Dec 11, 2012 - Although all existing WCDMA networks globally have already been upgraded to .... communication services s
duAl-carrier hspa a growth opportunity
With an increasing array of new smartphones and tablets supporting this technology, now is the time for both operators and end-users to reap the benefits of Dual-Carrier HSPA
Evolve your network FOR growth HSPA Remains the Engine Driving Mobile Broadband Growth According to the latest Ericsson Mobility Report, 2012 marked the beginning of an era where global growth of mobile subscriptions will no longer be driven by the GSM/EDGE based second-generation (2G) mobile technology, which for years has been the stalwart of mobile systems. Rapid growth of WCDMA/HSPA will make this third-generation (3G) mobile broadband technology account for the majority of global subscriptions by 2017, and will cover around 85 percent of the world’s population in that year1.
The need for low-cost voice services has continued to drive deployment of 2G systems across developed and developing markets for many years, supported by a wide selection of low-cost 2G devices. The rapid shift in consumer demand from voice-centric communications to data-centric communications has created a strong global market for 3G data services. Consequently, the growth of smartphones is driving the need for more advanced mobile broadband technologies, as evidenced in Figures 1 and 2.
Figure 1
Figure 1. Mobile Subscriptions by Technology, 2009-2018
Source: Ericsson Mobility Report, 2012
2 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY DECEMBER 2012 Ericsson Internal | 2012-07-20 | Page 1
Figure 2. Trends in Mobile Subscriptions by Technology and Region, 2012 and 2018 2012
DC-HSPA: an untapped opportunity for growth Although all existing WCDMA networks globally have already been upgraded to HSPA, only about 20 percent of them are currently DC-HSPA capable, as shown in Figure 3. In a global market of approximately 472 live WCDMA/HSPA networks2, this means that as of Q3 2013, only about 94 of them can deliver the benefits of DC-HSPA to operators and end-users. This highlights the fact that for operators, there still is an immense opportunity to further improve their 3G network capacity, and to better monetize their investments in an efficient and cost-effective manner. Achieving this whilst at the same time boosting end-user experience and customer satisfaction is appealing for mobile broadband operators in any market.
Figure Figure 3 3. Global HSPA Network Capabilities as of Q3 2012 2018
Source: Ericsson Mobility Report, 2012 Ericsson Internal | 2012-07-20 | Page 2
Source: Ericsson Mobility Report, 2012
DECEMBER 2012 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY 3
ENHANCED NETWORK PERFORMANCE DC-HSPA Benefits both Network Operators and End-Users The value proposition that DC-HSPA brings to operators is that they can reuse their existing infrastructure to deliver greater capacity and speed while avoiding major capital expenditure. For endusers, DC-HSPA enables faster download and upload of data, thereby improving productivity and encouraging greater use of mobile broadband services for both consumers and enterprises. Increased network efficiency and capacity By definition, DC-HSPA enables the simultaneous use of two individual HSPA carrier frequencies, improving network efficiency as soon as this feature is turned-on. Without having DC-HSPA activated, mobile broadband operators who are already using multiple channels in order to meet high capacity demands are wasting precious resources by not enabling the aggregation of these channels. With DC-HSPA, mobile devices are able to utilize the maximum throughput that the mobile network has to offer, and they do so without having to constantly switch carrier frequencies; a situation that often negatively impacts the user experience of non DC-HSPA subscribers.
DC-HSPA provides load-balancing to networks while increasing the total capacity available in the coverage area when compared with HSPA. This enables operators to serve more subscribers in the same geographical area, and at the same time potentially boost the capacity available to existing users. Increased capacity means an increased average throughput per sector, effectively decreasing the cost per bit for network operators. Importantly, with DCHSPA, the mobile device is constantly using two radio carriers with the individual contribution from each radio carrier varying as an inverse function of the load on that carrier due to other network traffic. As a result of this load-balancing, follow-on benefits are also delivered to single-carrier HSPA (SC-HSPA) users, with network congestion decreasing when resources in the busiest channels are released.
4 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY DECEMBER 2012
As shown in Figure 4, a network equipped with two carriers in 2 x SC-HSPA or DC-HSPA configurations can deliver almost twice the cell capacity that a SCHSPA system can offer; however, only the DC-HSPA system will allow carrier aggregation to also achieve twice the speeds (up to 42 Mbps) for network users. Higher user speeds and less congestion are factors known to increase user satisfaction, reduce churn and provide an opportunity for operators to better monetize their networks3.
Figure 4
DC-HSPA enables high speeds in WCDMA networks:
42mbps
Figure 4. HSPA Benefits for Operators and Consumers
User Throughput
DC-HSPA
2xSC-HSPA
SC-HSPA Offered load Source: Ericsson, 2012
DECEMBER 2012 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY 5 Ericsson Internal | 2012-07-20 | Page 3
Improved customer experience Another outstanding benefit that DC-HSPA brings to mobile broadband operators and end-users is the provision of almost twice the achievable speeds compared to SC-HSPA systems in almost every coverage scenario, as proven with live network measurements, thereby effectively improving performance throughout the whole coverage area as shown in Figure 5.
Often, network operators receive complaints of low speeds for customers that are located on cell borders. With DC-HSPA, even these users will experience twice their previous speeds. For operators, this is a costeffective way of improving customer experience and satisfaction, whilst for end-users, faster speeds boost the perception of network quality and performance.
Figure 5 Figure 5. HSPA Radio Frequency (RF) Quality Performance
User throughput [Mbps]
30 25
Single-carrier HSPA
20
Dual-carrier HSPA
15 10 5
1
2
Good RF quality
3
1
2
3
Medium RF quality
Source: Ericsson, 2012 Ericsson Internal | 2012-07-20 | Page 4
6 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY DECEMBER 2012
1
2
3
Poor RF quality
4
6
The Need for Greater Speed Drives Increased Data Usage With higher speeds, end-users can improve productivity by sending and receiving large files more quickly - as well as more effectively using rich communication services such as video-conferencing - thereby releasing network resources for other users who in turn will also experience an improved network performance. Consequently, consumers will benefit from a better user experience and, network operators will benefit from better resource utilization.
than those in slower networks, providing operators the opportunity to develop business models that can help to better monetize these situations with new and improved service offerings and data plans. As an example, T-Mobile in the United States has reported that subscribers with smartphones capable of accessing the operator’s DC-HSPA network (offering peak speeds of 42Mbps) consume an average of 1.3 GB per month, almost two times the 760 MB per month that the average non-DC-HSPA smartphone user consumes (Figure 6). Furthermore, T-Mobile’s DC-HSPA speeds can be comparable with other operator’s LTE speeds in some areas.
Another important benefit is the fact that with faster speeds, users will tend to consume more mobile data
Figure 6. T-Mobile’s Average Monthly Data Consumption
Source: T-Mobile, 2012
DECEMBER 2012 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY 7
Enabling new business opportunities Notwithstanding DC-HSPA is a mature mobile technology, it is only in recent times that the device ecosystem has started to accelerate for this technology and therefore, now is the time for both operators and end-users to really start enjoying the benefits that DC-HSPA has to offer. New Smartphones and Tablets will Boost DC-HSPA Demand Although until recently, only a handful of DC-HSPA capable tablets and smartphones were available in the market, the device ecosystem is now growing rapidly. Early DC-HSPA devices were routers and USB dongles, where the greatest need for such high-speed was perceived as being most relevant. A key inflection point for this trend was the launch of Apple’s third generation iPad during the second quarter of 2012, as it was the first device from this manufacturer capable of supporting 42 Mbps peak speeds on DC-HSPA networks. Considering iPad’s dominant market share, it can be expected it will raise awareness amongst consumers of the benefits delivered by DC-HSPA. The subsequent launch of numerous DC-HSPA smartphones and tablets from a range of manufacturers during 2012 and beyond will further drive consumer awareness and increase their expectations on network performance.
High-end devices drive network capability and as has been the case in the past, innovations and capabilities driven by market leaders will rapidly become mainstream in highly competitive global markets. It can be expected that DC-HSPA will be a standard feature in upcoming data-intensive devices as customers demand faster speeds on the go everyday, everywhere. As DC-HSPA chipsets become dominant, low-cost devices supporting this capability are expected to enter the market in the very near future, possibly as soon as 2013, which will drive widespread adoption of this network capability by end users. Indeed, according to the GSA, the DC-HSPA ecosystem has grown from 4 tablets and 4 smartphones in January 2012 to 10 tablets and 18 smartphones, only six months later6. DC-HSPA enables Efficient Ecosystems Securing access to spectrum is a challenge for many operators around the world. Unlike 3G/HSPA networks for which spectrum has, to a large extent, been globally harmonized on just a few bands (e.g. 2100MHz, 850MHz, 900MHz), LTE faces the issue of spectrum fragmentation. Already today, LTE networks have been deployed on many bands within a few short years, including 700MHz in the US, 1800 MHz in Australia, Singapore and South Korea, 2500MHz in Europe and recently announced plans for a 450MHz LTE deployment in Brazil, to name just a few.
8 DUAL-CARRIER HSPA: A GROWTH OPPORTUNITY DECEMBER 2012
The key consequences of this reality are twofold: firstly, LTE device manufacturers will be challenged to produce devices that can operate in multiple markets and will have to prioritize the most common frequency bands, potentially creating challenges for operators who may wish to secure popular devices for use on their networks. Secondly, roaming of these devices in 4G/LTE mode will also be a challenge, with many region-specific networks already in operation. As a result, device manufacturers may be unable to launch truly global LTE devices in the immediate future. These challenges are not an issue for DC-HSPA operators and device manufacturers and in some cases, efficient DCHSPA networks will be able to offer speeds comparable to commercial LTE offerings as has been mentioned earlier. Moreover, device manufacturers are expected to increasingly incorporate DC-HSPA capability in LTE devices due to the relatively low incremental cost and positive customer impact of doing so.
Mobile broadband users demand excellent coverage and high speeds everywhere, all the time. In order to be able to provide a ubiquitous and superior user experience, a smart and optimized combination of LTE and DC-HSPA capabilities is necessary. In many networks today, LTE coverage is only offered for metropolitan areas and therefore subscribers need to be able to fallback to DC-HSPA in order to maintain high speeds outside these locations. Voice services are also an important consideration when planning high speed networks. In the absence of VoLTE, which is yet to become a broadly available service in LTE networks, a customer’s data connection will switch to HSPA when a voice call is made or received. Consequently, DC-HSPA will in the short-term be the only way for operators with islands of LTE coverage to continue delivering high-speed data services to customers whilst they use voice services.
Percentage of HSPA networks upgraded globally to DC-HSPA
