Archive for July 28th, 2010

Sprint: HTC Evo users consume more data than typical smartphone customer

After three years of losing subscribers, Sprint (NYSE:S) recorded positive net additions in the second quarter. And the company released some interesting statistics about its WiMAX offering. In particular, the HTC Evo 4G, now sold out, exceeded the company's expectations in many areas, including sales and a record low return rate of the device, said Sprint CEO Dan Hesse.

Hesse indicated that Evo users consumed "three and a half times more data than our other smartphone customers." In addition, he indicated Sprint would be selling a lot more of the devices if there wasn't a shortage of them.

For the quarter, Sprint posted a net loss of $760 million, wider than a $384 million net loss in the year-ago period. The company was hit with a $302 million tax-related charge. Sprint now expects to have positive total net wireless subscriber additions during the remainder of 2010, and fewer postpaid subscriber losses in the second half of the year than in the first half. "We still have a lot of hard work," Hesse said.

For more:
- take a look at this Sidecut Reports post
- read this FierceWireless article
- see this FierceWireless Q2 earnings page

Related articles:
Sprint loses 991,000 postpaid subs, promises additional webOS devices
Sprint may add LTE to 4G arsenal
Sprint launches multi-pronged prepaid wireless strategy
Sprint narrows subscriber gap in Q1, but loss widens

Altair announces commercial TD-LTE reference design

Altair Semiconductor announced commercial availability of a new TD-LTE reference design for use in dongles, data cards, consumer premise equipment and mobile handheld devices.

The reference design features Altair's FourGee 3100/6200 chipset and supports spectrum bands that encompass India's recently auction TD-LTE band 40, China's band 38 and a number of other bands where TD-LTE might make its appearance in Japan, North America and Europe, the company said. The reference design features a unified TDD/FDD architecture using a single chipset and a single software stack, enabling a small form factor and cost efficient integration for multimode devices, Altair said.

"The demand for TD-LTE products, mainly in emerging markets such as India and China, is rapidly increasing, forcing carriers to develop cost-effective solutions for this growing segment," Eran Eshed, Altair's co-founder and vice president of marketing and business development said in a statement. "Thanks to the maturity of Altair's FD-LTE solution which had sampled in September 2009, and the extensive testing it had undergone with most tier one infrastructure vendors, releasing a TD-LTE version was a logical next step for us."

Altair recently announced a partnership with IPWireless to develop a suite of multi-band LTE modem products that will support key frequency bands ideally suited to global LTE deployments. The companies will integrate Altair's cutting-edge software-defined radio baseband processor into IPWireless' LTE devices. The first consumer-friendly LTE USB modem device will support multiple frequency bands including the 800MHz digital dividend band, 1800 MHz and TD-LTE's 2.5 GHz. Subsequent devices will also support the entire US 700MHz and AWS frequency.

For more:
- see this release

Related articles:
Sequans Announces Successful TD-LTE Technology Demo for China Mobile at World Expo 2010 in Shanghai
China Mobile aims to push TD-LTE overseas
GSMA's technology director talks up TD-LTE opportunity
Ericsson gets serious about TD-LTE
TD-LTE: The most powerful weapon in the LTE arsenal against WiMAX

TeliaSonera touts new mobile broadband pricing model

TeliaSonera, which operates the world's first LTE networks in Sweden and Norway, is mulling a new mobile data pricing model that involves bundling the network usage charges with the cost of mobile content used into a single pricing plan. As such, subscribers would be paying for the content and network resources they are using up instead of simply paying for a certain amount of data.

"We would like to go into some sort of value-based pricing," said Håkan Dahlström, president of mobility services at TeliaSonera, during the operator's second-quarter conference call with analysts. "If you buy a movie, you would have the price of the traffic for that movie included in the price of the movie."

It's unclear when TeliaSonera might introduce this value-based pricing nor whether it would replace monthly contracts. The operator current charges for bandwidth speed and volume meaning 3 gigabytes of data on the LTE network costs about $47 per month. The same amount of data on the 3G network costs $41 per month.

For more:
- see this Light Reading Mobile article

Related articles:
'M2M opportunity bigger than mobile', claims TeliaSonera exec
TeliaSonera launches first commercial LTE network
TeliaSonera picks Ericsson, NSN for LTE

Survey: Verizon smartphone users consume more data than iPhone users

A forthcoming survey from wireless billing company Validas indicates Verizon Wireless (NYSE:VZ) smartphone users consume more wireless data than AT&T's (NYSE:T), iPhones by a ratio of roughly 1.25 to 1. Average monthly wireless data consumption for Verizon Wireless smartphone users is 421 megabytes per month, versus 338 megabytes per month for iPhones.

"Averages can be misleading because when you plot data users in a distribution, you quickly see that there is no typical user--they are spread across a broad range," said Ed Finegold, executive vice president-Analytics, for Validas in a statement. "The key detail in this study that drives the average is that, by percentage, nearly twice as many Verizon Wireless smartphone users are consuming 500 megabytes to 1 gigabyte per month compared to AT&T iPhone users." More than 11 percent of Verizon Wireless smartphone users fall into this category, versus just 5.6 percent of iPhone users, he added.

Some other interesting tidbits:

  • More than 54 percent of Verizon Wireless smartphones consume less than 200 MB per month, versus slightly more than 52 percent of iPhones.
  • Nearly 46 percent of Verizon Wireless smartphone users consume more than 200 MB per month, versus nearly 48 percent of iPhones. 
  • More than 4 percent of Verizon Wireless smartphone customers consume more than 2 gigabytes per month, as opposed to just 1.6 percent of iPhones. Only 2/10ths of 1 percent of both VZW Smartphones and iPhones use more than 5 GBs per month.

The data for this analysis was derived from more than 20,000 consumer wireless bills dated between January and May of 2010. Validas said it deliberately excluded BlackBerry devices which, due to data compression techniques, do not follow similar data consumption patterns to those of iPhones and other smartphones.

It should be interesting to see the data now that AT&T has changed its smartphone data pricing plans to a tiered model.

For more:
- see this Validas release

Related articles:
Verizon adds 1.4M subs in Q2, as reseller customers swarm ranks
Verizon: No immediate plans for tiered data pricing
AT&T's net adds soar with 3.2M iPhone activations
AT&T kills unlimited data pricing, supports iPhone tethering

LightSquared talks LTE wholesale strategy

Thanks to additional funding and an infrastructure deal, Philip Falcone and his private-equity firm Harbinger Capital Partners may be closer to making their nationwide wholesale LTE network a reality. Nevertheless, the firm's plans are drawing the ire of skeptics who believe it's unlikely the network will ever come to fruition. But LightSquared, the name of the LTE network, has already talked to more than 30 companies interested in partnering with it, said the company's Chief Marketing Officer Frank Boulben.This includes a combination of wireline operators, cable operators, rural carriers, retailers and even device makers. Article

What does it take to migrate from WiMAX to LTE?

Monica Paolini, Senza Fili ConsultingBack in March I wrote a column on how TD-LTE was threatening to steal the spotlight from WiMAX by offering operators virtually the same technology and performance in a  more attractive wrapping--i.e., access to a larger market, more vendors and roaming opportunities. The article was mostly speculative and published before Yota's announcement to roll out LTE, and before Indian BWA operators disclosed their interest in TD-LTE. I was surprised to see how quickly in the past few month WiMAX operators have started to talk openly about the transition to TD-LTE or even to FDD LTE, and how they increasingly take for granted the ability to move seamlessly to LTE.

WiMAX and LTE share most of the RAN and core network, so the transition path to LTE will be smoother than, for instance, the transition path from HSPA to LTE. The trends towards RAN-agnostic base station platforms that can accommodate multiple wireless interfaces and towards user devices that support multiple interfaces further facilitate this transition. A few years ago, a RAN upgrade would have required the deployment of a separate overlay network that would have been difficult if not impossible to integrate with legacy networks.

Yet the transition to LTE will not be painless, and WiMAX operators should start planning for it now, so that they will be ready for it, if and when they decide to move to LTE. In the rest of this article I will go over some of the key decision points for WiMAX operators considering a transition to LTE.

Network coexistence: overlay or swap?

In the long term, most WiMAX operators that deploy LTE are likely to aim for a complete swap to LTE, simply because supporting two comparable networks adds unnecessary costs and complexity. In the short to medium term, however, operators may decide to build an overlay LTE network that coexists with their WiMAX network. This is the path chosen by Yota in Russia. The operator plans to deploy LTE in markets where it does not have WiMAX or as a second overlay network where WiMAX is available. This is a solution that guarantees a smooth transition for subscribers, who will keep using their WiMAX devices, and allow new subscribers to choose between WiMAX or LTE. However, only operators with sufficient spectrum can afford an overlay network. In addition, an overlay network requires a higher capex, as new base stations need to be installed, even if the deployed WiMAX base stations are upgradeable to WiMAX.

The alternative path is to plan for a network swap. Ahead of the swap, the operator deploys devices that support both WiMAX and LTE and then it gradually upgrades the base stations. Installation and equipment costs are lower, especially if the base stations can be upgraded and no additional spectrum is required, as long as TD-LTE is used or the operator can use the spectrum for FDD-LTE (see below). A swap requires more intensive planning, to ensure that subscriber devices all support both interfaces and will successfully switch to the new interface as it is turned on.

Spectrum: TDD or FDD?

WiMAX operators using the IEEE 802.16e version of the standard (Mobile WiMAX) use TDD, unpaired spectrum, with the same channel used for uplink and downlink transmission. The most common version of LTE, the one deployed by Verizon and by most mobile operators, uses FDD paired spectrum, with one channel used for uplink transmission and one for downlink transmission.

A second version of LTE, TD-LTE uses TDD spectrum and it will be widely deployed in China. Also, it is the version of LTE that Clearwire appears to be most interested in (but it may deploy FDD LTE as well). The transition path from WiMAX to TD-LTE is more straightforward. The same spectrum band can be used and infrastructure equipment upgrades are possible (although not necessarily available, depending on the vendor and on the version of the equipment).

Moving to FDD LTE may require the acquisition of new spectrum--this is the case for Yota--as regulation typically dictates whether spectrum bands can be used for TDD or FDD. Furthermore, acquiring new spectrum is difficult and expensive (FDD spectrum typically costs more than TDD spectrum).

The advantage of FDD LTE is that the market is considerably larger and equipment is already commercially available. This makes a transition in the short term possible, and widens the choice of devices and the revenue opportunity for roaming.

Base stations: what can be upgraded?

Despite the similarity in the underlying technology between WiMAX and LTE, not all WiMAX base stations can be upgraded to TD-LTE. Most of the early WiMAX base stations cannot be upgraded (or upgrades are partial, and require a substantial equipment cost), but many vendors now offer LTE-ready base stations. Upgradability to FDD LTE is considerably more difficult because of the use of two channels by this technology.

Core network integration

As both WiMAX and LTE use an all-IP core network, upgrades are possible, but may entail the replacement of some core elements. Integration among the WiMAX and LTE core networks is also possible and desirable in the case of overlay networks to enable subscribers to use both seamlessly. There are some differences in the core network architecture of WiMAX and LTE, however, and these require a clear transition plan and the selection of equipment that facilitates this process.

Devices: a roadmap to multimode?

WiMAX devices currently in the market do not support either TD-LTE or FDD LTE. WiMAX operators that wish to deploy an LTE network in the near future have to replace the devices if they swap networks or will not be able to enable roaming across networks for their subscribers who wish to keep their current devices. As WiMAX operators are not planning to swap networks in the short term, this is not a major concern. However operators considering an LTE overlay network should encourage subscribers to adopt multimode devices as they become available, so that by the time they are ready to launch the LTE network most subscribers have devices that can access it.

The increasing availability and affordability of multimode devices makes the transition to LTE more attractive to WiMAX operators, as operators are free to move to LTE at the pace they choose, taking advantage both of the wider choice of WiMAX devices today, and of wider availability and possibly lower cost of LTE devices in the future.

Timeline: when does it make sense to switch?

The timing of the move to LTE depends on multiple factors, such as spectrum availability, funding, or market conditions. These factors vary from country to country, and from operator to operator. For most WiMAX operators, it is too early to move to LTE, because the technology is still less mature than WiMAX, and its ecosystem is still evolving. Only once the technology is widely deployed and device selection is at least as good as WiMAX it will make sense for operators to move ahead with the transition.

The operators' choices will vary depending on requirements, funding, spectrum assets and overall market conditions. Many operators will not have many open options, mostly because of restrictions in spectrum availability. In all cases, however, WiMAX operators stand to benefit to start their assessment and planning processes now, to minimize the future cost and the disruption of the transition to LTE.

Monica Paolini, PhD, is the founder and president of Senza Fili Consulting and can be contacted at monica.paolini@senzafiliconsulting.com. Senza Fili Consulting provides expert advisory services on wireless data technologies and services.

Envivio lands $15 million in new funding

Encoding specialist Envivio says it's landed $15 million in financing from venture capital and banking sources. The company, which says it is experiencing 100 percent year-over-year sales growth, and has been extremely active in the cable market, including extensive involvement in new service introductions and trials for the top five cable services providers in North America.

"Envivio has been ahead of the video delivery technology curve for years, which is why we have been the choice when operators look to shake up their markets with innovation," said Julien Signès, Envivio's co-Founder, President and CEO. "We have created a unified platform that delivers premier quality TV service to any device with a screen.

In recent months the company has shaken up its management team adding Erik Miller as CFO, Kevin O'Keefe as COO. Envivio's Chairman of the Board, Gianluca Rattazzi, has taken an increased role at the company as executive chairman to assist with corporate and business development.

For more:
- see this release

Related articles:
Envivio touts multi-screen on-demand platform
Envivio has been a Microsoft Mediaroom partner
Envivio and other transcoding firms are key to multi-screen TV