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Spectrum Priorities for Latin America Erasmo Rojas Director Latin America & Caribbean

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Page 1: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Spectrum Priorities

for Latin America

Erasmo Rojas

Director Latin America

& Caribbean

Page 2: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Agenda

• 4G Americas

• Market & Technology Update

• ITU spectrum requirements

• Latin America spectrum analysis

• Conclusions

www.4gamericas.org

Page 3: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

4G Americas Board of Governors

www.4gamericas.org

Page 4: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Global Mobile Traffic:

Voice & Data 2010-2018

Source: Ericsson (Nov 2012)

Mobile Data Traffic will grow 12 times between 2012 and 2018

LTE

HSPA

GSM

TD-SCDMA

CDMA

Other

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Mo

bile

Su

bs

cri

pti

on

s (

Millio

ns)

www.4gamericas.org

Page 5: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Latin America & Caribbean

Wireless Technology Evolution 2000-2012

0

100

200

300

400

500

600

700

800

Mil

lio

ns o

f S

ub

scri

pti

on

s

GSM Analogue CDMA iDEN TDMA W-CDMA

Source: Informa Telecoms & Media, WCIS+ 4Q 2012

12% 16%

19% 23%

31% 43%

54%

66%

78%

87%

96% 106

%

www.4gamericas.org

Page 6: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

Arg

enti

na

Boliv

ia

Braz

il

Chile

Colo

mbi

a

Cost

a Ri

ca

Dom

inic

an R

ep.

Ecua

dor

El S

alva

dor

Gua

tem

ala

Hon

dura

s

Mex

ico

Nic

arag

ua

Pana

ma

Para

guay

Peru

Puer

to R

ico

Uru

guay

Ven

ezue

la

Latin America Mobile Penetration, Dec. 2012

Source: Signals Telecom Consulting www.4gamericas.org

Page 7: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

0 50 100 150 200

Guatemala

Peru

Colombia

Dominican Rep.

Venezuela

Ecuador

Mexico

Argentina

Chile

Brazil

Top 10 Wireless Data Markets in Latin America by 2Q 2013

97%

117% 112%

71%

98%

86%

91%

79%

91%

95%

39%

39%

33%

17%

17%

17%

13%

10%

10%

10%

270 M

27 M

60 M

103 M

17 M

31 M

11 M

43 M

30 M

16 M

% Data % Voice Penetration

Average Latin America penetration: 90% voice and 24% data Subscriptions

Source: Bank of America Merrill Lynch,

Global Wireless Matrix 2Q2013

(Millions)

www.4gamericas.org

Page 8: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Global LTE Status as of June 2013

Source: 4G Americas,

Informa Telecoms & Media, WCIS+ June 2013 Estimates

USA

62 Million

Canada

3 Million Korea

23 Million

Japan

26 Million

Rest of APAC

7 Million

Europe

5.3 Million Rest of World

700 Thousand

Asia

Pacific

56 Million

44%

North America

65 Million

51%

127 Million Subscriptions

Latin America =

316 Thousand Brazil = 174 Thousand

(55%)

www.4gamericas.org

Page 9: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Source: Public Announcements, Regulatory Bodies

LTE in Latin America & Caribbean

Mexico 1700/2100 AWS Movistar Telcel

Brazil 2500-2690 MHz Claro Oi On* Sky Telecom * TIM VIVO

Puerto Rico AT&T 1700/2100 MHz Claro 700 MHz Open Mobile 700 MHz Sprint 850 &1900 MHz

T-Mobile 1700/2100 MHz

Dominican Republic Orange Dominicana1800 MHz Tricom 1900 MHz

Antigua & Barbuda 700 MHz Digicel*

Colombia 2500/2690 Mhz UNE

Bolivia 700 MHz Entel

Chile 2500-2690 MHz Claro

Paraguay Personal 1900 MHz VOX 1700/2100 MHz

Uruguay Antel 1700/2100 MHz

Virgin Islands AT&T 1700/2100 MHz Sprint 1900 MHz

Band (MHz) Networks

2500-2690 8

1700/2100 7

700 4

1900 3

1800 2

850 / 1900 1

*Indicates TDD networks All remaining networks are FDD

25 Commercial Networks in 12 countries

Venezuela Digitel1800 MHz

August 8, 2013

www.4gamericas.org

Page 10: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Current Latin America LTE Spectrum Bands

700

MHz

4 Countries

1700/2100

MHz

9 Countries

2500

MHz

3 Countries

LTE has been launched by 25

operators in 12 Latin American

countries as of September 2, 2013

www.4gamericas.org

Page 11: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Spectrum Demand

The dramatic increase in mobile broadband and

data traffic drives the need for additional

spectrum throughout the Americas region

ITU analysis states that spectrum requirements by 2015

for a single country will range around 1300 MHz

Latin America and the Caribbean governments have

allocated only 20% of this requirement as an average

www.4gamericas.org www.4gamericas.org

Page 12: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Year 2010 2015 2020 2010 2015 2020 2010 2015 2020

Higher market setting 840 880 880 0 420 840 840 1300 1720

Lower market setting 760 800 800 0 500 480 760 1300 1280

Spectum Requirement for

RATG 1 (MHz)

Spectum Requirement for

RATG 2 (MHz)

Total Spectrum Requirement

(MHz)Market Setting

ITU Spectrum Allocation Recommendations

Source: International Telecommunications Union (ITU-R M. 2078) www.4gamericas.org

Page 13: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Latin America’s Allocated Spectrum Bands

Source: Signals Telecom Consulting

Spectrum Band MHz 700 850 900 1700 1800 1900 1700/2100 2100 1900/2100 2300 2500

Argentina - √ - - - √ - - - - -

Bolivia √ √ - - - √ √ - - - -

Brasil - √ √ - √ √ - - √ - √

Chile - √ - - - √ √ - - - √

Colombia - √ - - - √ √ - - - √

Costa Rica - √ - - √ - - √ - - -

Dominican Republic - √ √ √ √ √ - - - - -

Ecuador √ √ - - - √ √ - - - -

El Salvador - √ √ - - √ - - - - -

Guatemala - √ √ - - √ - - - - -

Honduras - √ - - - √ - - - - -

Meico - √ - - - √ √ - - - -

Nicaragua √ √ - - √ √ - - - - -

Panama - √ - - - √ - - - - -

Paraguay - √ - - - √ √ - - - -

Peru - √ √ - - √ √ - - - -

Puerto Rico √ √ √ - - √ √ - - √ -

Uruguay - √ √ - √ √ √ - √ - -

Venezuela - √ √ - √ √ - - - - -

700 1700/2100 2500

www.4gamericas.org

Page 14: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Market

Percentage of ITU

Recommendation

2015 completed

Percentage of ITU

Recommendation

2020 completed

Argentina 14.62% 11.05%

Bolivia 13.85% 10.47%

Brazil 38.65% 29.22%

Chile 30.38% 22.97%

Colombia 31.73% 23.98%

Costa Rica 20.05% 15.15%

Dominican Republic 16.49% 12.47%

Ecuador 13.85% 10.47%

El Salvador 15.69% 11.86%

Guatemala 16.20% 12.24%

Honduras 13.08% 9.88%

Mexico 18.70% 14.13%

Nicaragua 20.15% 15.23%

Panama 10.00% 7.56%

Paraguay 16.92% 12.79%

Peru 23.38% 17.67%

Puerto Rico 25.90% 19.58%

Uruguay 20.77% 15.70%

Venezuela 15.69% 11.86%

Regional Average 19.80% 14.96%

Spectrum Allocated per ITU Recommendation

Source: Signals Telecom Consulting

19.80%

Percentage of ITU

Recommendation

2015 completed

www.4gamericas.org

Page 15: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

0 100 200 300 400 500 600

Ecuador

Argentina

Venezuela

Guatemala

Dominican Rep.

Mexico

Peru

Chile

Colombia

Brazil

Spectrum available (MHz)

Spectrum and Mobile Broadband Adoption

2Q 2013

39%

39%

33%

18%

17%

17%

13%

10%

10%

9%

503

243

204

214.4

304

210.6

412.5

Source: Regulators, Informa Telecoms & Media, WCIS+ June 2013

Mobile

Broadband

Penetration

180

395

190

www.4gamericas.org

Page 16: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

450 MHz Brazil 14 MHz auctioned June 2012 for rural services

700 MHz

Chile 90 MHz to be auctioned second half 2013. Will use APT

option

Brazil Auction planned during 2014

Ecuador 30 MHz directed allocated to state operator. Will use APT

option

Colombia Auction planned during 2014. Will use APT option

Mexico Auction rules to be published in 2014 . Will use APT option

Bolivia LTE in service (December 2012) using USA option

Antigua &

Barbuda LTE TDD in service (November 2012) using USA option

Puerto Rico 5 LTE networks in service (first November 2011) using USA

option

Frequency Band Status September 2013

Low Bands

www.4gamericas.org

Page 17: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Frequency Band Status September 2013 High Bands

1.7/2.1

GHz

(AWS)

Chile 90 MHz auctioned in 2009 to 2 new players

Colombia 90 MHz auctioned in June 2013 (3 blocks of 30 MHz)

Ecuador 40 MHz directed allocated to state operator

Peru 80 MHz auctioned in July 2013 (2 blocks of 40 MHz)

Mexico 60 MHz auctioned in 2010

Uruguay 40 MHz directed allocated to state operator. 20 MHz auctioned in March

2013

Argentina 90 MHz to be auctioned: Date and rules unknown

Uruguay LTE in service end 2011

Mexico LTE in service end 2012

1.8 GHz Dominican Republic LTE in service mid 2012

Venezuela LTE in service August 2013

2.6 GHz

Colombia 50 MHz auctioned in 2010. 100 MHz to be auctioned in June 2013

Brazil 140 MHz FDD + 35 MHZ TDD auctioned in 2012

Chile LTE in service June 2013

Colombia LTE in service mid 2012

Brazil LTE TDD in service end 2011 and LTE FDD in service end 2012

www.4gamericas.org

Page 18: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Issues and Opportunities in

Latin America & Caribbean

• Increasingly restrictive wireless regulations in the

region

• Government initiatives and involvement in creating

national broadband plans

• Average data contribution (VAS) to ARPU: 27% Vs.

43% in North America

• 24% Mobile Broadband penetration : 147 million

subscriptions

• Mobile Broadband penetration increasing and

providing Internet access for the masses

www.4gamericas.org

Page 19: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

As per ITU-R M.2078 requirements for IMT-2000 and IMT-

Advanced by 2015, Latin American markets as an average

have failed to reach at least 50% of the 1300 MHz

recommendation. Only Brazil (38.65%), Chile (30.38%) and

Colombia (31.73%) have allocated more than 30%

Conclusions

In densely populated urban areas, spectrum constraints are

compounded by delays in the authorization of new tower

deployments or deployment of new technologies

Allocation of spectrum to dedicated data channels may allow

mobile operators to offer better mobile broadband throughput

speeds, thus increasing consumer satisfaction as well as

government objectives of expanding broadband coverage in

their markets

It is extremely important for the Americas region to work together

for a harmonized spectrum plan to benefit from the economies

of scale in the ecosystem and LTE mobile broadband roaming

www.4gamericas.org

Page 20: Spectrum Priorities for Latin America - en · Source: Public Announcements, Regulatory Bodies LTE in Latin America & Caribbean Mexico 1700/2100 AWS Movistar Telcel Brazil 2500-2690

Thank You! Obrigado!

Erasmo Rojas

Director, Latin America & Caribbean [email protected]