Building the Business Case for Mobile Broadband The HSPA Evolution Path
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1 MIKE WRIGHT Executive Director Wireless Engineering & Operations Building the Business Case for Mobile Broadband The HSPA Evolution Path Broadband World Forum 2009
2 Australia a wireless snapshot >100% mobile penetration 6th largest land mass 9th lowest population density Single, national network: > 2 million Sq kms >99% pops 850 MHz spectrum, 100% HSPA High speed backhaul to 84% pops, of which 76% is Ethernet Built on a new, lower unit cost platform and globally-dominant technology roadmap Telstra Next G : Always 3G Page 2
3 Strong wireless demand driving results 10.2 million wireless customers, up 9% Wireless network traffic doubling every eight months Mobile data revenue (data cards) up 31% 11 billion mobile MOU, up 9% More than 60% of handsets on 3G 3G SIOs over 6.3 million Over 50% of data revenues non-sms Page 3
4 3G driving wireless HSPA data traffic Busy Hour Rate [Mbps] downlink uplink 0 These trends will continue, driven by : Smarter devices with richer & more integrate applications Increased take-up of m2m as connected devices become ubiquitous New and emerging enablers eg Near Field/Payments Page 4
5 Reliable performance and high speeds are available today with HSPA+ GSM CDMA AMPS WCDMA850 WCDMA2100 Dropout rate best ever well below 1% Page 5 Apr-95 Jul-95 Oct-95 Jan-96 Apr-96 Jul-96 Oct-96 Jan-97 Apr-97 Jul-97 Oct-97 Jan-98 Apr-98 Jul-98 Oct-98 Jan-99 Apr-99 Jul-99 Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 MONTH & YEAR HSPA+ 21 Mbps Peak Network Devices : typical user speeds Mbps bursts higher DROPOUT %
6 Independent Network Assessment Signals Research Documents on HSPA testing contain extensive test results & observations Page 6
7 Why follow technology? Unit cost comparisons Cost per MByte as % of GPRS Cost of Voice as a % of GSM 100% 90% 80% 100% 70% 60% 80% 50% 60% 40% 30% 40% 20% 10% 20% 0% GPRS EDGE WCDMA (R99) HSDPA HSPA+ LTE 0% GSM Capability Today Future Voice Optimisation * Telstra derived relative Wireless network unit costs Page 7
8 Demand Assumptions are traditionally low Ericsson historic forecasts Telstra historic estimates We need to look ahead to new ways to carry impending demand Page 8
9 LTE Why, How, When Our roadmap has LTE as our technology of choice for 4G deployment. LTE is not a revolution for our architecture We see evolution to LTE largely as an overlay to allow us to continue to deliver quality of service and throughput to an increasing number of users and applications on our network. Finally, Australian LTE deployments will be influenced by availability of spectrum and the order in which different spectrum bands become available. The Telstra philosophy essentially is to use low frequency bands for coverage and, when that starts to use up the spectrum, use high frequencies in the dense areas for capacity HSDPA/HSUPA 3.6/14.4Mbps 1.9 Mbps HSPA+ 21(28)/5.8 HSPA+ 42 Mbps HSPA+(MIMO) 84 Mbps HSPA+(MBand) 168 Mbps LTE LTE Mbps Mbps Page 9
10 Radio deployment options to LTE LTE at high frequencies and 20 MHz bandwidth channels will give superior speeds Due to coverage limitations at higher frequencies smaller islands of capacity in dense traffic areas are more likely/viable as building a full coverage layer at 2.6 GHz would require additional sites above even a 2100 WCDMA network rollout and still suffer in-building losses. Lower frequency LTE would make larger start-up coverage layers/islands more viable. n x 20 MHz LTE 2.6 GHz High Frequency 2.6 GHz capacity Layer n x 20 MHz 700MHz LTE wide area coverage to capitals and major regional centres LTE 700 MHz layer from Digital Dividend n x 5 MHz HSPA+ Nationwide 850 MHz HSPA layer Plus 2100 MHz Hot spot areas Page 10
11 Taking the HSPA road to LTE HSPA+ provides us with a solid roadmap to deliver new and innovative Wireless Broadband services. Demand for Wireless Data will continue to grow LTE provides and important evolution in order to support the demands of growth and future services. Page 11
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