All eyes on China Mobile TD-SCDMA network

China Mobile plans to spend more on 3G terminal subsidies in 2010.

The outfit has tripled the amount of subsidies from the current year level and is expected to spend $4.4 billion next year. The huge amounts of cash will enable the outfit to push into the 3G space in the worlds largest economy.

China Mobile has 70 per cent of the Chinese wireless market but has been taking a caning from China Unicom. The outfit uses its own TD-SCDMA 3G standard but with that sort of money to spend it is fairly clear that foreign salesmen will be showing up trying to flog the outfit shedloads of 3G gear.

The company recently launched a line of smartphones dubbed Ophones based on the TD-SCDMA technology which uses Google's Android mobile operating system.

All three carriers have commercially launched their 3G networks over the recent months, but take-up has been slow. Market leader Mobile has been hamstrung by the limited number of handsets for the new TD-SCDMA system.

But now with its device range expanding and the network expected to be rolled out to 238 cities by year-end, the market’s 800-pound gorilla appears ready to assert itself.

Analyst firm BDA says China Mobile plans to spend 120 billion yuan on handset subsidies this year, most of it on TD-SCDMA. It laid out 50 billion on subsidizing phones in the first half of the year, with less than 12% going to TD phones.

Now a China Mobile source told has told website C114 that the company would leverage its financial strengths “to stage a price war to resist Telecom’s and Unicom’s 3G” services.

China Mobile has 503 million users, Unicom 142 million and China Telecom 44 million customers. Of these 3G comprises a tiny fraction - China Mobile has 1.3 million using TD-SCDMA, Unicom 350,000 using W-CDMA and China Telecom 1.3 million on its CDMA EV-DO network.

TD-SCDMA is primed to evolve into a global standard: TD-LTE. Granted, TD-LTE's sales pitch is not all that different from its ancestors - i.e. making use of unpaired spectrum to boost capacity in urban environments where FDD macro networks get overloaded. What is different this time around is a bigger ecosystem of vendors developing it - admittedly for just a single market at the moment, but also the biggest single mobile market in the world.

The other key difference is that TDD has always been primarily a data play. But from 2001 up to 2008, 3G cellcos were still primarily in the voice business, and FDD allowed them to continue milking that cash cow. That worked fine when 3G data usage was still mostly ringtones, wallpapers and other walled-garden content.

Then the iPhone happened. Smartphones got smarter and data usage skyrocketed so high that E1 backhaul links became the new bottlenecks. If ABI Research is to be believed, by 2014 mobile users will be transmitting a total of 1.6 exabytes a month (compared to 1.3 exabytes for all of last year).

Hence all the interest in LTE, as well as related technological tricks to offload data traffic and maximize RAN capacity like spectrum refarming in the 900- and 1800-MHz bands and femtocells. TD-LTE is another tool in the toolbox, and by the time we start hitting monthly exabyte levels in five years, its predecessor in China will have been put through the ringer enough to qualify as "seasoned" if not "mature".

Of course, all that depends on a ton of factors over the next five years. Still, TDD is a lot closer to realizing its potential than it was at the start of the decade.

If nothing else, TD-LTE may have the novel distinction of being the quietest evolution the cellular world has yet seen. That will depend on how much progress Qualcomm and other chipset vendors make with dual-mode FDD/TDD chipsets, but once devices are capable of roaming seamlessly between both, TD-LTE may be the first RAN acronym that won't need to be marketed to end-users who don't give a toss what it's called anyway.

ST-Ericsson is creating a strong foothold in the evolving Chinese 3G market, and is powering the first modem for TD-HSPA, which can take advantage of the fastest speeds offered by China Mobile.

The silicon joint venture is working with Chinese partner Hojy Wireless on modules that will turn up in data cards and dongles early next year. China Mobile will hope these will boost uptake of its new network by heavy duty data users, a market where China Telecom's EV-DO system has so far shone more brightly. The M6718 modem could also be included in notebooks, netbooks and smartphones in future, as the market moves beyond data cards.

Mobile broadband modules, for incorporation in a range of devices, are an important part of the broader ST-Ericsson portfolio, with co-parent Ericsson a key customer as it bolsters its module business in 3G and LTE. The M6718 is a dual-mode TD-HSPA/EDGE device, supporting 2.8Mbps downlink and 2.2Mbps uplink.

Ericsson's Exciter: Conceptual mobile Personal Area Mediator (PAM)

Interesting Video:



If you find this interesting, there is a presentation you can look at here. Unfortunately its in swedish but you can get an idea about which direction things will be going in future.

Multi-Standards Radio Base Station (MSR-BS) in 3GPP Release 9

I wrote about Future Mobile Terminals earlier which will probably be Multiservice, Multinetwork and Multimode. A similar approach would be needed for the network side. 3GPP is working on Release-9 feature of Multi-Standard Radio (MSR-BS). The 3GPP Spec 37.900 is not yet available but a draft should be available soon.

Research and Markets have already released a report arguing about the benefits of MSR-BS. Last year Ericsson released the RBS 6000 series products that has MSR support. Huawei and Nokia Siemens Networks are also working on similar products under different guises. Martin has blogged about this topic as well earlier in case you want to refer to.

According to Research and Markets report the terms used for this technology is Multi-Standard Radio Base Station (MSR-BTS/MSR-BS), Multi-Mode Radio Base Station (MMR-BTS/MMR-BS) and Multi-Radio Access Technology (Multi-RAT). The name in standards usually is MSR-BS.

So what is MSR-BS? The 3GPP definition is: Base Station characterized by the ability of its receiver and transmitter to process two or more carriers in common active RF components simultaneously in a declared RF bandwidth, where at least one carrier is of a different RAT than the other carrier(s).

In very simple terms, a single Base Station will be able to simultaneously transmit different radio access technologies from a single unit. So a unit may be for example transmitting GSM, WCDMA 2100 and LTE 2600 simultaneously.

The number of technologies supported by a BTS will be an implementation choice. With technology maturing it wont be surprising to have upto 4-5 different technologies in a MSR-BS in the next five years.

The advantage the mobile operator will have will not only be monetary but there will be possibility of space saving. But as the old english proverb says, they will be "putting their eggs in a single basket". If one unit stops working then the coverage in the area goes down. There may not be an option to fallback on different technology.

The way this MSR-BS are implemented will be definitely based on Software Defined Radios (SDR). The advantage with SDR will be that in different parts there is a slight frequency variation for different technologies like GSM-850 is specific to USA whereas the rest of the world uses GSM-900. These small variations will easily be customisable with these MSR-BS and optimisations wont be too far off.

Different Band Categories have been defined for different scenarios. For example Band Category 1 involves deplyment where GSM wont be present. Only LTE and WCDMA is present there. Band Category 2 involves frequency bands where GSM, EDGE, WCDMA and LTE may be present. Band Category 3 is designed with TDD and TD-SCDMA in mind.

More information as and when available

Nortel Acquisition and Ericsson Gameplan

Bankruptcy courts in Canada and the United States unanimously approved Nortel Networks Corp.'s request to sell its main wireless business to Swedish rival LM Ericsson.

The US$1.13-billion sale will deliver to the Swedish telecom firm Toronto-based Nortel's CDMA, or code division multiple-access technology, an older system, but one still widely deployed by mobile-phone carriers. CDMA is expected to continue to be in use in developing markets like Asia for the next several years.

However, the most lucrative portion of the sale, analysts say, comes in Nortel's long-term-evolution technology, or LTE. Nortel said it has spent as much as US$200-million annually developing the next-generation wireless gear that is expected to become the global standard in the future.

"Nortel still owns all of the LTE patents," Nortel counsel Derrick Tay said in court. Mr. Tay said Nortel owned some 5,500 patents. Of those, 600 were being "transferred" to Ericsson while none of the LTE intellectual property was being sold. Instead, Nortel will be licensing them to Ericsson, he said.

I am curious as to what does it mean by licensing the LTE patents considering the fact that Nortel is bankrupt. If the license period is something like say 99 years then it shouldnt really matter for Ericsson. I am not sure just making a guess.

Lynnette Luna, Fierce Wireless has a very interesting take on this:

Ericsson and Nokia, once the staunchest opponents of CDMA technology, found themselves in a bidding war for bankrupt Nortel's CDMA assets. The war ended on Friday with Ericsson on top and willing to pay $1.13 billion for most of Nortel's CDMA and LTE assets.

Ericsson had tried to make a go of it in the North American CDMA market following its purchase of Qualcomm's infrastructure business that was part of its IPR settlement with Qualcomm in 1999. It subsequently ended the business after failing to penetrate this market since Qualcomm didn't have much of an installed base. Nokia, now Nokia Siemens Networks, never tried to play in the North American CDMA market, and thus has a weak North American market share overall at around 5.5 percent.

However, Ericsson this year has made significant headway into the U.S. market, scoring a big LTE deal with Verizon--at the expense of Nortel--and winning a $5 billion CDMA outsourcing agreement with Sprint Nextel. Did it really need to spend $1.13 billion to gain more market share?

The answer is yes. Despite winning these two U.S. deals, the biggest criticism of Ericsson has been its lack of CDMA expertise--whether managing a network or migrating CDMA operators to LTE. Now it has both. Given the fact that Nortel's CDMA gear is in a significant portion of CDMA networks operating around the world, Ericsson now has a great story to tell. It needs that CDMA expertise to migrate customers from CDMA to LTE--especially since voice traffic will continue to run over CDMA networks while data gets routed over LTE for the foreseeable future.

For Ericsson, it's no longer about getting a foot in the door. It's about crushing the competition. Ericsson is looking forward to a future when both WCDMA and CDMA operators look to it to help them migrate to LTE. But as Ericsson CEO Carl-Henric Svanberg said on the conference call this morning, "CDMA will be the first markets to migrate to LTE so therefore it is important to us."

Meanwhile, a deal like this could be the nail in the coffin for some vendors. It's certainly not good news for NSN, which would have boosted its North American market share to 30 percent had it won the assets. And Chinese vendors ZTE and Huawei have been trying hard to make inroads into the North American market through CDMA. This deal certainly hampers those efforts.

And Alcatel-Lucent just saw its major competitor become significantly stronger. Alcatel-Lucent was the vendor with the better CDMA-to-LTE conversion story while Nortel was stuck in bankruptcy limbo.

Of course, it's not just about getting a stronger foothold in LTE. Nortel's CDMA business is a money-maker, and Ericsson executives on the call this morning said they believe the unit will continue to be profitable for the next few years as operators keep investing in their CDMA networks. There are actually operators looking to deploy CDMA EV-DO Rev. B. And don't forget the services market, a major growth engine for Ericsson. Ericsson said the deal will be earnings per share accretive within the first year.