3GPP Broadband Evolution to IMT-Advanced - 4G Americas

Wireless Data MarketBy June 2010, more than 4.4 billion subscribers were using GSM-HSPA 6 —nearly two-thirds ofthe world’s total 6.8 billion population. 7 By the end of 2014, the global 3G wireless market isexpected to include more than 3.3 billion subscribers of whom 2.7 billion will use 3GPPtechnologies, representing 87% market share. 8 Clearly, GSM-HSPA has established globaldominance. Although voice still constitutes most cellular traffic, wireless data worldwide nowcomprises a significant percentage of average revenue per user (ARPU). In the UnitedStates, wireless data exceeds 30% of ARPU on average and is likely to reach 35% by the endof 2010. 9This section examines trends and deployment, and then provides market data thatdemonstrates the rapid growth of wireless data.Market TrendsAs stated in a Rysavy Research report for the Cellular Telephone Industries Association(CTIA) on mobile broadband spectrum demand,”We are at a unique and pivotal time inhistory, in which technology capability, consumer awareness and comfort with emergingwireless technology and industry innovation are converging to create mass-marketacceptance of mobile broadband.” 10As data constitutes a rising percentage of total cellular traffic, it is essential thatoperators deploy spectrally efficient data technologies that meet customer requirementsfor performance—especially because data applications can demand significantly morenetwork resources than traditional voice services. Operators have a huge investment inspectrum and in their networks; data services must leverage these investments. It is onlya matter of time before today’s more than 4 billion cellular customers start taking fulladvantage of data capabilities. The EDGE/HSPA/LTE evolutionary paths provide datacapabilities that address market needs and deliver ever-higher data throughputs, lowerlatency, and increased spectral efficiency.As a consequence, this rich network and device environment is spawning the availabilityof a wide range of wireless applications and content. Because of its growing size—and itsunassailable potential—application and content developers are making the wirelessmarket a high priority.Based on one leading UMTS-HSPA infrastructure vendor’s statistics, Figure 4 comparesthe rapid growth in wireless data traffic compared to voice traffic across multipleoperators. By the end of 2009, in HSPA coverage areas worldwide, the volume of datatraffic significantly exceeded voice traffic, with data usage actually accelerating.Operators that are the most aggressive with mobile broadband services are experiencingdata growth rates even higher than these average values.6 Source: “World Cellular Information Service,” Informa Telecoms & Media, June 2010.7 Source: US Census Bureau, http://www.census.gov/ipc/www/idb/worldpopinfo.html.8 Source: “World Cellular Information Service,” Informa Telecoms & Media, June 20109 Chetan Sharma, US Wireless Data Market Update - Q1 2010.10 Source: Rysavy Research, “Mobile Broadband Spectrum Demand,” December 2008.Transition to 4G: 3GPP Broadband Evolution to IMT-Advanced, Rysavy Research/3G Americas, Aug 2010 Page 12