Rolling Out LTE in rural areas The German experience
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1 Rolling Out LTE in rural areas The German experience Mobile broadband Competitive dynamics and policy implications Brussels, 11 September 2012 Dr Iris Henseler-Unger, Vice President
2 I. BNetzA s approach 2
3 Political setting Federal Government s Broadband Strategy (February 2009): Goals: Nationwide capable broadband access by the end of 2010 if possible. A total of 75 percent of households should have high speed broadband access with transmission rates of at least 50 MB/sec by 2014; nationwide access with this highspeed broadband as soon as possible. By means of: (as far as the competences of the Federal Network Agency are concerned) Regulation geared to growth and innovation Infrastructure atlas Supportive frequency policy ( make digital dividend spectrum available for the market) 3
4 Propagation characteristics Frequency propagation characteristics Source: ltemobile 4
5 Frequency Auction From April 12th until May 20th after 224 BNetzA auctioned a total of almost 360 MHz of spectrum out of the 0,8 GHz ( digital dividend ), 1,8 GHz, 2,0 GHz and 2,6 GHz frequency band. First in Europe to auction digital dividend spectrum. Frequencies may be used for wireless access to networks until the end of
6 Frequency Auction Outcome of the auction E-Plus Telefonica O2 Telekom Vodafone Spectrum in MHz , , ,9 9, MHz (paired) 1,8 GHz (paired) 2,0 GHz (paired) 2,0 GHz (unpaired) 2,6 GHz (paired) 2,6 GHz (unpaired) Frequency band 6
7 Coverage obligations Successful bidders of digital dividend spectrum need to fulfil a special coverage obligation to provide services in white spots and rural areas which are currently lacking broadband. Länder identified four priority areas which needed to be covered first. At least 90% of the population in the priority areas have to be covered (technologically neutral) before the digital dividend spectrum may be used unlimitedly. All cities, which the federal states identified as being white spots, must be covered by 1 January 2016 at the latest. 7
8 II. Successes 8
9 Sites for LTE services Sites which may be used for LTE-services By the end to August 2012 for more than 10,000 sites the sitespecific parameters for the 800 MHz spectrum have been determined (more than 2200 for 1800 MHz, more than 500 for 2600 MHz). More than 4,400 sites (800 MHz) have already have been put into operation (more than 1,000 using 1800 MHz) LTE 1800/2600 in urban areas and LTE 800 in rural areas. 9
10 Coverage Obligation in the 800 MHz-Band Lower Saxony Schleswig-Holstein Saxony-Anhalt Priority Areas Priority Areas P1 population: up to 5,000 P2 P1 population: population: 5,001 up 20,000 to 5,000 P3 P2 population: population: 20,0015,001 50,000 20,000 P4 P3 population: population: more than 20,001 50,001 50,000 North-Rhine Westphalia Thuringia Saxony P4 population: more than 50,001 Hesse Rhineland-Palatinate Saarland Baden-Württemberg Bavaria In 11 Länder out of 13 which had identified white spots - the coverage obligation has been fulfilled. Quelle: TÜV Rheinland, Breitbandatlas 10
11 LTE coverage 11
12 Challenges High necessity for cross-border frequency co-ordination (especially with regard to DVB-T-stations in neighbouring countries) Enormous increase of applications for radio relay links over the last months. 12
13 III. Chances and outlook 13
14 Chances Deployment takes place on a commercial basis. Universal service obligations remain unnecessary. Broadband deployment of rural areas via mobile infrastructures is much more cost-effective than fixed-line solutions. Deployment of rural areas takes place as part of central and nationwide infrastructures. Innovation is brought to rural areas first. Users in rural areas benefit. But: Political support is inevitable due to potential conflicts between broadband and tv/radio-broadcast. 14
15 Outlook Is additional frequency spectrum below 1 GHz needed for broadband in order to achieve political broadband targets set for 2014/18 and to bring ultrafast broadband services to rural areas? 15
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