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WIMAX & LTE - The great 4G debate
While we are still at an early point in the evolution of 4G network technologies, Rob 
Dalgety looks forward to greater clarity on how the different technologies will fare and how the market will shake out
Vodafone, T-Mobile and France Telecom have all announced plans to deploy LTE-based 4G networks. Some of these service providers are also planning to support WiMAX, another 4G technology, in addition to LTE. Live deployments of WiMAX are already underway in different parts of the world. Still other service providers are getting behind UMB, WiMAX, LTE or some mix of the three. It feels like we had not really finished discussions of 3G technologies before moving on to 4G. Now a dazzling array of old and new technology acronyms - WiMAX, LTE, UMB, OFDMA, 3GPP, 3GPP2, IEEE - are all now forming a part of the 4G lexicon.
There are three primary network technologies that support ‘4G'. The first is WiMAX: Worldwide Interoperability for Microwave Access. WiMAX was initially developed to support ‘last-mile' wireless broadband as an alternative to wired technologies, and has now been extended to support use cases that are truly mobile (non-line-of-sight communications, mobility via the IEEE 802.16e standard, etc.).
It is currently the most mature of the 4G technologies, with stabilised standards and a number of live deployments around the world.
The second is LTE: Long Term Evolution. This technology is an evolution of many of the currently deployed ‘GSM Family' of cellular networks (3G/UMTS and 2G/GSM networks) for which the standards are currently being finalised. This technology has the support of a large number of mobile operators and major equipment vendors, as it is intended to provide a relatively straightforward upgrade path from the current network infrastructures. The first live deployments of LTE are expected in 2010 and beyond.
The final primary network technology in question is UMB: Ultra Mobile Broadband. This is the OFDMA-based 4G extension to the CDMA-2000 3G standard driven by Qualcomm. This is primarily a route to 4G for service providers who currently use CDMA-2000-based networks. We are still at an early point in the evolution of 4G network technologies. As time passes, it will become clearer how each of these different technologies will fare and how the market will shake out. Different network technologies will be deployed in different regions and territories depending on a variety of factors, including the commercial and regulatory environment, the availability of spectrum, and the applicability of different network technologies to the aspirations and goals of the service providers.
Moving to these 4G technologies will provide technical and economic opportunities for different service providers. These include the cost efficiencies gained by ensuring IP support in both the core and radio-access networks, as well as significant performance improvements, which can range from improved data throughput to reduced latency and increased capacity (subject to spectrum). Evaluating these technical and economic factors is a significant part of the process of deciding when and how to move to a 4G technology.
Also key to the process of deciding when and how to move to a 4G technology are the new service opportunities that are enabled by 4G-the new mobile services that can be presented to end users. These can be distilled into four main areas:
- Fixed Services: 4G technologies such as WiMAX and LTE provide the ability to support broadband and voice services that have, until now, been delivered by wireline technologies. There are opportunities to:
Substitute for wireline technologies, for example in rural areas - where the economics of wireline deployment are reduced by the lack of subscriber density, and/or
Cannibalise fixed services - this would be by using the wireless network to form part of the proposition where the wireless service offering is more compelling across the marketing mix than the fixed alternatives.
- Mobile Computing: Enabling truly mobile computing (laptops, modems, dongles, tablets and ultra-mobile PCs) is another service opportunity for 4G technologies. The higher bandwidth available and lower latency of 4G networks fits well with the services used by these more data-centric devices -whether the services are accessing a corporate network and enterprise applications, or using other data-heavy applications.
- Mobile (2.0) Services: Beyond data-centric devices like computers, 4G networks will deliver the underlying network connectivity and bandwidth to unleash more advanced next-generation data services on traditional mobile devices.
- Mobile Consumer Electronic Devices: 4G networks will also offer the opportunity to support connectivity for a wider range of consumer electronic devices - from MP3 players and cameras to personal media players. The mobile phone will be just one of many end-user devices connected to 4G networks. All of these different devices can benefit from this connectivity, which will enable support for over-the-air content and data updates as well as ongoing management of the devices themselves.
In general, timing of the rollout and uptake of these services should follow the order outlined above. However, there will be many regional differences in Europe and around the world. For example, territories that have extensive and well-developed wireline infrastructures may see more focus on the mobile services opportunities (points 2-4 above) than on the fixed services opportunities. The commercial strategies of service providers will also significantly impact service mixes and rollout plans. Some service providers may decide to innovate, creating new service opportunities (such as providing connectivity for mobile consumer electronics devices). Others may go after known market opportunities that are currently serviced by wireline technologies, thereby cannibalising the ‘wired services'.
Regardless of which 4G network is under discussion, it is the new wireless network technologies themselves that tend to dominate the discussion of 4G currently. This focus on network technologies is not a new phenomenon; we saw this when 3G networks rolled out and we are seeing it now as the 4G market evolves. The network itself will form an important part of the discussion as we move into the 4G world. However, based on the quantity of conference papers, standards body activity, press coverage and news, you might think that once the 4G network issues are resolved and deployed, any issues having to do with delivering services over those networks will be resolved as well.
The reality is that this is far from the case. There is a range of other enabling-technology elements that are essential to delivering 4G services. Critical components that need to be considered include the devices and services that will use the network. In building a truly functional and vibrant ecosystem, we not only need to deal with network, device, application and service issues, but we also need to deliver the key advanced management capabilities and tools that are essential for a truly seamless, high-quality end-user experience.
A critical lesson learned from the cellular world is that as the service environment becomes more complex, embedding advanced visibility and manageability into devices and services is critical to optimising new services and delivering a great end-user experience. These capabilities will be even more critical as we move into the 4G world with all its inherent complexity. For example, in a 4G ecosystem, the device might be anything from a mobile phone to a computer to an MP3 player or a vending machine. Being able to detect the device, recognise it for what it is, activate it and configure the relevant services on it without the need for human intervention constitutes the first step to an excellent user experience. After all, there would be no point activating and configuring a vending machine for voice services!
The technical ecosystem is critical, but it is compelling service propositions that deliver value to the consumers or enterprises that will ultimately drive end-user demand for 4G services. These propositions will rely on the inherent capabilities of the network as well as other technical components. But the litmus test will be the full value proposition service providers deliver to their users - the '7 Ps' of marketing. For a truly compelling value proposition, service providers must consider it all-from the pricing and promotional offers, to the service functions (product), distribution channels (place) and physical presence - especially of devices (from traditional mobile devices to other connected consumer electronic devices) - to the provisioning and setting up of services (process), and all of the delivery and support processes (people) that accompany the offerings.
There are significant service opportunities in the 4G environment. The network is a core part of the equation - the oxygen that will support successful 4G services. The network is also a significant component of the business case for investment and deserves attention for that reason as well. However, there are other enabling technologies that will be critical to the success of 4G, including devices, services and management capabilities. These will all be important technical components in ensuring a full-functioning 4G technology ecosystem. The ability to grow the usage of services - and reap the revenues that increased usage will bring - will also depend on the value proposition service providers deliver to end users. Offer compelling value propositions delivered over a superior technology infrastructure, and 4G services will fly.
Rob Dalgety is Commercial Director, Mformation Technologies
www.mformation.com
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