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2013/06/27

| 06.27.13 | AT&T: Carrier aggregation woes slow 700 MHz expansion

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June 27, 2013
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Today's Top Stories

  1. AT&T: Carrier aggregation woes slow launch of ex-Qualcomm 700 MHz spectrum
  2. T-Mobile: Not opening 1755-1780 MHz would be 'a blow to innovation'
  3. SK Telecom rolls out LTE Advanced with carrier aggregation
  4. Europe's vendors jostle for slice of massive China TD-LTE tender
  5. Broadcom targets 10 Gbps Ethernet backhaul for LTE


Editor's Corner: Time for Sprint, SoftBank to take a bite out of the market

Also Noted: Cisco
Spotlight On... PetziConnect enables dogs, owners to remotely bond
Analyst predicts cable MSOs will launch 'disruptive Wi-Fi/MVNO' products; AT&T switched on seven new LTE markets for a total of 291 and much more...

Wireless startups: FierceWireless' Fierce 15 - 2013
These are the winners of the 2013 FierceWireless Fierce 15 awards. Every year, FierceWireless editors meet with, either in person or on the phone, scores of the most innovative and smart emerging companies in the wireless industry. Here are the firms that we think will be success stories in the years ahead. Special Report


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Editor's Corner

Time for Sprint, SoftBank to take a bite out of the market


Our long national nightmare is nearly over. After months of handwringing, Sprint Nextel's (NYSE:S) shareholders have approved SoftBank's offer to acquire a controlling 78 percent stake for $21.6 billion, and SoftBank finally has the opportunity to prove that it truly knows how to shake up the U.S. mobile market.

The transaction is not slated to close till early July, pending FCC approval. However, SoftBank has had eight months, since last October when the deal was announced, to strategize its turnaround plan for Sprint, and the Japanese company has not been sitting idly while awaiting the deal's consummation.

When I met with SoftBank's PR folks in Tokyo last November, I suspect they never imagined the Sturm und Drang that would eventually come to punctuate this deal, thanks to Charlie Ergen's insertion of Dish Network (NASDAQ: DISH) into negotiations. At the time, members of SoftBank's PR team had already visited Sprint's Kansas headquarters, had met the campus canine and spoke reverently of Sprint CEO Dan Hesse, whom they referred to as Dan-san. My impression was that SoftBank intended to move very quickly once it was in control of Sprint, so it could get down to business.

At SoftBank's annual shareholder meeting last week, CEO Masayoshi Son said, "We want to be the world's No. 1 company in various terms including profit, cash flow and market value."

That actually sounds as though Son's ambitions may have grown. As I wrote in a special FierceBroadbandWireless report last year, Sprint is slated to play a crucial role in SoftBank's 30-year grand plan to become the "No.1 mobile Internet company" as well as the "No.1 Asian Internet company."

The Sprint takeover represents the largest outbound investment ever by a Japanese company, noted law firm Morrison & Foerster, which said it has been advising SoftBank since the deal was announced. Next up is Sprint's bid for Clearwire (NASDAQ:CLWR), in which MoFo (that's really how Morrison & Foerster refers to itself) is also representing SoftBank. Clearwire shareholders are slated to vote on that deal July 8.

Regardless of which way the Clearwire vote goes--and it appears right now that it will go Sprint and Son's way--SoftBank has the Sprint deal pretty well locked up.

So, let the games begin. U.S. consumers probably won't get the same funky TV ads with a talking white dog and Tommy Lee Jones that SoftBank uses in Japan, but darn near anything will be better than those scary film noir-type ads that Sprint ran featuring Dan-san looking as approachable and convincing as a cardboard cutout.  

I'm sure U.S. consumers are more than ready for SoftBank's ultra-low prices. But hot prices mean little without an LTE network that is as widespread and fast as Sprint's competitors, and that is SoftBank's first challenge. While I was writing this, an AT&T ad popped up on TV informing me that AT&T has "the fastest 4G network." That is a message that resonates.

Son promises... continued

Read the full column on the Web

Read more about: Masayoshi Son, LTE
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Today's Top News

1. AT&T: Carrier aggregation woes slow launch of ex-Qualcomm 700 MHz spectrum


AT&T (NYSE:T) claims it cannot deploy LTE over its 700 MHz Lower D and E Block spectrum until mid to late 2014 because the necessary interoperability test cases for LTE Advanced carrier aggregation are still in development within 3GPP.

AT&T acquired the unpaired licenses for $1.93 billion in December 2011 from Qualcomm (NASDAQ:QCOM), which had used the frequencies for its defunct MediaFLO service. AT&T intends to use the spectrum to provide a supplemental downlink using LTE Advanced carrier aggregation in conjunction with its other AWS, PCS and cellular licenses.

In 2011, AT&T told the FCC it would put the spectrum to use as early as 2014, a goal the company still hopes to meet. It estimated at the time that it would cost $1 billion to $2 billion to integrate Lower D and E Block 700 MHz frequencies into its network. The acquisition included 12 MHz of Lower D and E Block spectrum covering more than 70 million POPs in New York, Boston, Philadelphia, Los Angeles and San Francisco and 6 MHz of Lower D Block spectrum covering 230 million POPs across much of the rest of the country.

In an FCC filing earlier this month, AT&T detailed its efforts to make the former Qualcomm spectrum usable. The operator worked closely with 3GPP, which in December 2012 specifically designated Band 29 for downlink use only in the 700 MHz D and E Blocks and approved technical specifications for aggregation of a downlink Band 29 with an uplink frequency band in Band 2 (PCS 1900 MHz) or Band 4 (AWS 1700/2100 MHz).

AT&T asserted that manufacturers are already developing compatible chipsets, hardware and software for network equipment and wireless devices for the spectrum.

"With the designation of Band 29 and the approval of technical specifications for the use of the D and E Blocks for supplemental downlink utilizing carrier aggregation, network equipment and end-user device manufacturers can design and develop products that operate in accordance with these standards," said the carrier.

Yet there is a hang-up concerning carrier aggregation. Specifically, test cases for carrier aggregation scenarios involving Band 29/Band 2 and Band 29/Band 4 pairings are still being developed by 3GPP working groups. Further, they will not even be presented for approval at 3GPP until September 2013.

Those test cases are essential because they permit uniform manufacturing and interoperability tests by wireless operators, and until they are set, network equipment and end-user devices will not be made available.

"Network equipment and end-user devices utilizing the D and E Blocks will likely not be available for testing until late 2013 or early 2014, with limited deployment expected to begin no earlier than middle to late 2014," said AT&T.

The operator pledged to begin deploying its D and E Block spectrum as soon as network equipment and wireless devices are available.

In related news, Dish Network (NASDAQ: DISH) has requested the FCC waive its network buildout requirements on the 700 MHz E Block spectrum that Dish acquired during the FCC's 2008 auction. Dish said that numerous factors, including a lack of suitable equipment and ongoing uncertainty over interference, have prevented it from using the spectrum.

Dish said it has filed a "work item" with 3GPP to use carrier aggregation technology to combine Band 29 with Band 23, which includes AWS-4 spectrum Dish purchased last year.

For more:
- see this AT&T filing

Special Report: Carrier aggregation: How AT&T will use Qualcomm's MediaFLO spectrum to double LTE speeds

Related articles:
Dish asks for waiver to FCC's 700 MHz buildout requirements
FCC approves AT&T's $1.93B purchase of Qualcomm's 700 MHz spectrum
AT&T: Building out Qualcomm's 700 MHz will cost at least $1-2B
AT&T, Qualcomm demo carrier aggregation technology for the FCC

Read more about: MediaFLO, supplemental downlink, 3gpp
back to top



2. T-Mobile: Not opening 1755-1780 MHz would be 'a blow to innovation'


T-Mobile US (NYSE:TMUS) made another push for the government to quickly open up the 1755-1780 MHz band, posting a blog entry on the issue one day prior to a House subcommittee hearing assessing how federal agencies can address growing demand for commercial mobile broadband spectrum.

In the blog post, Steve Sharkey, T-Mobile's director of government affairs for technology and engineering policy, urged the FCC and National Telecommunications & Information Administration to open up the 1755-1780 MHz band, saying such a move would be in line with last month's presidential memorandum from the Obama Administration, which directed federal agencies to work on repurposing certain federal spectrum bands.

Calling the president's memorandum "an unprecedented recognition of the need for close collaboration between industry and government to develop solutions for meeting the spectrum needs of both the public and private sectors," Sharkey added, "We must seize the opportunity for near term success that can advance the trust and commitment necessary to build a new spectrum management paradigm."

He referenced an industry roadmap presented by T-Mobile, AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ) that lays out a path for making the 1755-1780 MHz portion available in time to be paired and auctioned with the already-cleared 2155-2180 MHz band, which Congress has mandated be licensed by February 2015.

"Missing the opportunity to pair these bands would result in billions of dollars of lost auction revenue, be a blow to innovation and the economy and set back the current industry/government efforts by years," said Sharkey.

T-Mobile is not scheduled to testify at the June 27 hearing before the House Subcommittee on Communications and Technology. Speakers from Qualcomm (NASDAQ:QCOM), CTIA, NTIA and the Department of Defense are expected to delve into technological tools and policy approaches that can help federal agencies serve their own communications needs while freeing spectrum for commercial use

The FCC granted T-Mobile Special Temporary Authority (STA) in August 2012 to test sharing between federal agencies, which are the incumbent users, and commercial users in the 1755-1780 MHz band. AT&T and Verizon Wireless are also involved in the effort. "The commercial and government participants continue to work on testing and analysis," said a background memo for the subcommittee's hearing.

Sharkey acknowledged that outstanding questions remain regarding how to address higher encumbered frequencies, specifically 1780-1850 MHz. "Solutions for the 1780-1850 MHz portion of the band are complex, and after a year of discussions, it is clear that we will not fully resolve the issues for the full band in time to meet the February 2015 licensing deadline," he said.

Further study of the 1780-1850 MHz portion of the band would ensure exclusive federal access to that spectrum for at least 10 years--much longer than originally envisioned. Sharkey said that highlights the mobile industry's "commitment to taking the needs of federal agencies seriously."

Related articles:
- see this T-Mobile blog entry
- see this House subcommittee memo (PDF)

Related articles:
Obama orders federal agencies to use spectrum more efficiently, make sharing easier
T-Mobile CTO: 1755-1780 MHz is prime spectrum for LTE
AT&T, Verizon, T-Mobile forge pact to explore spectrum sharing with government
Rysavy: Spectrum sharing with LTE is conceivable but not trivial
WISPA pushes testing to validate 4.9 GHz spectrum sharing
T-Mobile: We'll prove shared 1755-1780 MHz band can be auctioned
FCC allows T-Mobile to test spectrum sharing in 1755-1780 MHz band
AT&T shreds PCAST's shared spectrum vision

Read more about: spectrum sharing
back to top



3. SK Telecom rolls out LTE Advanced with carrier aggregation


Ever a mobile market pacesetter, SK Telecom has rolled out the world's first LTE Advanced network with a commercial smartphone ready for use with the service.

LTE-A is generally described as a collection of technologies meant to enhance LTE. SK Telecom's LTE Advanced rollout includes carrier aggregation (CA), commercially deployed for the first time in the world. The operator is using CA to combine two 10 MHz carriers to support downlink data speeds up to 150 Mbps. The company said LTE-A users can download an 800 MB movie in 43 seconds.

"By supporting twice faster speeds than LTE, LTE-A will not only enhance customers' satisfaction in network quality, but also give birth to new mobile value-added services that can bring innovative changes to our customers' lives," said Park In-sik, president of network business operations at SK Telecom.

SK Telecom noted that technological advances are expected to enable aggregation of two 20 MHz component carriers by 2015 to deliver peak downlink speeds up to 300 Mbps, with aggregation of three component carriers enabled by 2016, the same year uplink CA is expected to become available. Up to five 20 MHz carriers could be aggregated under the current standard.

In addition to using CA and coordinated multipoint (CoMP) in its LTE network, SK Telecom also intends to apply Enhanced Inter-Cell Interference Coordination (eICIC) in 2014.

SK, which first launched LTE service in July 2011, is offering LTE-A service with no price premium over LTE tariffs. LTE-A is initially available in the Seoul area and central cities of Gyeonggi-do and Chungcheong-do, South Korea. The operator intends to expand coverage to 84 cities across South Korea.

The unveiling of SK Telecom's LTE-A network coincided with its release of Samsung's Galaxy S4 LTE-A, photos of which leaked earlier this week. The device employs Qualcomm's (NASDAQ:QCOM) Snapdragon 800 processor with 2.3 GHz quad-core CPUs.

The phone will be offered in red--exclusively by SK Telecom--and blue. The operator has an initial supply of 20,000 units of the Galaxy S4 LTE-A and intends to expand its LTE-A device lineup to seven smartphones before year's end.

Last October, Russia's Yota claimed to have implemented LTE-A technology in select base stations of its 2.6 GHz Huawei-supplied LTE network in Moscow, enabling it to provide data rates up to 300 Mbps on end-user devices. Yota said at that time that the first consumer devices supporting LTE-A would be available in the first half of 2013, but the operator does not appear to have commercially introduced any so far.

U.S. mobile operators have discussed LTE-A as part of their roadmaps but have not been specific about when they will commit to launching its various features. "All the major US mobile operators in the United States have shown their commitment to LTE Advanced, and LTE Advanced upgrades are underway," Jake Saunders, ABI vice president and practice director of core forecasting, said recently.

ABI predicts global LTE-A subscriptions will grow at a compound annual growth rate (CAGR) of 295 percent between 2013 and 2018 to reach 500 million, which will represent 34 percent of the overall 1.47 billion LTE-related subscriptions.

For more:
- see this SK Telecom release
- see this Samsung release
- see this Register article
- see this CNET article
- see this Engadget article

Related articles:
Stars aligning for LTE Advanced rollouts later this year
Report: T-Mobile to use 4×2 MIMO to boost LTE network performance
T-Mobile boasts of lead in LTE Advanced
Sprint exec: Clearwire spectrum is our priority for LTE carrier aggregation
Qualcomm chips target LTE carrier aggregation, 150 Mbps peak speeds
The roadmap to LTE Advanced
Analyst: AT&T to launch LTE Advanced in second half of 2013

Read more about: Snapdragon 800 processor, LTE-Advanced
back to top



4. Europe's vendors jostle for slice of massive China TD-LTE tender


China Mobile launched a huge tender for LTE equipment based on time division duplex (TD-LTE), sparking a race among domestic and European vendors to grab as big a share of the deal as possible.

According to a report this week in China Daily, the mobile operator posted an online tender on June 21 saying it plans to buy equipment for 207,000 base stations in 31 provinces across China, although no details on the value of the contract were provided.

Reuters previously estimated that the deal could be worth $6.7 billion (€5.1 billion), but Light Reading also noted that other estimates have been as high as $30 billion. Telecom Asia reported that China Mobile plans capital expenditures of around €24 billion this year, of which more than half will flow into TD-LTE investments.

European vendors are keen to win larger shares of the deal than they did in last year's tenders. Ericsson has previously said it was confident it would win a larger slice of the upcoming tender for China Mobile's TD-LTE network, after it gained only an 8 per cent share in the first round of the tender last year.

China Daily noted that foreign equipment vendors gained less than a 30 per cent market share during the first bidding round.

Alcatel-Lucent told China Daily it is "very optimistic" it will achieve a satisfactory result in the third quarter, when China Mobile announces the final bidding results.

"TD-LTE business will be the core foundation for Alcatel Lucent's future development," Yuan Xin, president of Alcatel-Lucent China, told China Daily at a press conference this week.

Nevertheless, Chen Peng, analyst with China Merchants Securities, told the Chinese paper he expected domestic players Huawei and ZTE to gain more than 50 per cent of the deal.

Recent warnings by the European Union that it is ready to investigate China's telecoms giants over alleged state subsidies and dumping have been opposed by Europe's vendors, which fear they would be shut out of the lucrative Chinese market in retaliation. The EU is already engaged in discussions with China over similar claims with regard to solar panels.

For more:
- see this China Daily article
- see this Telecom Asia article

Related Articles:
Report: Europe's vendors face delay on major Chinese TD-LTE tender
Ericsson seeks larger share in China's new TD-LTE tender

Report: FDD-LTE dominates but TD-LTE is closing the gap
The timing of the EU's warning to China is a worry for Europe's vendors
China hits back over EU threat to Huawei, ZTE
EU says it's ready to launch trade probe into Chinese vendors

Read more about: China Mobile, Ericsson
back to top



5. Broadcom targets 10 Gbps Ethernet backhaul for LTE


Broadcom says its newest switch for mobile backhaul addresses skyrocketing mobile data traffic via a single-chip solution that delivers 10 Gbps Ethernet to LTE networks.

The StrataXGS BCM56450 switch integrates high-bandwidth switching with a control-plane processor, hierarchical traffic management, packet timing recovery plus advanced operation, administration and maintenance (OAM) functions.

"Given the rise of mobile data traffic, carriers are focused on improving their backhaul strategy to meet end users' evolving needs while offering more services," said Ram Velaga, Broadcom vice president and general manager, core switch. "Today's introduction builds on our established StrataXGS leadership and longstanding innovations in carrier Ethernet to equip carriers with a high-performing foundation that supports their rapidly evolving mobile backhaul needs." 

According to Broadcom, the new switch provides a 40 percent I/O bandwidth increase and integrated 10 Gbps serial interfaces, in addition to more than doubling the forwarding table scale.

The StrataXGS BCM56450 is currently sampling with production slated for 2014's first half.

For more:
- see this Broadcom release

Related articles:
PEG Bandwidth lands 473-site Ethernet backhaul expansion deal
Accedian's SkyLight aims to optimize mobile backhaul
AT&T, Verizon and others refine their wireless backhaul strategies

Read more about: Broadcom
back to top



Also Noted

This week's sponsor is Cisco.


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SPOTLIGHT ON... PetziConnect enables dogs, owners to remotely bond

Two-year-old startup Petzila launched an Indiegogo crowdfunding campaign for its PetziConnect, which employs a smartphone, application and Wi-Fi enabled device that is filled with treats to help people build an emotional bond with their pets when they're apart. PetziConnect allow a dog guardian to see his pet on video, talk with it via an audio connection and dispense a treat to reward the dog for coming to the dispenser when called, said the company. PetziConnect also allows owners to snap photos, take videos and share them on Facebook, Instagram, Pinterest and on other social media outlets. For more, see this Petzila release.

Quick news from around the Web.

> Dish Network formally withdrew its $4.40 per-share offer for Clearwire. Article

> Analyst predicts cable MSOs will launch "disruptive Wi-Fi/MVNO" products. Article

> GainSpan, provider of ultra-low power Wi-Fi connectivity, closed $19 million in funding. Release

> Cox is expanding hotel Wi-Fi service across its footprint. Article

> Spain's GOWEX and Brazil's Oi signed a bilateral Wi-Fi roaming pact. Release

> Spirent Communications announced support for LTE Advanced carrier aggregation testing. Release

> AT&T switched on seven new LTE markets for a total of 291. Article

And finally… Egyptian god of death statue has started spinning on its own in U.K. museum. Article


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