A Primer on LTE – link on wikipedia

Our post on “A Primer on LTE” is now referenced on wikipedia on the main LTE page :

http://en.wikipedia.org/wiki/Long_Term_Evolution

Let us know your feedback. Thanks for the excellent feedback on a similar post on ”Primer on WiMAX“ and referenced on wikipedia on the main WiMAX page.

A Primer on LTE

LTE or Long Term Evolution is a 4G wireless technology and is considered the next in line in the GSM evolution path after UMTS/HSPDA 3G technologies. LTE is espoused and standardized via the 3GPP or 3rd Generation Partnership Project members. 3GPP is a global telecommunications consortium having members in most GSM dominant countries. 3GPP specifications are based on GSM evolution path of wireless communications. GSM is the most prevalent wireless standard in the world and has maximum number of subscribers globally.

The impact of LTE is so big that even powerful carriers which were on the alternate CDMA path like Verizon Wireless of United States, have decided to go with LTE in their next generation 4G evolution. Firms like Verizon and MetroPCS of USA have all but dumped the CDMA technology path almost dealing a blow to the CDMA owner Qualcomm, although the latter is much more diversified so it is not really short of business models.

LTE vs WiMAX
Whereas WiMAX emerged from the WiFi IP paradigm, LTE is a result of the classic GSM technology path. LTE is behind in the race to 4G with WiMAX getting an early lead with the likes of Sprint ClearWire and several operators in Asia opting to go with WiMAX in the near term. So where WiMAX has a speed to market advantage, LTE has massive adoption and GSM parenthood to back it up.

It is widely believed by market analysts that LTE will win ultimately but WiMAX will find adoption in frontrunner communities and niche business models which tend to take up technology faster. WiMAX vendors will have you believe that speed to market is too important to ignore. History suggests otherwise in case of wireless industry. It is also believed that ultimately, wireless industry will figure out a way to wed the two 4G technologies so the end product in few years might be a nice amalgam.

So ultimately, what standard an operator uses might be a moot point in the long run. The inter-operability would be just too great to get hung up on the wireless standard. The fact that both WiMAX and LTE are all-IP means that a cross-connection will be a piece of cake at some point in future.

In terms of speed, Fixed WiMAX lacks LTE in speed but Mobile WiMAX may catch up with LTE on this front. For an overview on WiMAX, refer to our post “A Primer on WiMAX“.

LTE Technology
LTE builds on 3GPP family which includes GSM, GPRS, EDGE, WCDMA, HSPA (High Speed Packet Access) etc. LTE is an all-IP standard like its peer WiMAX. LTE allows for rich applications and business models which include ultra-high speed voice, video and data. It also enables integration with the classic internet infrastructure which is all-IP based.

HSPA (High Speed Packet Access), the 3G GSM standard popular over near-term, offers uplink speeds of 11.5 MBPS and downlink of 28 MBPS. Whereas LTE offers 75-100 MBPS Uplink speeds and 250-300 MBPS downlink speeds. Compare this with 20 MBPS U-verse speeds of AT&T wired broadband network U-verse and 50 MBPS speeds in Verizon FIOS TV service. In a nutshell, LTE will beat the fastest wired broadband delivery High Def TV today (in USA) by order of 1 to 4 or 1 to 2 depending on which wired broadband we are talking about. That said, many carriers like AT&T believe that HSPA and its faster cousin HSPA+ will compare well with early WiMAX speeds and so there is no rush to LTE yet for these kind of carriers.

Some key characteristics of LTE are described below :

• Increased Data Rates and High Efficiency : LTE is based on OFDM Radio Access technology and MIMO antenna technology (just like its cousin WiMAX) which offer excellent modulation technique for achieving powerful spectral efficiency.  Think of the OFDM wireless spectrum as a series of very fine and narrow wireless  bands and each band gets allocated to various service providers.  LTE offers higher data transmission rates while utilizing the spectrum more efficiently. This translates to an ability to support many more multitude of subscribers than is possible with pre-4G spectral frequencies. LTE is 2 to 5 times more efficient in spectrum utilization than the most advanced 3G networks.
• Radio Planning : LTE signal goes far and wide and covers a larger geographic territory. LTE signal is way faster than the existing wireless transmission resulting in higher user response times.
• IP environment : LTE is all-IP which permits new enhanced applications like real time voice, video, gaming, social networking and location-based services.  The concept of wireless ubiquity comes alive with LTE processor chips in everything from netbooks to mobile phones to consumer devices; all these devices talk to each other seamlessly and effortlessly.
• Inter-operability : LTE IP network co-operates with circuit-switched legacy networks resulting in a seamless network environment and signals are exchanged between traditional networks, the new 4G network and the IP-based internet seamlessly.

LTE Applications
LTE will enable applications previously unheard of. Wireless ubiquity is a given. All consumer devices. communication and computing resources may be enabled on the wireless network courtesy of chipmakers like Intel who are eagerly building in WiMAX and LTE in future chipsets which will be embedded in all sorts of technology devices that one can imagine.  Social Networking and human-technology interaction (HTI) will take on a new meaning. Human-technology interface and resultant communication could be as seamless and as effortless as the Tom Cruise movie Minority Report makes it out to be (ok we are bragging a bit now).

Web 4.0, if you will, may just comprise the Wireless as an integral element of the hyper-connected world via LTE and WiMAX enablement.  Broadband TV might not need wired cables anymore and new MVNO service providers may emerge who enable wirelessly driven TV and broadband internet. Business users might exchange massive amounts of data while on the go at the flick of a button (or touch). Interacting with your Flickr and Picasas photo streams from mobile devices might be a breeze. Games will cross wired / wireless domains and mobile location will figure in the gaming context naturally. Location-based may take a new meaning with location being the true IP beacon determining the application context in a flash, thereby offering a ultra-personalized mobile experience to the user.

LTE Timeline
Operators are just now fully deploying 3G using WCDMA or UMTS/HSPDA. WiMAX is coming in via ClearWire in USA and several operators like BSNL in India and many others in Middle East and Africa. The first LTE deployment in USA is with relatively tiny MetroPCS which may just beat the big 3 LTE carriers (AT&T, Verizon and T-Mobile) in the race to 4G. Verizon is claiming 2010 LTE deployment and AT&T is taking a more patient approach and states that LTE is in 2011-12 timeframe. China is unique, as usual. They have taken the TD-SCDMA 3G route which is a “unique to China” standard.  Chinese 4G strategy is not clear still. India is more LTE centric like the West with major carriers like Airtel and Vodafone adopting the LTE route. LTE in India is many years away as India’s regulator TRAI has not even awarded the 3G spectrum licenses yet.

Japan, we won’t even go there..

A Primer on WiMAX – see our post referenced on wikipedia

Our article on “A Primer on WiMAX” was liked so much that a link to it was created on wikipedia under Notes and References section of the main WiMAX page :

http://en.wikipedia.org/wiki/WiMAX

Thanks to the team or individual who put our post on wikipedia. So we have decided to create “A Primer on LTE”. LTE is the competing 4G technology and coming a little later than WiMAX. Stay tuned for the LTE primer on this blog.

What is bit.ly ?

http://bit.ly is a URL shortening service. You can go to http://bit.ly website and type any URL and bit.ly creates a mapping to a much shortened URL of the form http://bit.ly/18l5h which is a simple HTML redirector to the actual website.

Eg we typed http://cellstrat.wordpress.com in http://bit.ly  website and bitly translated it to http://bit.ly/18l5h. The shortened URL leads to the CellStrat wordpress blog.

How this helps : We use twitter and twitter has a 140 character limit (same as a regular SMS). The shortened bit.ly URLs can be referenced in tweets without taking too much space needed by classic URLs.

Innovative, shall we call it..

The major competitor to bit.ly is http://tinyurl.com/

Attended Atlanta Interactive Marketing Assoc Seminar on Ad Networks and Exchanges

I attended a very interesting session at the Atlanta Interactive Marketing Association (AIMA)’s March event. The topic was “How businesses can leverage Ad Networks and Exchanges to drive sales in a down economy“. Four leading ad networks were present to show how their customers are using their platforms in unique and creative ways.

The panelists were :

Lexi Reese, Director Google Ad Network

James Fellows, VP Product Management, Platform-A (AOL)

Marc Grabowski, Executive Director, Yahoo Network Sales

Jay Sears, EVP Strategic Products and Business Development, ContextWeb/ADSDAQ

Moderator : Joel Lunenfeld, Chief Innovation Officer, Moxie Interactive 

 

It was an interesting discussion with lots of insights on internet ad networks and the success factors in internet advertising. Here are some key discussion notes from the panel discussion :

Ad Networks are growing much faster than the overall display market. Advertising is at an all time low but this offers opportunity for advertisers in various ways. The merger and acquisition market is going wild with all sorts of media, tech and ad firms buying each other across industry categories and business verticals. The ad network exchange is now called the super network.

The three pillars of the ad ecosystem are :

Technology, audience and data. All three interplay to provide a compelling ad offering.

According to eMarketer/ComScore, the highest ad network inventory is with Platform A (AOL) although this may be disputed by Google and Yahoo. The latter two follow close behind according to eMarketer.

Lexi’s (Google) presentation :-

With merger with DoubleClick, Google has seen acceleration in display ad category.

Savvier customers are turning to web. 54% customers researching products online before they make buying decisions. Reach is a key factor. With perspective to Reach, Long Tail (vast customer base) drives engagement.

Lexi mentioned that 2x more customers look at niche ad sites. Providing user with choice drives value. Transparency and Flexibility drive ROI.

Lexi gave an example where a major retailer drove down cost of online card redemption by 77% by reviewing Google reports on ad placement and success. Google is also using tools like Conversion Optimizer to determine what price leads to most conversion.

James (Platform A/AOL / advertising.com) :

According to James, the challenges for an advertiser include Fragmentation, Reach, Lack of trust, Quality, Need for ROI and Results. James mentioned that ad market is highly performance oriented now and pays for performance. Platform A’s predecessor Advertising.com is the leading web display network. It has #1 reach, experience and high quality to serve advertisers. Platform A has tools like AdSonar for premium placement targetting. It also offers self-service management for advertisers which is a popular concept.

Marc (Yahoo) :-

Marc mentioned some ideas from perspective of Yahoo :

- It is a matter of reach vs frequency. Frequency is important in advertising.

- Context makes difference.

- Place where an ad is exposed matters. Yahoo ranked within top 3 in 26 vertical categories (eg Sports, Finance etc)

- Specialization is key. This is where Yahoo’s extensive partner network helps.

Jay (ContextWeb) :-

We are in Media Buying 2.0 phase. There is a concept of Fat Tail vs Long Tail of Ad audience. While most eyeballs are spread across Long Tail, 77% of dollars are in Fat Tail. Audience are leaving portals and search is becoming the default portal. There are 100,000 blogs created everyday (wow!). There are 160 million registered web domains today.  As to how marketplace is reacting to the media world now :

Google bought DoubleClick

Yahoo bought RightMedia and BlueLithium

Microsoft bought aQuantive and adECN

AOL bought Tacida and Quito to create Platform A

Agencies are busy building “demand platforms” for ads. 

 

As to what is the way these ad networks differentiate from each other :

Google – targetting

Yahoo – data. Has user attributes and their web behavior stats.

Platform A – Technology and Complete Package plus the ability to act on these factors.

 

All panelists agree that emotional aspect needs improvement in ad business. Eg Video Advertising brings up human emotional aspects.

On Mobile Advertising (the topic we love) : the panelists said that it is a new area yet to be cracked. There are massive liquidity and technology issues in mobile. Although personalization is more advanced in mobile. But really mobile is another channel for advertisers to reach their audience.

4G still ways off

In spite of the massive 4G hoopla the world over, our estimate suggests that LTE-based 4G is still a good bit ways off. We expect 2011 when we see some sporadic strength in 4G business models where real money starts coming in with customer adoption. Although carriers like Verizon, Sprint, MetroPCS in USA and others in Europe and Asia are planning LTE based 4G launches beginning this year, customer adoption may remain low and return on 4G investment will take time. 2012 is a good bet where we see LTE 4G beginning to take hold.

Till then, the “other” 4G technology ie WiMAX does have a time to market advantage. We expect substantial uptake in WiMAX until LTE comes around. However, we think that ClearWire and Sprint (and telecom equipment makers) will ultimately find a way to marry WiMAX and LTE and in 5-10 years we may have either a single dominant standard or at least cooperating WiMAX and LTE environment where devices and networks communicate at the IP layer easily.

As to 3G, China has just now come out with 3G licenses and countries like India are way behind on 3G – the license auction for 3G in India got postponed to later this year due to economic turmoil and upcoming General Elections. So WiMAX and LTE on a mass scale still look like distant dreams. Fact is that 3G and HSPDA is very good for many high speed apps which the customers want today. The business models around 4G are not even visualized so far. Of course all our thoughts exclude countries like Japan and Korea – where wireless is generations ahead….

Notes from Telephony Live 2008, Chicago

Some other interesting discussions at the Telephony Live 2008 which I attended last week :

XO Communications : has a broadband VOIP service platform for corporate clients and uses BroadSoft platform. BroadSoft Platform allows SPs like XO launch service quickly and allow the configuration capabilities needed for an enterprise grade launch. According to XO Director of Product Management Nicola Jackson, feature packaging capability in the BroadSoft software was critical part of the successful launch.

TowerStream CEO Jeff Thompson participated in the panel “Service Provider of Tomorrow” and spoke about their Fixed WIMAX services and how launch of XOHM network by Sprint has validated the business case for WiMAX and has attracted the desired visibility from ecosystem partners to embed WiMAX in more devices and services. Jeff mentioned TowerStream mentioned by maintaining extreme focus on WiMAX services and not getting into VOIP or storage periphery services.

Tellabs was the lead sponsor for Telephony Live 2008 and presented a very interested use case on Latin American IP service provider Diveo. Diveo has launched a full IP MPLS compatible VPN service for business customers in South American nations. Diveo has 1500 customers including the Brazilian energy giant PetroBras and several financial majors in that part of the world. Tellabs exec mentioned that they are letting the core of the network continue to be an ATM/Frame Relay to allow the businesses to leverage existing investments. MPLS and IP functionality is being introduced on the edge to provide QOS and policy management functions.

The founder of NextGen Marketing group illustrated the success of one of their startup clients Sojern, Inc which has created an innovative business model of printing local advertising on internet boarding passes of various airline customers. The local advertising prints ad and event information based on the destination of the customer or flight layovers. NextGen Marketing Group is the “virtual Chief Marketing Office” where they provide strategy and marketing services in an outsourced manner to firms large and small. NextGen customers include Sojern, AirCell and NextGain.

City of Chicago CIO Hardik Bhatt mentioned how the city is tracking the city workers around the city and advising them on energy usage and route optimization. The city has an innovative IT dept and has introduced Mobile Asset Tracking and 311 VAS services. Unfortunately, state the city CIO, broadband is still not universal and 25-50% from low income families have no internet access limiting the scope of internet based services.

Ben Shin, VP Product Management of Sprint’s XOHM business unit mentions that it is not always about technology. Technology must address social needs and social concerns and also make things easy for consumers. XOHM is an all IP service with no service contracts and open ecosystem to encourage developers and partners to develop products and services for this environment. XOHM DayPass cost just $10 and provides all you can eat access for one day.

All participants agreed that future of communication lies in things like content, Location-Based offerings, Mobile Advertising, Mobile Gaming, Business Process Outsourcing etc. There are 250 apps produced for Facebook every day and this shows an open developer friendly internet can attract scores of developers to develop innovative apps. Same environment needs to be encouraged in the mobile space to achieve similar growth patterns. Many participants agreed that devices like iPhone and Android will shift balance of power to content, internet and application firms from the typical service providers.

New white paper on Location-Based Services

We are pleased to present our latest white paper titled “Location-Based Services – Concepts and Models”. This is available under CellStrat (www.cellstrat.com) White Papers section. The copy posted there is an abstract. If you need the full version, feel free to email us at contact@cellstrat.com

MT

Indian Government to open Internet – Fixed Line Telephony…

Indian Government is going to give its consent for web – mobile/ fixed line calling. It has been hugely appreciated by Indian ITES – BPO industry group as this will further bring the call rates. Call rates for individuals will plunge too making it easier and cheaper for common man to call with ease and in cheap.

Vishal

Traffic Shaping in telecom networks

On the subject of Net Neutrality, the editorial team at Telephony Online (www.telephonyonline.com) wrote an interesting note on “traffic shaping”, or the practice by telcos to inspect packet traffic and do bandwidth prioritization. User-generated content or P2P traffic like Video (YouTubes of the world) are congesting the global network and telcos want to control this kind of traffic and police it. The telephonyonline article can be accessed at :

http://telephonyonline.com/software/commentary/dpi-p2p-traffic-0519/

Editor Carol Wilson at telephonyonline.com writes “By enabling ISPs to identify P2P traffic and employ “traffic shaping” that prevented that traffic from taking over available bandwidth during times of congestion, DPI was supposed to give ISPs greater control over the quality of their networks.” DPI stands for “Deep Packet Inspection” or an ability to inspect data traffic and apply throttle control above certain loads. “Latency-sensitive traffic such as voice and video would get one level of QoS, best-effort data another, and P2P another. “, according to Wilson.

Wilson gives example of BCE, Canada which resorted to traffic shaping causing a headache for various ISPs. This has angered independent ISPs whose traffic is being policed by BCE.

Network Congestion and Traffic Shaping are vexing problems with great ethical and regulatory implications. We feel telcos should be able to recoup their heavy return on investment in the core network and have a right to resort to some bandwidth control eg we disagree with the idea that a couple of apps like YouTube and others should hog the bandwidth on the internet and all other low volume apps are left hanging high and dry with regards to bandwidth availability. But a balance is needed via regulation where carriers cannot control the internet traffic to the extent that they inhibit internet from functioning and end up throttling innovation instead.

MT