HSPA BROADBAND EUROPE INDEX Index Table of Contents Table of Contents... i List of Figures... v Executive summary...1 1 Market environment...3 1.1 Internet usage in Europe...3 1.2 Fixed broadband market overview...4 1.2.1 Technology market shares...6 1.2.2 Operator market shares...7 1.3 Mobile communication market overview...9 2 Evolved 3G network technology...13 2.1 Wireless technology roadmap...13 2.1.1 GSM...13 2.1.2 3G networks UMTS/WCDMA 3GPP Release 99...14 2.1.3 HSDPA 3GPP Release 5...15 2.1.4 HSUPA 3GPP release 6...17 2.1.5 HSPA+ 3GPP Release 7...18 2.1.6 LTE 3GPP Release 8...20 2.1.7 Other technologies...23 2.2 Evolution of network infrastructure...24 2.2.1 From traditional to evolved network architecture...24 2.2.2 Improving network backhaul capacity...27 2.2.3 Expansion to new frequency bands...30 2.3 Evolution of wireless chipsets...31 3 Mobile broadband device vendors...33 3.1 Mobile broadband data terminals and form factors...33 3.1.1 USB-modems...34 3.1.2 PC-cards...35 3.1.3 Embedded modules...35 STRATEGIC VAS RESEARCH SERIES i
INDEX HSPA BROADBAND EUROPE 3.1.4 Gateways...37 3.2 HSPA broadband terminal vendors...38 3.2.1 Huawei...38 3.2.2 Option...39 3.2.3 Novatel Wireless...42 3.2.4 Sierra Wireless...44 3.2.5 4G Systems...45 3.2.6 AnyDATA...45 3.2.7 BandRich...46 3.2.8 Onda Communications...46 3.2.9 Teltonika...46 3.2.10 ZTE...47 3.2.11 Others...47 3.3 HSPA embedded module vendors...47 3.3.1 Ericsson...48 3.3.2 Qualcomm...49 3.3.3 Others...49 4 Notebook PC integration...51 4.1 The global notebook PC market...51 4.1.1 Market trends...52 4.1.2 Notebook PC vendor market shares...53 4.2 Integration of HSPA modules in notebook PCs...54 4.3 Notebook PC vendor strategies for HSPA...56 4.3.1 Hewlett Packard...56 4.3.2 Acer...57 4.3.3 Dell...57 4.3.4 Toshiba...59 4.3.5 Lenovo...59 4.3.6 Fujitsu Siemens...60 4.3.7 Sony...61 4.3.8 ASUS...61 4.3.9 Panasonic...62 ii STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES
HSPA BROADBAND EUROPE INDEX 4.3.10 Samsung Electronics...62 4.3.11 Dialogue...62 5 Operator strategies for mobile broadband...63 5.1 Business models...63 5.1.1 Postpaid subscriptions...63 5.1.2 Prepaid subscriptions...64 5.1.3 Bundling with other services...64 5.2 Pricing and conditions...64 5.2.1 Pricing...65 5.2.2 International roaming...65 5.2.3 Terms of use...67 5.3 3 Group...68 5.4 Deutsche Telekom...70 5.5 France Telecom...73 5.6 KPN Group...75 5.7 Telecom Italia...76 5.8 Telefónica Group...77 5.9 Telekom Austria...80 5.10 TeliaSonera...81 5.11 Vodafone Group...84 6 Market forecasts and trends...89 6.1 European market summary...89 6.2 Device market...90 6.2.1 Vendor market shares...91 6.2.2 Form factor trends...91 6.3 Mobile broadband service market...93 6.3.1 Regional market trends...96 6.3.2 Pricing trends...98 6.3.3 Network technology trends...98 6.3.4 Service convergence trends...99 7 Market profiles: Western Europe and South Africa... 101 7.1 Austria... 102 STRATEGIC VAS RESEARCH SERIES iii
INDEX HSPA BROADBAND EUROPE 7.2 Ireland...104 7.3 Sweden...106 7.4 United Kingdom...109 7.5 International outlook: South Africa...111 Glossary...117 iv STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES
HSPA BROADBAND EUROPE INDEX Index List of Figures Figure 1.1: Top 10 most popular online activities across Western Europe...4 Figure 1.2: Fixed broadband market data (EU23+2 2007)...5 Figure 1.3: Fixed broadband technology market shares (EU23+2 2007)...6 Figure 1.4: Fixed broadband operators by number of subscribers (EU23+2 2007)...8 Figure 1.5: Mobile operators by number of subscribers (EU27+2 Q4 2007)...9 Figure 1.6: HSPA deploypment status (EU23+2 Q2-2008)...11 Figure 2.1: Technical performance data for 3GPP Release 5 (HSDPA)...16 Figure 2.2: Technical performance data for 3GPP Release 6 (HSUPA)...17 Figure 2.3: Theoretical peak data rates by technology...21 Figure 2.4: Average latency for a ping roundtrip...22 Figure 2.5: UMTS network architecture...25 Figure 2.6: LTE network architecture...26 Figure 2.7: UMTS data traffic (Denmark 2005 2007)...28 Figure 3.1: Operator distribution agreements by vendors and form factors (Q2-2008)...33 Figure 3.2: Examples of USB-modem models...34 Figure 3.3: Examples of PC-card models...35 Figure 3.4: Examples of embedded modules for notebook PC integration...36 Figure 3.5: Example of a fixed wireless gateway...37 Figure 3.6: HSPA broadband terminal products by Huawei...39 Figure 3.7: HSPA broadband terminal products by Option...40 Figure 3.8: HSPA broadband terminal products by Novatel Wireless...42 Figure 3.9: Novatel s distribution between different form factors (2006/2007)...43 Figure 4.1: Notebook PC shipments (Western Europe 2004 2008)...51 Figure 4.2: Notebook PC vendor market shares (World 2007)...53 Figure 4.3: Number of notebook PC models with integrated HSPA modules (2007/2008)...54 Figure 5.1: Roaming prices per MB for selected mobile operators (Q2-2008)...66 Figure 5.2: Roaming packages from selected mobile operators (Q2-2008)...66 Figure 5.3: Examples of usage policies for mobile broadband...67 STRATEGIC VAS RESEARCH SERIES v
INDEX HSPA BROADBAND EUROPE Figure 5.4: 3 Ireland mobile broadband prepaid tariff (Q2-2008)...68 Figure 5.5: 3 mobile broadband tariffs by country (Q2-2008)...69 Figure 5.6: T-Mobile mobile broadband tariffs by country (Q2-2008)...71 Figure 5.7: Orange mobile broadband tariffs by country (Q2-2008)...74 Figure 5.8: KPN mobile broadband tariffs by country (Q2-2008)...75 Figure 5.9: TIM mobile broadband tariffs for Italy (Q2-2008)...76 Figure 5.10: Telefónica Group mobile broadband tariffs by country (Q2-2008)...78 Figure 5.11: Telefónica O 2 Czech Republic converged broadband tariff (Q2-2008)...79 Figure 5.12: A1 Mobilkom mobile broadband tariff (Q2-2008)...81 Figure 5.13: TeliaSonera mobile broadband tariffs by country (Q2-2008)...83 Figure 5.14: Vodafone mobile service revenues (Europe FY2008/FY2007)...84 Figure 5.15: Vodafone mobile broadband subscribers (FY2005 FY2008)...85 Figure 5.16: Vodafone mobile broadband tariffs by country (Q2-2008)...87 Figure 6.1: Mobile broadband market summary (Europe 2007 2013)...89 Figure 6.2: Mobile broadband device shipments and revenues (Europe 2007 2013)...90 Figure 6.3: Estimated revenues and shipments by device vendor (Europe/World 2007)...91 Figure 6.4: Shipments of notebooks with embedded HSPA/LTE (Europe 2007 2013)...93 Figure 6.5: Mobile broadband subscribers and operator revenues (Europe 2007 2013)...94 Figure 6.6: Mobile broadband market data (EU23+2 2007)...95 Figure 6.7: Average monthly fee for mobile broadband service (EU23+2 Q2-2008)...97 Figure 7.1: Fixed and mobile broadband subscribers by country (Q1-2008)...101 Figure 7.2: Austrian mobile broadband tariffs by operator (Q2-2008)...103 Figure 7.3: Irish mobile broadband tariffs by operator (Q2-2008)...105 Figure 7.4: Swedish mobile broadband tariffs by operator (Q2-2008)...107 Figure 7.5: Mobile data network traffic (Sweden 2004 2007)...108 Figure 7.6: UK mobile broadband tariffs by operator (Q2-2008)...110 Figure 7.7: Broadband technology market shares (South Africa Q1-2008)...112 Figure 7.8: Vodacom mobile broadband tariffs (May 2008)...114 Figure 7.9: MTN mobile broadband prepaid tariffs (May 2008)...115 vi STRATEGIC RESEARCH SERIES VAS RESEARCH SERIES