Digital Dividend Overview - Spectrum Considerations
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1 2010/TEL41/LSG/RR/002 Session 1 Digital Dividend Overview - Spectrum Considerations Purpose: Information Submitted by: Ericsson Regulatory Roundtable Chinese Taipei 7 May 2010
2 Digital Dividend Overview Spectrum Considerations Michael Bjarhov Director, Government & Industry Relations Asia Pacific
3 broadband subscriptions 3 billion mobile broadband subscriptions redefines the market Subscriptions (million) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Fixed and mobile broadband subscriptions M2M connections to be added on top Mobile Fixed A World Bank econometrics analysis of 120 countries estimated that for every 10-percentage-point increase in the penetration of broadband services, there is an increase in economic growth of 1.3 percentage points (Qiang 2009). 2 Source: Internal Ericsson Mobile Broadband includes: CDMA2000 EV-DO, HSPA, LTE, Mobile WiMAX & TDSCDMA. It includes handsets, USB dongles, embedded modules etc. The vast majority is handsets. Fixed broadband includes DSL, Cable and Fiber
4 Traffic growth in mobile networks This slide contains forward looking statements Mobile traffic forecast M2M traffic to be added on top Yearly Exabytes Data Voice Source: Ericsson Behavior as in fixed high Definition video streams 50 b. devices
5 Spectrum needs When evolving from voice to broadband Aggregated Band Width X MHz in each market GHz-1.7GHz in each market Regulators are allocating more band width and eliminating or redefining spectrum caps as they realize broadband requires more spectrum According to the ITU-R Report M.2078 by the year 2020 mobile services (IMT-2000) will need: MHz for low market demand (rural areas) MHz for high market demand (urban areas) Chairman Genachowski of the FCC the regulator - stated in October 2009: In fact, I believe that that the biggest threat to the future of mobile in America is the looming spectrum crisis. US broadband plan of March 2010: Make 500 MHz of spectrum available for broadband within 10 years, of which 300 MHz should be made available for mobile use within five years 4
6 Creating the Digital Dividend Terrestrial TV Analog TV: 1 program/1 frequency Cellular mobile Mobile s booming: > 4.8 billion subscriptions Move to digital TV Move to broadband mobile Terrestrial TV: Up to 14 SDTV programs/frequency Need for wider carriers Need for more spectrum Some part of TV spectrum freed (digital dividend) Digital dividend may be transferred to mobile 5
7 Spectrum Demand for DTT of spectrum to release Factors determining the amount Numbers of programs transmitted over DTT Technical requirements: MPEG-2/-4, SDTV/HDTV, SFN/MFN, 3D, Coverage Growth of alternatives: DTH, cable TV, IPTV, Mobile TV 6
8 Terrestrial TV digitalization around the world Analog TV Switch-Off Date Holland Luxembourg ASEAN: Finland, Andorra, Sweden, Switzerland Germany, Belgium USA EU, Japan, Korea 7
9 Harmonized spectrum and standards Harmonized spectrum is necessary and key for the public mobile broadband access developments; as for the industry to be able to successfully respond to national policy goals by providing standardized products Economy of scale (based on a mass market) economy of scale Easy cross-border coordination Cross-border operation (between countries) Global roaming capabilities Interoperability choice and convenience Efficient use of spectrum (also in border areas) spectrum efficiency harmonized spectrum standards Providing affordable services to all 8
10 The band MHz in ITU BROADCASTING 790 MHz 862 MHz MOBILE & IMT Region 1 (EMEA) 880 MHz 960 MHz IMT-2000 GSM/WCDMA 698 MHz MOBILE & IMT 806 MHz 824 MHz IMT-2000 cdma2000/wcdma Region 2 (Americas) 894 MHz 698 MHz 790 MHz 862 MHz MOBILE & IMT (9 countries) Momentum MOBILE & IMT Region 3 (APAC) 880 MHz IMT-2000 cdma2000/wcdma 824 MHz 894 MHz IMT-2000 GSM/WCDMA 960 MHz 9
11 Effect of frequency on range and capex Coverage of rural areas at about 30% of the cost of 2100 MHz X3 more investments needed for 2.1 GHz compared with 700 MHz 10
12 700 MHz BAND IN US A B C D E A B C C A D Public Safety A C A D Public Safety A LOWER 700MHz BAND (TV CHANNELS 52-59) UPPER 700MHz BAND (TV CHANNELS 60-69) Block Freq (MHz) Bandwidth Type Result Remark A 698~704, 728~ (2 6) MHz EA (176) Verizon Wireless etc. LTE B 704~710, 734~ (2 6) MHz CMA (734) Verizon, AT&T etc. LTE Lower C , (2 x 6) MHz CMA(734) AT&T (purchase from Aloha) etc. LTE D MHz EAG(6) Qualcomm(5), Aloha(1) Media FLO E 722~728 6 MHz EA (176) Frontier Wireless etc. Upper C D 746~757, 776~ ~763, 788~ (2 11) MHz REAG (12) Verizon Wireless etc. 10 (2 5) MHz Nationwide No successful bidder Open platform Public/Private Partnership 11
13 ECC Decision for Mobile Networks band MHz Preferred Harmonised frequency arrangement Downlink 30 MHz (6 blocks of 5 MHz) Duplex gap 11 MHz Uplink 30 MHz (6 blocks of 5 MHz) Note 1: Guardband of 1 MHz between Broadcasting below 790 and mobile DL starting at 791 MHz Note 2: Sweden, Germany, France; have announced auctions of the band to happen late 2009 or during 2010 Guidance for administrations not implementing the preferred channelling arrangements (specific national circumstances) Guard band Unpaired 7 MHz 65 MHz (13 blocks of 5 MHz) ECC Decision June 2009 ; EC Recommendation end
14 the UHF band for mobile broadband 698 The band 700 MHz (proposed) 2x45 MHz The band 850 MHz The band 900 MHz APAC/Africa 190 MHz The band 800 MHz (DD1) The band 900 MHz EME/Africa 130 MHz The band 700 MHz (USA) 787/ x18+2x10+2x10 MHz Momentum The band 850 MHz Americas 130 MHz = Downlink = Uplink Historic opportunity to enable broadband for all 13
15 The 700 band in Asia Pacific The optimised 2 x 45 MHz option Broadcasting MHz? MHz? PPDR 2 x 45 MHz Result from the APT Wireless Forum meetings in Tokyo in March 2010: FDD mobile band plan of 2X45 MHz Band edges 698 MHz and 806 MHz but more work to be done before concluding on where to have any guardbands to adjacent services Final decision on duplex gap to be made when ongoing studies are finalized but it will most likely be 10 or 11 MHz Duplex directions still discussed In parallel a TDD only option based on a 5 MHz raster is also evaluated 14
16 Conclusions The Digital Dividend (UHF) band has extremely good propagation characteristics for rural as well as in-building coverage The over 50 year old allocation for analogue TV can finally be reallocated for alternative usage to accelerate economic growth Legacy situation makes the US 700 MHz band plan very fragmented and devices unnecessary complex Strong Broadcasting foothold in combination with no 850 band usage resulted in a new 800 MHz band plan for Europe APAC has a unique possibility to design its own best in class band plan maximizing the economic benefits Many countries in Africa and ME have the opportunity to follow APAC 15
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