LTE route to 4G Migration

Hindu Business Line ,  24th March 2011, eWorld

G. Krishna Kumar

It is quite incredible that the 2G journey in India started 16 years ago and continues strong even today! While India has just started 3G launch, 4G is the buzz word in other parts of the world. India's regulatory authority TRAI is expected to come up with 4G recommendations later this year.

Where is the “True” 4G?

4G is perhaps the most misused term in the Wireless Industry. Basically, any technology that provides enhanced performance and capabilities compared with 3G is generally called 4G. In fact ITU (The International Telecommunication Union) recognises the lack of clarity in the term 4G and has determined LTE-Advanced and WirelessMAN-Advanced or WiMax 2 as “True” 4G. 4G technologies are expected to provide between 100Mbps and 1Gbps in stationary state. More action on 4G is expected over the next couple of years.

The popular LTE (Long term Evolution) and WiMax are way ahead of 3G in terms of data rates and would fit in as a 3.9G Technology. LTE, or more specifically LTE(FD), is a natural progression from 2G-GSM and 3G-WCDA and hence sure to be more popular compared with TD-LTE although TD-LTE is better in terms of spectral efficiency. TD-LTE is recognised by the ITU and is supported by China as an extension to its TDS-CDMA 3G technology.

Global LTE trends

The powerful GSMA (GSM Association), with over 800 telecom companies world-wide, is firmly backing LTE as the next major Mobile Broadband technology. LTE was first deployed by TeliaSonera in Sweden. There are 18 live LTE networks now including Verizon, NTT DoCoMo and further 184 deployments in the pipeline. Wireless Intelligence, a research firm, predicts that LTE, currently with over 3,50,000 connections, will cross 300 million connections world-wide by 2015. The Asia-Pacific region (excluding India) is expected to be leader in LTE connections with 24 per cent by 2015.

Global mobile trends indicate that minutes of usage for Internet access are twice as much as the talk time. A survey conducted by Comptel indicates that majority of mobile broadband users are willing to pay for a higher QoE (Quality of Experience). LTE is seen as an enabler of Mobile Cloud Computing (Cloud can be accessed by any Web-enabled device). Examples such as RCS (Rich Communication suite), multimedia streaming services such as TV, real-time high-resolution video conferencing can be achieved using LTE. LTE also supports inter-operability across 2G and 3G networks.

Voice over LTE (VoLTE), expected to hit the advanced countries some time in 2012, is an IP-based solution that ensures high-quality voice and video communication. US-based Verizon wireless successfully demonstrated a VoLTE call last month.

While LTE provides quite a few benefits, the deployment is heavily dependent on the availability of spectrum and regulatory framework. There are three possible spectrum scenarios for LTE deployment - 2.5 to 2.6GHz, the digital dividend spectrum in the 700Mhz and re-farming of existing spectrum. In fact, due to the spectral efficiency, LTE can pack in 1.5 to 5 times more subscribers compared with 3G in a cell for voice calls.

India's next generation Broadband options

Since 4G is far away right now, the only migration path for India is to take the LTE route. A recent McKinsey report states that only 1 per cent of India's subscribers are mobile-Internet users compared with 18 per cent in China. However, considering the demand for digital content, India's Internet users will increase fivefold by 2015 and more than 75 per cent of them will choose mobile access. Airtel adding over 5 lakh 3G subscribers in less than a month is certainly good news for 3G-based broadband access. However BWA WiMax uptake is still not clear.

BWA's guideline being technology-agnostic has helped Reliance-Infotel, which won pan-India licence to consider TD-LTE instead of the traditional WiMax route. This will intensify competition among the BWA providers in India.

But TD-LTE may take a couple of years to mature. With enormous support for TD-LTE from China, it is very likely that we could see TD-LTE based devices such as mobile phones, tablets, etc, rather than just data cards and USB dongles. Further, availability of dual-mode devices, TD-LTE and LTE/3G, would be key. TD-LTE could pose a threat to WiMax (BWA) and 3G.

For mobile broadband to pick up significantly, telecom companies/BWA operators need to come up with innovative pricing schemes to attract subscribers instead of the widely popular “sachet” pricing used for voice. Bundled devices with attractive contract terms through which the pre-paid segment can potentially be converted into post-paid.

The key challenge in India continues to be availability of a mobile-literate population that can make meaningful use of the Internet. It is not clear how the Government will handle the 700Mhz digital dividend spectrum, which is currently owned by Doordarshan. Interestingly, both I&B ministry and Telecom ministry are vying for this spectrum for Mobile TV and LTE, respectively. It is established that the 700MHz spectrum provides huge cost benefits compared with the 2.3 -2.5 GHz spectrum.

Among the Incumbent operators, whether it is allocation of new spectrum or re-farming of 2G spectrum, the Government should give preference to operators who, at a minimum, are a) efficient in their spectrum usage, b) provided over 90 per cent 3G/BWA coverage in all their operative circles and, most importantly, have demonstrated excellent quality of service to subscribers.

As we've seen, 4G certainly looks distant. However, India should rapidly increase mobile broadband customers using the current technologies in order to enable smooth transition to LTE over the next couple of years.

As pointed out, the key challenge is availability of affordable devices, relevant content, attractive data plans and mobile data “aware” population. It is imperative that the Government involves all the stake holders in propelling India's next generation mobile broadband journey.

The author is Director – Engineering, Teleca Software Solutions India. Views are personal

 

Getting new caller tunes for BSNL

Financial Express, Column

G Krishna Kumar, V Sridhar | Updated: Mar 09 2011, 23:48 IST


It is to be applauded that on the first day of Apple’s iPad launch in India, BSNL announced a special data plan to support iPad users. Such promptness by the state-owned operator was never heard of before. However, BSNL is facing stiff competition, especially with the famous ‘paisafication’ of tariff started by the new generation private operators. BSNL, currently the 4th largest operator, could soon see itself dropping a few positions with the private operators starting 3G services and with mobile number portability kicking in. BSNL incurred a loss of over R1,800 crore during 2010. The recent CAG probe into BSNL’s WiMax franchisee arrangements is the proverbial last straw on, this time, the withering elephant’s back. What has gone wrong with BSNL and what needs to be done to revive the sagging telco?
BSNL (as well as MTNL) was allotted spectrum for 3G and Broadband Wireless Access (BWA) services in early 2009 and had an absolute lead of 2 years over the other telcos. While the private telcos, owing to an intense price war, could not bid in both 3G and BWA auctions for a pan-India presence, BSNL had the privilege of pan-India presence (barring Delhi and Mumbai, which are the territories of MTNL). It is quite unfortunate that BSNL has not been able to make a major impact in wireless broadband services, thus far. Over the past almost 2 years, BSNL has managed to add only about 2 million 3G subscribers.
BSNL entered into 2G services with very aggressive pricing in 2002. Within 1 year of its launch, it amassed a subscriber base of 4 million—a performance never heard of before from a state-owned telco. Currently, the CAGR of its 2G subscribers is far less than that of its competitors.
The same strategy, based on price, was followed for the 3G launch as well. However, to its dismay, history could not be repeated, even during the first couple of years of the launch. Apart from low prices, did BSNL create market awareness about its 3G service? Definitely, yes. By roping in some of biggest Bollywood stars and notable athletes of the current generation as its brand ambassadors, BSNL caught the attention of most of the potential 3G adopters. But this potential could not be converted into reality, thanks to its perceived brand image of ‘poor service quality’, especially among urban customers who were likely to be the potential early adopters of 3G. Similar to the other major telcos, two-thirds of BSNL’s subscriber base belongs to the urban segment. To a large extent, the youth and the working class urban population are mobile data ‘aware’. But BSNL has not been able to provide enough simple, meaningful and user-friendly India-specific applications. Early adopters of 3G were obviously looking for a better user experience, customer service and wider array of service offerings rather than plain wireless Internet services. In the early evolution of a technology or a service, network effect is more than the price effect. Early adopters are relatively price-inelastic and would like to get more network value. An example of this is if a user wants to use video calling, she would like to have her partner also use 3G and an appropriate handset. What BSNL failed to do in the early stages is to create the critical mass required for the network effect to spiral growth. We outline below a three-pronged strategy for the revival of BSNL.
In today’s intensely competitive mobile services space in India, it is not only the price that matters! Also important is the alacrity with which the operator makes decisions about purchasing equipment, deploying networks and improving perceptions about a customer-centric operator. No to mention the flexibility to participate in co-operative (collaborative and yet competitive) agreements with other operators and firms to use assets optimally.
BSNL has a perpetual problem in improving its infrastructure, thanks to a tedious tendering and contracting process. BSNL’s recent guideline of allowing only equipment vendors willing to submit their source code to be eligible for bidding has further complicated the bidding process and added delays. The infamous 93-million-line GSM tender was cancelled due to excessive restrictions in the bidding process, and incessant political and bureaucratic intervention. Competitors of BSNL are way ahead in vendor management practices, incorporating fully outsourced models and technology derisking. BSNL should implement best practices in the industry for vendor management to survive in the market.
Although the latest Trai report on performance indicators shows BSNL above the benchmark (on both network quality of service and customer-related parameters) in almost all the circles barring a few such as Madhya Pradesh and the Northeast, BSNL should strive to improve the perception of customer-centricity among urban customers. Large-scale training in customer relationship management to the marketing, sales and service support staff is the need of the hour.
BSNL has been using various business models to better market its 3G and BWA services. The revenue-sharing franchisee model adopted for its BWA services was the first step by BSNL toward this effort. But BSNL’s offer to share its network for inter-circle roaming arrangements with private telcos received a cold response as it was found to be an expensive revenue-sharing proposition and hence unattractive. If the price is right, BSNL’s similar offers on passive infrastructure and tower sharing, or wired local loop sharing using the ‘collaborate and compete’ philosophy, might yield positive results.
BSNL’s difficulties in reaching 3G to the rural subscribers, despite low price plans, is due to lack of m-awareness of consumers and unavailability of subsidised phones. BSNL should embark on a mission to rapidly increase m-awareness among the rural populace. Bundled handsets with attractive contract terms are one of the ways by which the huge pre-paid segment can potentially be converted into a post-paid segment in rural areas.
Kapil Sibal can also help by freeing up the bureaucratic hurdles and giving appropriate powers to the top management of BSNL to make quick decisions so that the elephant can dance to the tunes of the market. This is imperative, especially when the minister is thinking of making the elephant bigger by merging it with MTNL! It is imperative that the ministry appoints a permanent CMD for BSNL soon so that strategic directives can be implemented.

The authors are telecom professionals based in Bangalore.
Views are personal