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Table of Contents
Table of Figures
Executive Summary 03
Wireless Broadband Landscape 04
Present Wireless Broadband Ecosystem 05
Adoption of WiMAX/LTE 06
Need for Convergence 06
Are WiMAX and LTE really moving towards convergence? 07
How can WiMAX and LTE complement each other? 08
Operator Perspective 08
Implications for Operators 09
Conclusion 10
Figure 1: Mobile Crossover 03
Figure 2: WiMAX Vs LTE 04
Figure 3: Wireless Broadband Ecosystem 05
Figure 4: 4G Subscribers Forecast 06
Figure 5: Advantages of Convergence 06
Figure 6: Growing Support for Convergence 07
Figure 7: Similarities 07
Executive SummaryIn an increasingly interconnected world, consumers demand
high speed communication, ease of access and flexibility. This has
spawned off next generation networking technologies that offer
anytime, anywhere, any device access to web/data and provide better
communication capabilities. In fact, digital convergence, an outcome of
this technology evolution, is revolutionizing the way data is delivered
and consumed. However, the challenge here is to track evolving
consumer demands and meet the expectations for faster and more
sophisticated capabilities.
Fourth Generation (4G) wireless networks are set to transform the
telecom sector with their promise of providing greater speed and
handling higher volumes – a priority for most enterprises today. Long
Term Evolution (LTE) and Worldwide Interoperability for Microwave
Access (WiMAX) are the two wireless broadband technologies poised
to dominate next generation networks. These technologies were
developed in response to market demand for interoperability across
networks and integration of earlier wireless network technologies.
Earlier perceived as competing technologies, LTE and WiMAX
are increasingly viewed as capable of complementing each other.
Therefore, an appropriate question today is how much and how soon
they will converge.
This paper explores the need for convergence of LTE and WiMAX,
factors driving it, stakeholder efforts underway to actualize it and the
best strategy operators can adopt to capitalize on this union. The
paper ends with recommendations for operators on the path to take,
the high potential sectors and applications for 4G networks and a
study of emerging markets from this perspective.
03
Convergence of LTE & WiMAX
Source: OVUM
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02006 2007 2008 2009 2010 2011 2012
Fixed Broadband
Mobile Broadband
The Mobile Crossover!
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Figure 1: Mobile Crossover
04
Much has been written about the exacting requirements in a
highly connected world and changes triggered subsequently in
the communications network landscape. Some of the key changes
witnessed are:
• High demand for wireless multimedia services such as data, voice
and video has ensured widespread growth of broadband wireless
networks. This is further spurred by advancements in standards
and technologies. The growth of wireless broadband networks is
expected to gradually outpace Asymmetric Digital Subscriber Line
(ADSL) connections.
• Mobile operators today are addressing exponential growth in traffic
with the help of packet evaluation for Third Generation (3G) and all
Internet Protocol (IP) from 4G.
While 3G technology delivers much higher bitrates, there is still a need
for wireless operators to address the growing demand for “wireless
broadband”, lower latency and multi-megabit throughput. Consequently,
this spells out a new revenue opportunity from a growing pool of
untapped consumers, enterprises and retail businesses that can only
be satisfied with next generation networks, i.e 4G. LTE and WiMAX
are enhanced versions of high-speed 3G wireless networks and are
considered to be 4th generation technologies.
The wireless broadband ecosystem comprising of equipment
manufacturers, operators, developer and users, drives a positively
correlated cycle attracting new users and increasing usage of
broadband services.
Wireless Broadband Landscape
Equipment vendors and handset manufacturers
Vodafone, Ericsson, Siemens
ISVsIntel, Cisco, Google
3GPP IETF
Figure 2: WiMAX Vs LTE
LTE WiMAX
Backed by
Community backing
Recent data from mobile service providers shows that the growth of packet data has surpassed voice data
05
Network Operators• Fast & reliable
networks
Innovators and developers• Compelling content
and applications
Equipment manufacturers• More capable and
powerful devices
End Users• New online users• Increased use by
existing users
Present Wireless Broadband Ecosystem
The wireless broadband ecosystem comprising of equipment
manufacturers, operators, developer and users, drives a positively
correlated cycle attracting more new users and increasing usage of
broadband services.
Some of the key trends that are altering the wireless broadband
ecosystem and reinforcing the case for LTE and WiMAX adoption are:
1. Commoditization of voice services combined with the proliferation
of technologies such as VoIP and universal WiFi is leading to declining
voice revenues. Network connectivity and data transmission/
services are expected to boost data revenues. Mobile video will
generate much of the mobile traffic growth through 2015. It is
estimated that 66.4 percentage of the mobile network traffic will
be video traffic by 2015.
2. Laptops, notebooks, smart devices and smart phones will continue
to lead mobile data traffic growth. New device categories such as
M2M and tablets will begin to account for a significant portion of
the traffic by 2015.
3. CDMA as a technology can migrate seamlessly to LTE. Therefore,
leading CDMA players would be in the best position to launch LTE
based services before anyone else.
4. It is predicted that wireless broadband connections will account
for 43% of the total broadband market by 2015. A technology-wise
break-up is shown in the graph here.
Source: Cisco VNI Mobile 2011
Source: Cisco VNI Mobile 2011
Source: Wireless Intelligence
VoIPtrafficforecastedtobe0.4%ofallmobiledatatrafficin2015.
Figure 3: Wireless Broadband Ecosystem
06
Adoption of WiMAX/LTE
Given the various propelling factors discussed earlier, WiMAX and LTE
networks are fast gaining momentum across the world. Large operators
are launching commercial services using these technologies. Europe is
mostly LTE-centric. On the other hand, there is an increasing demand
for WiMAX in Taiwan and in many emerging countries, especially the
Middle East, Africa, and India.
Need for Convergence
While LTE and WiMAX exist independently today, there is a valid case
for converging them. The union of the two technologies is expected
to allow operators the flexibility to deploy multi-mode networks
according to different scenarios.
In essence, a converged WiMAX/LTE solution is desirable to operators
as it will enable them to take advantage of the relative strengths of each
technology while downplaying its weakness.
High throughput
Greater coverage
Low latencyBest of both worlds
WiMAX for true mobile broadband experience and LTE for Voice
Increase opportunities
Reduce the multi-technology deployment risk
Protect operators’ investments
Select the most suitable solution and technology for each situation
Allows to meet data needs while protecting QoS of voice network; no excessive operational expenses
Consider more variables such as environment topography
High speed of connectivity
Plug and play
Multi-functionality
FDD and TDD on the same platform
Better equipped to handle data with larger
packet sizes
Improved end-user experience & easier
voice transport
Simple architecture resulting in low operating costs
LTE advantages Advantages of convergence
WiMAX advantages
WiMAX still enjoys a slight edge for now as LTE is relatively new.
However, it is expected that the adoption of LTE will surpass it
sometime next year mainly because LTE is backward compatible
with existing GSM and HSPA networks. This allows mobile operators
deploying LTE to continue to provide a seamless service across LTE
and existing deployed networks.
Figure 4: 4G Subscribers Forecast
Figure 5: Advantages of Convergence
07
Are WiMAX and LTE really moving towards convergence?
WiMAX and LTE are expected to converge on several levels as they
have many common characteristics and deliver similar performances. In
addition, several stakeholders are taking steps to accelerate this union.
Initially, these and other wireless networks will converge in devices
on a service level through multi-mode device integration, which
are expected to be much simpler and more effective in supporting
seamless handoff of sessions. It is believed that both WiMAX and LTE
will co-exist in certain regions, and that operators will use WiMAX for
one set of applications and LTE for another.
Strong Support from the Ecosystem for Convergence
Figure 6: Growing Support for Convergence Figure 7 : Similarities
Industry alliances and supply relationships • Intel and Nokia; Ericsson
and Sprint; the IEEE, 3GPP and other SSOs; and common proposals by WiMAX and LTE vendors for IMT-Advanced
Moving from Nokia’s Flexi tosoftware-definedradioplatforms that will support both WiMAX and LTE development• Nortel, Alcatel, Alvarion,
and Motorola
Baseband and integrated chip suppliers are supplying commercially available ICs and board level products that combine WiMAX and LTE• Broadcom, Beceem
Standards• ETF - new internet
protocols are well suited for wireless inter-technology applications
• TheIEEE802.21- access-network-independent abstraction of inter-technology handover that could be used with any pair of access network types
Telecom equipment vendors are offering RF base stations that are software upgradeabletoother4Gtechnologies such as LTE• Motorola
Orthogonal Frequency Division Multiplex (OFDM) signalling
Similar architecture and common gateways
Data driven services
This is the most important similarity between LTE and WiMAX
This commonality enables IPTV, VoIP, and other IP/SIP communications
Both WiMAX and LTE are data-driven services and rely on a VoIP style connection rather than a voice network
These commonalities and developments make the merger of WiMAX
and LTE a certainty in the near future. As the rollout of LTE begins, base
stations, handsets, and CPE equipment will be built using baseband and
RF devices that support WiMAX and LTE.
Much of the technology used for LTE is similar to that chosen for
WiMAX even though they have both evolved from two different
standards, i.e 3GPP and IEEE802.16 respectively:
08
How can WiMAX and LTE complement each other?
Overlaying a LTE network to complement existing WiMAX networks
will allow bundling of services and dual-mode devices. This will help
increase an operator’s subscriber base. Achieving this is not difficult
because:
• An LTE overlay on WiMAX would not require additional towers
• The wired network infrastructure is mostly common between
systems and network management, back-office accounting,
operations and billing
• Other functions will also be common (operator dependent)
Until LTE is rolled out, WiMAX will deliver data for 3G networks where
3G’s speeds are inadequate, while the cellular network continues to
handle voice. It is thus easy to see why and how the two technologies
could coexist in the near future and provide valuable high-speed
services to their mutual customers.
Although they offer similar standards, WiMAX and LTE require
different technology to be deployed and this comes with its own set
of challenges such as:
• Operators are likely to run up significant costs
• Manufacturing cost – effective dual-radio handsets capable of
supporting a convergent solution
• Phone and chipset manufacturers would have to develop
products with the capability of supporting both technologies at
a reasonable cost
• Taking a decision on the timing and modalities of migrating device
markets to multi-mode capabilities
However, some progress has been made on this front with Huawei
already launching multiple convergent LTE/WiMAX offerings. The
operators’ thoughts on the convergence of the two technologies and
the options available follow.
First major operator support - Sprint Nextel Corp’s “Network Vision” plan which supports the LTE and WiMAX convergence
Operator Perspective
Operators believe that convergent end-to-end solutions can avoid the
risks of technology choice and network evolution, maximize the value of
key assets, release the pressure from increase of mobile broadband traffic
and help realize business success. The WiMAX/LTE network decision
will be less complex if multimode devices are available and there is a
migration path for the operator. The decision process may still be unclear,
but it gives them the flexibility, so that it does not matter so much.
Initially, since LTE focused more on frequency division duplexing (FDD)
spectrum and WiMAX on time division multiplexing (TDD) spectrum,
their parallel existence seemed suitable to meet the market demand.
However, two developments have changed this, forcing WiMAX
operators to reexamine their long term plans for WiMAX:
1. The increasing support for a TDD-version of LTE, known as time-
division LTE (TD-LTE), thereby competing with WiMAX directly.
2. A powerful LTE ecosystem with a greater choice of subscriber
devices and competitive equipment prices is rapidly emerging,
driven by a growing market and increasing commitment from most
tier-one mobile operators.
Most WiMAX operators today are therefore exploring the
opportunities that LTE offers—either as a complementary technology
or as an alternative to WiMAX.
With more reliable convergent mobile broadband networks and
increased adoption of multi-mode devices, the industry is likely to
switch to a combined WiMAX- LTE network. The main issue remains
the financial difficulty of hosting these two different wireless standards
and the sufficiency of resources to support both networks.
09
Implications for Operators
Operators are in an excellent position to leverage the combined
power of today’s widely deployed WiMAX and emerging LTE
standards to deliver anywhere, anytime wireless broadband
communications bolstered by a sound ecosystem and economies of
scale. A convergent WiMAX/LTE approach improves flexibility as well
as the bottom-line while allowing operators to migrate seamlessly to
future technologies and protect their investment.
However, despite the success of recent operator trials, a commercially
viable TD-LTE ecosystem is still several years away. Therefore, the two
most important factors for operators planning to deploy WiMAX or
TD-LTE, are their business model and the timing of implementation.
• For existing WiMAX operators: Continuing on the same path while
incorporating new upcoming features from enhanced versions and
ensuring continuity of service is likely to be a successful strategy.
This is most appropriate for operators who own 3.5GHz spectrum
since it is not well suited for complete mobility and does not have
defined TD-LTE spectrum profiles yet.
• For new operators: For those with plans to deploy immediately or
over the next two years, WiMAX is the best option. The chief reason
is that the WiMAX ecosystem is well established with low/declining
costs of infrastructure and devices. This will hold true in cases
where mobility is not a primary factor. Where mobility is important,
TD-LTE may be the better option to pursue than WiMAX.
Conclusion
It can be concluded that only the combined power of WiMAX and LTE will be able to handle the growing demand for broadband services. Each of
these technologies comes with its own strengths that are further enhanced by strong independent ecosystems. Hence, the way forward for those
interested in developing their 4G footprint, is to look at how these two technologies can converge and how the combined capabilities can be best
capitalized on. To maximize revenue, vendors must be flexible and deliver cost-effective solutions today that can scale to support a mix of WiMAX and
LTE tomorrow. The LTE market is expected to be at least five times the size of the WiMAX market in the coming years, and vendors cannot afford
to miss this opportunity.
10
About Wipro Infotech
Wipro Infotech, the India, Middle East and Africa business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing
company, that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience
and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognized globally for its
comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro’s IT
business has over 130,000 employees and clients across 54 countries.
About Wipro Consulting Services
Wipro Consulting Services (WCS) is a division of the Wipro Ltd (NYSE: WIT), a $7 billion enterprise that employs around 136,734 employees across
the globe. WCS offers Business Advisory, IT Consulting and Risk and Compliance services designed to improve business performance, drive operational
efficiency and maximize ROI. With 1350+ consultants based in Western Europe, North America, India, Asia Pacific and the Middle East, our integrated
Consulting, IT, BPO and Product Engineering services combine the benefits of expert proximity, with global leverage to provide technology edge and
speed to your strategic programs.
This whitepaper was authored by Padman Kumar, Senior Manager - Business Transformation Practice, at Wipro Consulting Services. He is based in Bangalore and can be reached at [email protected]
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