THE EUROPEAN MOBILE BROADBAND MARKET INDEX Index Table of Contents Table of Contents... i List of Figures... vi Executive summary...1 1 Portable PCs and nomadic devices...3 1.1 The European notebook PC market...3 1.1.1 Regional market trends...4 1.1.2 Vendor market shares...6 1.2 Other PC form factors...7 1.2.1 Tablet PCs...7 1.2.2 UMPC...8 1.3 Nomadic devices...9 1.3.1 Portable media players...10 1.3.2 Digital cameras...10 1.3.3 Portable gaming consoles...10 1.3.4 Personal navigation devices...11 2 Mobile network technologies...13 2.1 Evolution of 2G-networks...14 2.2 3G networks: UMTS/WCDMA...16 2.2.1 UMTS packet-switched bearer services...16 2.2.2 Session management...17 2.2.3 Network performance...18 2.2.4 Challenges and future developments...18 2.2.5 UMTS/WCDMA in lower frequencies...20 2.2.6 UMTS-TDD...21 2.3 Evolutions of 3G: HSPA, HSPA+ and LTE...22 2.3.1 HSDPA...22 2.3.2 HSUPA...25 2.3.3 HSPA+...27 STRATEGIC VAS RESEARCH SERIES i
INDEX THE EUROPEAN MOBILE BROADBAND MARKET 2.3.4 LTE...28 2.4 CDMA2000...30 2.4.1 EVDO and UMB...30 2.4.2 CDMA450...32 2.5 Mobile WiMAX...33 3 Other broadband wireless technologies...37 3.1 IEEE 802.11 standard: Wireless LAN...37 3.1.1 802.11 standard...37 3.1.2 Market perspective...39 3.1.3 Hotspots...39 3.1.4 Municipal-WiFi...40 3.2 IEEE 802.16 standard: WiMAX...42 3.3 IEEE 802.20 standard and technologies...45 3.3.1 FLASH-OFDM...45 3.3.2 iburst...48 4 Data terminals and notebook PC integration...51 4.1 Mobile broadband data terminal form factors...51 4.1.1 PC-cards...52 4.1.2 USB-modems...52 4.1.3 Embedded modules...53 4.1.4 Wireless gateways and modems...53 4.2 WCDMA/HSPA broadband terminal vendors...54 4.2.1 Option...55 4.2.2 Novatel Wireless...57 4.2.3 Sierra Wireless...58 4.2.4 4G Systems...60 4.2.5 AnyDATA...61 4.2.6 Digi International...61 4.2.7 Sarian Systems...62 4.2.8 Teltonika...62 4.2.9 TOPEX...62 4.2.10 Zadako...63 ii STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES
THE EUROPEAN MOBILE BROADBAND MARKET INDEX 4.3 Handset and telecom vendors...63 4.3.1 Cisco...63 4.3.2 Ericsson and Sony Ericsson...64 4.3.3 HTC/BandRich...65 4.3.4 Huawei...65 4.3.5 Motorola...66 4.3.6 Nokia...66 4.3.7 Onda Communication...67 4.3.8 Siemens Wireless Modules...67 4.3.9 Telit...67 4.3.10 ZTE...68 4.4 Notebook PC and Tablet/UMPC manufacturers...69 4.4.1 Dell...70 4.4.2 HP...71 4.4.3 Acer...71 4.4.4 Toshiba...72 4.4.5 Lenovo...73 4.4.6 Fujitsu Siemens...73 4.4.7 Sony...74 4.4.8 Panasonic...75 4.4.9 Samsung...75 4.4.10 Others...76 5 HSPA mobile broadband propositions...77 5.1 Business models...77 5.1.1 Contract subscriptions...77 5.1.2 Pepaid subscriptions...77 5.1.3 Bundling with other telecom services...78 5.2 Pricing and conditions...78 5.2.1 Pricing...78 5.2.2 International roaming...81 5.2.3 Terms of use...82 5.3 Case studies: HSPA mobile broadband services...83 STRATEGIC VAS RESEARCH SERIES iii
INDEX THE EUROPEAN MOBILE BROADBAND MARKET 5.3.1 ONE: H.U.I. fixed-mobile-convergence service...83 5.3.2 Tele2: Bundling and flexible tariffs...85 5.3.3 Telenet: Bundling of fixed and mobile Internet access...86 5.3.4 TMN: Network speed tariffs and pan-european roaming charge...87 5.4 Alternative providers of non-hspa mobile broadband...88 5.4.1 Digita @450: FLASH-OFDM in Finland...88 5.4.2 Digiweb: FLASH-OFDM in Ireland...88 5.4.3 Nordisk Mobiltelefon: CDMA450 in Scandinavia...89 5.4.4 Zapp: CDMA450 in Romania and Portugal...91 6 Operator strategies for mobile broadband...93 6.1 3 Group...94 6.2 Deutsche Telekom...95 6.2.1 Strategy for wireless broadband network deployments...96 6.2.2 T-Mobile HSPA broadband propositions...97 6.2.3 UMTS-TDD and FLASH-OFDM deployments...98 6.3 France Telecom...99 6.4 KPN Group...101 6.5 Telecom Italia...102 6.5.1 TIM mobile broadband propositions...102 6.5.2 Alice integrated fixed-mobile broadband offering...103 6.6 Telefónica Group...104 6.6.1 HSPA mobile broadband propositions...104 6.6.2 O 2 Germany: Home zone mobile broadband...105 6.6.3 Telefónica O 2 Czech Republic: Parallel CDMA450 and HSPA networks...105 6.7 Telekom Austria...106 6.8 Telenor...108 6.8.1 Scandinavian market strategy...109 6.8.2 Turbo-3G propositions on the Swedish market...110 6.8.3 WiFi partnership with The Cloud...111 6.9 TeliaSonera...111 6.10 Vodafone Group...113 6.10.1 Vodafone MCC...114 iv STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES
THE EUROPEAN MOBILE BROADBAND MARKET INDEX 6.10.2 Marketing and pricing strategies... 115 6.10.3 International roaming packages... 117 7 Market forecasts and trends... 119 7.1 European market summary... 119 7.2 Device market... 121 7.2.1 Vendor market shares... 122 7.2.2 Form factor trends... 123 7.3 Network service market... 124 7.3.1 Regional market trends... 125 7.3.2 Network technology trends... 127 7.3.3 Service convergence trends... 128 Glossary... 131 STRATEGIC VAS RESEARCH SERIES v
INDEX THE EUROPEAN MOBILE BROADBAND MARKET Index List of Figures Figure 1.1: Notebook PC shipments (EU23+2 2003 2007)...4 Figure 1.2: Notebook PC shipments and population (EU23+2 2006)...5 Figure 1.3: Notebook PC vendor market shares (Worldwide 2006)...6 Figure 1.4: Sahara Slate i200 Tablet PC...8 Figure 1.5: Shipments of nomadic devices (Worldwide 2006)...9 Figure 1.6: Examples of nomadic devices (Sony PSP and Dash PND)...11 Figure 2.1: Peak and average data rates in the evolution from 2G to 3G...14 Figure 2.2: 3G packet switch bearer service session management...17 Figure 2.3: Examples of UMTS-TDD deployments in Europe...22 Figure 2.4: HSDPA deployment status (EU23+2 June 2007)...23 Figure 2.5: HSDPA categories and throughput rates...25 Figure 2.6: HSUPA categories and data rates...26 Figure 2.7: CDMA2000 technology evolution path...31 Figure 2.8: CDMA450 licenses in EU23+2 (May 2007)...32 Figure 3.1: IEEE 802.11 standard evolution...38 Figure 3.2: Examples of municipal Wi-Fi projects in Europe...41 Figure 3.3: Examples of fixed WiMAX licenses and deployments in Europe...44 Figure 3.4: Examples of FLASH-OFDM and iburst deployments in Europe...47 Figure 4.1: Share of EU operators offering principal 3G data terminal form factors...51 Figure 4.2: Examples HSPA mobile broadband terminals...52 Figure 4.3: WCDMA/HSDPA operator distribution agreements by vendor and form factor...54 Figure 4.4: Examples of Option WCDMA/HSPA devices...56 Figure 4.5: Examples of Novatel Wireless WCDMA/HSPA devices...57 Figure 4.6: Examples of Sierra Wireless WCDMA/HSPA devices...59 Figure 4.7: Examples of 4G Systems WCDMA/HSPA devices...60 Figure 4.8: Examples of Huawei WCDMA/HSPA data terminals...66 Figure 4.9: Top notebook manufacturers and their HSPA module suppliers...68 Figure 4.10: HSDPA enabled notebooks by vendor (May 2007)...69 vi STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES
THE EUROPEAN MOBILE BROADBAND MARKET INDEX Figure 4.11: Fujitsu Siemens HSDPA enabled notebook models...74 Figure 5.1: Comparison of HSPA data tariffs (Western and Central Europe, Q2-2007)...80 Figure 5.2: Examples of 3G data roaming packages...81 Figure 5.3: Examples of standardised 3G roaming charges...82 Figure 5.4: H.U.I. packages and pricing...84 Figure 5.5: Banda Larga mobile broadband tariffs...87 Figure 5.6: Frequency licenses held by Nordisk Mobiltelefon...89 Figure 5.7: ICE mobile broadband pricing plans (June 2007)...90 Figure 6.1: Estimated mobile broadband connections by operator (December 2006)...93 Figure 6.2: 3 Group mobile broadband tariffs (June 2007)...94 Figure 6.3: T-Mobile wireless broadband network deployments...96 Figure 6.4: T-Mobile Group mobile broadband tariffs (June 2007)...97 Figure 6.5: Orange Group mobile broadband tariffs (June 2007)...99 Figure 6.6: Orange UK Business Everywhere Max tariff... 100 Figure 6.7: KPN Group mobile broadband tariffs (June 2007)... 101 Figure 6.8: TIM mobile broadband tariffs (June 2007)... 102 Figure 6.9: Alice Sempre integrated fixed-mobile broadband tariff (June 2007)... 103 Figure 6.10: Telefónica Group mobile broadband tariffs (June 2007)... 105 Figure 6.11: Examples of Telefónica O 2 Czech Republic fixed-mobile broadband tariffs... 106 Figure 6.12: Cumulative sales of 3G broadband devices (Mobilkom Austria 2005 2006)... 107 Figure 6.13: Mobilkom Austria mobile broadband tariffs... 108 Figure 6.14: Telenor s Scandinavian subscriber base (Q1-2007)... 109 Figure 6.15: TeliaSonera 3G mobile broadband propositions (June 2007)... 112 Figure 6.16: Vodafone 3G MCC devices (Q4-2004 Q1-2007)... 113 Figure 6.17: Vodafone MCC subscribers and revenues by market (2006)... 114 Figure 6.18: Vodafone Group mobile broadband propositions (June 2007)... 116 Figure 6.19: Vodafone Group MCC roaming propositions (June 2007)... 118 Figure 7.1: Mobile broadband market summary (Europe 2006 2011)... 119 Figure 7.2: Fixed broadband market data (EU23+2 2006)... 120 Figure 7.3: Mobile broadband device shipments and revenues (Europe 2006 2011)... 121 Figure 7.4: Estimated revenues and shipments by device vendor (Europe/World 2006)... 122 Figure 7.5: Shipments of notebooks with embedded HSPA/LTE (Europe 2007 2011)... 123 STRATEGIC VAS RESEARCH SERIES vii
INDEX THE EUROPEAN MOBILE BROADBAND MARKET Figure 7.6: Mobile broadband subscribers and network revenues (Europe 2006 2011)...124 Figure 7.7: Average monthly fee for 500 MB+ mobile broadband service (WE Q2-2007)...126 viii STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES