ATIS Outlines 5G Connectivity Requirements

Coming 5G networks will have to be capable of tight integration with 4G LTE, but should only coexist with 3G and not interwork with 2G, as envisioned by  the Alliance for Telecommunications Industry Solutions (ATIS).

ATIS does suggest further study to determine whether full call handoff between 3G and 5G is desirable.

Interoperability with Wi-Fi should be supported, though such interworking might not be seamless.

In addition to support for Internet of Things apps, the ATIS document also says support for network slicing will be a requirement for 5G.

A slice is composed of a collection of logical network functions that support the communication service requirements of particular use case.

Some slices will be very rich in functionality, while other slices will be very minimalist. A given network slice will simply contain the functions required for a given application or class of service.

Devices can be directed to the appropriate network slice in a way that fulfils operator and user needs, based on subscription or device type.

The network slicing primarily targets a partition of the core network, but it is not excluded that the RAN may need specific functionality to support multiple slices or even partitioning of resources for different network slices, ATIS says.

source: ATIS

Ericsson Launchs NuVu Steaming Service, Incorporating Store-and-Forward Delivery

Ericsson has launched its first end-to-end subscription video-on-demand content service, NuVu, building in store-and-forward delivery that is bandwidth efficient.

The service will be marketed in close collaboration with service providers, beginning with Airtel’s Airtel Nigeria operation.

Airtel Nigeria will launch NuVu in the first quarter of 2016 to more than 30 million Airtel subscribers in Nigeria.

Subscribers will have access to around 3,000 local and international TV and film titles for a small monthly fee.

Significantly, NuVu aims to take advantage of off-peak bandwidth. Consumers will be able to download content directly to their smartphones or tablets at no additional data cost during off-peak network times, and access the content offline for up to 30 days after downloading.

NuVu's content will offer a wide variety of genres including Hollywood and Nollywood movies, TV series, kids, music, gospel and education.

NuVu is a complete end-to-end technology and content service designed for full integration into mobile operator customer relationship management and payment systems.

A core feature of the service is the built-in ability to distribute content to consumers during off-peak periods.

This minimizes data costs for both operator and consumer, addressing the cost challenge that has so far been an obstacle for video-on-demand uptake in Africa.

The service will launch initially as an Android app, and will roll out on other platforms and operating systems as well.

India Might Ask ITU to Allocate TV White Spaces for Mobile Use

India has urged the International Telecom Union (ITU) to identify fresh spectrum sources across frequency bands for commercial mobile broadband services, a move that could potentially free up nearly 400 MHz of data airwaves in coming months to address the sharp upsurge in mobile broadband services consumption in the country.

But the Department of Telecommunications might also urge the ITU to identify the largely unused television broadcasting airwaves in the 470-698 MHz range, popularly known as white space spectrum, for mobile and broadband services.

That obviously would be a blow to supports of TV white spaces in India and possibly elsewhere.

In an internal communication, the government has urged ITU to identify airwaves across several frequency bands in the 1427-1518 MHz, the 3300-3400 MHz, and 3400-3600 ranges.

Those requests come as global regulators meet at the World Radiocommunication Conference in November 2015.

Indian regulators also have suggested they would auction TV white spaces spectrum, rather than allow its use on a license-exempt basis.

Mobile Data to Grow 15 Times in 6 Years in Sub-Saharan Africa

In Sub-Saharan Africa, as elsewhere, mobile data traffic is forecast to grow by 15 times between 2015 and 2021, according to Ericsson.

Though mobile subscriptions will grow at compound annual growth rate of about seven percent per year, smartphone ownership will grow at a 25 percent annual rate, while data consumption per smartphone grows 30 percent annually.

Smartphones will account for almost 95 percent of mobile data traffic by 2021, up from close to 80 percent in 2015. Voice traffic over the same period will only marginally increase.

GSM/EDGE-only (2G) is still the most popular technology for mobile subscriptions within the region, accounting for over 70 percent of total mobile subscriptions.

By 2021, 3G will be dominant. Combined with 4G Long Term Evolution accounts, 3G and 4G subscriptions will be 80 percent of total mobile subscriptions.

source: Ericsson Mobility Report

source: Ericsson Mobility Report

New White Paper on Spectrum Sharing

A new white paper on What is Spectrum Sharing and Why Does it Matter? is posted on the Spectrum Futures blog. 

Use of Internet-Capable Smartphones in Bangladesh Might Grow 2.4 Times by 2025

Although the number of middle-class and affluent consumers in Bangladesh remains small compared with those of other big emerging markets in Asia, Bangladesh is one of the fastest-growing markets worldwide, according to BCG.

BCG projects that, each year for the next decade, the annual income of around two million additional Bangladeshis will reach $5,000 or more.

And although half of Bangladeshis still live at the so-called bottom of the pyramid, economists estimate that another 30 million to 40 million will make the leap from poverty to the entry rungs of the middle class by 2025.

That matters. As a rule of thumb, consumers in developed markets spend one or two percent of income buying communications services. In developing markets, spending on communication services (for those who can afford such products) ranges upwards of five percent of income.

More income is conducive to higher consumption of communications as the percentage of income required to acquire those products falls.

Bangladesh’s consumer class represents about seven percent of the country’s current population can be classified as middle income or affluent, compared with 38 percent in Indonesia.

But middle class or affluent Bangladeshis should grow to around 17 percent of the population by 2025.

Mobile communications should benefit.

Some 41 percent or respondents, and 68 percent of middle class or affluent consumers, own Internet-enabled smartphones. As the percentage of middle class and afflucent consumers grows, so will use of mobile Internet services.

If so, use of Internet-enabled smartphones should grow no less than 2.4 times between now and 2025. In all likelihood, with availability of lower-cost smartphones, adoption will be higher than that.

Thai Mobile Operators Face Winner's Curse

Thailand mobile operators Advanced Info Service and True Corp. won 4G mobile spectrum in an auction of 1.8 GHz spectrum. The licenses run for 18 years.

Considering that AIS had been a laggard, and True a leader in 4G services, the results might be viewed as a win for AIS, allowing it to compete in the 4G market, and a win for True, to help maintian its leadership.

But spectrum auctions have been troublesome for mobile operators in the past, for winners as well as losers. Though lack of spectrum clearly is a barrier to business success, excessive prices have nearly bankrupted any number of mobile service providers who overpaid to win 3G spectrum in the past.

The danger in Thailand is a similar "winner's curse," where the contestants might eventually find they cannot monetize their investments at levels commensurate with the prices paid to win spectrum. 

At least one ratings agency now warns that the high prices paid in the 1.8 GHZ auction, and expected similar high prices in the next auction of 900-MHz spectrum, could trigger a ratings downgrade for AIS.

Because prices paid at auction were high, AIS and True will face financial pressure in the form of balance sheets that are more challenged, some note.

“The spectrum auctions are shaping up to be far more expensive than what we or the street had initially envisioned given the participation of Jasmine International,” Arthur Pineda, analyst at Citigroup said in a note.

Ratings agency Fitch warns that prices paid in the recent 1.8 GHz spectrum auction were significantly higher than Fitch's expectations.

“If the competition in the 900 MHz spectrum auction scheduled for December 2015 is equally intense and AIS acquires the spectrum at a significantly higher price than we expect, we may consider negative rating action should the company's funds flow from operation (FFO)-adjusted net leverage rise above 1.5 times,” Fitch said.

“The high upfront spectrum fee and sustained high capex for network expansion will raise net debt for most telcos, and thus their financial leverage is likely to deteriorate over the next two years,” said Fitch.

“Free cash flow will be negative as these operators are likely to maintain high dividend payouts,” Fitch noted.

Fitch estimates AIS's FFO-adjusted net leverage will rise by 0.5 times over the next two years

The stiff competition at this auction suggests that the next one for 900MHz could be equally intense.

Market leader AIS, 23 percent owned by Singapore Telecommunications Ltd, had been the only major Thai mobile service provider that did not offer 4G services.

True Corp is 18 percent owned by China Mobile.

AIS had only 15 MHz operating bandwidth on the 2.1GHz spectrum, which was largely occupied by 3G services and left no room for 4G services.

Total Access Communication Public Company Limited, the second-largest operator by revenue, has the largest operating bandwidth of 50 MHz, while True Corporation Public Company Limited's mobile business has 30 MHz (including the 850Mhz spectrum rented from CAT Telecom Public Company Limited).

True is viewed as a leader in the 4G market, while AIS had been most exposed to 4G losses.

source: Yozzo