No LTE, for now

Mobile operators have been testing the viability of LTE, but will not be able to roll out the latest upgrade to GSM networks until the Independent Communications Authority of SA (ICASA) auctions much-needed spectrum.

LTE, or long-term evolution, is set to revolutionise wireless broadband communication. The technology, also known as 4G, allows for faster speeds, and makes it possible to stream larger amounts of data.

However, until spectrum in the digital dividend and at 2.6GHz is auctioned, operators cannot do much more than play with the technology. In addition, SA is running out of space in currently allocated frequency bands, and the quality of service will deteriorate further, because the spectrum is being used to capacity.

The auctioning of space in the 2.6GHz band, initially mooted for May last year, is on hold while ICASA waits for communications minister Roy Padayachie to sign off on parameters that will allow it to go ahead, says ICASA spokesman Paseka Maleka.

Auctions for the digital dividend, the space that will be freed up when SA moves off analogue television broadcasting, are only likely to happen after the move to digital broadcast has been finalised, Maleka previously said.

The GSM Association's (GSMA's) special government advisor, Ross Bateson, says LTE will allow network operators to up the download speeds they currently offer. “Download speed is a crucial driver of take-up of broadband services.”

Current HSPA+ networks have peak download speeds of up to 42MBps, while LTE is designed to give peak download speeds of up to 100MBps on equipment that is available and being rolled out today, says Bateson.

Increased broadband penetration is directly linked to economic growth and the creation of jobs, explains Bateson. Broadband has the potential to add R72 billion to the economy by 2015 and create 28 000 jobs, he adds.

However, the “very rapid” growth of mobile broadband in SA will see growing pressure on existing spectrum allocations during 2011, which will increasingly affect quality of service, download speeds and ultimately stall the take-up of mobile broadband in SA, unless new allocations are made, notes Bateson.

Much of the growth in data traffic over the next five years will be driven by video, and LTE provides download speeds capable of rapidly downloading - or live streaming - video files, says Bateson. This will “dramatically change the way in which we access information,” he adds.

Globally, many countries are already starting to move to LTE. Bateson points out the first rollout happened in Sweden in 2009. In 2010, a number of other operators in Europe, the Middle East, the Americas and Asia joined the move, and there is even an LTE network in Nigeria, he says. “By 2015, we expect to have seen significant roll-out of LTE networks.”

Making LTE spectrum available is going to be the key to network rollout in SA, says Bateson. SA is moving forward on this issue, but the end of that process has not yet been reached.

“Final work on clearing up the 2.5GHz and digital dividend bands is still needed, but there have certainly been some big steps forward on both issues this year,” says Bateson. However, the GMSA believes LTE will be a commercial reality next year.

Meanwhile, local operators do not have a timeframe for when LTE will become a reality in SA. Two key issues need to be sorted out: firstly, spectrum in the digital dividend and at 2.6GHz; and, secondly, the availability of handsets.

Yet, companies such as Nokia are investing in developing handsets for use on LTE networks, while HTC will launch devices in the second half of this year.

Kanagaratnam Lambotharan, MTN SA CTO, says now is not the right time to launch LTE on a commercial basis, as MTN will need more network capacity. “We need as much spectrum as possible.”

To move to commercial LTE, MTN will need spectrum in the 2.6GHz channel, as well as space in the digital dividend, says Lambotharan. In addition, there needs to be a “commercial ecosystem” such as handsets and modems before the company can go live, he notes.

MTN is running a pilot project in a bid to understand the technology, Lambotharan points out. He says the aim is to see how much it can “stretch” the network until there is spectrum available in 2.6GHz and 800MHz.

The cellular network, SA's second-largest, wants to have 100 base stations testing LTE by the end of the year. MTN is also looking into whether there are devices capable of handling the faster speeds provided by LTE technology, says Lambotharan.

Richard Boorman, Vodacom's executive head of media relations, says two key factors are stopping it from rolling out LTE: the availability of compatible modems and handsets, and the availability of spectrum.

Boorman says the need for more spectrum is usually also linked to the discussion on the digital dividend. The main driver is not speed. CEO Pieter Uys has indicated: “LTE is not about the fastest speeds, but rather about more capacity.”

Vodacom was the first local operator to run a live LTE trial integrated into its network in June last year.

"LTE is not the right technology for SA as there isn't frequency available,” says Lars Reichelt, Cell C CEO.

“The bit that we have available is better suited to HSPA+ on the 900 frequency band. The advantages of HSPA+ are that it is backwards compatible, uses less battery power and the devices are more affordable. Having said that, Cell C is trialling LTE.”

The third network operator says the most relevant frequency bands for LTE deployment would be in the digital dividend 800MHz band, existing 900MHz and 1.8MHz bands, which have already been allocated to cellular operators, or the 2.6GHz band, which is “currently the topic of much industry speculation regarding its allocation”.