Welcome to the New World
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- Magdalen Mitchell
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1 Bertus Ehmke Senior Manager for Spectrum Strategy MTN Group Dubai Welcome to the New World Developing markets Spectrum Opportunities and Challenges
2 Operator s growing spectrum requirements By 2012 like most operators taken data voyage through 3G and WiMAX isolated cases still GRS, EDGE. Data growth slow, devices expensive. But real obstacle education you already needed to know what value the internet add in order to look on the internet. Many cases of upliftment exercises in schools and campuses still showed low growth lack of online education resulting slow data growth In past for years two things have happened that have worked together in revolutionizing our ides of who uses data for what Now everybody turns into a power internet user from youngest to oldest education or previous experience no longer a requirement 2
3 Operator s growing spectrum requirements Many operators close to reaching point where data revenues materializing However, only months away from point where data demand outstrips network capacity - requiring a drastic densification of sites Spectrum scenario x 10MHz of refarmed 1800MHz Additional 2 x 10MHz of 800MHz in 2018 Additional 2 x 20MHz of 2600MHz in Annual additional sites on top of 2016 numbers Driven by a) Growing numbers of data subs b) Growing numbers of 3G/LTE enabled handsets c) Increasing size of data (HD, 4K, Virtual Reality, Cloud Storage) European approach to offloading over small cell strategies currently impractical in African countries not possible to have fibre-fed radio dots or lampsites every 100m. Only way to mitigate this is additional spectrum. 3
4 Why would developing markets require more spectrum that 1 st world markets? The accepted 1 st world norm of deep fibre not possible in Africa. Most of Europe/US/East has at least some physical network infrastructure (FTTH, ADSL, VDSL) that allows for sensible offloading of large amounts of traffic Developing markets see the need to carry everything over mobile mobile is a way of delivering rather than a way of consuming. In-building coverage is a business-as-usual consideration in other markets meaning than inbuilding coverage is achieved far more spectrally efficient rather than attempting to power through thick walls using macro transmitters The process of site acquisition in developing markets can take as long as 15 months making it impossible to keep up with growth in data demand. 4
5 Why is LTE so important for developing markets? 2 years ago we and several other operators identified 3G as our mobile broadband workhorse for the next 5-8 years We are having to reconsider LTE rapidly growing in terms of handsets as well as usage per subscriber When decisively introduced (dedicated spectrum), LTE does not have to result in deteriorated 2G and 3G performance Only technology that addresses both capacity as well as coverage requirement through versatility of bands. Multitude of WiMAX network straining to keep up with data demand impractical to evolve to PtP microwave LTE makes for a natural, logical upgrage 5
6 However, what is inhibiting LTE growth? More than half of developing markets still need to demonstrate robust, inclusive strategy in terms of LTE licensing and spectrum awards. In some cases regulators are turning the blind eye or allowing for previous WiMAX licensees to upgrade to LTE but often not with very effective allocation or band-classes. There seems to be a lot of uncertainty around whether LTE can used to break the stronghold that existing 2G/3G operators have. Should LTE benefit new entrants and/or be used to level the playing field? Is there a space for niche players (LTE only) and should they get preference over existing 2G/3G operators? How do we include new players but still recognize the future proof investments that existing players have made? Is there a space for a national wholesale LTE provider delivering access cheaper than incumbents? 6
7 How can developing markets take charge of their own LTE aspirations? Move beyond the Operators have enough spectrum, they are not using it efficiently argument Enough with technology specificity Spectrum band identified for 5G has direct benefit to African Operators right now. Huge reserves of spectrum in 3 5GHz which has immediate use as WTTx connectivity which will fill the gap in scenario's where FTTH is impossible/impractical 7
8 How can developing markets take charge of their own LTE aspirations? Ensure regional alignment and conformance with regards to classifications of bandplans (TDD vs FDD) eg 2600MHz Band 41 vs Band 7 Remaining 850CDMA networks preventing Band MHz LTE allocations 8
9 How can developing markets take charge of their own LTE aspirations? Identify niche solutions that gave common relevance and implement best practice (eg 450MHz). Work with regulators, policy makers as well as the device space to include these capability as mainstream 3GPP Band MHz 5 MHz Balance activities from more advanced markets to seek recognition for mainly themselves only in terms of spectrum classification Involve all stakeholders (satellite providers, broadcasters etc) early to ensure amicable solution for all. 9
10 How can developing markets take charge of their own LTE aspirations? Work with regulators and policy makers to rapidly open up intended 5G spectrum goals. 10
11 Our general spectrum strategy 11 11
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