTE TDD can fully meet the needs of mobile Internet service with its two unique advantages of asymmetric uplink/downlink and abundant spectrum resources. LTE TDD also works in sync with LTE FDD. This is why China Mobile devotes itself to promoting the LTE TDD ecosystem development and actively implementing hybridized LTE TDD and FDD when possible. The entire LTE TDD industry is gaining momentum. All mainstream vendors have network products ready for commercial use. Macro-micro coordination and VoLTE are becoming the norm. Devices that support LTE TDD now surpass 200 models, while handset manufacturers worldwide have launched smartphones that support LTE TDD or are actively planning to do so, offering more options to subscribers. China Mobile is now constructing LTE TDD networks in more than 100 cities across China. Trials have begun in Beijing, Hangzhou, Guangzhou, and Shenzhen, among other cities, with good response from the market. With 200,000 stations completed in 2013, network technology will grow more mature and device prices will drop dramatically. The Chinese government will officially issue 4G licenses very soon (released on December 4th), which will trigger rapid user uptake. We are convinced that we can be the world s largest LTE TDD network and still deliver a top-notch experience for our subscribers, whose demands are ever increasing. We have also constructed an LTE network in Hong Kong that converges FDD and TDD, with resources pooled from the core network and wireless baseband/ antennas. Only the remote radio units (RRUs) are constructed independently to support different FDD and TDD frequency bands. This network enables switching between both technologies, which complement each other in terms of coverage and capacity. We believe that with constant improvement in the ecosystem for devices that support both FDD and TDD, and its resulting penetration increase, converged FDD/TDD networking will provide a better and more flexible service experience to subscribers, with maximized utilization of spectrum. 2
VOICES FROM OPERATORS In 2013, our LTE TDD network will cover over 500 million people and become the world s largest LTE network. According to our estimates, the number of LTE TDD subscribers with China Mobile will exceed 100 million in the next three years. WinWin: What would be your estimate of China Mobile s LTE TDD subscriber base in the next three years? Li Zhengmao: China is the most populous country in the world and also boasts the largest number of mobile communications subscribers, with more than 1.1 billion out of the population of 1.3 billion. However, in spite of that, the market is not yet saturated. Compared with the over-100% penetration rates in some developed countries, we still have significant growth potential. China Mobile has more than 700 million subscribers. In 2013, our LTE TDD network will cover over 500 million people and become the world s largest LTE network. In the future, we will continue to expand and optimize this network and improve subscriber experience. According to our estimates, the number of LTE TDD subscribers with China Mobile will exceed 100 million in the next three years. WinWin: What innovative solutions have been adopted by China Mobile to assure network quality? Li Zhengmao: China Mobile is going all out to construct a top-notch LTE TDD network. During the expansion of our trial networks, we have worked with Huawei and other leading vendors to put forward a series of innovative solutions for the conditions on the ground. These solutions have enhanced network performance and achieved generally desirable results. They include: Eight-channel BTS gear that enables dual-stream beamforming (BF) and multi-user multiple-input multiple-output (MU-MIMO) transmission, promising higher capacity and broader coverage; super wideband RRUs that support carrier aggregation and bandwidths of 60 and even 80MHz to adapt to China Mobile s abundant spectrum resources at 2.6GHz; multi-mode, multi-frequency blade RRUs that support a high degree of integration and are easy to install; small cell technologies (micro stations and relay stations) for outdoor hotspots and blind spots, and various indoor solutions (including multi-mode distributed indoor solutions and nanocells that integrate LTE TDD and Wi-Fi); integrated smart antennas that eliminate the construction delays caused by rooftop constraints on-site; and coordinated multi-point (CoMP) technology that reduces co-channel interference and improves cell edge rates. We have also achieved solid pre-commercial usage results on buses and high-speed trains, and gathered a lot of useful experience during the process. Our achievements in high-definition voice, video, and vertical industry applications have also been quite rewarding. In short, we can provide a series of end-to-end, ultrabroadband solutions that deliver good convergence and superior performance. WinWin: Which LTE TDD frequency bands does China Mobile utilize and why? Li Zhengmao: China Mobile is building networks on all available LTE TDD frequency bands. China has a huge population and the large cities are densely populated. With the pervasive use of smartphones, the mobile Internet has developed rapidly and spectrum will always be finite. The TDD spectra intended for LTE use in China include 1.9GHz (1880-to-1920MHz), 2.1GHz (2010-to- 2025MHz), 2.3GHz (2300-to-2400MHz), and 2.6GHz (2500-to-2690MHz). China Mobile has taken 2.1GHz as the main frequency band for 3G (TD-SCDMA) and will use 1.9GHz, 2.3GHz, and 2.6GHz for LTE TDD. Our overall construction approach is 1.9GHz and 2.6GHz for outdoor stations and 2.3GHz for indoor stations. Device & business strategies WinWin: Devices are pivotal to LTE TDD development. What are China Mobile s plans for that? How do you see the price trends for devices? Li Zhengmao: Devices have always been the key to 3
57 device manufacturers participated in China Mobile s bidding for centralized procurement of LTE TDD devices. All mainstream chipset and device manufacturers support LTE TDD, and we are pleased to see the ecosystem take shape. Mobile racks up commercial users, device prices will drop dramatically. We expect to see LTE TDD smartphones launched below CNY1,000 (USD160) in 2014, which will greatly boost our subscriber base. industry development. We made considerable efforts early on to drive the development of the LTE TDD industry chain. To date, 57 device manufacturers have participated in this year s bidding for centralized procurement of LTE TDD devices. All mainstream chipset and device manufacturers support LTE TDD, and we are pleased to see the ecosystem take shape. The devices that support LTE TDD come in all forms, including customer premises equipment (CPE), data cards, mobile Wi-Fi, and smartphones. Taking smartphones as an example, all leading smartphone product lines under all major vendors support LTE TDD. Mode and frequency multiplicity is the direction of device development. China Mobile s network requires smartphones to support single SIM for two networks and five modes and ten (or even thirteen) frequencies to improve the subscriber experience, ensure network access and global roaming, and enable both concurrency and rapid switching between services. These requirements have received active responses from all parties in the industry chain, including chipset, device, and radio frequency (RF) component manufacturers. China Mobile is also working closely with operators worldwide to jointly expand the LTE device market and enhance economies of scale. I believe that as China WinWin: How will devices developed by China Mobile help carriers outside China? Li Zhengmao: China Mobile has been devoted to promoting the LTE TDD industry chain and supporting industry development at home and abroad. We have purchased 200,000 device units so far this year and expect to increase that figure to one million by the end of the year. Thanks to the global commercial use of LTE TDD and the large-scale pre-commercial use of trial networks by China Mobile over the past two years, various device categories, including CPE, data cards, mobile Wi-Fi units, and smartphones have been launched and are now in widespread use. In terms of form factor, LTE TDD devices and LTE FDD devices are now aligned. In terms of price, LTE TDD devices are equivalent to those for LTE FDD, and even 3G. In addition to price cutting, China Mobile s efforts on the device front are also contributing to the further optimization of multi-mode and multi-frequency device solutions, which benefits LTE TDD operators outside of China. As for chipsets, leading manufacturers such as Qualcomm, Hisilicon, Marvell, and MTK have launched or will soon launch multi-mode, multi-frequency device chipsets that support LTE TDD. In terms of devices, Samsung, Huawei, Sony, Coolpad, and other vendors have launched or will soon launch smart devices that support five modes and ten or thirteen frequencies. The extensive use of multi-mode and multi-frequency devices will also accelerate the realization of global roaming for LTE. WinWin: What are the major changes to LTE TDD tariffs when compared with 3G? Do you think the advent of LTE will help reduce the cost per bit for the user? 4
VOICES FROM OPERATORS Regulatory bodies and operators in more and more countries realize the unique value of TDD in coping with the data surge and have started to plan & allocate more TDD spectrum resources for building LTE TDD networks. Li Zhengmao: LTE TDD offers more abundant spectrum resources, higher spectrum efficiency, and a better subscriber experience, and will also play a positive role in cutting down traffic costs per bit. China Mobile has conducted extensive testing of its large-scale LTE TDD trial network with friendly subscribers in the cities of Wuxi and Hangzhou to ensure network success once commercial use begins and provide customers with better communications assurances and services. China Mobile has initiated its exploration and trials in traffic operations and is considering close cooperation with content providers to deliver all-around information services ranging from finance, location, education, healthcare, to the other communications services that subscribers demand in the mobile Internet era. I believe that with the advancement of commercial LTE TDD, the mobile broadband services we provide will be both of a better quality and more affordable. GTI s role in LTE TDD WinWin: The mobile Internet has swept the globe. Would you please share your opinions about the unique value of LTE TDD in helping operators cope with the digital flood? What s your take on global LTE TDD industry development at the moment? Li Zhengmao: Mobile Internet is the direction of the global information and communications (ICT) industry. As a revolution in information, it has and will continue to transform our lives. In the mobile broadband era, high bandwidth transmission requirements raise the requirements for network capabilities and spectrum resources. Compared with FDD, the global mainstream technology, there are still many idle spectra in the TDD field. These are untapped resources that can transmit massive amounts of data and will be very useful. In addition, the uplink and downlink asymmetry of TDD technology better aligns with Internet data transmission, which is also asymmetrical. Regulatory bodies and operators in more and more countries now realize the unique value of TDD in coping with the data surge and have started to plan & allocate more TDD spectrum resources for developing mobile broadband technology and building LTE TDD networks. Upon completion of the aforementioned 200,000 LTE TDD base stations by China Mobile, the number of LTE TDD base stations worldwide will be equivalent to that for LTE FDD. What s more, LTE TDD will be fully converged with LTE FDD in terms of standards, industry chain, products, and network operations. LTE FDD and TDD have both become global mainstream technologies for broadband and mobile communications. Efforts are increasing to achieve the goal of extensively deploying and applying LTE TDD across the globe. Currently, more than 600 operators in the world hold TDD spectrum, of which 23 have launched commercial services and 38 are preparing to. WinWin: In 2011, China Mobile initiated the establishment of GTI in alliance with other global operators. Can you brief us on GTI s efforts? Li Zhengmao: China Mobile is not the only operator actively promoting LTE TDD; other operators are paying attention and providing support worldwide. In February 2011, China Mobile joined with seven international operators, including SoftBank in Japan, Clearwire in the U.S., Vodafone in Europe, and Bharti in India to establish the GTI. The goal is to accelerate mature commercial use and extensive deployment of LTE TDD across the globe, ensure its converged development with LTE FDD, share development achievements globally, and make global roaming a reality. 5
As the most influential organization in the world dedicated to LTE TDD promotion, GTI has attracted members of 69 operators and 60 global industry partners, and these figures are still on the rise. Over the past two years, GTI has played a significant role in driving the global LTE TDD industry forward, promoting LTE TDD market development, and conducting technology research. It has hosted seven international LTE TDD summits, seven workshops, and eight seminars & roundtables, giving great impetus to industry growth worldwide. To effectively guide LTE TDD maturation and its industry at large, five working groups have been established to tackle spectrum, networks, chipsets, commercial services, and 3.5GHz industry development. These groups exchange ideas with global operators and players across the industry chain, study solution feasibility, formulate industry standards for equipment and devices, and lay a solid foundation for the further development of this industry. As the most influential organization in the world dedicated to LTE TDD promotion, GTI has attracted 69 operators and 60 global industry partners, and these figures are still on the rise. GTI has become the global alliance for LTE TDD industry & market development. WinWin: Please share with us your expectations for the GTI and your vision for the entire LTE TDD industry. Li Zhengmao: Since its establishment two years ago, the achievements made by the GTI are clear. It has successfully accelerated LTE TDD maturity, released a whitepaper on multi-mode and multi-frequency devices, and driven the industry to come out with such devices so that international roaming is supported. In addition, the GTI has released several other whitepapers, including a network technology paper to drive rapid product development that meets operator requirements, a whitepaper that promotes the planning & allocation of global TDD spectrum; and another whitepaper that encourages LTE TDD entrance into consumer electronics markets such as the auto industry. GTI has sped up global deployment and commercial use of LTE TDD, accelerating extensive deployment worldwide while making breakthroughs commercially. LTE TDD development has moved from trial to large-scale usage in China and will trigger a new wave of network construction outside of China. In the future, GTI will continue to promote converged FDD and TDD development, accelerate the commercial use of VoLTE solutions, and quicken the popularity of multi-mode and multi-frequency LTE TDD smartphones. It will also promote LTE TDD global roaming, steer the expansion of LTE TDD products at 3.5GHz, and offer solutions for the upgrade of WiMAX to LTE TDD. The GTI will work to enhance exchanges between global operators regarding commercial experiences, enabling more LTE TDD operators to succeed both in terms of network construction and profitability. WinWin: Last but not least, as a long-term strategic partner, Huawei has joined with China Mobile to promote the LTE TDD industry at the Shanghai World Expo, 2010 Asian Games in Guangzhou, Mobile World Congress in Barcelona, and other events. What expectations or suggestions do you have for Huawei in the future? Li Zhengmao: Huawei has invested heavily in China Mobile s LTE TDD development and makes for a great strategic partner. Huawei has also done an excellent job of promoting LTE TDD inside and outside China, as well as with its GTI activities. Here, I d like to express our gratitude to Huawei. Huawei s commitment to the LTE TDD industry is admirable and we hope that it will continue to work with China Mobile to achieve even more in the LTE TDD industry. Editor: Pearl zhuwenli@huawei.com 6