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2010/TEL41/LSG/RR/002 Session 1

Digital Dividend Overview - Spectrum Considerations

Purpose: Information

Submitted by: Ericsson

Regulatory RoundtableChinese Taipei

7 May 2010

Digital Dividend Overview

SpectrumConsiderations

Michael BjarhovDirector, Government & Industry Relations Asia Pacific

2

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).

broadband subscriptions3 billion mobile broadband subscriptions – redefines the market

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2008 2009 2010 2011 2012 2013 2014 2015

Sub

scrip

tions

(milli

on)

Mobile

Fixed

Source: Internal EricssonMobile 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

Fixed and mobile broadband subscriptionsM2M connections to be added on top

3

Traffic growth in mobile networksThis slide contains forward looking statements

Source: Ericsson

Mobile traffic forecast

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015

Yea

rly E

xaby

tes

Data

Voice

M2M traffic to be added on top

Behavior as in fixed – high Definition video streams – 50 b. devices 2020

4

Spectrum needs When evolving from voice to broadband

1987-2010

450-600 MHz in each market

1987-2010

450-600 MHz in each market

X3

Regulators are allocating more band width and eliminating or redefining spectrum caps as they realize broadband requires more spectrum

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: 1.280 MHz for low market demand (rural areas)1.720 MHz for high market demand (urban areas)

Aggregated Band Width

2010-20201.3GHz-1.7GHz

in each market

2010-20201.3GHz-1.7GHz

in each market

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

5

Analog TV:1 program/1 frequency

Move to digital TV

Terrestrial TV:Up to 14 SDTV

programs/frequency

Some part of TV spectrum freed (digital dividend)

Mobile’s booming:> 4.8 billion subscriptions

Move to broadband mobile

Need for wider carriersNeed for more spectrum

Digital dividend may be transferred

to mobile

Terrestrial TV Cellular mobile

Creating the Digital Dividend

6

Spectrum Demand for DTT

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

Factors determining the am

ount

of spectrum to release

7

Terrestrial TV digitalization around the world

2006 2008 2012 2015 2020

Analog TV Switch-Off Date

HollandLuxembourg

Germany, Belgium

EU, Japan, Korea

ASEAN: 2015-2020

Finland, Andorra, Sweden, Switzerland

2007 2009

USA

8

Harmonized spectrum and standards

› Economy of scale (based on a mass market)

› Easy cross-border coordination

› Cross-border operation (between countries)

› Global roaming capabilities

› Interoperability choice and convenience

› Efficient use of spectrum (also in border areas)

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

harmonized spectrum

standards

spec

trum

effi

cien

cyProviding affordable services to all

9

The band 698-960 MHz in ITU

698 MHz

790 MHz 862 MHz

IMT-2000GSM/WCDMA

Region 2 (Americas)

Region 1 (EMEA)

Region 3 (APAC)

894 MHzIMT-2000

cdma2000/WCDMA

BROADCASTING

880 MHz

824 MHz806 MHz

960 MHz

894 MHz

IMT-2000cdma2000/WCDMA

824 MHz

IMT-2000GSM/WCDMA

880 MHz 960 MHz

698 MHz 790 MHz 862 MHz

MOBILE & IMT

MOBILE & IMT

MOBILE & IMT (9 countries) MOBILE & IMT

Momentum

10

Effect of frequency on range and capexCoverage of rural areas at about 30% of the cost of 2100 MHz

X3 more investments needed for 2.1 GHz compared with 700 MHz

11

700 MHz BAND IN US

Block Freq (MHz) Bandwidth Type Result Remark

Lower

A 698~704, 728~734 12 (2 ×6) MHz EA (176) Verizon

Wireless etc. LTE

B 704~710, 734~740 12 (2 ×6) MHz CMA (734) Verizon, AT&T etc. LTE

C 710-716,740-746 12 (2 x 6) MHz CMA(734) AT&T (purchase from Aloha) etc. LTE

D 716-722 6 MHz EAG(6) Qualcomm(5), Aloha(1) Media FLO

E 722~728 6 MHz EA (176) FrontierWireless etc.

Upper

C 746~757, 776~787 22 (2 ×11) MHz REAG (12) Verizon

Wireless etc. Open platform

D 758~763, 788~793 10 (2×5) MHz Nationwide No successful bidder Public/Private

Partnership

698 704 710 716 722 728 734 740 746 752 758 764 770 776 782 788 794 800 806

757 763 775 787 793 805

A B C D E A B C C A D Public Safety A C A D Public Safety A

CH.52

CH.53

CH.54

CH.55

CH.56

CH.57

CH.58

CH.59

CH.60

CH.61

CH.62

CH.63

CH.64

CH.65

CH.66

CH.67

CH.68

CH.69

LOWER 700MHz BAND(TV CHANNELS 52-59)

UPPER 700MHz BAND(TV CHANNELS 60-69)

12

ECC Decision for Mobile Networks band 790-862 MHz

30 MHz (6 blocks of 5 MHz)11 MHz30 MHz (6 blocks of 5 MHz)

UplinkDuplexgap Downlink

857- 862852- 857847- 852842- 847837- 842832- 837821 - 832816- 821811-816806- 811801-806 796- 801791-796

“Preferred Harmonised frequency arrangement”

65 MHz (13 blocks of 5 MHz)7 MHz

UnpairedGuardband

857-862852-857847-852842–847837–842832–837827-832822-827817-822812-817807-812802-807797-802790-797

“Guidance for administrations not implementing the preferred channelling arrangements” (specific national circumstances)

Note 1: Guardband of 1 MHz between Broadcasting below 790 and mobile DL starting at 791 MHzNote 2: Sweden, Germany, France; have announced auctions of the band to happen late 2009 or during 2010

ECC Decision June 2009 ; EC Recommendation end 2009

13

the UHF band for mobile broadband

824 849 869 894

The band 850 MHzThe band 700 MHz (USA)

716 746 768 798698 728 777

806 824 844 869 890

The band 850 MHz889 915

935

960The band 900 MHz

698

The band 700 MHz (proposed)

Americas130 MHz

APAC/Africa190 MHz

2x45 MHz

787/8

2x18+2x10+2x10 MHz

Momentum

880 915 925 960791 862

The band 900 MHzThe band 800 MHz (DD1)

EME/Africa130 MHz

832821

Historic opportunity to enable broadband for all

= Downlink= Uplink

14

The 700 band in Asia PacificThe optimised 2 x 45 MHz option

806698

10-11MHz?

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 arefinalized 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

10-11MHz?

Broadcasting

PPDR

15

› 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

Conclusions