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White Paper

LTE 2012Markets & Trends

Facts & Figures

www.idate.org

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White Paper LTE 2012

www.idate.org DigiWorld by IDATE 2012 3

Table of contents

1. LTE market forecasts (Dec. 2011) ................................................................................... 71.1 Market forecasts December 2011 ............................................................................ 81.2 Data base presentation and LTE market forecasts ................................................... 11

1.2.1 Definitions ....................................................................................... ............................. 111.2.2 Information by operator ......................................................... ....................................... 11

1.3 New LTE commercial services .................................................................................. 132. LTE: Strategies for MNOs ............................................................................................... 14

2.1 The LTE wholesale model: high-speed dumb-pipes? ............................................... 152.2 LTE spectrum: already too much fragmentation ....................................................... 152.3 LTE network strategies and technical hurdles .......................................................... 162.4 Capex strategies........................................................................................................ 162.5

Service strategies for LTE ......................................................................................... 17

2.6 Conclusions on LTE strategies .................................................................................. 18

3. Femtocells........................................................................................................................ 193.1 Femtocell Momentum Returns ............................................................................... 193.2 Vendor Evolution Accelerates ................................................................................ 213.3 Some Hurdles, Though Surmountable .................................................................. 223.4 Some Recommendations ...................................................................................... 22

4. LTE devices ..................................................................................................................... 244.1 General trends with mobile devices .......................................................................... 254.2 Positioning and strategies of main LTE device players............................................. 254.3 Review of LTE devices availability ............................................................................ 264.4 Market forecasts ........................................................................................................ 27

5. Radio Spectrum ............................................................................................................... 28

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www.idate.org DigiWorld Institute by IDATE 2012 5

LTE 2012LTE is gaining momentum: The Digiworld Institute by IDATE predicts that, by 2016, a total of830 million subscribers* worldwide will have access to mobile data solutions through LTE networks.Innovative services and business models, such as investment/revenue sharing, and VoLTE which can

bring benefits to both operators and subscribers, need to be deployed if operators are to maximise thepotential of LTE deployment, maintain ARPU levels and have their network continue to be a smartpipe.

Against a backdrop of pioneer rollouts and recent announcements, several questions emerge on thetopic of LTE:

How do commercial LTE networks perform in the real world?

What are the LTE commercial deployments scheduled by Tier1 operators?

Could LTE accelerate the consolidation of the mobile market?

What is the cost of deploying LTE?

Which type of operator benefits the most?

Will LTE accelerate changes in pricing plans for mobile data?

What are the regulatory constraints for LTE deployment?

How many and what type of LTE devices will be rolled out this year?

* Forecast January 2012

In this new edition of our LTE yearbook, you will find valuable data on the central components of theLTE world, along with analyses from our experts and a comprehensive round-up of the highlights ofthe year gone by:

LTE market forecasts (Dec. 2011)

LTE: Strategies for MNOs

Femtocells

LTE devices

Radio Spectrum

LTE Watch ServiceThese are just a few of the conclusions drawn from the ongoingmonitoring of the globes LTE markets by IDATEs LTE Watch Service:

Database: a unique, continually updated LTE market database, providing

market data by Operators (+90 analysed), by country (40 covered) and by

technology, along with forecasts for the coming months and up to 2016.

Insights: Monthly views on key issues

Analyst Access: consulting hours, analyst briefs, presentations

More information about this LTE Watch Service at the end of the report

Contact: Frdric PUJOL, Radio Technologies & Spectrum Practice Manageremail: [email protected] Tel: +33 6 82 80 46 20For more details, visit: www.idate.org

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IDATE becomes the DigiWorld Institute

Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet andmedia markets, thanks to the skills of its teams of specialized analysts. Now, with the support

of close to 40 member companies who include many of the digital economys most influentialplayers the newly rebranded DigiWorld Institute has entered into a new stage of itsdevelopment, structured around three main areas of activity:

A European forum open on the world: The DigiWorld Institute will take existing IDATE initiatives,such as DigiWorld Summit, and the monthly clubs in Paris, London and Brussels, to the next level.

An independent observatory: The DigiWorld Institute will keep a close and continual watch ondigital world industries, collect relevant data and provide benchmark analyses on marketdevelopments and innovations in the telecom, Internet and media sectors through its DigiWorldYearbook and the DigiWorld Economic Journal, along with its comprehensive collection of marketreports and market watch services that are published and made available online throughout the year.

Time-tested analysis and consultancy solutions: The DigiWorld Institute established its credibilityand independence by building multi-disciplinary teams of economists and engineers who regularlyperform bespoke research and analysis on behalf of top-flight industry players and public authorities.We have also built a solid reputation in managing think tanks on the outstanding developments thatare shaping the industrys future, drawing on the skills and knowledge of our members, our teamsand outside experts.

Copyright DigiWorld by IDATE 2012, BP 4167, 34092 Montpellier Cedex 5, France

Tous droits rservs Toute reproduction,stockage ou diffusion, mme partiel et par tousmoyens, y compris lectroniques, ne peut treeffectu sans accord crit pralable du DigiWorldInstitute by IDATE.

All rights reserved. None of the contents of thispublication may be reproduced, stored in aretrieval system or transmitted in any form,including electronically, without the prior writtenpermission ofDigiWorld Institute by IDATE.

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1. LTE market forecasts (Dec. 2011)Our Top 24 LTE operators represented close to five million LTE subscriptions at the end ofSeptember 2011. It is estimated that these subscriptions represent close to 98% of all LTEsubscriptions worldwide. At that time, Verizon Wireless totalled 3,165,000 LTE subscriptions,by far the most important LTE subscriber base in the world. It is followed by NTT DOCOMOand SK Telecom, underlining the rapid adoption of LTE technology in Asian countries. Thefirst LTE operator, TeliaSonera, reported only 200,000 LTE subscribers as 2.6 GHz devicesare, as yet, not widely available in Sweden.

Table 1: LTE subscribers Q3 2011

Rank MNO Country Subscribers

1 Verizon Wireless USA 3,165,000

2 NTT DOCOMO Japan 388 600

3 SK Telecom South Korea 250,000

4 TeliaSonera Sweden 200,000

5 Tele2 Sweden 105,000

Source: IDATE LTE Watch Service December 2011

The Verizon Wireless LTE base represents 66.1% of the top 15 LTE MNOs worldwide.

Table 2: Q3 2011 subscriber figures for the Top 5, Top 15 and Top 24 LTE networks

Country MNO LTE subscribers

USA Verizon Wireless 3,165,000

Japan NTT DOCOMO 388,600

South Korea SK Telecom 250,000

Sweden TeliaSonera 200,000

Uzbekistan MTS 100,000

Top 5 sub-total 4,103,600

Top 15 sub-total 4,789,600

Other MNOs (Top 16-24) 112,500

Total (Top 24 MNOs) 4,902,100


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1.1 Market forecasts December 2011

In this section, IDATE forecasts the rates of LTE adoption between 2011 and 2015. By LTEadoption, we mean the number of subscribers who access mobile data via the LTE network.

In 2010, there were about 142,000 LTE subscribers worldwide. Almost all LTE devicesactivated during 2010, including USB data cards, modems and notebooks, were single-

mode. Dual-mode (3G/LTE) and/or dual-mode & multiple frequency devices appeared earlyin 2011. This year, LTE smartphones, tablets and M2M devices appeared, mainly for VerizonWireless in the 700 MHz band.

It is expected that, by the end of 2013, a significant portion of LTE devices will support bothFDD and TDD duplex modes. TD-LTE deployments in India, China and many other countriesin the Asia-Pacific, Latin America and Middle East regions and, to a lesser extent, Europe,will fuel this growth. We anticipate that more than 80% of LTE devices will also support 3Gand, in most cases, 2G in 2014. A limited number of LTE devices will support Mobile WiMAXin order to facilitate smooth transition for operators switching to TD-LTE.

The main change, in comparison to the previous version of the database published in June2011, is in the higher forecasts for such countries as the USA and South Korea, and theLatin American and Africa/Middle East regions. Adjustments made for 2011 take into

account the progress in deployment by major operators in the following countries andgeographical areas:

North America

USA is by far the leading LTE market today with around 3,200,000 subscribers at end-Q32011. The US market is really pulling the LTE ecosystem with massive deployments byVerizon Wireless, the AT&T Mobility launch this year, the activity of Tier 2 players (MetroPCS, US Cellular) and the plans of Sprint Nextel and Clearwire for LTE technology. Even ifLightSquared is experiencing technical difficulties with the interference generated by itsnetwork to the GPS devices, it still represents a very significant LTE deployment in theUSA. The plans of Dish to implement a wholesale LTE network using its S-Band spectrumare also contributing to the rapid adoption of LTE technology. The switch by Clearwire

switch to TD-LTE in 2013 means that more than 10 million Mobile WiMAX subscribers willmigrate to TD-LTE in a one- or two-year time frame. These elements lead us to raise our2015 forecasts. Thus, at the end of 2015, we anticipate that 138.6 million subscribers willbe accessing LTE networks (compared with 117 million in our June 2011 forecasts). TheUSA will then continue to be the leading LTE market worldwide.

Canada: Rogers Wireless launched LTE commercial service in July 2011. Our forecasts for2011 were revised to take this launch into account.

Our forecasts are now that there will be 140.5 million LTE subscribers at the end of 2015 inNorth America.

Latin America

The first commercial deployments will be in 2012. Latin America has already started toallocate spectrum for LTE and TD-LTE and LTE FDD deployments will be seen next year.

Brazil will play a key role in this region

In most Latin American countries, the digital dividend spectrum will be assigned after 2012but various spectrum bands are planned for LTE: 2.6 GHz, 1800 MHz, AWS, PCS

We forecast that there will be 31.6 million LTE subscribers in 2015 at the end of 2015 inLatin America.

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Asia

Japan: the initial deployment by NTT DOCOMO was limited to only 9% of the population atthe end of 2010. By 2014, NTT DOCOMO plans to provide LTE services to 50% of thepopulation. At the end of 2015, it is anticipated that 26.5 million subscribers will beaccessing LTE networks in Japan.

South Korea: the two leading operators in South Korea, SK Telecom and KTF, launchedLTE in 2011 but KT was barred by a class action related to the switch-off of its 2G networkin the 1800 MHz band. The South Korean regulator auctioned off LTE spectrum in August2011 in the 1.8 GHz, 2.1 GHz and 800 MHz bands. At the end of 2015, we anticipate that18 million subscribers will be accessing LTE networks in South Korea (compared with 16.8in our June 2011 forecasts).

India: in 2010, the Broadband Wireless Access (BWA) auctions for the 2.3 GHz weretechnology-neutral. This spectrum will mainly be used for TD-LTE networks. The IndianDepartment of Telecommunications (DoT) has kick-started the sale process for spectrum inthe 700MHz band with a view to selling off the frequencies in 2012. We expect to see thefirst TD-LTE services in India in S1 2012 and forecast close to 39 million LTE subscribersby the end of 2015. The availability of TD-LTE devices will be key to the take-up of LTEtechnology in India.

China: grave uncertainty persists concerning the green light from the government for TD-LTE deployment. We expect this decision to be further delayed as the government is stillobliging China Mobile to continue its TD-SCDMA deployment. China Mobile is heavilycommitted to TD-LTE and building its TD-SCDMA network so that cell sites and othernetwork elements may be re-used for the LTE network. With its massive 1.3 billionpopulation, China has vast numbers of potential mobile subscribers. We expect that a fewmore than 43 million subscribers will be accessing LTE networks by the end of 2015.

Europe

Sweden: our figures were adjusted in order to reflect the subscriber figures for TeliaSoneraand Tele2 + Telenor. TeliaSonera was the first mobile operator to launch LTE. However, its

early deployment took place in the 2.6 GHz band and this, it turned out, did not get timelysupport from chipset and device manufacturers. Digital dividend spectrum was allocated inearly 2011 in Sweden and this will help to establish a national footprint for LTE services. InSeptember 2011, there were close to 300,000 LTE subscribers in Sweden. By the end of2015, we forecast 5.4 million subscribers in the country which pioneered LTE.

Germany was the first European country to auction the digital dividend spectrum in 2010and commercial service was launched by Vodafone Germany at the end of last year. Aftercovering rural areas using the digital dividend, operators are now implementing 1800 MHzand 2600 MHz networks and will extend LTE coverage in the digital dividend. There werefewer than 1,000 subscribers at end-2010 and a mere 78,000 at the end of Q3 2011.These figures, lower than expected, are reflected in our downwardly-adjusted December2011 forecasts for end-2011: 325,000 LTE subscriptions instead of 541,000.

Our forecast is for 86 million LTE subscribers for the end of 2015 in Western Europe.

Central and Eastern Europe

Central and Eastern Europe already have a clutch of commercial LTE networks (Estonia,

Latvia, Poland).

In Russia, Yota is deploying a wholesale TD-LTE network which will be used by the main

mobile operators. We shifted our June 2011 forecasts as commercial launch has been

postponed from end-2011 to 2012.

Our present forecasts are that there will be 24.3 million LTE subscribers at the end of

2015 in Eastern Europe.

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Middle East and Africa

Saudi Arabia: the three MNOs, Etisalat-Mobily, Zain Saudi Arabia and Saudi TelecomCompany (STC), launched LTE services this year and had approximately 30,000 LTEsubscribers in September 2011.

In Africa, tests are under way in South Africa but commercial services are not expected

next year. We forecast that there will be 32.3 million LTE subscribers at the end of 2015 in the Middle

East and Africa region.

All together now: 456 million subscriptions by end-2015

By the end of 2015, we forecast, there will be more than 456 million LTE subscriptionsworldwide. Of these, Asia-Pacific will represent 31.3% of the total, North America 30.7% andWestern Europe 18.9%.

Our market forecasts by region are in the following table.

Table 3: Planned LTE commercial services (major countries and operators - 2012)

Country Operator Date Frequency band

Argentina 2012

Australia Optus April 2012 1800 MHz

Brazil 2012 450 MHz, 2.6 GHz

Canada Telus Q1 2012 AWS bands

China China Mobile 2012 2.6 GHz & 2.3 GHz

China China Telecom 2012 2.6 GHz & 2.3 GHz

India Reliance Industries S1 2012 2.3 GHz

India Augere Q2 2012 2.3 GHz

Italy Telecom Italia 2012 2.6 GHzItaly 3 2012 1800 MHz

Japan KDDI 2012 1.5 GHz & 800 MHz

Malaysia P1 Networks 2012 2.6 GHz & 2.3 GHz

Mexico America Movil 2012 1.7 GHz & 2.1 GHz

Philippines Globe 2012 2.1 GHz

Russia Vimpelcom 2012 2.6 GHz (Yota)

Russia Megafon 2012 2.6 GHz (Yota)

Taiwan Chunghwa Telecom 2012 2.6 GHz & 700 MHz

USA LightSquared Q1 2012 1.5-1.6 GHz

USA Sprint Q1 2012 1900 MHz

Leap Wireless USA Q1 2012 +Agreement with LightSquared

US Cellular USA Q1 2012 700 MHz


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Table 4: LTE market forecasts

Region LTE subscriptions

2010 2011 2012 2013 2014 2015

Asia-Pacific 2 1,909 9,537 30,444 71,602 143,274

Western Europe 65 1,368 4,816 15,668 45,547 86,405

Central & Eastern Europe 7 46 1,547 3,600 11,592 24,286North America 70 11,672 32,640 61,826 96,280 140,555

Latin America 0 0 727 3,043 10,572 31,574

Africa Middle East 0 126 883 3,420 12,530 32,266

Total 144 15,121 50,150 118,000 248,123 458,360


1.2 Data base presentation and LTE market forecasts

In this version of the LTE database, we detail the plans of 71 operators who have launchedor announced LTE developments. The plans of 76 other operators are also presented. Inaddition, we describe the regulatory situation regarding LTE in 43 countries.

1.2.1 Definitions

The database focuses primarily on developments in Long Term Evolution FrequencyDivision Duplex (LTE-FDD) and Time Division Duplex (TD-LTE). We also present MobileWiMAX developments in the USA because the strategies of both Clearwire and Sprint havea direct impact on LTE developments there, with the plans of Verizon Wireless and AT&Tbeing influenced by the presence of the Mobile WiMAX operator. This year, Clearwire hasdropped Mobile WiMAX and is going to switch to TD-LTE in 2013. Yota in Russia is also partof the database as the Mobile WiMAX operator is now implementing a LTE overlay.

1.2.2 Information by operator

The database provides the following information on each operator:

Technology

Deployment Spectrum

Technical data and main vendors

Outsourcing and sharing

Capex

Services and tariffs

Subscribers and ARPU

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Operators covered

The 60 mobile operators covered in detail in the database are as follows:

76 operators (64 in the June 2011 edition of the data base) are included in the otheroperators sheet.

Geographical zones and countries

In comparison to the June 2011 edition, five countries have been added: three in the MiddleEast (Bahrain, Saudi Arabia and UAE), and Singapore and Vietnam.

Table 5: Geographical Zones & Countries

Asia-Pacific Latin America North America Central andEastern Europe

Western Europe Middle-East

Australia

ChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPhilippinesSingaporeSouth KoreaTaiwanUzbekistanVietnam

Argentina

BrazilChileMexico

Canada

USA

Estonia

HungaryPolandRussiaTurkey

Austria

BelgiumDenmarkFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwedenSwitzerlandThe UK

Bahrain

Saudi ArabiaUAE


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1.3 New LTE commercial services

The LTE ecosystem is growing in strength, with close to 250 operators having alreadyannounced their commitment to LTE technology. As of end-November 2011, 37 operatorshave launched a LTE service; many commercial launches are planned for 2012.

Table 6: Early LTE deployments (2009-1H 2011)Operator Country Date Frequency band

A1 (Telekom Austria) Austria 11/2010 2.6 GHz

Aero2 Poland 09/2010 1800 MHz

CSL Hong-Kong 11/2010 1800 MHz & 2.6 GHz

DOCOMO Japan 12/2010 2.1 GHz

Elisa Finland 12/2010 2.6 GHz

EMT Estonia 12/2010 2.6 GHz

MetroPCS USA 09/2010 1.7/2.1 GHz (AWS)

MTS Uzbekistan 08/2010 2.6 GHz

Net4Mobility Telenor & Tele2 Norway 11/2010 2.6 GHz

Omnitel Lithuania 04/2011 2.6 GHz

Smart Communications Philippines 04/2011 2.6 GHz

T-Mobile Germany 04/2011 800 MHz

TeliaSonera Denmark 12/2010 2.6 GHz

TeliaSonera Finland 05/2010 2.6 GHz

TeliaSonera Norway 12/2009 2.6 GHz

TeliaSonera Sweden 12/2009 2.6 GHz

UCell Uzbekistan 08/2010 2.6 GHz

Verizon Wireless USA 11/2010 700 MHz

Vodafone Germany 12/2010 800 MHz

Source: IDATE June 2011

Table 7: H2 2011 LTE deployments

Operator Country Date Frequency band

M1 Singapore 06/2011 1800 MHz and 2.6 GHz

SK Telecom South Korea 07/2011 1800 MHz and 800 MHz

LG U+ South Korea 07/2011 2.1 GHz

O2 Germany 07/2011 800 MHz and 2.6 GHz

Rogers Wireless Canada 07/2011 AWS bands

T-Mobile Austria 07/2011 2.6 GHz

Bell Mobility Canada 09/2011 PCSMobily Saudi Arabia 09/2011 2.3 GHz

STC Saudi Arabia 09/2011 2.3 GHz or 2.6 GHz ?

Zain Saudi Arabia 09/2011 2.6 GHz

AT&T Mobility USA 09/2011 700 MHz

Etisalat UAE 09/2011 2.6 GHz

Telstra Australia 09/2011 1800 MHz

TDC Denmark 10/2011 2.6 GHz

Hi3G Austria 11/2011 2.6 GHz

Colombia Une EPM 12/2011 2.6 GHz

Antel Uruguay 12/2011 2.6 GHz


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2. LTE: Strategies for MNOs

Main Findings

The LTE ecosystem is experiencing a phase of remarkable growth, with manypositive indicators:

Numerous LTE commercial launches took place in 2011: in November 2011, there weremore than 30 LTE commercial networks in operation around the world. The ecosystem isgrowing from strength to strength with more than 200 operators already having announcedtheir commitment to LTE technology

In the USA, Verizon Wireless is reporting significant LTE growth with more than threemillion LTE subscribers in October 2011 and is rapidly developing its LTE coverage

Many players are showing an interest in the LTE wholesale model: LightSquared,Clearwire and Dish in the USA, Yota in Russia, NBN in Australia

LTE will dominate the 4G field: the LTE ecosystem is narrowing the mobile WiMAXmarket. LTE-Advanced will be here sooner than expected: first real-scale deployments areexpected in 2013.

TD-LTE is now commercial in Saudi Arabia and should be launched in the coming monthsin India. It is expected that most chipsets will support both the TDD and FDD mode. TD-LTE is now seen as a complement to LTE FDD in many countries

More devices are becoming available: close to 200 LTE devices were available in earlyOctober 2011. Many smartphones are offered by Verizon, NTT DOCOMO or AT&T. Avariety of devices is coming to the market: dongles, personal hotspots, tablets,smartphones, M2M devices, fixed routers and more.

Operators remain generally cautious in their network expenditure but their mobile capex isslightly on the rise with a growth of 0.6% in 2010.

Service strategies: most operators have so far only launched LTE data services. LTE canbe used as a tool against white spots in rural areas taking advantage of using the digitaldividend. Other services such as Cloud Gaming, connected cars, smart metering, homeautomations, surveillance systems are being researched by operators.

New tariffing schemes are appearing for LTE with a greater variety of options: speed,monthly caps, QoS

LTE is mainly implemented for additional capacity and is also driving costs down formobile operators.

With the LTE ecosystem growing so rapidly, IDATE forecasts that there will be more than379 million LTE subscribers worldwide by the end of 2015.

However, it should be noted that some hurdles remain:

Spectrum fragmentation is increasing: 13 frequency bands are already in use for LTEnetworks or planned for the coming year

LTE devices availability is a hurdle (for instance in the 2.6 GHz band) today in WesternEurope

The auction process has once more been delayed in the United Kingdom, causingadditional delay to LTE starting there

Voice over LTE (VoLTE) is mainly a long-term concern for most operators

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2.1 The LTE wholesale model: high-speed dumb-pipes?

In the USA, newcomers such as LightSquared and Dish have based their strategy upon theavailability of new spectrum which can provide capacity in a context of growing saturationof the mobile networks.

LightSquared have also put considerable effort in very quickly signing deals with resellersin order to strengthen its business case. Among them are MVNOs, regional mobileoperators, cable TV operators and electronic goods distributors.

The presence of three wholesale players in the USA (LightSquared, Dish and Clearwire) iscertainly not sustainable in the long run.

Countries such as Kenya and perhaps Mexico seem to be considering a regulatoryobligation for LTE wholesale operation. The objective is to enable the provision of LTEservices in markets where it would not be sustainable for existing mobile operators toimplement separate LTE infrastructures.

Figure 1: LTE wholesale players

Source: IDATE

2.2 LTE spectrum: already too much fragmentation

There is increasing fragmentation of the LTE spectrum with new frequency bands beingused or planned for LTE (see table below).

Auctions in Western Europe have attracted high bids: in September 2011, the digitaldividend was sold at a higher price in Italy (85.5 cents per MHz per pop) than duringprevious auctions in Germany (70 cents), Spain (50 cents), Sweden (31 cents) and inthe USA (70 cents).

The 1800 MHz band is becoming more attractive for LTE operations as GSM traffic ismoving to 3G bands (2.1 GHz and 900 MHz). Operators in Western Europe and Asia-Pacific are starting LTE services in this band with dongles.

Spectrum allocation is (again) being delayed in the United Kingdom.

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2.3 LTE network strategies and technical hurdles

TD-LTE and LTE FDD are seen as complementary. The choice between the TDD and FDDversions of LTE is generally dictated by the available spectrum

TD-LTE real take-off is expected when India and China implement the technology. Theformer is expected to start commercial service end-2011, early 2012.

Interest in LTE-Advanced is increasing as DOCOMO, SK Telecom in South Korea andClearwire have announced their intention to rapidly implement this evolution of thetechnology. The 2013 objective set up by Clearwire and SK Telecom shows a two-yearshift of the initially expected launch of LTE-Advanced. Carrier aggregation is expected tobe a major enhancement for the downlink.

VoLTE is slowly being implemented by mobile operators. Front-runners MetroPCS andVerizon in the USA will implement VoLTE in 2012.

Transition from mobile WiMAX to TD-LTE is accelerating as support to Mobile WiMAXwanes from both equipment vendors and operators

Femtocells will bring additional capacity and play a very significant role in LTEdevelopment in the medium to long term. SK Telecom and NTT DOCOMO have already

announced their plans to deploy LTE femtocells rapidly.

2.4 Capex strategies

Operators remain generally cautious in their network expenditures but their mobile capex isslightly on the rise with a growth of 0.6% in 2010.

The limited capex requires innovation in investment models with operators increasinglyconsidering network sharing. The network-sharing business model remains one way tobring down capex, as seen in Sweden with the Net4Mobility joint venture between Tele2and Telenor. In the US, if approved by the FCC, Sprint and LightSquared are about tomake a deal of USD 9 billion allowing the acceleration of the deployment of a LTE network.

Mobile operators are also considering new type of network architecture for LTE deploymentwith heterogeneous elements composed of macro-cells and small cells. By deploying smallcells, operators can meet capacity requirements at a lower cost than full deploying macro-cells.

LTE is driving the need to upgrade backhaul, which weighs heavily in mobile networkoperator costs sometimes up to 40% of network costs. Microwave and fibre are thepredominant technology of choice in meeting LTE requirements. Given cost considerations,operators are thinking of the possible reuse of existing FTTH infrastructure. Moreover, theconfiguration of the future RAN architecture with small cells and Remote Radio Headimplying a long distance of several kilometres of backhaul will favour the use of fibre.

Migration to LTE can be undertaken smoothly for an operator with the integration, or the re-use, of its existing 3G infrastructure assets reducing up-front investment.

LTE clearly results in lower cost per MB of capacity than 3G network can offer, andespecially when taking into account a busy hour traffic load

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2.5 Service strategies for LTE

We anticipate that mobile traffic will reach more than 127 EB in 2020, representing a33-fold increase compared with the 2010 figure. By 2020, Asia will represent 34.3% of totalmobile traffic followed by Europe (22%) and the Americas (21.4%).

Figure 2: Mobile voice and data traffic 2010-2020(Yearly EB)

Source: IDATE January 2011

To handle this growth, many mobile operators will implement HSPA+ features in theirnetworks and LTE is seen as the medium-term solution.

LTE is an opportunity for operators to increase ARPU with benefits valued by theconsumer. In building their offers, mobile operators must find different criteria forsegmenting their offerings, namely: segmentation by bandwidth, segmentation by thevolume of data that can be transferred, segmentation by usages, premium subscriptionsbased upon quality of service and on the longer term. Content-based pricing is also afuture option for mobile operators.

LTE services: most operators launched LTE data services only. LTE can be used as a toolagainst white spots in rural areas taking benefit from the use of the digital dividend. Otherservices such as connected cars, smart metering, home automations, surveillance systemsare being investigated by operators. These services are actually more oriented to B2B orB2B2C, relying on a M2M business model.

In Japan, DOCOMO has partnered with Ubitus and NHN Japan to provide Cloud Gamingservices on its two LTE tablets from Samsung and Fujitsu. This service consists in hostingthe game on servers which render games that require graphics computing on the server

cloud and processes gaming media into streaming video.

More generally, LTE operators eventually plan to offer their fixed broadband services onLTE. These services are a kind of over-the-top service and are often the adaptation ofexisting services with high definition content.

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2.6 Conclusions on LTE strategies

The first LTE commercial launch and strategies of the major the main operators are shapingthe key trends in LTE development in the years ahead:

LTE is mainly implemented for additional capacity

LTE is also driving costs down for mobile operators LTE will dominate the 4G field: the LTE ecosystem is narrowing the mobile WiMAX market

LTE devices availability is a hurdle (2.6 GHz band) today in Western Europe

Spectrum fragmentation for LTE is slowing down roaming prospects

More network sharing will be encouraged by spectrum scarcity in the digital dividend andbusiness models sustainability in specific developing markets

Voice (VoLTE) is mainly a long-term concern for most operators

LTE femtocells will play a key role in LTE deployments

LTE-Advanced will be here sooner than expected: first real-scale deployments areexpected in 2013. Last year, 2015 was the target for LTE-Advanced deployments.

TD-LTE is now seen as a complement to LTE FDD in many countries

LTE in the digital dividend can be used as a substitute to the fixed network as shown inGermany, Australia and planned by Verizon Wireless

The LTE wholesale model is developing worldwide with many implementations around theworld

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3. FemtocellsMain Findings

IDATE estimates that the worldwide femtocell access point market will reach a cumulative

total of 39.4 million deployed units by 2015, representing a compound annual growth rate

(CAGR) of 71% between 2011 and 2015.

The Americas will account for 19.8 million unit shipments, or 50.4% of the worldwide total,

representing CAGR of 72% between 2011 and 2015.

Europe, Middle East & Africa (EMEA) is expected to account for 6.7 million units by 2015,

representing 17.1% of the worldwide total and CAGR of 64%.

We estimate that unit deployments in the Asia Pacific (APAC) will amount to 12.8 million

by 2015, representing 32.5% of the total worldwide and CAGR of 73%.

Figure 3: Femtocell Unit Shipments, 2010 to 2015 (000)

Source: IDATE

3.1 Femtocell Momentum Returns

Following a slow start, the number of operators launching commercial femtocell services isincreasingly quite rapidly in the Americas; Asia Pacific; and, Europe, Middle East andAfrica.

In the past year the number of live femtocell networks has doubled; there are now 30-plusdeployments in more than 20 countries, including eight of the worlds largest operators byrevenue.

FemtocellUnitDeployments(000)

Global Femtocell Deployments 2010-2015 (000)

201020112012

2013

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Table 8: Commercial Femtocell Deployment Summary

Operator Country Launch Date

AT&T US April 2010

Sprint US December 2007

Verizon US January 2009

Asia Pacific

China Unicom China December 2009

KDDI Japan July 2010

NTT DoCoMo Japan November 2009

Optus Australia April 2011

SingTel Singapore January 2010

SK Telecom South Korea December 2010

SoftBank Japan June 2010

StarHub Singapore November 2008

Vodafone Australia May 2011

Vodafone New Zealand February 2011EMEA

Everything Everywhere UK October 2010

Moldtelecom Moldova November 2010

Movistar Spain August 2010

MTS Russia May 2011

Network Norway Norway February 2011

Optimus Portugal December 2009

Orange France May 2011

Orange Romania May 2011

SFR France December 2009

Vodafone Greece July 2010

Vodafone Hungary May 2011

Vodafone Ireland February 2011

Vodafone Italy May 2011

Vodafone Qatar June 2010

Vodafone Spain June 2010

Vodafone UK July 2009

Source: IDATE, various

Increasingly, a far greater degree of emphasis is being placed on outdoor (metro and

rural), enterprise and LTE femtocells under the small cells heading, thereby widening theaddressable market.

Femtocell access point (FAP) prices have now reached EUR 100, though care needs to betaken in terms of what is encompassed by that figure.

While femto-based services are broadly lacking at this early stage, AT&T, Vodafone andSprint are currently ahead in terms of deployments.

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Figure 4: Selected Operators Strategic Positioning

Source: IDATE

3.2 Vendor Evolution Accelerates

The femtocell vendor environment is going through a process of rapid evolution.

While the sector was dominated initially by a handful of small, specialist vendors - includingip.access, Ubiquisys and Airvana - this is no longer the case.

Major telecom equipment vendors - including Alcatel-Lucent, Cisco, Hitachi, Huawei, NEC,Nokia-Siemens Networks (NSN), Samsung Electronics and ZTE - are now engaged in thismarket.

In addition, the recent emergence of a new category of mainly Taiwanese femtocell ODMs(Original Design Manufacturers) is shaking up the industry once again.

This latter category of vendors is acting to drive down prices as it benefits from the rise ofopen standards, adding to the likelihood that mass-market volumes will be achieved.

Likewise in the femtocell chipset sector, while Picochip - a pure-play small cells pioneer -has a clear and substantial lead, the number of viable and interested players has increasedgreatly.

Broadcom (via its acquisition of femtocell specialist Percello), Texas Instruments andQualcomm are all now devoting considerable resources to the sector.

Figure 5: Selected Femtocell Vendors Strategic Positioning

Source: IDATE

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3.3 Some Hurdles, Though Surmountable

From the operator point of view, femtocells offer a cost-effective means of providingadditional coverage and capacity while reducing capital and operating costs and improvingretention.

The concept of femtocell-enabled data offload is steadily gaining ground and it is likely that,

once the market develops further, a range of new femtocell-based business models willemerge.

From the consumer perspective, femtocells offer improved residential cellular coverage,potentially lower in-home call charges and the ability to use one handset both in and out ofthe home.

The biggest source of competition to femtocells comes from the growing ubiquity of Wi-Fi,which certain operators believe has greater momentum and is better suited to dataapplications than femtocells.

On the other hand, Wi-Fi lacks a voice capability and offers inferior battery life, while manyhandsets are not Wi-Fi compatible.

There are growing signs, however, that both technologies could be combined in a singleunit in future; already FAP vendor Contela offers a combined Wi-Fi/femtocell solution whileHuawei has spoken publicly of the desirability of such devices for indoor use.

IDATE believes the femtocell sector will grow in importance over the coming years as thesmall cells concept develops into an over-arching strategic approach encompassing bothcoverage and capacity considerations.

3.4 Some Recommendations

In terms of the residential market, it seems to IDATE that there remains something

fundamentally wrong with the way in which femtocells have been presented to date. From

the end users perspective, femtocells - though clearly meeting a need - remain a solution

to a problem not of their own making, and one which many consumers would expect to

be rectified at the service providers expense rather than their own.

Service providers are effectively offering their subscribers the ability to bring service

levels up to an acceptable standard for an additional fee. Clearly, this is not the case

everywhere, and Japanese as well as some US operators in particular are taking a

different approach, but the perception that users are being required to pay extra to attain

a satisfactory service surely remains an uncomfortable one for the femtocell industry.

The fact that consumers pay also the operating costs, thereby saving the operators

OPEX, could also be said to add insult to injury. If consumers were to receive in return

meaningful extra value for their investment, in addition simply to receiving better

coverage, then the balance might be better redressed. The fact remains, however, that

such added value is very little in evidence and earlier predictions that consumers would

be offered benefits - such as free calls within the home or preferential data usage rates -have thus far largely failed to materialise.

In addition, having to date represented femtocells almost exclusively as a coverage

solution, operators have encouraged the perception among subscribers that their service

is below par. Instead, in the view of IDATE, operators should either present femtocells as

a premium solution that will bring dedicated coverage to a household, along with much

improved quality of service (and charge accordingly), or take the logical step following

from the more prevalent message and provide femtocells free of charge to those

customers suffering sub-standard coverage.

Many in the industry believe that the provision of femtocell access points free of charge is

commercially viable, and that the cost savings associated with offloading would justify

such a move. In addition, Alcatel-Lucent has stated that operators could justify offering afree small cell to customers consuming 1GB of data per month due to the improvement in

performance that would be delivered to the macro network. The vendor adds that this is

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so even without taking into account the fact that operators are able to deliver improved

residential coverage and maintain quality-of-service for high-spending users, enabling

them to reduce churn among the most lucrative customer base.

IDATE believes, however, that offering femtocells free of charge on a mass scale would

be a retrograde step and that it would represent, in effect, an acknowledgement of defeat.

Instead, IDATE believes that operators should focus their marketing efforts on the

premium nature of femtocells and actively sell the proposition as a guarantor of superior,

dedicated coverage and valuable services rather than simply as a fix to the problem of

poor coverage.

As tiered data pricing becomes increasingly common, the concept of paying for higher

data rates and guaranteed quality of service will likely take root among consumers, and

this gives operators the perfect opportunity to present femtocells as a means of ensuring

premium service in the home. At the same time, operators could retain the option of

offering femtocells free of charge to high value customers as well as those suffering sub-

par coverage on a case-by-case basis.

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4. LTE devicesMain findings

The LTE ecosystem is growing from strength to strength with more than 200 operators

already having announced their commitment to LTE technology. By the end of June

2011, 19 operators had launched LTE service and at least 16 more are expected during

the second half of the year.

The general trends to be observed with mobile devices are the rising use of sensors,

increased power available at lower cost and the multiplication of third-party applications

and usages enabled by application storefronts.

The success of chipset manufacturers will depend on how they respond to the need of

mobile devices for skills in other areas than baseband

The challenges For LTE device manufacturers will be how to optimise the integration of

4G into existing devices, as well as the obvious challenges of technical issues, cost,

Intellectual Property Rights (IPR) and Time To Market.

For Mobile Network Operators, mobile devices are also key in promoting their new ultra

fast networks. So far, Verizon has been catching most of the evolved LTE FDD devices

announced, this will surely change soon, especially in Asia and, later on, in Europe.

The fragmentation of LTE frequency bands across the world is proving to be a hurdle for

mobile operators with specific bands. Preferred LTE bands around the world are likely to

be the Digital Dividend (700 MHz in the USA, 800 MHz in Europe), 1800 MHz and 2600

MHz bands.

LTE devices with a VoLTE (Voice over LTE) function will appear in 2012 and will initially

be dedicated mainly to Verizon Wireless

Following the early LTE dongles, mobile hotspot devices such as MiFi-like have entered

the scene along with fixed LTE routers for specific markets, where LTE is presented as

an alternative to fixed broadband, especially in rural areas. As for more evolved devices

such as smartphones and tablets, it is only the US market that has seen products

developed for it. Other kinds of devices such as eReaders, mobile gaming devices or

machine-to-machine (M2M) communication modules, still await their market.

With LTE ecosystem growing so rapidly, IDATE forecasts that there will be more than 379

million LTE subscribers worldwide by the end of 2015.

We forecast shipments of close to 252 million LTE devices in 2015 worldwide. From a

worldwide perspective, these shipments should represent 15% of all mobile device

shipments by then.

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4.1 General trends with mobile devices

Although LTE can be considered as a decent improvement for mobile devices, it is not initself what will finally make the consumer choose one device or another. It is a nice-to-havefeature that complements other, must-have features. Here, we see the general trends thatare shaping the devices of today and tomorrow, trends which can be synthesised as such:

More and more sensors will be available in mobile devices to improve global userexperience. These sensors, that will be progressively cheaper as penetration continueswith accelerometers, gyroscope, magnetometers, light sensors and proximity sensors.

Ever more processing power will be available, thanks to multi-core ARM-based processorsand powerful Graphical Processing Units. While high-end devices will be more powerful,processor innovation will gradually penetrate the lower-end market.

Those innovations on the hardware side will foster mobile application storefrontdevelopment thanks to both the supply and demand side. New usages will drive both dataconsumption and demand for new devices.

4.2 Positioning and strategies of main LTE device players

The advent of a new Radio Access Network technology is often a game-changer in themobile industry. It brings with it a raft of new challenges but, above all, new opportunities forplayers in the industry, especially chipset manufacturers, mobile device manufacturers andMobile Network operators who may find a way to add further differentiation in the expandingarena of mobile competition.

For chipset manufacturers, it will be seen that, in order to be able to succeed, theincreased capabilities of mobile devices increasingly require competencies in various areasnot limited to baseband. In our judgement, this will see Qualcomm, NVIDIA and ST-Ericsson establishing themselves as Tier 1 players in this market

For mobile device manufacturers, the challenges will be to have the best possibleintegration of 4G into existing devices, with, of course, a series of challenges: technical,cost, IPR (Intellectual Property Rights) and Time To Market. Each of the device

manufacturers has so far adopted different strategies. Some, such as Apple, have adopteda cautious approach, waiting for the technology to mature for mass market adoption. Onthe other hand, device vendors such as HTC or Samsung and LG have entered the marketvery early in an attempt to differentiate themselves and increase market share. In the longterm, however, we do not see early LTE adoption into devices as an entry barrier fornewcomers.

Figure 6: LTE devices roadmap

Source: IDATE

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For Mobile Network Operators, mobile devices are also key in their promotion of their newultra fast network. Several important choices are to be made regarding which device to puton offer, at what level of subsidisation, with which mobile OS (operating system) and withwhat support for legacy services such as SMS and voice. The issue here is that, on theone hand, they have to make available a sufficient range of devices to appeal to potentialsubscribers whilst, on the other hand, represent a sufficiently broad market for device

manufacturers to dare invest in new products for their network. So far, Verizon has beencapturing most of the evolved LTE FDD devices announced so but this situation can beconfidently expected to change soon, especially in Asia and later on in Europe.

With the TD-LTE ecosystem currently growing, we expect to see multimode handsetscoming to the market in 2012: Mobile WiMAX and TD-LTE will be combined into handsetsin order to provide a smooth transition path for Mobile WiMAX operators switching to TD-LTE. LTE devices combining FDD and TDD capabilities are also expected for operatorsdeploying the two duplex modes on their networks and to facilitate international roaming.

Voice on LTE networks: initial LTE rollouts rely on Circuit Switched (CS) fallback for 3GPPoperators meaning that voice will be carried over 3G networks. Verizon Wireless isplanning to launch VoLTE by mid-2012 when its LTE coverage matches its 3G coverage.Adoption of VoLTE is expected to take many years as the transition to full-IP requires an IP

Multimedia Sub-system (IMS) platform. Preferred LTE bands around the world are likely to be the Digital Dividend (700 MHz in the

USA, 800 MHz in Europe), 1800 MHz and 2600 MHz bands. However, regional differencesare likely to remain. This has a significant impact on the growth of the LTE deviceecosystem as the selection of frequency bands is likely to be driven by national constraintsfirst. Regional harmonisation is likely to be the next step and international roaming isexpected to be a headache.

4.3 Review of LTE devices availability

The building of an ecosystem around a network technology usually follows a simple pathwith the simplest device reaching the market first, followed in time by more complex devices

such as mobile handsets. This is what is currently happening with the LTE device ecosystemalthough each LTE band currently represents an (almost) independent ecosystem.

The first round of LTE dongles was followed with mobile hotspots such as MiFi like devicesand fixed LTE routers for specific markets where LTE is presented as an alternative to fixedbroadband, especially in rural areas. Today, virtually all LTE markets in the world have atleast one of those devices, most of them though being a mere USB dongle.

Figure 7: Building an ecosystem in time

Source: IDATE

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As far as more evolved devices such as handsets and tablets are concerned, only the USmarket has seen products specifically developed for it. A country such as Japan shouldprobably also see such devices come on to its market by the end of 2011 but other marketsare lagging behind for the time being. As for other kind of devices such as eReaders, mobilegaming devices or machine to machine communication modules, the market is still to befound and is not very well developed, even with the few announcements that have been

made.

Table 9: Number of LTE devices announced by category

Kind of device Number of devices announced

Modules 22

Tablets 7

Notebooks / netbooks 6

USB dongles / PC cards / Mobile hotspots 28

Source: GSA, March 2011

4.4 Market forecasts

By the end of 2015, we forecast that overall there will be more than 379 million LTEsubscribers worldwide. We forecast 13.8 million LTE subscribers at the end of 2011 withthe USA representing the bulk of this figure with 11.6 million subscribers. At the end of2015, Asia-Pacific should represent 35.2% of the total, North America 31.4% and WesternEurope 22.5%.

We forecast close to 252 million LTE devices shipments in 2015 worldwide. From aworldwide perspective, LTE devices shipments should reach 15% of all mobile devicesshipments by 2015.

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5. Radio SpectrumMain findings

The main radio spectrum trends for 2011 are :

Digital Dividend availability,

deployment of LTE in the 1800 MHz band,

allocation and use of the 2.6 GHz band,

new frequency bands such as the L-Band

and the advent of cognitive radios with the first white spaces developments.

Source: IDATE

New radio technologies

New technologies such as cognitive radio could well make new business models possiblein the future. This can, though, only be expected to have a long-term: it will take yearsbefore cognitive radio technologies have established themselves significantly.

Cognitive radios see the first real implementation of the white spaces in the USA and thepreparation of the regulatory framework in Europe. The white spaces system will onlyrepresent niche markets if they are successful due to the numerous limitations to their

implementation.

400 600 700 800

1 GHz

2 GHz

2 GHz

3 GHz

300 900

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200100 MHz

UHFVHF

L-Band

Unlicensed 2.4

UMTS core

S-band

IMT

174 223 470 862

2500 2690248324002300

410

430

450

880 960

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500

1452 1492

915925

1710 1785 1805 1880

2010-2025 2110

19801900

2170

1920

DECT1479.5

380

1375 14001517

14271350

2200

IMT

790

1164

IMT

S-band2010

Mobile services(IMT) PMR Broadcasting

Fixed services Unlicensed Satellite

Digital Dividend: auctions in manycountries, first commercial services in the

USA and in Germany

White Spaces: first

developments in the USA

and in the UK

L-Band in Europe:

towards use as a

supplementary downlink

band?

LTE in the 1800 MHz

band: growing interest in

AsiaPac and in Europe

2.6 GHz band: more auctions

in Europe, LTE services in

Europe

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Spectrum aggregation will be a major improvement for mobile operators. It will enable theprovision of higher data rates and the use of more spectrum in the downlink in order toadapt the mobile traffic structure. It also reinforces the attraction of isolated frequencybands such as the L-Band.

LTE-Advanced is gaining momentum and will probably be implemented before 2015.

Regulatory situation

The search for new spectrum is very active in Europe and in the USA in order to provideresources for the mobile broadband expansion as we observe fast-growing mobilebroadband uptake

New spectrum is now mainly coming from public users as evidenced in the United Kingdom

The identification of new frequency bans is progressing in Europe: the L-Band is attractingsome interest and the 2.3 GHz could be made available in many countries

The measures outlined by regulatory and policy-making bodies in both areas are similar:more spectrum must be made available for wireless broadband and the rules applying toavailable spectrum will (need to) allow more flexibility.

The EU faces additional challenges in achieving harmonisation in spectrum policy, asspectrum management is a competence of the Member States.

One of the main points for mobile broadband at WRC-12 will be the clarification of theDigital Dividend use and cross-border coordination.

Digital Dividend

There is a growing interest in a Second Digital Dividend in Europe where mobile servicescould be introduced below the existing 790-862 MHz frequency band. This could providebenefits in terms of international harmonisation but is only a very long-term prospect.

The analogue switch-off is under way in Europe and will be finalised by end-2011 in mostcountries. Auctions took place in Germany in May 2010 and in 2011 in Spain and Sweden.

Other countries are following but timetables are fragmented across Europe. LTE commercial services in the Digital Dividend started in 2010 in the USA and in

Germany.

In the USA, the Digital Dividend spectrum was auctioned in 2008 and LTE services aredeveloping as Verizon Wireless launched its LTE network in the 700 MHz band at the endof 2010.

Interference issues with Digital TV and Cable TV networks and (Programme Making andSpecial Events (PMSE) still have to be solved.

Figure 8: Scenario for a Second Digital Dividend

Source: IDATE

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Spectrum refarming

Introduction of the UMTS/HSPA technology in the 900 MHz band is enabling mobileoperators to increase capacity and answer to mobile broadband needs.

As of mid-2011, there are more than 34 commercial networks using UMTS/WCDMA in the900 MHz band (18 at mid-2010), spread around Europe, Latin America, Asia-Pacific, Africa

and Europe. It is generally easy to free up spectrum in the 1800 MHz band as 2G traffic is moving to 3G

frequency bands.

Many operators in Europe and Asia-Pacific have been trialling LTE in the 1800 MHz band,and commercial launches took place in Hong Kong (CSL), Poland (Aero2) and in Lithuania(Omnitel).

The European Commission is working on making the 1800 MHz band available for LTE,mobile WiMAX and 3G throughout the Union. Today, regulatory conditions have to beanalysed on a country-by-country basis.

New spectrum for mobile broadband

Mobile data traffic is expected to continue to grow at a very rapid pace. We anticipate thatmobile traffic will reach more than 127 EB in 2020, representing a 33-times increasecompared with the 2010 figure. This is putting pressure on mobile operators to increasedata rates and capacity on their networks and raising interest in new spectrum.

LTE and LTE-Advanced will dominate the 4G field; our projections show that there will beclose to 380 million LTE subscribers worldwide by the end of 2015. LTE commercialservice started at the end of 2009 with large-scale deployments in the USA and in Japan atthe end of 2010.

TDD spectrum represents an opportunity for the development of mobile broadband andTD-LTE will certainly represent the bulk of the TDD market in the coming years. TDDspectrum used to be less attractive to operators than FDD spectrum but recentdevelopments around TD-LTE technology reinforce interest in this type of spectrum.

LTE is already implemented in many frequency bands: 700 MHz and AWS bands in theUSA, 800, 1800 and 2600 MHz in Europe, 2.1 GHz, 2.6 GHz in Asia. There will soon beimplementations in the 2.3 GHz (in TDD mode) and in the PCS band in the Americas.

Fragmentation is already here and is putting pressure on chipset developers.

We expect the 2.6 GHz, 1800 MHz and 800 MHz bands to be the most widely used inWestern Europe for 4G deployments.

The 3.4-3.8 GHz band is gaining more and more interest and will become available formobile applications. It could be used in cities to provide very high data rates.

Use of satellite spectrum to build a national LTE network in the USA is planned byLightSquared (1.5-1.6 GHz) and by Dish (S-Band)

The L-Band (1452 MHz to 1492 MHz) is widely available today across Europe as well as in

other countries such as Canada or Brazil and could provide supplemental downlink forinter-band carrier aggregation.

4G licenses/spectrum valuation

The latest Digital Dividend auctions in Sweden and Spain respectively reached EUR cents31 and 54 per MHz per pop

The 2.6 GHz and 800 MHz bands are being auctioned in Western Europe. We expectprices for the 2.6 GHz spectrum to be in the EUR cents 1- 3 per MHz per pop and for the800 MHz spectrum in the EUR cents 20-80 per MHz per pop range.

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operators and subscribers, need to be deployed if operators are to maximise the potential of LTE

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Against a backdrop of pioneer rollouts and recent announcements, several questions emerge on the topic of LTE:

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This report spotlights the value chain and the positioning ofthe key players. It provides data & forecasts up to 2016 (chipset,

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This report presents the latest trends in the femtocell market,

MNOs offloading & WiFi strategies. It examines also how

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LTE2012_WP