LTE Early Leader in 4G Wireless Race, But Others Gain

The early favorite in 4G wireless is the long-term roadmap for UMTS, LTE, but other technologies are now gaining support, according to a new study by Visant Strategies.

“We see LTE as the leading OFDM-based platform in 2014, accounting for 39 million subscribers and $9 billion in equipment revenues, with the market accelerating the next three years after that as far as subscribers and infrastructure sales go,” said Andy Fuertes of Visant Strategies. “These next six years will lay the foundation for 4G with the market really growing in earnest during the years after that.”

Three-billion plus GSM and UMTS/HSPA subscribers in 2008 will lead to LTE being utilized by hundreds of carriers during 2014, according to “4G Wireless - From 2008 to 2014: LTE, UMB, HSPA+, WiMAX and 802.20.”

HSPA+ will also be widely utilized, the study finds, with it being very competitive with mobile WiMAX as both technologies are rolled out in 2009. HSPA+ will account for more than twice the subscribers as any other 4G alternative in 2014, the report finds, as well as for half of all 4G femtocell subscribers that year. “We see HSPA+ being widely used during the next years in many instances as a final step before an OFDM-based solution is deployed,” Fuertes said.

WiMAX will continue to be mostly used for fixed applications, the report finds, seeding the market for the next revision of WiMAX, 802.16m. 802.16m and 802.16e devices are expected to account for over 20 million device shipments in 2014, according to the report.

Other 4G wireless paths will fare well too, the report finds. “It’s too early to rule out a market for UMB beginning in 2009 since there exists such a strong CDMA2000 and EV-DO subscriber base,” said Larry Swasey of Visant Strategies.

Posted to the site on 16th April 2008

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Sr. Vice President.

technologies never die, then just merge to create new technologies. Debates are healthy for evolution.

Let me give you a real world practical interpretation of LTE Vs Wimax Vs all other technologies debate. The physical result of 6-month technology debate resulted in creation of Wateen Telecom in Pakistan, which has the most futuristic architecture.
It is WiMAX 802.16e Local Loop, HFC and a national wide IP/MPLS infrastructure to deliver any service.

As the company strategist and commercial head, the technology selection guidelines and criteria given for the new greenfield operations was summed up in two future-proof arguments.
(a) Need a technology “available today”, that can delivery all services delivered on copper local loop, and equivalent BW at 50%-75% better price OR 4 X more simulated capacity/ on demand bandwidth (like when customer picks up the phone to make a call).
(b) Has to have open standards platform with QOS, to enable all services avilable thru internet today, or in future within IP ecosystem companies for hosted or non-hosted applications to be delivered on thru public internet or private network as a B2B, B2C application.

Regulatory restrictions were there as spectrum was only available in 3.5G with 10.5MHz + 10.5MHz, and no roaming beyond city parameters was allowed (area code restricted).

WiMAX was the only open standard technology available in 3.5G that would meet the requirement (No LTE available), Once technology selection was made, Motorola became the integrator to deliver converged services integrated platform with Moto, Cisco & others hardware, powered by IMS & Soft-switch to meet all regulatory requirements.

Practically the criteria was translated as:

1. Similar “on-demand” Bandwidth/customer equivalent to copper localloop. Deliver better symmetrical BW to match landline copper infrastructures (not FTTH) at similar/better price point to become its substitute.
2. Open standards mandatory, to utilize all applications developed in IP ecosystem.
3. Services tested included: (a) PSTN replacement (same as voice) with all value-add features of follow me etc. etc. (b) Pt-2-Pt Video calling (c) Video-conferencing (d) Internet Access.

Marketing wise here are the Yeah’s for WiMAX: WiMAX uptake in emerging markets is happening simply for two reasons. It is available today and is practically deployable as a substitute to copper infrastructure in 2.3, 2.5, 3.5 & 4.9 G allotted spectrum in different countries. The manufacturers have already promised cellular-like size & feature-rich handsets & PCMIA cards in similar price targets. So the concept is that the uptake in 10-25 years age market segment all over the world will be fast.

For green-field operators, the targeted customer segments are broadband users’ first, broadband+ voice users next and voice only users third. Simple enough they will go where their products have best fit and least resistance from competitors. Customers experience will be same or better as fixed devices look the same as DSL/Cable modems and handheld devices look like cellular phones (See Nokia Wimax sets). Churn from GSM/CDMA will be there when customers need to add broadband services not available off GSM/CDMA platforms today). Voice-only users are not expected to churn, unless the value-add free information and commercial application become an attraction within affordable price.

For existing operators adding WiMAX today is feasible, as they need to curb the churn and retain customers on one of their own platforms between WiMAX or GSM/CDMA platforms. The trend to become a multiplatform vendor is all ready there all over the world, so when LTE is finally available the carrier’s will see how best economically it best services the market requirements at that stage.

Vendor’s have no favorites in technologies if they are manufacturing them. To them what matters is the sale. Most large vendors have bought out startups as they forecasted the WiMAX technology demand to grow. Navini and Next-net are examples.

#1 - Tariq J Qureshi (TQ) - 09/20/2008 - 15:41

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