I have just come back from attending the LTE World Conference last week.
As you know LTE is a 4G technology (using OFDMA as multiple access
scheme) that can provide bit peak rates of over 140Mbps. The LTE is
governed and standardized by 3GPP2 and can work in any of the GSM and 3G
bands in addition to 2.6GHz and 700MHz (Digital dividend) bands.
I work in Kuwait for a 3G network operator and we are using the most top
end version of 3G available (HSPA+ 21.6Mbps), still at times it is
difficult to meet the demands. 3G USB is very successful in Kuwait and
generally for my network the cost is $83 per month with unlimited
downloads. Average download speeds are in the range 1.5 - 2.5Mbps per
subscriber (You can get upto 4Mbps during off peak in low congestion
areas).Despite having the latest and greatest in 3G, it is evident that
in a couple of year (or earlier) we will have to move to LTE.
Telecom Industry in Pakistan is now standing at a juncture where it need
to decide if 3G remains a viable option any more. I know for a fact that
most of the equipment installed in Pakistan by Mobile operators can
support 4G without much investment (Just RF cards and Software upgrade)
barring the legacy equipment (which is at end of life in any case). In
4G there is no MSC, no BSC/RNC, no HLR, etc. Infact your base station
(eNode-B) is directly connected to the SGSN (Service Gateway Router)
which is connected to GGSN (Internet Gateway Router). The most pressing
need for LTE is transmission to serve upto 100Mbps per site.
I think that the government should give the 2600Mhz license for LTE to
three operators who commit to meet rollout schedules for no payment.
Additionally, we must use the digital dividend band for rural internet
communication. Our target must be to provide broadband access (1Mbps+)
to 75% of Pakistan's population by 2015. I understand that the USF
funding that is being collected by government should be spent to install
optical network both at the metro levels and also to connect every
single village with population above 5,000.
I was fortunate to meet a lot of operators form developed countries and
one thing that sets them apart from us is the level of work that is done
by non-profit groups and collaborative initiatives to develop telecom in
their countries. It seems that the regulators have really taken a back
seat. Example are IEEE, 3GPP, LSTI, Nordic Forum, etc. I feel that the
time is ripe that the stake holders in Pakistan rise to the occasion
and atleast come up with a roadmap for the next 5 years regarding where
we want to be. This roadmap is the need of the hour as I am told by
almost everyone that our regulator does not seem to have the capacity,
capability or credibility to come up with anything worthwhile.
When I was at Mobilink, I remember that Telenor started a great
initiative where the CTO's used to meet over a cup of coffee to
informally discuss industry related issues. You cannot believe how many
issues got solved over that. I am not sure if that is still happening.
Any takers???
Zarrar
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I feel that the existing behaviors of consumers towards existing
technologies should not be a prime benchmark for strategic dicisions
relating to technology roadmaps. A very good example infront of us the
evolution of mobile in Pakistan. Back in 1998, before Ufone was launched
and Orascom bought Mobilink, did anybody figure the massive growth that
was in store for mobile industry? I was a part of a consortium back in
2003 vying for a license and all the indicators by all the investment
banks, regulators, equipment vendors, etc were giving best case scenario
of Pakistan having 30 million mobiles by 2015. Now we have 100M in 7
years. So just because our customer do not know what ICT can do for
them, doesn't mean they don't want it.
Secondly, LTE is not about high speeds only. LTE is also about ICT
accessibility at a very reasonable cost using the existing
infrastructure owned by mobile companies. Something 3G cannot do at a
very low cost. I feel that we need to broaden up our horizons and look
at ICT as more than just people browsing the net. Back in 2008, Mehboob
ul Haq Foundation has written an excellent report on the role and impact
of ICT on human development. This is something that Pakistan needs badly.
My original post was regarding Pakistan skipping the 3G bandwagon (as it
will be too little too late now) and focus on LTE as a cost effective,
reliable and future proof method of delivering services to all of
Pakistan (especially using the digital dividend band). Now whether
people want 4Mbps downloads and whether their declining incomes can let
them afford it is a whole new interesting debate that we can start
separately.
Regards,
Zarrar
I think in case of Wimax/EVDO there is actually a Quality of Service issue which turns people away; pricing is now comparable to DSL. Most Wimax/EVDO users that I know are always complaining about the signal strength and the actual speeds that they can get. My personal experience of EVDO in Islamabad is that most of the time it is worse than dial-up (at least dial-up is stable). If 4G can deliver even half of what it promises to be, it will give DSL a very tough time. I can then see a scenario where all corporate users move to fiber based services and all individual users moving to a RELIABLE mobile technology.
Ahmed
Before further enhancement & availability of technology to end users, need
of time is to segregate the end user. To be defined by the Service providers
as professional, serious & armature users.
In this scenario maximum of spectrum slices and sources can be shared
between the Service providers, for the end users, instead of individual
blocking of the capital for infrastructure development.
The same amount of money can be deployed to expand the service coverage
loop,
Cheers !
----- Original Message -----From: Riaz MarwatSent: Monday, June 07, 2010 10:52 AMSubject: Re: Shall Pakistan go for 3G or skip it altogether!!!
Is the regulator ready for LTE? Has anyone seen them consulting
outsiders to consider LTE?
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well this thread reminds me of a famous quote of Thomas Watson, chairman of IBM, 1943
“I think there is a world market for maybe five computers.” –
I remember there were times in Pakistan when first ISP dial up connection was sold and it we what 14.4 kbps and we were all amazed and then I too remember the times when we used to go PTCL exchanges and were made to wait for hours and hours for a simple 2MB link....and now the total bandwidth of Pakistan runs in multi GBs. so as far as demand is concerned I think there is still a big demand of broadband which is growing...
now coming to one of major issue faced by broadband industry is last mile delivery mechanism which for wireline has all was been a challenge in Pakistan as the incumbent is losing it Fixed line network day by day where as for wireless broadband technology operators are currently held hostage by CPE cost.....
BTW GOP has forecasted "Non-tax revenues to grow by 11.0% with PTA contributing Rs51.0bn on auction of 3G licenses" in the current budget.
P.S. @Zarrar lately USF has started giving subsidiary for broadband too for under privileged areas which in my opinion is killing the industry in it infancy........
First of all, we should get the 100Mbps fact straight. As I mentioned,
100Mbps is the average throughput per site. This is not the capacity
being delivered to each subscriber. Secondly, as a nation we need to
decide if we want to be an connected society. I am not talking about
youtube, facebook or even mail. I mentioned in my earlier post that
Mehboob Ul Haq Foundation made this whole report on the role of ICT on
human development. If at all we decide that we need to be an ICT enabled
society, 2G, 3G, Wimax, Copper, Fiber, DSL, Cable, etc. are all means to
deliver ICT services.
2G is going to die in the next couple of years. I can tell you that
people (vendors and operators) have already stopped talking about it.
Over the next few years, the rollout of 2G services will decline
dramatically. This is a fact and everyone knows that. The operators will
have to upgrade. If the government is really expecting $200Million/per
operator from proceeds if 3G spectrum. They are in for a surprize.
If any one of you have connections in FBR, you can check how much
equipment was imported in the first half of 2010. Almost all the
operators have put a major break on CAPEX investment in Pakistan.
Investment-wise Pakistan is not attractive any more.
I think we really need to come up with long term strategies to improve
the ICT situation as I am not seeing the government do much about it.
Regards,
Zarrar
.
Cost of one 3G node B is average $35,000 for equipment only. MW will be $15,000. Antenna system $10,000. So total cost per site (excluding tower and civil works) is $60,000. Karachi will require 1,100 sites for full deep indoor coverage. Lahore 700 and Pindi/Islamabad 550. So total sites are 2,350 costing $141Million. This is just the price of access equipment. Put another 30 million for core ad misc. So total money required will be around $200,000,000. Add on top of it $200,000,000 for license and another $100 million for misc services and duties. So launching 3 cities will cost half a billion.
Cost of one 3G node B is average $35,000 for equipment only. MW will be $15,000. Antenna system $10,000. So total cost per site (excluding tower and civil
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1. I feel that Pakistan should bypass 3G and go directly to LTE (4G).
2. The reason for that is that our up-gradation cost will be LESS and we
will be able to provide more bandwidth per dollar to the customer (i.e
higher speed at lower cost).
3. If someone has Pentium-1 processor and Pentium-II and Pentium-III are
available at the same cost. One will always go the Pentium-III.
4. 150Mpbs speed for LTE is for the CELLSITE and not on a per customer base.
5. LTE is cheaper than DSL, It is cheaper than Metro Ethernet and it is
Cheaper that FTTH. If the user requirement is less than 2Mbps, User
Uptake is less than 10% of household and existing infrastructure is bad.
6. LTE is better for rural communication. Better than GSM and better
than 3G. (Using the digital dividend band).
7. Government of Pakistan should give the spectrum FREE and provide roll
out targets and go for a beauty contest rather than an auction.
Cheers,
Zarrar
The decision in India to go for 3G licensing was taken in October 2007
and the auction was scheduled for June 2008. The RFI was floated by the
government and the reserve floor price was set (at $250Million). The
cabinet approval was taken at that time and the frequency was cleared,
the technology was cleared as well. This was a decision taken and
formalized in early 2008. Then it kept on delaying due to some legal,
procedural and legislative issues. No operator was even dreaming of LTE
at that time, let alone talking about it.
Now, there are over 63 operator commitments for launch in 2010 alone.
The horizon of 3G is being shrunk and the operators are upgrading to 4G
as it is cheaper and more cost effective. All the operator will try to
use 3G for atleast 7 years as this is the normal depreciation rate for
telecom equipment. And moving to LTE will make better sense.
Now coming to the terminal pricing issue, It is not wise to compare LTE
terminal prices to 2G prices. However, the terminal prices of LTE will
be equal to the terminal prices of 3G by 3Q2011. (Source: Samsung and
Huawei terminal managers. These are the only two companies that are
making LTE terminals).
Cheers,
Zarrar