www.aircominternational.com
AIRCOM International, the network planning and optimisation company,
has published a report highlighting the short-term commercial
advantages of HSPA+ technology. AIRCOM has identified HSPA+ as a
compelling alternative to LTE for operators considering their mobile
broadband migration strategies. It offers significantly reduced capital
expenditure (CAPEX) investment compared to LTE and higher return on
investment (ROI). HSPA+ technology offers peak downlink speeds of up to
21 Mbps without any additional antenna infrastructure or second
carrier.
AIRCOM International, a leading independent network planning and
optimisation company, is today announcing expert analysis highlighting
why HSPA+ could make
short-term commercial sense to a wide range of 3GPP operators contemplating their
mobile broadband network migration strategies. ROI (return on
investment) and new pricing models are the key factors.
As operators continue to address the rapidly increasing demand for
mobile data, further attention and financial investment has been
committed to upgrade existing network infrastructure. With peak
download speeds above 100 Mbps being suggested, LTE has
been widely hailed as the panacea for operators’ congestion troubles.
Based on in-depth analysis of network infrastructure requirements,
AIRCOM identifies HSPA+ as a compelling alternative for operators’
mobile broadband strategies.
Available today, the technology offers up to 21Mbps without any
additional antenna infrastructure or second carrier – allowing users to
experience mobile broadband around five times faster than the current
average of 3.6Mbps. HSPA+ also allows mobile operators to control
service provisioning and prioritisation, delivering Quality of
Experience (QoE) and Quality of Service (QoS) guarantees.
Fundamentally, deployment of HSPA+ offers significantly reduced CAPEX
investment compared to LTE. Reduction for a UK operator could be as
much as £345 million in 12 months; as much as $1.19 billion for a US
operator.
Region |
CAPEX cost of LTE
|
CAPEX cost of HSPA+
|
CAPEX reduction
|
|
UK
|
£518m ($750m)
|
£173m ($250m)
|
£345m ($500m)
|
|
US
|
£1.23bn ($1.78bn)
|
£410m ($594m)
|
£818m ($1.19bn)
|
|
Gulf territories
|
£233m ($337bn)
|
£77m ($112m)
|
£155m ($225m)
|
|
Asia Pacific
|
£160 ($232m)
|
£53m ($77m)
|
£107m ($155m)
|
AIRCOM Services Director (Product Management), Fabricio Martinez,
responsible for providing the industry with the ‘cost of LTE’ reality
check in late 2009, says: "There is great pressure on operators to
upgrade their networks and improve the level of service they deliver to
consumers and enterprise customers. The so-called ‘iPhone effect’ is
piling pressure on to existing infrastructure. There is a real and
immediate need for operators to upgrade their networks, but LTE is not
the answer – today at least.
"HSPA+ is able to meet – and exceed – current data demands,
delivering a theoretical maximum of 21Mbps and an average experience of
around 16Mbps. With average mobile broadband users experiencing around
3.6Mbps, this is a significant increase.
"The increase in speed enables operators to do two things: to combat
price erosion, and to offer sophisticated service provisioning. As
operators are able to prioritise data traffic and users, QoE can be
assured, data speeds can be controlled, and we will see a tiered
pricing model emerge, mirroring the fixed line broadband business.
"The most important factor in deciding a future network technology is
ROI. Due to the low CAPEX investment and new revenue opportunities,
deployment of HSPA+ will allow operators to see ROI in three years;
perfect timing to upgrade to LTE, when that technology’s ecosystem has
matured, devices have come to market, and equipment prices have
reduced."
LTE is undoubtedly set to be the dominant future mobile broadband
standard. The industry is backing this throughout all levels of the
technology chain and significant momentum is building. However, in
recent times, a number of operators initially supporting LTE have since
announced HSPA+ strategies as an interim measure.
Adopting HSPA+ as the next step enables operators to meet customer
demands quickly and cost-effectively, using existing infrastructure and
spectrum. And, when the time is right – when expanding HSPA+ capacity
is less economical or operationally more challenging than upgrading to
LTE – HSPA+ offers a natural evolution path to LTE.
Why HSPA+?
- HSPA+ deployment allows for available spectrum to be
cost-effectively re-farmed, saving as much as 35% on CAPEX
- HSPA+
extends the capabilities of HSPA, increasing bandwidth to
alleviate existing network capacity issues and enhance network
performance
- HSPA+ is a reality today, with a mature ecosystem
of devices and
network infrastructure supported by proven network performance
enhancing tools
And why is HSPA+ cheaper than LTE?
- HSPA+ allows for re-use of existing HSPA infrastructure and
antenna systems
- HSPA+ offers similar savings in Core network
infrastructure as
LTE by employing 3GPP tunnelling, which removes the need for expensive
SGSN and RNC expansions
- HSPA+ can deliver speed enhancements
with allocation of 5MHz
bandwidth; LTE channels must be allocated 10-20MHz
About AIRCOM International
AIRCOM is an independent provider of network management tools and
services. We specialize in the end-to-end planning, optimization and
ongoing development of IP and cellular networks. The market leader in
the provision and deployment of network engineering tools, AIRCOM
products are in use across 135+ countries by over half the world’s
mobile operators.
Every day, the 20 top global operators depend upon AIRCOM’s tools and
consultants to improve network coverage and quality for more than 1.1
billion subscribers worldwide. Established for 15 years, we have built
our reputation on creating and releasing additional value from within
cellular networks.
With offices in 14 countries, we provide local and regional viewpoints
and resource, as well as ensuring that our operator customers benefit
from our global knowledge. By looking ahead of the market and sharing
intelligence, we develop the skills and tools that network operators
need to remain competitive, whatever the economic climate.
With over four million hours working on 3G networks alone, our
expertise translates into direct and measurable cost savings for mobile
operators. From initial consultancy through project implementation,
using our staff, training yours, or sourcing expertise for you to take
in-house, we are dedicated to maximizing the performance of your
network, and therefore your business.
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