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Will LTE be the Death of the Landline. ACE School - 2012 Ft. Worth, Texas May 7, 2006 By Donn Swedenburg dswedenburg@rvwinc.com RVW, Inc. (402)564-2876. Introduction. Rapidly changing technology continues to impact our industry.
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Will LTE be the Death of the Landline ACE School - 2012 Ft. Worth, Texas May 7, 2006 By Donn Swedenburg dswedenburg@rvwinc.com RVW, Inc. (402)564-2876
Introduction • Rapidly changing technology continues to impact our industry. • The rapid emergence of Long Term Evolution (LTE) 4G represents a formidable technology & one more technology “game changer”. • Technology advancement has always altered the way people do things. ACE School - 2012
Presentation Goals • Briefly examine industry statistics & trends. • Illustrate the rapid emergence of LTE. • Identify current barriers to LTE deployment. • Conclude with a summary of the issues and opportunities. ACE School - 2012
By the numbers • Total landlines peaked in 2000. • Approximately 188 million lines in 2000. • Since then, landlines have decreased 1 – 2% yearly, the 2008 total landline count was approximately 123 million lines. • From 2007 to 2009, the percentage of households with landline service only has declined from 23.8% to 14.9%. ACE School - 2012
By the numbers • Percentage of “wireless only” households has increased from 13.6% to 32% from 2007 to 2011. • These numbers driven by wireless consumer preferences for convenience & mobility and the popularity of certain handset. ACE School - 2012
Why LTE? • The 3GPP LTE standards body moved the fastest. • Established profiles in many frequencies including 700 MHz. • LTE supports much higher data rates than 3G technologies. • The future is about broadband data. ACE School - 2012
Industry LTE Acceptance • In 2010, 3 of 10 wireless companies polled utilized LTE technology. • In 2011, it reversed - 7 of 10 wireless companies polled utilized LTE technology in their networks. • Today, data is king & speed is the driver. • 700 MHz spectrum auctioned in 2002 & 2009 had a compelling technology to utilize it. ACE School - 2012
Industry LTE Acceptance • LTE’s all IP design facilitates higher speed data rates • It is not unusual for speed tests of lightly loaded 4G LTE to run at 10 – 15 Mbps downstream and 2 - 5 Mbps upstream. • The latency target for LTE is 25 ms., but for existing network configurations, 75 - 100 ms. Is not unusual today • Voice services still operating on the 3G network. ACE School - 2012
Industry LTE Acceptance • Rapid industry LTE acceptance energized the CPE manufacturing community. • Multiple devices already available including PC dongles, MiFi type devices, fixed indoor and outdoor CPE. • Multiple vendors like BandRich and Ericsson developing devices for various Band Classes. • The VoLTE (Voice over LTE) standard and hardware not finalized yet, but on the way. ACE School - 2012
The Weak Links • Wireless technology requires spectrum. Wireless broadband requires lots of it. • The amount of spectrum available for deployment is still somewhat limited. • The FCC has promised more spectrum for auction, but nothing is scheduled. • Wireless broadband technology requires broadband backhaul networks. • Proportions of various applications will affect spectrum required and backhaul capcity. ACE School - 2012
Conclusions • Erosion of voice landlines will continue. • The voice network will not disappear, but will undoubtedly evolve. • LTE will become a major force in delivering telecommunications services • Given enough spectrum and backhaul capacity, expect the wireless providers to begin competing in the fixed broadband market. ACE School - 2012
Conclusions • The emergence of LTE as the technology of choice in wireless can also be a revenue opportunity. • If you have spectrum, it could provide a ground floor opportunity to enter the wireless market for either high mobility or fixed wireless services. • National carriers will undoubtedly need your networks to provide backhaul. ACE School - 2012
References • PwC Communications, Changes & trends in the North American wireless industry, March, 2012. • FCC Wireline Competition Service Bureau, Trends in Telephone Service, 2010. • CNN Money, Are landlines doomed?, April 10, 2012. ACE School - 2012