Posts Tagged ‘mobile broadband’
Ofcom report to Government could fall at first hurdle
In his wireless blog, Mark Heath expresses his concerns at Ofcom’s plans for a statutory report to the UK Government on the UK’s communication infrastructure.
The UK Government’s Digital Economy Act 2010 gave Ofcom a new duty to provide a report to the Secretary of State every three years on the state of the UK’s communications infrastructure. This is long overdue. While I hope that this will become a useful exercise, Ofcom’s recent announcement of its approach gives me some concern.
The new Digital Economy Act requires Ofcom to report on various aspects of networks and services, including coverage, capacity, reliability, resilience and the extent to which networks are shared, or services are made available on a wholesale basis. Ofcom is also required to report on the use of spectrum and to provide international comparisons. Ofcom is due to deliver its first report to the Secretary of State by 7th August 2011.
While there are various sources of information on the services offered by mobile network operators and their pricing, it is almost impossible to find reliable information on aspects such as 3G/HSPA coverage and network capacity. As we have discussed many times in our blog, 3G/HSPA coverage is substantially worse than 2G coverage for all UK operators, and there are major challenges over network capacity, with rapid take-up of smartphones and mobile broadband services. Accurate, independent assessment of coverage and capacity levels could not come at a better time.
Even where information, such as coverage maps, is available from mobile operators, different assumptions made by each operator and inaccuracies of radio planning tools makes an accurate comparison impossible. For example, I have just had to cancel mobile phone contracts with 3 for all members of my family after a dramatic degradation in coverage in my local area and home. Amusingly, I have had several letters and phone calls informing me that the coverage is in fact excellent (no doubt because a radio planning tool says so). If similar errors are accumulated over the entire country then coverage metrics may be highly misleading.
Thankfully, Ofcom has stated that it will not be using coverage data obtained directly from mobile network operators. Instead, it intends to use modelled data available from industry associations, such as the GSMA. This will no doubt keep costs down compared with undertaking its own extensive measurements. However, as the sources of such data, and the assumptions behind them, are not clear, this methodology may be flawed. If the results are not robust, it will not take long for the mobile operators to develop compelling arguments for why they are not valid.
Ofcom is also required to report on the capacity of UK networks and here I have even greater concerns. At present, there is no reliable public information on whether mobile networks have sufficient capacity and whether their services are being affected by a lack of capacity. So, the principle of an independent assessment of network capacity is welcome. However, Ofcom’s discussion on how it will do this is extremely vague and gives me little confidence. For example, Ofcom talks about using network demand as a proxy for network capacity, which is highly confusing.
No doubt we will have to await the first publication, on the 7th August, to see the real extent of these new reports. I hope that this potentially valuable exercise does not fall at the first hurdle.
About the author:
Mark Heath, of telecom consultancy company Unwired Insight, provides in-depth telecom analysis. Mark has authored more than 40 reports in the wireless telecommunications industry.
Wireless blog: Two speed Europe for mobile broadband penetration
Alastair Brydon of Unwired Insight discusses the implications of his analysis of mobile broadband penetration growth across Europe.
As I review our model of the evolving mobile service mix, to help gauge mobile network investment requirements, it is striking that a relatively small number of factors are dominant in driving traffic growth. One of these is smartphone penetration. Not surprisingly, smartphones are widely discussed in the industry, because of continued excitement surrounding Apple’s iPhone, Nokia’s attempts to regain smartphone leadership and the increasing success of Android. However, less widely reported is the continued strong growth in mobile broadband services, using dongles and datacards. Active users of these services can download several GBs per month, which will have a major influence on network traffic levels as the number of users increases.
Across Europe as a whole, the penetration of mobile dongles and data cards continues to increase significantly. By the end of 2009, their penetration stood at 5.2% according to the EU, which is nearly double the corresponding figure of 2.8% at the end of 2008. However, behind these figures lies evidence of a two-speed Europe.
Several countries have experienced extremely rapid growth, and these give us signs of things to come. In Finland, Portugal and Austria, penetration of mobile dongles and data cards exceeded 15% at the end of 2009. Finland reached 17.0%, which was up by nearly 8 percentage points in a year (from 9.1%). No wonder that Finland is ahead of the game with LTE deployment, with TeliaSonera launching its LTE network in May 2010.
Mobile broadband services are having a noticeable impact on fixed broadband services too. Unlike the rest of Europe, which experienced a 1.9 percentage point increase in fixed broadband penetration overall, Finland actually experienced a decline of 1.3 percentage points, from 30.7% at the end of 2008 to 29.4% at the end of 2009.
In contrast with the leading markets, France, Spain and Germany all have lower than average penetration of mobile dongles and datacards.
Alongside marked differences in smartphone penetration between countries, and mobile network operators adopting diverse strategies towards mobile broadband services, this results in a complex picture for mobile network traffic evolution. Some operators will find it difficult to cope with traffic growth, while others will be perfectly comfortable, leading to very different capital investment levels.
About the author:
Dr Alastair Brydon has produced more than 40 reports on wireless telecommunications. He is co-founder of Unwired Insight.
Wireless blog: Mobile broadband pricing will drive 3G traffic
Mobile data pricing for traffic-intensive services is becoming more affordable for consumers, with a proliferation of flat-rate tariffs for smartphones and flat-rate mobile broadband bundles, with generous monthly usage allocations (for example, 5GB or more).
Flat-rate pricing for smartphones is becoming increasingly prevalent, to give mobile users the freedom to access a broadening range of services with their smartphones (such as accessing catch-up TV services).
Consumers are increasingly adopting mobile broadband services instead of fixed broadband services. Flat-rate bundles now represent the most common form of mobile broadband pricing across Europe, with the average bundle being about 4GB (at end of 2008). The trend is for ever-increasing bundles of data, with monthly usage allowances above 10GB not uncommon. Some operators are resisting mobile broadband price decreases by increasing usage allowances, and this trend is set to continue.
There are significant differences in pricing of mobile broadband services between operators and countries, as shown in the table below, which shows examples of current mobile broadband pricing in Europe, where the equivalent price per gigabyte varies by more than a factor of 10.
New-entrant 3G operators, such as 3 in the UK and Play in Poland, have been more proactive with mobile broadband services than many incumbent 3G operators. They have greater capacity per customer and have a strong need to increase market share. For example, Play in Poland only had about 2 million customers in March 2009. In the UK, 3 has a customer base of about a quarter of the size of other UK operators. In March 2009, 3 UK had 5.38 million customers compared with 20.4 million customers for Telefónica O2. Furthermore, 3 has a 50% greater allocation of paired 3G spectrum than incumbent 3G operators Telefónica O2, Orange and T-Mobile. As shown in the table, the cheapest mobile broadband services had an equivalent price of less than USD2 per gigabyte in June 2009.

Mobile broadband service pricing for selected 3G operators, June 2009