Figure : Quarterly Wireless Revenues (1 Jan 2010 to 31 March 2010)

AT&T Reported 29.8% wireless data revenue growth in Q1, 2010. AT&T reported wireless data revenues were up $947 million y-o-y, driven by continued rapid adoption of smartphones and industry leading access to applications. Driven by strong data growth, postpaid subscriber ARPU increased 3.9 percent versus the year-earlier quarter to $61.89.This marked the fifth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $20.13, up 21.9 percent versus the year earlier quarter, and total postpaid subscriber revenues continued recent trends, with solid double-digit growth, reflecting increases in both voice and data.

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>Wireless network initiatives by AT&T to support growing wireless data

Nations largest Wi-Fi Network: AT&T has built the nation’s largest Wi-Fi network, with more than 20,000 AT&T Wi-Fi Hot Spots in the U.S. and access to more than 125,000 hotspots around the globe. AT&T’s 3G network covers 80% of the US population and it has embarked and aggressive plan to further enhance its mobile network capabilities. The

AT&T announced their 4G partners to build LTE network. AT&T has announced their plans to build LTE network and contracted Alcatel Lucent and Ericsson as their LTE equipment suppliers. However the operator believes that LTE has its own time to come and may not be ready for a large scale deployment in near future. The operator is adopting a middle strategy to upgrade their current network to HSPA+ and LTE later.

HSPA as a short term strategy for immediate delivery: In January AT&T deployed HSPA 7.2 software nationwide. The company is now deploying additional backhaul connections to cell towers to support HSPA 7.2 and future LTE deployments.

These software and backhaul upgrades are expected to double the theoretical peak speeds of AT&T’s 3G network, although actual speeds will be less depending on location and environment. By the end of 2010, the company expects the majority of its mobile data traffic will be carried over the expanded fiber-based HSPA 7.2 and LTE-capable backhaul. AT&T offers 10 HSPA 7.2-compatible devices today, with millions of customers already using them.

>Wireless Innovation and driving data growth with application and devices

Introduction of tiered and flexible charging for data: AT&T introduced new wireless data plans that make the benefits of the mobile Internet more affordable for their consumers. Plans start at a lower price point and allow customers to migrate up as their data needs grow. Customers can pick the new data plan that best meets their needs — either a $15 per month entry plan (DataPlus) or a $25 per month plan (Data Pro) with 10 times more data.

Android based smart phones: AT&T Launched its first device on the Android platform, the Motorola BACKFLIP which offers AT&T customers a new way to connect to their favorite people, content and applications. AT&T announced the upcoming launch of the Dell Aero, which will be Dell’s first smartphone available in the U.S. and it will feature a new, custom user interface and with android OS.

Launch of new mobile data dongles supporting HSPA: Last quarter AT&T launched two new USB dongles capable of supporting HSPA and it come with inbuilt GPS. The built-in GPS functionality opens the door to location-based applications, making it easier than ever for customers to get to their desired destination.

Introduction of home femtocells: Announced national rollout plans for AT&T 3G MicroCell, which allows residential customers to route wireless phone calls and data connections across a home broadband connection.

Launch of Apple Ipad : Apple and AT&T announced breakthrough 3G prepaid data plans for iPad, with easy, on-device activation and management. The iconic device supports 3G and Wi-Fi access networks. AT&T offers a 250 MB plan for 14.95$ and 2 GB plan for $25.00.

In the recent years, the ARPU from voice service has been declining due to the factors of discounted services and shorter phone calls. DOCOMO has seen downward trend in aggregate ARPU and is planning to offset this by taking steps to increase packet ARPU. In FY 2010, the ARPU from packet service is expected to surpass voice ARPU. To strengthen packet based services and reverse downtrend of aggregate ARPU, DoCoMo is planning to promote usage of flat-rate service. In FY 2009, the revenues from voice declined 12.9% year-on-year and aggregate ARPU declined 6.3% year-on-year. Packet revenue grew 2.9% year-on year and expected to surpass voice ARPU in FY, 2010. DOCOMO is aiming to increase packet ARPU by 4.5% in FY 2010.

In FY 2010, revenue from data is expected to reach $ 29.30 surpassing voice ARPU of 29.10.

Initiatives to strengthen Data Services by introduction of Flat Rate Service: DoCoMo has taken initiatives to expand its packet usage to offset declining Voice ARPU by promoting monthly flat rate services like i-mode. I-mode packet service allows monthly flat rate which varies in accordance with monthly usage. The operator in July 2009, as well introduced a flat rate data plan for data cards to enhance its data services. It aims to increase packet flat rate subscription by more than 6 million to reach 31.70 million subscriptions in FY10, i.e. 63% of total consumers.

Promote packet communications by enhanced services and content: DoCoMo is working to expand its lineup services and content. The operator will take steps to expand subscriptions and usage among a broad range of customers by expanding to areas closely linked to lifestyles, such as tourism and health care. Mobile phone usage is expanding rapidly with the availability of higher speed networks and more advanced handsets, but most of the video content that is available for handsets user is not optimized to smaller screens. DOCOMO is moving ahead with development of content that suits well for mobile phones and smaller screens ( about 3 to 4 inch). BeeTV launched in May, 2009 was one of those initiatives. DOCOMO is developing handsets functions which would be more suitable for replaying videos and other contents by introducing inline Flash.

Promote smart phone adoptions to strengthen data services. The market strategy of promoting smart phones with advanced functions rivaling those of mobile PC’s, such as general purpose operating systems, Internet connections capabilities, schedule managers, and personnel information management, as well as PC data cards, is positioned as an important part of efforts to expand packet ARPU. DOCOMO, principally targeting enterprise demand to strengthen its promotion of smart phones and data cards for PCs.

Initiatives of more advanced networks by introducing LTE: In 2009, DOCOMO introduced HSUPA services, which has the capability to deliver maximum uplink transmission rate of 5.7 Mbps . DOCOMO plans to launch LTE based services in December 2010. It aims to install nearly 1000 Base Station in FY 2010. The rollout will be progressive with high demand areas (Tokyo, Osaka, Nagoya) will be covered first using an overlay approach with existing 3G areas. Downlink speeds up to 37.5 Mbps will be offered at the time of launch. DOCOMO plans to introduce data devices first and smart phones are scheduled in 2011.

In FY 2010, DOCOMO will Launch LTE in high demand areas (Tokyo, Osaka and Nagoya). It aims to install 1000 Base Stations in FY 2010

Verizon’s LTE Plans on track, all set to launch services in November 2010. Verizon is all set to launch LTE in 25-30 markets before year end (Boston and Seattle by 15^th , November) , covering about 100m citizens.  It is expected that operator will launch 4G iphone in Q1, 2011. Verizon and AT& T now controls over 69% of US mobile data market and  has seen biggest jump in data revenues along with Softbank, AT&T and DoCoMo(11%) in first Half 2010.

AT&T announced their 4G partners to build LTE network. AT&T announced their plans to build LTE network, and contracted Alcatel Lucent and Ericsson as their LTE equipment suppliers.  However the operator believes that LTE has its own time to come and may not be ready for a large scale deployment in near future. The operator is adopting a middle strategy to upgrade their current network to HSPA+ and LTE later.

T-Mobile all set with HSPA+ to answer immediate data demand. T-Mobile has rolled out HSPA+ services in more than 25 major metropolitan areas in last four month’s time to extend its 3G networks which will support 21 Mbps peak data rates. Their new HSPA+ network covers 75 million populations, and plans to cover 185 million people by the end of this year.

Clearwire has been expanding the network so fast that it has become the biggest construction company in the US. Clearwire strives to reach 2 Million customers by end of 2010. The network is now available in 44 markets in US covering over 50 million people. Things will get really interesting later in 2010 when Clearwire and Sprint take their 4G mobile broadband network to New York City, Los Angeles, Boston, Denver, Minneapolis, the San Francisco Bay Area, Miami, Cincinnati, Cleveland and Pittsburgh for a 120 million person strong data footprint.

Reliance Industry marked its entry in telecom with nationwide BWA spectrum in India, after completion of five years agreement with younger brother. The operator paid close to $2.6 billion to win 2.3 GHz ( 20 MHz) nationwide spectrum in the country.

Qualcomm pumped $1 billion to protect TD-LTE: Qualcomm won 2.3 (20 MHz) GHz spectrum in four telecom circles of India in the recently held BWA spectrum auctions. Qualcomm’s final bid was INR 4912.54 crore or approximately USD 1.045 billion.

The Battle of LTE and WIMAX is fierce in India after auctions: Qualcomm protected entry of WiMAX in India by winning four circles and all the other players like Aircell ,Bharti, Augere and Tikona is watching Reliance controlled Infotel’s move for BWA technology choice.

Infotel holds the future of WiMAX in India. The WiMAX camp spearheaded by Samsung, Hauwei and ZTE is convincing Infotel for immediate WiMAX deployment to enter market in similar timelines as 3G. Their strategy is not impending from the fact that they do not have a LTE roadmap, but rather their eagerness to enter the agreement with Infotel and secure their mobile data business and do away with competition from Ericsson, ALU and Nokia.  Ericsson, Nokia , ALU and Qualcomm is taking every possible step to avoid WiMAX deployment in India.

LTE TDD Devices Availability for Indian BWA Operators: Our research indicates that the commercial availability of TD-LTE chipsets will start as early as Q3, 2010 by handful of suppliers and majority would be ready by Q1-2011 or later. Most reasonably it will at least take three to six months for ODM’s to supply finished products.  Expect first commercial shipment of TD-LTE chipsets after Q2/Q3-2011.

Teliasonera became world’s first operator to launch LTE network. Teliasonera launched two commercial markets last year covering about 400,000 people in the two countries’ capitals, Oslo and Stockholm. TeliaSonera has nationwide 4G/LTE licenses in Sweden, Norway, Finland and Denmark. During the first half year 2010, TeliaSonera has also opened up 4G for pilot customers in Finland, Denmark, Lithuania, Estonia and Latvia.

NTT DOCOMO LTE Plans on track, all set to launch services in December 2010: NTT DoCoMo has been at the cutting edge of the mobile data evolution by creating new markets and it is aiming to launch its LTE service in December 2010. DoCoMo plans to invest in the region somewhere around JPY343 billion in its new LTE network. The operator has indicated installation of 20,700 Base Station covering 51.10% of area by 2014. It strives to acquire massive 17.7 Million consumers in their new 4G network by 2014.

KDDI announced LTE plans and contracted Motorola and NEC to supply LTE equipment. KDDI Corp. has awarded contracts to Motorola and NEC Corp for the supply of base stations and ancillary equipment to build its next generation long term evolution (LTE) network. KDDI announced its plan stating investment of 515 Billion Yen in new LTE Network which will start in November 2011 and likely to reach full coverage by 2012. The operator has indicated installation of 29,361 Base Station covering 96.5% of area by 2014. It strives to acquire 9.84 Million consumers in their new 4G network by 2014.

UQ WIMAX growing steadily, 7000 base stations live on air. UQ Communications is already ahead of its deployment schedule as compared to LTE, and plans to cover 55% of the Japanese population (most major cities) by the end of March 2010, with the goal of covering more than 90% of the Japanese population by FY2012.

Softbank of Japan looks set to be the first major operator (outside of Philippines) with more revenues coming from data services than voice. Softbank is upgrading its 3G networks to support 42 Mbps Dual Carrier HSPA to cater its rapidly growing data business.  Softbank plans to invest in the region somewhere around JPY207.3 billion in its new LTE network.  The operator has indicated installation of 9,000 LTE Base Station covering 60.63% of the area by 2014. It strives to acquire 5.41 Million consumers in their new 4G network by 2014.

LTE-Advanced & IEEE 802.16m WiMAX both officially selected as 4G standard by ITU . LTE-Advanced and IEEE 802.16m WiMAX satisfied the ITU requirements as 4G standard, effectively being selected as the ITU 4G standards during ITU-R WP5D meeting which was held from June 9 through 16 in Vietnam

Korea Telecom plans LTE in 2011, it continues to expand WiBRO in five metropolitans and plans 27,000 WiFi Hotspots by September 2010. KT announced plans in May 2010 that it will work with electronic giants such as Samsung and LG-Ericsson for a high-speed LTE network. Investment for the LTE network could start in 2011 .

New investments are expected in Korea to promote WiBRO Adoption. KT to expand WiBRO in five metropolitans markets and established a joint venture with Samsung and Intel to promote WiBRO.

CMCC begins LTE trials with Shanghai expo, but for all practical purpose may only start large scale LTE deployment in 2012. CMCC kicked of TD-LTE network with shanghai expo. Motorola, ALU, Huawei, Sequans, ALU, ST Ericsson, ZTE , Nokia and Ericsson is testing their equipment.

CMCC rolled out 108,000 TD-SCDMA base stations and acquired 7.69 million 3G subscribers.   China Mobile set up 108,000 base stations in total, with a combined investment of over CNY90 billion (USD13.16 billion) by the end of March 2010 claimed 7.69 million 3G subscribers, from its total user base of 780 million.

Download Report : Global 4G operator update 1H-2010