The Road Ahead for Telecom Landscape – LTE in India

Mobile Broadband is here to stay

Broadband has become a ‘must have’ for both businesses and consumers. Way in which consumers and businesses use communications

services is evolving.

Growing need for business continuity and enhanced productivity resulted in surge in wireless broadband penetration among enterprises.

Real-time multimedia applications such as online gaming, content sharing, etc. have increased the demand for broadband.

Introduction of smartphones, tablets and other connected multimedia devices have contributed to the surge in data usage.

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Data growth continues to drive networks to near full limits, forcing operators to invest in technology upgrades

The Mobile Data in 2011

Global mobile data traffic grew 2.3-fold in 2011, more than doubling for the fourth year in a row

In 2011, mobile data traffic was eight times the size of the entire global internet in 2000

Mobile video traffic was 52% of total mobile data traffic at the end of 2011. Moreover, mobile video traffic exceeded 50% for the first time in 2011.

Mobile network connection speeds grew 66% in 2011

In 2011, average mobile network downstream speed increased to 315 kbps (from 189 kbps in 2010)

Average smartphone usage tripled in 2011

The average amount of traffic per smartphone in 2011 was 150 MB per month, up from 55 MB per month in 2010

Smartphones represented only 12 percent of total global handsets in use, but they represented over 82 percent of total global handset traffic

3 Source: CISCO VNI, 2012

The Mobile Data in 2011

In 2011, tablets connected to the mobile networks tripled to 34 million

Each tablet generated 3.4 times more traffic than the average smartphone.

There were 175 million laptops on the mobile network in 2011

Each laptop generated 22 times more traffic than the average smartphone.

Mobile data traffic per laptop was 2.1 GB per month, up 46 percent from 1.5 GB per month in 2010.

4 Source: CISCO VNI, 2012

The Mobile Data in 2016

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Mobile data is projected to grow exponentially over next five years

Source: CISCO VNI, 2011

Mobile Data Growth Estimations

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By the end of 2012, the number of mobile-connected devices will exceed the number of

people on earth, and by 2016 there will be 1.4 mobile devices per capita.

Mobile network connection speeds will increase 9-fold by 2016.

In 2016, 4G will be 6 percent of connections, but 36 percent of total traffic. In 2016, a 4G

connection will generate 9 times more traffic on average than a non-4G connection.

By 2016, 39 percent of all global mobile devices could potentially be capable of connecting to

an IPv6 mobile network. Over 4 billion devices will be IPv6-capable in 2016.

Mobile-connected tablets will generate almost as much traffic in 2016 as the entire global

mobile network in 2012. The amount of mobile data traffic generated by tablets in 2016 (1.1

exabytes per month) will be approximately equal to the total amount of global mobile data traffic in

2012 (1.3 exabytes per month).

The average smartphone will generate 2.6 GB of traffic per month in 2016, a 17-fold increase

over the 2011 average of 150 MB per month. Aggregate smartphone traffic in 2016 will be 50 times

greater than it is today, with a CAGR of 119 percent.

By 2016, over 3.1 exabytes of mobile data traffic will be offloaded to the fixed network by

means of dual-mode devices and femtocells each month.

The (Mobile) Internet of Things

Globally, M2M traffic will grow 22-fold from

2011 to 2016, a compound annual growth rate

of 86 percent, with M2M traffic reaching

508,022 terabytes per month in 2016. M2M will

account for 5 percent of total mobile data traffic

in 2016, compared to 4 percent at the end of

2011. The average M2M module will generate

266 megabytes of mobile data traffic per month

in 2016, up from 71 megabytes per month in

2011

The Asia Pacific region will lead the M2M

category in 2016 with 259.7 petabytes per

month and a CAGR of 88 percent between

2011 and 2016. The Middle East and Africa

region will experience the highest CAGR of

90 percent from 2011 to 2016 with 23

petabytes per month of M2M traffic in 2016.

Robust Growth Projected for India as well

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Mobile Broadband service connections expected to grow significantly from 2010 to 2015

LTE – Long Term Evolution

Mobile Broadband Evolution

~70 ms

2005 2006 2007 200

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2009 2010 2011 2012 or later

LTE

DL: ~384Kbps

UL: ~384Kbps

DL: ~14.4Mbps

UL: ~5.76Mbps

DL: ~42Mbps

UL: ~11Mbps

DL: ~141Mbps

UL: ~50Mbps

HSPA+ ~100 ms

~45 ms

~15ms

3G-WCDMA

HSPA

Increasing Bandwidth Decreasing Latency

• Completed by 3GPP in February 2008, the LTE standards are

designed to enable the rollout of high capacity mobile

networks capable of delivering very high speed and low latency.

• Designed to be backwards-compatible with GSM and HSPA,

LTE incorporates Multiple In Multiple Out (MIMO) in combination

with Orthogonal Frequency Division Multiple Access (OFDMA) in

the downlink and Single Carrier FDMA in the uplink to provide

high levels of spectral efficiency and high data rates

• 3GPP has ensured compatibility with these existing widely-

used technologies, enabling a smooth handover of voice calls

and data sessions between 3GPP networks and building on the

international roaming capabilities of GSM and HSPA today.

What is LTE ?

Lower cost per bit, Higher Capacity, and Greater

Flexibility

LTE utilizes OFDM radio access technology and MIMO antenna

technology to deliver up to four times the spectral efficiency of HSPA

LTE delivers peak data throughput up to 173 Mbps in the downlink and

86 Mbps in uplink, an improvement over HSPA by a factor of over 10

Enhances the end-user experience - ensuring that real-time bandwidth-hungry

applications such as interactive TV, VoIP and online gaming are available and

delivered with an exceptionally high QoS

LTE supports next generation core network architecture for LTE called

SAE (System Architecture Evolution)

Enables improved data latency and ensures better real-time communications

LTE leverages all IP core networks (SAE), substantially reduces per-megabyte cost

of delivery

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Technological advantages of LTE will have a significant impact on businesses and will ultimately transform LTE into a key business differentiator,

delivering operational as well as revenue benefits to the early adopters!

• LTE efficiently delivers best user experience of broadband and

smart device services due to increased data rates, reduced

latency and scalable flat all-IP network architecture.

• LTE offers a number of clearly identifiable benefits in

comparison to other mobile technologies and these are: Significantly increased peak data rates.

Reduced latency

Scalable bandwidth

Compatibility with earlier releases

Reduced CAPEX/OPEX.

Improved spectrum efficiency

• LTE will gain traction and the coming years will see greater

deployment of LTE. These deployments will be in both TDD and

FDD versions. We expect that the growth in LTE will outpace the

growth in Wimax.

Benefits of LTE

• With 72 commercial LTE networks already launched in 37 countries, LTE

Network deployment is attracting global industry support, (source- Global mobile

Suppliers Association (GSA)-May, 2012).

• At least 134 LTE networks are anticipated to be in commercial service in 57

countries by end of 2012.

• Hence the increasing amount of growth in data traffic will be catered to by the LTE

deployments. And in the emerging markets like Asia Pacific, the demand for LTE

services will initially come from corporate and SMEs.

• As the technology adoption evolves and the network deployments increase, LTE

services will percolate down to the larger population in the Asia Pac region.

• From a regional perspective, the market share will drastically shift from a North

American lead market to the Asia Pacific region, which will account for over 68 % of

the revenue by 2015.

Current Scenario

• Issues around the security clearance (for a new technology/

applications).

• Given the impact on network performance/ user experience,

Quality of device will increasingly become important.

• India being a price sensitive market, price points/ tariffs will be

one of the key determinants of growth.

• Availability of content in vernacular language will also be a key

determinant for take-up of service; especially in rural areas.

• Lack of adequate backhaul and spectrum could emerge as a

bottlenecks as the take-up of service increases.

• In the medium to long term these challenges will be overcome

and we will see a robust growth in LTE in India.

LTE in India - Challenges

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