GSMA Seminar Theatre 2015 Mobile Wi-Fi Is there room for both - - PowerPoint PPT Presentation

GSMA Seminar Theatre 2015

Mobile – Wi-Fi Is there room for both licensed and unlicensed networks?

The benefits of aligning industry and governments on spectrum management

Mike Wright, Group Managing Director Networks, Telstra

Spectrum is the lifeblood of our

• networks. With it also comes the

complexities of planning, building and

• ptimising the investment in networks.

Carriers and Governments need to work together on jointly understanding and navigating the best outcomes for the community.

Page 4

TELSTRA HAS A CLEAR SPECTRUM STRATEGY AND ONE OF THE MOST ADVANCED NETWORKS

5

The development of a comprehensive spectrum strategy requires an in depth understanding of future trends, development and promotion of industry standards, and close consultation with regulators.

HSPA (550Kbp-3Mbps) HSPA+ (550Kbps- 8Mbps) HSPA+

DUAL CHANNEL

(1.1Mbps-20Mbps)

LTE Cat 3/4 1800 (2Mbps-50Mbps) LTE-A Cat 6

CARRIER AGGREGATION

1800/700 (2Mbps-100Mbps) LTE-A Cat 9

CARRIER AGGREGATION

1800/700/ 2600 150Mbps^ 300Mbps^ 450Mbps^

WORLD FIRST WORLD FIRST WORLD FIRST WORLD FIRST

3G 850

2 X 10-15MHz

3G/4G 2100

2 x 10- 15MHz

4G 1800

2 x 15-20MHz

4G 700 2 x 20MHz 4G 2600 2 x 40MHz

2011 2015

2G/4G 900 2 x 8.3MHz

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UNDERSTANDING DEMAND: Allows optimisation of traffic balance and investment returns. 4G traffic now exceeds 3G

4G 3G 4G+3G

2G traffic has reduced to very low levels and will close end 2016 Flexible spectrum rules allowed LTE1800 to launch in Sept 2011. Careful balance of 3G to not overinvest and to extract value from earlier investment

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OPTIMISING USE OF SPECTRUM AND TECHNOLOGY EVOLUTION ALLOWS LOWER COST TO HELP OFFSET GREATER DEMAND

$- $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Wireless Data Product Unit Cost (PUC) - $/GB

42 Mbps (DC-HSPA) introduced

2012 2013 2014 2015 2016 2017

21 Mbps (64QAM) introduced LTE1800 Introduced NextG commissioned October 2006 LTE700 Introduced. 2 carrier CA, 300Mbps) 4x2MIMO Planned Q4FY15. 30% efficiency gain, lower unit cost 3 carrier CA planned Q4FY15, 450Mbps FY16 plan Small cells to increase capacity and economically extend coverage. VoWiFi as low cost indoors coverage solution

In Australia, the Australian Communications and Media Authority (ACMA) manages spectrum. Telstra has a strong and effective working relationship with the ACMA on the development

• f spectrum strategy.

In September 2014, the ACMA launched the Five-year Spectrum Outlook providing greater insight and transparency for spectrum users. The document provides some clarity on how the increase in demand for spectrum will be managed across all industries.

Presentation Title | Presenter Name | Date Page 8

BY WORKING WITH CARRIERS GOVERNMENTS CAN GAIN SUFFICIENT FUTURE VISION TO ALLOW CUSTOMER DEMAND TO BE MET AS IT ARISES

In 2013 Telstra invested $1.3 billion on 2x20MHz of APT700 and 2x40 MHz of 2600MHz. This spectrum will enable management of data demand well into the future. Whilst formal access to APT700 was planned for 1 Jan 2015, many of the Analog TV channels have been closed and bands re-stacked well before. Telstra worked with the ACMA to secure early access licences in many areas under a set of clear set of conditions including:

• community consultation, notification to all levels of Government, advertisements

in newspapers, a dedicated web page and extensive testing to ensure wireless audio devices (which use the same or similar spectrum) were not impacted. Though this process, we were able to launch a superior APT700 4G service in parts

• f all major capital cities and 50 regional centres up to 6 months early.

Presentation Title | Presenter Name | Date Page 9

EFFECTIVE AND TRANSPARENT PROCESSES ENABLED EARLY DEPLOYMENT OF APT700

Page 10

Spectrum pricing and policies vary widely and are inconsistent worldwide

$ 0.00 $ 0.50 $ 1.00 $ 1.50 $ 2.00 $ 2.50 $ 3.00 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 2500 2600 2700

$/MHz/Pop ($US) Frequency Band (MHz) AWS-3 (USA 2015) APT700 (Australia 2013)

3.4 3.5 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6 6.1 6.2

Frequency Band (GHz)

FREE ! Spectrum Auction prices in Various Bands (2010-2015) + WiFi EXPENSIVE

Presentation Title | Presenter Name | Date Page 11

GOVERNMENTS AROUND THE WORLD NEED TO BE CLEAR ON PLANS & INTENT FOR SPECTRUM PRICING

Extracting very high prices for licenced spectrum has a consequence:

• Operators have less capital to invest in network rollouts so consumers get a

poorer service and the economy fails to get the productivity benefit of a connected and mobile broadband world.

• Costs get passed on to consumers.

Unlicensed spectrum has a benefit but it isn’t a cure all:

• Unlicensed spectrum provides a great benefit in wireless connectivity and

convenience in local areas and for innovative applications.

• Unlicensed spectrum is not a replacement for planned and managed networks.
• Free networks are not free, even on unlicensed as someone pays to build and

maintain or else they congest or deteriorate. Too much focus on unlicensed/ free spectrum has a consequence.

• The allure of free can distort investment and markets so there needs to be a

balanced and clear communication of intent.

Thank you

spectrum4all@gsma.com