Network optimisation the key to LTE success

Whether mobile operator performances have been challenged by difficult economic conditions or competition in saturated markets, their 2010 capital expenditure mix will be based on either network modernisation or new technology rollout. From what we heard at Congress last week, our view is that it is likely to be an 80-20 mix with operators opting for a more cautious approach. While LTE deployment still very much depends on tomorrow's higher spectrum allocation (and its regulations), network infrastructure vendors concerned themselves with discussing how to support mobile operators in optimising their network capacity. Ericsson noted that - even though smartphone users own a small share of an operator's installed base - they use most of the network capacity; around 300-500 MB per month compared to voice users who only dent 10-50 MB per month.

It essentially means that networks have to be modernised to address issues linked to increasing demand in data traffic, demand in quality, cost efficiency and energy efficiency. Modernising and optimising mobile backhaul involves equipment with fewer components and a higher life-cycle from which operators can generate cost savings of up to 30 percent (from legacy cost). Ericsson demonstrated its new solutions such as its microwave-optical hybrid system, while Texas Instruments detailed their focus on power allocation depending on consumption and time of the day to improve power efficiency. Hence, even though Congress was full of latency readers showing the speeds LTE can gloriously achieve on a good day, we know that mobile backhaul was what everyone was secretly discussing in the meeting vaults.

(This article is part of a series of follow-ups on Mobile World Congress 2010 from the GSMA Intelligence team.)