UMB/LTE Applications and Services

     Today, operators around the world are offering commercial mobile broadband services over 3G networks. In North America, Verizon and Sprint allow laptop users to experience DSL-like Internet access in a mobile environment with CDMA2000 1xEV-DO Revision A embedded modems or external data cards that reach speeds up to 3.1 Mb/s.  Besides, AT&T’s High Speed Downlink Packet Access (HSDPA) broadband service allows its mobile phone users to access social networking sites such as MySpace and Facebook as if the users were at a desktop computer. In Europe, H3G offers live TV content and full-song music downloads to their 3G subscribers over WCDMA and HSDPA networks. Meanwhile, in Asia, KDDI and LG Telecom provide their mobile phone users with video calling and 3D multiplayer gaming over their CDMA2000 1xEV-DO Revision A networks.

     Moving forward, with CDMA2000 1xEV-DO Revision B and continued High Speed Packet Access (HSPA) evolution (HSDPA, HSUPA, HSPA+, and beyond), operators will be able to achieve even higher data rates and larger capacity. With the success of 3G networks supporting both high-speed and low-latency data services, why should wireless operators feel compelled to evolve their networks to the next generation?  What market opportunities are in store for the operators that deploy next-generation networks, namely Ultra Mobile Broadband (UMB) and Long Term Evolution (LTE)?  What kind of applications and services will operators offer for the next-generation networks?  This paper will address these questions and provide insights into the
next-generation networks.

1 Drivers for Next-Generation Mobile Broadband Networks
There are at least three key drivers for the next-generation mobile broadband networks: increasing device capabilities; growing mobile data consumption; and maintaining operator profitability.

     Thanks to the continuous advancement in semiconductor technologies, many of today’s mobile devices are equipped with state-of-the-art multimedia capabilities such as camera, video, music and 3D gaming. The next-generation mobile computing devices, e.g. Ultra Mobile PCs, will feature dual microprocessors that can achieve processing speeds up to 1 GHz. Coupled with mobile broadband support and large storage capacity (both internal and external memories), these devices will soon become gateways for users to access their own personal media libraries. As a result, mobile-broadband operators plan to provide faster connections and higher capacities to match the ever-increasing capabilities of mobile devices and to deliver a well-balanced user experience.

     Moreover, there is an increasing trend for users to consume data in the mobile environment. For example, users are accustomed to accessing documents and the Internet on the road via ultraportables or smartphones. There is also the ever-increasing demand for more and higher-quality video and music services. Meanwhile, as Web 2.0 services such as social networking and mobile blogging proliferate, more users are creating and accessing multimedia content on their mobile devices. Together with improvements in the battery life, consumption of mobile data services will continue to increase, which in turn will necessitate faster speed and higher capacities on mobile broadband networks.

     Although user experience of mobile data services continues to improve and users are consuming more mobile data, data tariffs may not increase at the same rate, due to the increasing trend of
flat-rate pricing. In fact, there is constant market pressure to offer more and faster data services for the same price. In face of the challenge to maintain and improve profitability, operators are eager to continue to improve the cost of delivery.

     To keep up with the continuous advancements of mobile device capabilities, the ever-growing consumption of mobile data, and the need to maintain profitability, operators are looking for a next-generation mobile broadband network that can offer higher data rates and increased capacity, using wider spectrum bands.

2 Market Opportunities of UMB and LTE
Because UMB and LTE offer excellent data rates and capacity, reduced latency as well as seamless mobility, these technologies will allow operators to leverage new spectrum with wider bandwidths of 10 MHz and more. This will in turn enable the operators to address exciting market opportunities and service proliferation in high tele-density areas. We will review a few of such opportunities.

     (1) Laptops, Personal Digital Assistants (PDAs) and Fixed Broadband Access
     As the data rates of UMB and LTE match and surpass those of DSL and cable modems, users will have a similar experience across mobile and fixed networks. Users can access the Internet, send and receive email with large attachments, upload files to corporate servers, and play online games in any place at any time. In many cases, mobile broadband PC cards or embedded modems can function as primary broadband connections, and provide a mobile alternative to DSL or cable modems.

     Moreover, UMB’s and LTE’s robust QoS support can allow operators to offer tiered mobile broadband services for different market segments. For example, an operator can offer mobile connectivity plans of different average throughputs, e.g. 1 Mb/s, 3 Mb/s or 5 Mb/s and above, all at different prices. While the premium plans would help capture and maintain the high-end customers (e.g. enterprise users), the lower-data-rate plans allow for more affordable pricing, enabling wider adoption of mobile-broadband services.
Furthermore, operators may consider offering fixed services on the same mobile broadband network. This could be an economically compelling solution, especially for those markets that are underserved by wireline broadband services. With UMB’s and LTE’s QoS support, operators can effectively manage “data hogs” and relegate them to lower priorities, using resource allocation to minimize the impact of these “data hogs” on the network.

     (2) Premium VOD/MOD Services
     With UMB’s and LTE’s higher data rates, operators can offer higher-quality Video on Demand (VOD) and

     Music on Demand (MOD) services and significantly enhance user experience.

     First, users can access longer and richer multimedia content more quickly. For example, a full two-hour-long movie download (assuming 30 fps video of VGA quality in H.264 at 512 kb/s encoding) will take only a few minutes. Second, users can experience rich on-demand multimedia content that has similar quality as that of the desktop video- or mobile broadcast services. This consistent user experience across different devices and networks is especially important when operators start to offer converged fixed-mobile services.

     By offering premium-quality VOD and MOD services, operators would be able to differentiate from their existing multimedia services and capture additional revenue from those customers who are willing to pay more for better-quality entertainment.

     (3) Multimedia Upload and Exchange Services
     With the proliferation of Web 2.0, services such as social networking and mobile blogging, more users are sharing photos, video and music files over the Internet. UMB’s and LTE’s enhanced uplink speeds and increased capacities can enable users to more quickly upload larger multimedia content, of higher resolution or quality, in a mobile environment. As a result, operators can leverage the popularity of Web 2.0 services to generate revenue by charging users for faster and easier access to these services, or by placing mobile advertisements in the portals.

     (4) Consumer Electronics
     UMB’s and LTE’s increased capacities, together with robust QoS support, will allow operators to support more simultaneous users while extending support to Consumer Electronics (CE) connectivity, e.g. portable multimedia players, gaming consoles, digital cameras and in-vehicle entertainment.

     Currently, most portable multimedia players rely on cable connections through a desktop computer to download video and music files. Although some recent models have built-in Wireless Fidelity (Wi-Fi), its coverage is often limited, which prevents users from accessing online video or music content anywhere and anytime they desire. The situation is similar for digital-camera users who want to upload pictures for sharing and printing, and for video gamers who would like to participate in multiplayer gaming.

     With mobile-broadband connectivity, users of portable multimedia players can not only purchase content in a mobile environment, but also access personal media libraries while away from home. Users can share pictures with friends and families immediately after taking the pictures, without having to look for Wi-Fi coverage. Video gamers can join game tournaments, chat or trade weapons with other players, and monitor the status of ongoing games in any place at any time. Multiplayer games often require real-time interactivity among the players, and UMB’s and LTE’s large data capacities and robust QoS support will be able to provide many simultaneous players with the low latencies required for an excellent gaming experience.

     Here are different ways of providing mobile broadband connectivity for CE devices. Operators may work directly with several CE manufacturers to embed UMB or LTE modems in the devices. Alternatively, operators may offer USB modems that work with a variety of devices. In such a case, consumers could use the same modem and service plan for all mobile-broadband connectivity needs. On the other hand, operators also have the flexibility of providing different pricing schemes for CE connectivity services, e.g. charge per session, charge per megabyte, or a flat monthly fee.

     By providing mobile broadband connectivity to CE devices, operators will be able to offer bundled services with unified billing. This in turn will help operators maintain service differentiation and reduce overall customer churn.

     (5) Business Applications for Vertical Markets
     UMB’s and LTE’s high data rates and capacities can allow operators to offer dedicated connectivity for specific business or industrial applications. For example, operators could offer group videoconferencing services to enterprise customers, whose employees can then participate in either fixed or mobile environment. Operators can also provide video-surveillance services for homes and small businesses.

3 Conclusions
As UMB and LTE continue to improve the mobile broadband performance by offering higher data rates, lower latency and seamless mobility, they also promise many exciting market opportunities.

     First, operators will be able to offer mobile broadband services at data rates that match and surpass those of DSL and cable modems. As a result, users will have a similar experience across mobile and fixed networks. In many instances, mobile broadband PC cards or embedded modems can function as primary broadband connections, providing a mobile alternative to DSL or cable modems.

     Second, with UMB’s and LTE’s robust QoS support, operators will be able to offer different tiers of mobile broadband services that capture and maintain the high-end enterprise users while widening adoption to mainstream consumers. Operators would also provide fixed services or extend support to CE connectivity on the same network.

     Furthermore, the higher data rates of UMB and LTE can enable premium VOD, MOD and multimedia upload services that operators can differentiate from existing multimedia services, thus capturing additional revenue from those customers who are willing to pay more for higher-quality entertainment.

     Finally, as users continue to consume more mobile data, UMB and LTE will be able to provide operators with the increased capacity to support the large number of simultaneous users while maintaining or further improving operational profitability.

[Abstract] "As the next-generation mobile broadband networks, Ultra Mobile Broadband (UMB) and Long Term Evolution (LTE) continue to improve the mobile broadband performance and capacity by allowing operators to leverage new spectrum with wider bandwidths of 10 MHz and more. This will in turn enable the operators to address exciting market opportunities and service proliferation in high tele-density areas. This article discusses the drivers for the
next-generation mobile broadband networks, and market opportunities of UMB and LTE. There are at least three key drivers for the networks: increasing device capabilities; growing mobile data consumption; and maintaining operator profitability. The opportunities include laptops, Personal Digital Assistants (PDAs) and fixed broadband access, premium Video on Demand (VOD)/Music on Demand (MOD) services, multimedia upload and exchange services, consumer electronics and business applications for vertical markets."