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LTE: top priority and frustration

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 16 Jan 2014
SA hopes to see LTE sprout beyond its fledgling phase in 2014.
SA hopes to see LTE sprout beyond its fledgling phase in 2014.

Long-term evolution (LTE) - the new-generation wireless broadband technology that started out more as a buzzword than an experience in SA in late 2012 - began to take root in the country last year.

In 2014, SA's industry observers and data-hungry consumers hope to see LTE - commonly referred to as "4G" - sprout beyond its fledgling phase, into a viable alternative to the often challenge-laden technology of asymmetric digital subscriber line (ADSL).

The Global Mobile Suppliers' Association (GSA) yesterday released the latest update to its LTE report, revealing that, to date, 263 LTE networks have commercially launched in 97 countries. Two hundred and sixty operators had commercially launched LTE services in 95 countries by 31 December - an exact realisation of the GSA's July 2013 forecast.

Last year, 112 LTE networks were unveiled worldwide, while the new year - just over two weeks old - has seen a further three networks in two additional countries.

The GSA further says 508 operators are currently investing in LTE in 144 countries, 456 operators have commitments to invest in 135 countries, and there are 52 pre-commitment trials under way in nine more countries.

In November, the GSA announced the availability of 1 240 LTE user devices.

GSA president Alan Hadden says the association forecasts there will be at least 350 LTE networks in commercial service by the end of 2014. "Key trends this year include more deployments of carrier aggregation and other LTE-Advanced (LTE+) features, growth in voice services enabled by voice over LTE, and a significant expansion of international LTE roaming services. 2014 is also expected to be important for LTE broadcast."

Local LTE

But what about SA - a country in the midst of a mobile explosion and in need of faster, more affordable mobile Internet access?

Analysts say while SA's operators - mobile duopoly Vodacom and MTN in particular - have LTE deployment high on their priority lists, it is equally highly-placed on their frustration lists.

The GSA's summary of SA, as per its latest LTE update:

Vodacom commercially launched LTE1800 service on 10 October, 2012 with 70 base stations in Johannesburg. Vodacom activated 600+ LTE sites by March 2013 with another 400 planned by end 2013.
MTN commercially launched LTE1800 with 500 sites in Durban, Johannesburg, and Pretoria on 1 December 2012. Cape Town is to be covered by end 2013.
Telkom Mobile (8ta) has 70MHz of band 40 TDD spectrum. LTE TDD was commercially launched on 21 April 2013. Telekom Mobile will also use LTE1800 later. The company also operates a 3.5GHz WiMax network.
Cell C is deploying 2.1GHz LTE. On 19 December 2012, a pre-commercial trial service for selected heavy data users began in Cape Town, Durban, Johannesburg and Pretoria.
CDMA operator Neotel commercially launched LTE using 1 800MHz (LTE1800) in Gauteng on 21 August 2013. Neotel also owns 3.5GHz spectrum.
Wireless Business Solutions (WBS) holds interests in iBurst and Broadlink, and plans to deploy LTE. iBurst has 1 800MHz and 2.6GHz spectrum and deployed a small trial using 2.6GHz. An operational tie-up with a competitor is possible.
The communications ministry said 800MHz spectrum would become available in 2015, and 2.6GHz could be brought into use immediately.
(As per GSA Evolution to LTE Report, 15 January 2014)

World Wide Worx MD Arthur Goldstuck says SA is still stuck in the middle of a "spectrum no man's land", with high-demand spectrum - ideal for LTE - not yet allocated. "[In addition to this, existing spectrum that is intended for 3G [is being] refarmed for LTE."

He says there are high hopes that LTE spectrum will be allocated before the elections (tagged for April/May), as it is one of communications minister Yunus Carrim's priorities, "but this is one area where the regulator has not covered itself in glory".

Another common sentiment among industry observers is that LTE deployment in SA is both young and slow - but also inevitable.

Dobek Pater, Africa Analysis analyst, says: "The large operators (Vodacom and MTN) have been deploying their LTE networks, however, at a slow pace."

He notes that deployment is taking place in the large metros - where LTE is, first of all, needed or the areas can take immediate advantage of the opportunity; and, secondly, where it will generate the quickest return on investment.

Pater echoes Goldstuck's remark on the bane holding operators back from the boon: "The deployment has been limited due to the limited spectrum currently available to the operators. Part of the problem is that the operators need to refarm the spectrum they currently have access to, which probably results in poorer quality services on the 3G network."

Another reason for reluctance, he says, is that operators may not want to deploy LTE too quickly (using the currently available spectrum), without possibly being able to provide true LTE services over the new network due to spectrum frequency constraints.

"Quicker deployment is expected only once the so-called LTE spectrum has been awarded by the Independent Communications Authority of SA (ICASA). The challenge is that the new spectrum will be awarded in different frequencies than the currently used spectrum (1 800MHz and 2 100MHz) - which means operators would possibly have to run two LTE networks in parallel."

Ovum analyst Richard Hurst says it is still early days for LTE in SA. That said, he notes the country is seeing an increase in the number of LTE devices on the market, as well as a rapid rollout on the part of mobile network operators.

Once the issue of spectrum has been sorted out, he says, LTE is likely to gain significant traction in the local market.

ADSL ills

Pater says he sees LTE - or the active advancement of the technology - as being imperative for SA.

"LTE is a good alternative to ADSL, which is problematic in SA because the copper network is limited (and ADSL has a limit of about 5km from the exchange before the signal degrades too much) and the copper cables continue to be stolen without replacement.

"Fibre will not be feasible in many residential areas and some business areas due to the high cost of deployment. LTE can fill the gap and is a good technology solution for SMEs and the high-end consumer market as a fixed-wireless solution. It is also mobile (or normally used as 'nomadic'), therefore, provides greater flexibility than an ADSL connection."

He says, while the uptake of newer ADSL technologies like ADSL2+ and very-high-bit-rate digital subscriber line has been slow - indicating many users do not quite know what to do with the available bandwidth speeds (and also taking cost into consideration) - the demand for data (and fast data) connectivity is growing.

"LTE can provide the type of fast broadband solution to many users (business and residential) to drive efficiencies."

Goldstuck says LTE may not be a necessity at this stage, but its absence does hold back the evolution of communications, making SA an increasingly less competitive country and economy.

According to a World Bank report on broadband in developing countries, every 10% increase in broadband connectivity boosts economic growth by 1.38%.

Operator overview

In its report, the GSA briefly outlines SA's LTE landscape, noting the five operators currently forming part of it - Vodacom, MTN, Cell C, Telkom Mobile and Neotel - and the one entity, currently eyeing the terrain, Wireless Business Solutions (iBurst and Broadlink).

Vodacom - SA's largest mobile operator by market share and the first to deploy commercial LTE in SA - says, as at the end of September, that it had increased LTE coverage to over 720 sites across the country, with coverage in most of the major cities in SA.

"Part of Vodacom's ongoing network investment strategy, which has seen the company invest over R28 billion in its South African network over the past five years, has been to expand 3G coverage to everywhere we have voice (2G). To date, close on 90% of the population has 3G coverage."

The operator says it has also been upgrading all of its existing base stations with new 3G equipment that is software upgradable to LTE. "This means we'll be ready to have LTE up with flick of switch when we get spectrum."

According to Vodacom, there are around 550 000 LTE-capable devices on the network in areas where the operator has LTE coverage.

Second operator MTN, which followed its red rival closely, launching a commercial LTE network just short of two months after it, says it is continually investing in "better and faster network infrastructure".

MTN CTO Eben Albertyn says: "We are well on our way in rolling out LTE across the entire country and have successfully implemented LTE in Durban, Johannesburg, Pretoria, Cape Town and Bloemfontein - with more sites to go live in 2014."

Albertyn says the operator has modernised most of its base stations in preparation for LTE and has refarmed 2 x 10MHz in 90% of its sites to provide faster connection speeds.

Up-and-coming third mobile operator Cell C has ongoing commercial LTE trials on the go in Johannesburg, Pretoria, Durban and Cape Town.

Acting CEO Jose Dos Santos says Cell C is planning to prepare a large percentage of its sites - especially in the Gauteng region - to be LTE-ready during the course of this year.

"The focus, however, is on HSPA and full commercial LTE plans will depend on the Department of Communications' National Broadband Plan and ICASA's decisions on spectrum."

Telkom says in the past year, its mobile arm, Telkom Mobile, has integrated over 800 LTE base stations - most of which are located in the metros of Johannesburg, Pretoria, Durban and Cape Town. "Rollout of base stations will continue in line with customer growth," says the company.

"The market has responded positively to our LTE products with double-digit growth in most months. By focusing on controlled distribution and service, products such as the LTE HomeOffice solution have been well received, especially among those who frequently use data applications that are best experienced on a high-speed platform, and by those who are looking for a FLLA (fixed-line-look-alike) in areas where fixed-line infrastructure is not available."

Second network operator Neotel says it views LTE as one of the most efficient ADSL replacement technologies. "We therefore predict that LTE will have significant impact on the South African market, especially in the fixed broadband space."

Abid Qadiri, chief of business solutions and excellence at Neotel, says SA lags behind the world in the fixed broadband segment, while mobile broadband and fibre-based products are abundantly available.

He says Neotel currently has 50 LTE sites, based in the Gauteng area only. "Neotel will increase the number of LTE sites to match the coverage of its other wireless and microwave technologies in 2014. We intend to deliver significantly more broadband services on LTE as a last mile medium in 2014."

Qadiri says LTE is a top priority for Neotel, "since LTE is more cost-efficient than any other technology to deliver fixed broadband services". He notes that Neotel's LTE solution is focused on high-end consumers and small business, and as such uptake has been slow, but there is consistent growth.

Being a newly launched network, he says, Neotel still needs to grow significantly in what has proven to be a tough market. "Growth is consistent and a focus will be to increase this over the next year."

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