Mobile Data 2008: $200 Billion and rising

Revenues from mobile data services are set to exceed US$200 billion this year for the first time, according to data sourced from Informa Telecoms & Media. Total mobile data revenues were approximately US$157 billion in 2007.

Research from the first quarter of 2008 reveals that mobile data service revenues exceeded US$49 billion, accounting for a 42.7% y-o-y increase. This figure means that mobile operators now generate approximately one fifth of their revenue from data services; this is significant given that a general slowdown in voice revenues is forcing the pace around the importance of data services for mobile operators.

Informa Telecoms & Media estimates that non-SMS data contributed US$17.48 billion of revenue in Q108, accounting for 35.6% of total data revenues.

The Asia Pacific region comprises 40% of the world's data revenues (over US$20 billion in Q108), representing an above average y-o-y growth rate of 48%. The biggest regional riser, however, is the Middle East, which despite contributing just 2% of the world's data revenues in the first quarter of 2008, has seen a 91.7% y-o-y increase in this figure to US$927 million. Aiding this acceleration is the 321% y-o-y rise in the number of HSPA subscribers in the region, which reached 2.9 million by the end of March 2008.

As per the above analysis, SMS still accounts for around 64% of the data revenues, not very different from the blog I posted last year.

Longer battery life for Notebooks

In the past decade the no of users switching notebooks has dramatically increased. Not only are the business personal, normal users accessing computer at home now preferring notebooks. The reason is quire simple as notebook/laptop provides mobility within the premises especially with wireless technology is now getting better.

The only limitation with the notebooks is its battery life. After using laptop for a while we do have to plug it back into the mains to charge it. Industry fully recognizes this limitation and hence the battle to create the notebook with the longer battery life is stepping up as every day passes by.

Dell recently announced new Latitude E6400 notebook with up to 19 hours of battery life. I am sure though the increase in battery life comes at the expense of extra weight. This increase in the battery life is due to the introduction of a new technology called a “slice,” which uses lithium-ion prismatic cell technology to extend the battery but it also added nearly 2 pounds of weight to the notebook.

On Sept. 8, HP announced that the company’s engineers had pushed the limits of battery life to the 24-hour mark with the EliteBook 6930p. So Hewlett-Packard has unveiled its own contender in response to Dell's announcement, where a new set of features for its HP EliteBook 6930p will push the battery life up to 24 hours. With a monster 12-cell lithium ion battery pack, HP claims that its new EliteBook 6930p is able to achieve 24 hours of runtime. As I mentioned above, off course this adds an additional 1.8 pounds to the laptop, which weighs 4.7 pounds with a "standard" lithium ion battery. However, the version of the notebook with 24 hours of battery life will not be available until October.

These developments from the likes of HP and Dell are definitely encouraged by the Intel’s new hardware which makes it possible to achieve higher goals. That is why it doesn’t surprise me that the HP announcement coincided with the release of new solid-state SATA (Serial ATA) drives from Intel, which are some of the key components to the notebook’s long battery life.

Since SSDs (solid state drives) use NAND flash memory and have no moving parts, these components reduce the laptops' overall power consumption.

As I mentioned above, the current business climate requires increased mobility and larger battery life for the notebooks. PC vendors such as Dell and HP are trying to target a new class of notebooks to enterprise road warriors who want to push the limits of mobility and who travel on airplanes for a good portion of the day or make several stops with customers across the span of several days. While 24- and 19-hour-battery life thresholds might seem a bit excessive, these claims by HP and Dell help showcase the ability of these vendors to push current battery technology to its limits. Notebook companies like HP and Dell also allowing users to download specific BIOS and driver updates that allow them to manipulate the power-saving features further.

It must be noted that since everyone is used to stretching the limits of battery performance, the actual "standard" usage life remains to be seen. Still, it is undeniable that as sales of laptops continue to dominate in the area of personal computing, it is inevitable that manufacturers reach out to globetrotting enterprise road warriors seeking to push the edge of mobility.

LTE on Youtube

I was amazed today while browsing for information as to how much marketing stuff on LTE has been added to YouTube. Nortel seems to be using YouTube actively to market its LTE products. Then there are loads of other people including Motorola and Freescale.

Here is an LTE Drive Demo from Nortel:




Another one titled, "LTE-Enabled Consumer Device" from freescale:

Next Generation All-IP Telecom Networks: Quality of Service Challenges and Is...

There is an Interesting tutorial on Next generation All IP Networks from Google on Youtube. Unfortunately they have not allowed sharing of that but you can see that on youtube:

http://www.youtube.com/watch?v=FC4E946i6aE

eHRPD: Stopgap between EV-DO and LTE

Interesting article from TMCnet.

As LTE is picking up steam, more and more operators opting for this technology. It is but natural that some CDMA2000 operators would like to joing the camp as well. Since there is no clear evolution path available from CDMA2000 to LTE, a soft option is required so that there is no immediate need to change the complete infrastructure and in case of any problems suffer.

The transition for CDMA operators from High Rate Packet Data (HRPD) to LTE will be over a period of several years, as is the case still with the transition from 1xRTT to HRPD. As a result, mobile operators must look for a migration path that will enhance their existing HRPD networks, while addressing LTE deployment requirements and will not require a ‘forklift’ upgrade.

The choice of migration path depends on many factors including radio access strategy, network resource strategy, services enabled, timing and cost. A key goal of LTE is to enhance service provisioning while simplifying interworking with non-3GPP mobile networks. This is essential for CDMA operators that have chosen to migrate to LTE.

Evolved HRPD is a method that allows the mobile operator to upgrade their existing HRPD packet core network using elements of the SAE/EPC architecture. Additionally, eHRPD is a more evolutionary path to LTE while also allowing for seamless service mobility — including seamless hand-offs — between the eHRPD and LTE networks.

One of the main advantages of eHRPD is the ability to provide seamless service mobility between HRPD and LTE access networks with a single mobility management protocol. Moreover, with eHRPD, the operator can leverage the benefit of optimized handover – no dropped sessions and reduced handover latency — between LTE and eHRPD. The benefit of seamless and optimized mobility for data is highly dependant on the mobile operator business model for adding new services. As new applications emerge, the requirement for seamless service mobility becomes greater. Since SAE is an all-IP network infrastructure, the network will quickly move to mobile VoIP for voice. Moreover, with the introduction of eHRPD, the operator can leverage the benefit of optimized intra eHRPD handover when the user crosses the HSGW boundaries. This capability does not exist in current HRPD systems.

You can read the complete article here.

Japan to trial its own 4G Technology

While we were focussing on the battle between LTE and WiMAX having already forgotten about UMB, Japan has been working on its Next G of PHS called the XGP.

The news came to light in ITU Telecom Asia, which concluded recently.

PHS was popular in Japan earlier on because it was very cheap and easy to deploy in the old days when other technologies were expensive. The main drawback it has is that it is not easy to perform handovers so the calls may drop while in the subway.

PHS operator WillCom has won, one of the spectrum block in 2.5GHz band and is going to start trials next April in Tokyo, Nagoya and Osaka and offer 20Mbps of symmetrical data speeds using a 10MHz spectrum block. A full commercial service is scheduled for August 2009.

The service will be known as WILLCOM CORE (Communication Of Revolution and Evolution)

The technology behind is based on the PHS architecture of numerous microcells offering limited coverage, but will incorporate a new air radio interface based on OFDMA/TDMA/TDD methodologies. Kyocera and UTStarcom will manufacture the radio access equipment for XGP while NEC Infrontia and NetIndex are developing the data card modules for the service. Canada’s Wavesat and Israel’s Altair is supplying the baseband chips for XGP. Like LTE and WiMAX, XGP will support viable spectrum blocks.

But while LTE and WiMAX are based on increments of 1.6MHz for its carrier size, XGP has aligned itself with CDMA and supports increments of 1.25MHz carriers.

With a basic 10MHz carrier system, XGP will offer data speeds of 20Mbps, but future systems incorporating MIMO and SDMA (space division multiple access) will be capable of supporting maximum symmetrical data speeds of 100Mbps. At the same time, the technical description for XGP will support handoffs between base stations for users travelling at up to 300 km/h.

A good presentation from Willcom on XGP is available here.

PHS = Personal Handyphone System

Which is the year of Femtocell: 2009, 2010 or 2011?

In the beginning of the year, I listed the technologies that would be successful in 2008. According to that 2008 was setting the stage for Femtocells and 2009 will be the year when it would be rolled out mass market. According to this report from Heavy Reading (via Unstrung), this is not going to happen.

Most operators do not plan to roll out commercial femtocell services until late 2009 and 2010

The "Femtocell Deployment and Market Perception Study" reveals that early 2010 will be the critical period for commercial trials of the tiny home base stations as operators prepare for full launches later that year or in 2011. This does not necessarily mean that mass market deployments will start in 2010, but rather early commercial activity will ramp up at this time.

Among the 111 responses from the 79 operators surveyed, 54 percent said that they planned to launch services between the second half of 2009 and the end of 2010, and 33 percent said their commercial femtocell launches were scheduled for 2011 or later.

This may dismay quite a few people in the Femtocell market as they have been expecting things to happen sooner rather than later. Lack of standards and interference have been cited as the main reason for delay but I think that both these issues are not critical for delaying the deployment. One of the other less well known reasons is the doubt of it succeeding and lack of demonstrable Femtozone applications that may be used to bill Femtocell as a must have gadget.

According to the same report: the operators surveyed also ranked their perceptions of femtocell equipment suppliers. Alcatel-Lucent got top marks among the large vendors, while ip.access Ltd. was the highest ranked among the smaller femto vendors.

I have seen and used atleast one of the Femtocell and what an amazing thing it is!

I am also in process of studying the areas where Femtocells are going to face practical problems when they are rolled out. Any input on this is welcome.

India to finally unrestrict VoIP

Even though India supplies the world with software and IT engineers, till now it was not possible for people living there to fully use VoIP facility. It was illegal to call any phone using the computer. This is about to change at the Telecom Regulatory Authority of India (TRAI) has proposed that people be allowed to make calls using internet to fixed lines. What does it mean for the people? Well, the price of domestic long distance calls is supposed to halve to less than a penny (just over a cent) and international calls are supposed to get cheaper by 20%. It would also become cheaper for people to call India from abroad. Already in UK, Vodafone is allowing people to call India from a Pay as you talk phone for just 5 p per min. This may also help the Indian call centres as right now, the onshore companies have to pay termination charges when the calls get routed to India. This would mean that Indian call centres may become cheaper and more competetive.

Now for the small print; only the ISP's will be permitted to compete with the telephone companies using this VoIP. The fixed line and the mobile operators are up in arms about this because the ISPs are going to get free money whereas the mobile operators had to pay license fees for entry into the market.

This may not be a big problem for the time being as at the moment India only has around 5 million broadband subscribers whereas there are 287 million mobile subscribers and around 40 million fixed line subscribers. Also, the call rates are so cheap that additional investment in a PC and broadband connection (which is comparatively expensive) may not be lucrative.

If the recommendations by TRAI are accepted, there will surely be a VoIP revolution in India. The existing fixed line and mobile operators will have to come up with some challenging billing models to survive in future.

WiMax feeling the heat, Is It slowing Down?

Ever since we started talking about LTE, WiMax was always discussed alongside LTE. Every whitepaper or article I read on LTE it has always been mentioned that WiMax in the major competitor and the one of the main motivation behind LTE.

LTE camp together with 3GPP is trying really hard to catch up with WiMax and if possible supersede it.

There is no doubt that WiMax was and is still far ahead of LTE in terms of technology. For years, WiMax has been held up as something of a panacea, a technology that would finally deliver ubiquitous and cheap wireless broadband, especially in emerging markets. WiMax camp had a great opportunity to commercialize the technology and claim it to be the technology for 4G. But in my view it’s taken so long to get off the ground that it’s in danger of being superseded specially by LTE.

I personally think that WiMax is one of the most hyped technologies in history. Please let me know if you disagree with my opinion. Every emerging technology always has some motivation and objectives behind it. WiMax is no different and one of the main objectives of WiMax was to provide consumers an excellent wireless service at a lower cost. The computer and telecommunications industries have long seen WiMax, a so-called fourth-generation (4G) wireless technology as a way of driving down telecom costs and bridging the digital divide in the poorer parts of the world.

As I mentioned above, for some reason I don’t see that WiMax camp has taken the opportunity to take the technology to its high. As cellular operators continue to ramp up their investment in 3G, the outlook for WiMax seems to be getting murkier. And the next generation of cellular technology, known as Long Term Evolution (LTE), is set to arrive in couple of year’s time, with broadband speeds many times higher than is possible on copper-based digital subscriber lines.
People might be mistaken when they think that LTE is still some time away which gives an upper edge to WiMax. This might give an indication that by the time LTE will be launched WiMax will be well developed and commercialized technology. But in this mean time mobile operators are upgrading their networks with HSPA technology which is also a good bet in terms of high speed.

Mobile operators MTN and Vodacom are already deploying 3G-based High Speed Packet Access (HSPA) networks capable of theoretical download of up to 7,2Mbit/s (nearly twice as fast as Telkom’s fastest broadband product). That is set to double again, to 14,4Mbit/s, in the next 12 months. And the 3G roadmap is promising speeds a few years from now of up to 42Mbit/s.
HSPA subscribers have grown from 11 million in August 2007 to 50 million today. HSPA subscribers are growing at a very faster rate connections per month. There are already estimated 191 commercial HSPA networks in the world and more than 740 HSPA devices.

Qualcomm has already claimed that it has placed an HSPA+ Release 7 data call at a transfer rate of more than 20 Mbps in a 5-megahertz channel.

Such a capability of telecomm giants achieving high speed would allow operators to double the data and triple the voice capacity of their networks once HSPA+ is installed. These figures are very encouraging for the industry and hence taken as a stepping stone by the operators towards commercial deployment of HSPA+ which is late this year or early next year.

These developments are definitely not very good news for WiMax and hence pushed the technology further behind. People are questioning that if we can achieve such a high data rates with HSPA+ and with LTE is round the corner then why favour WiMax, especially when WiMax seems to have more restrictions in mobility as compared to HSPA+ or LTE.

LTE, which is still some years from commercial deployment (analysts say it should start taking off in 2011 or 2012), will ultimately offer speeds of 300Mbit/s or more. If we consider all the above developments for HSPA+ and LTE don’t you think that WiMax is a little too late or is lagging behind to be a serious challenger to LTE on the mobile side?

Mobile operators invest huge amount of money when it comes to deployment of new wireless technology. People might still remember how billions were spend to gain 3G licenses. This leaves no doubt in my mind that mobile operators will influence strongly when it comes to considering the 4G technology.

WiMax camp might be optimistic as the no of subscribers is growing although at a slower rate, but it’s in 3G and later in LTE where the real action is likely to be. 3G and its related technology i.e. HSPA etc is sweeping rest of the world after already establishing itself in Europe and America. There are already commercial 3G HSPA networks in many African countries which include SA, Namibia, Angola, Nigeria, Tanzania, Kenya, Uganda, Morocco and Egypt. Libya and Mozambique will follow soon.

Even Telkom has said it has plans to build a 3G HSPA network, a startling development given that fixed-line operators have typically preferred to look at WiMax for their wireless strategies. Telkom has a limited WiMax network.

A recent BMI-T research report, written by telecom consultant Martyn Roetter, has cast serious doubts on WiMax’s potential. Roetter says cellular rivals enjoy a considerable head start, especially in mobile broadband, and it will be difficult for WiMax operators to catch up.

What I see from the WiMax growth trends is that WiMax is doing well where 3G is still a distant technology. The chances of WiMax obtaining significant market share are greatest in countries that have not yet seen the widespread roll-out of 3G cellular technologies. But even then, it has a hope only where telecom regulators have moved quickly to allocate radio frequency spectrum.

Spectrum and coverage are ultimately more significant than the “quasi-ideological and generally confusing, self-serving, and misleading statements uttered by advocates in the vendor community”, Roetter says.

Despite all these some in the industry are still optimistic about WiMax and believes that WiMax is not falling behind. WiMax is being developed within the normal industry time frame for new technologies. One of the reasons for WiMax camp to be encouraged is that the price of WiMax devices is falling sharply and from next year the technology will be built into some Intel-based laptops.

Will that be enough to save it from obscurity?

Only time will tell, but there’s little doubt that WiMax has lost some of its early edge and the hype that went along with it.

New Tutorials available

Two new tutorials are available on 3G4G website:

# A look at NAS Timers

# Sending SMS using AT Commands