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WHITE PAPER




LTE - the Other 4G - and its Impact on Enterprise IT




Corporate Headquarters           +1 650-232-4100
iPass Inc.                       +1 650-232-4111 fx
3800 Bridge Parkway              www.ipass.com
Redwood Shores, CA 94065


LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.
Table of Contents

Abstract	3

Introduction	3

The current mobile broadband scene	                                               3

Long term evolution of universal terrestrial
radio access network	                                                             4

LTE network overview	                                                             5

The reasons operators like LTE	                                                   6

The pretender to the throne – HSPA+	                                              7

The Future of 4G	                                                                 8

So should you move to a 4G network? 	                                             8

What to consider	                                                                 9

About iPass	                                                                    10

References	10

Glossary	11




LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.   2
What is 4G and the Impact on Enterprise IT

Abstract                                                                                 This paper will discuss the move to 4G, in terms of LTE,
WiMAX, LTE, HSPA+, DC-HSPA, 4G, 3G. If this alpha- nu-                                   and the implications on enterprises making mobile
meric soup is somewhat overwhelming, then you are                                        broadband decisions in the near term. Even with the
probably not alone. Most people who are not part of                                      highly touted 4G appearing in markets, there are still
the industry find the rapidly evolving mobile broadband                                  commercial and technical data constraints, particularly
market quite daunting. Not only is it influencing the way                                as networks are pieced together to form enterprise
people work, it is impacting the corporate IT strategies                                 mobility solutions.
you had carefully put together 2-3 years ago. This year
                                                                                         The current mobile broadband scene
alone there will be over 300 new mobile broadband de-
vices launched: laptop USB cards, smartphones and tab-                                   Currently if you have a mobile broadband card or
lets. Already 100 new LTE devices have been announced                                    smartphone, then you are probably using a 3G or in
for 2011. In this whitepaper we take a look at two 4G                                    some cases, a 2G network. Most likely this network is
technologies that will need to be considered as you plan                                 one of the types listed in Figure 1. In these cases the
for the coming decade: LTE and HSPA+. Hopefully mak-                                     data rates available just about satisfy the application
ing the alpha-numeric soup more digestible.                                              requirements on a laptop and are more than adequate
                                                                                         for all current smartphones. The delivery of vanilla
Introduction                                                                             email is easily addressed by 2G technologies; it does
To paraphrase a now very famous movie… In a world                                        not need to be real time.
far, far away, we have heard of 4G. Well now that world
is far closer than you may think. For the last five or so
years, industry leaders have been telling us that 4G is
just around the corner. In the last few months, we have
had a plethora of announcements about LTE from Me-
troPCS1 , Verizon2, etc. So it now appears appropriate to
take a look at the new incumbent to the 4G crown – LTE.
Much has been written about WiMAX (Worldwide
Interoperability for Microwave Access) in previous
literature, and it is not the intention of this whitepaper
to rehash any of those discussions. The purpose here
is to present LTE in a format that is easily understood
and can be used to supplement the decision process
on mobile broadband data options going forward. The
next 12-18 months are going to be a very dynamic time
in the mobile broadband arena and setting a 2 or 3 year
strategy could be quite challenging.
In addition to LTE, we also discuss another alternative,
HSPA+, which might be more readily and quickly avail-
able in some markets. Although LTE is strong in some
areas, the European market is only now starting to get                                   Figure 1: Evolution of the mobile data market

into motion to auction off the desired frequencies that                                  If you want near real time access for web browsing or
are optimum for LTE – with lower frequencies being                                       more serious streaming applications, then you have
better, in the case of LTE. For some, the HSPA+ route                                    probably already moved onto the higher data rate 3G
might be a very reasonable stop gap measure until LTE                                    networks, in an attempt to overcome latency issues.
becomes more readily available.                                                          However if you are contemplating using the enterprise

LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                             3
cloud while on the move, then most of the current                                        Long term evolution of universal terrestrial
mobile broadband technologies will not easily support                                    radio access network
that aspiration. To effectively deploy a mobile enterprise                               Although the heading may seem daunting this is just
cloud, higher data rates and lower delays are required,                                  the full name for LTE. As a user of mobile broadband
otherwise the user experience is so bad that no one re-                                  you have been assailed with the term “4G” for at least
alistically wants to use the applications. With the advent                               the last 5 years. Initially all the emphasis was on the
of 4G networks, and in particular LTE, the path to the                                   IEEE standard known as WiMAX, at least in North
fully mobile enterprise may at last become a reality.                                    America. Sprint was one of the first to introduce a 4G3
Although most people focus on data rates as THE                                          claim into its promotional advertising when it decided to
measure of performance, there are quite a few other                                      go with WiMAX as its broadband path.
data network features that need to be considered. The                                    However since that initial introduction, the spread of
latency, or how long it takes to deliver the data to or                                  WiMAX has been less than stellar. Sprint had released a
from the network, is a significant consideration. If the                                 set of confusing claims about their 4G direction4. While
latency is too long then packets carrying voice are de-                                  WiMAX was stealing the pseudo-4G5 limelight, the 3GPP
layed, significantly impacting the quality of the service.                               partnership (the folks responsible for GSM, CDMA and
You may have noticed this problem if you have tried to                                   WCDMA) announced their evolutionary plans and so
use Skype or other Voice over IP (VoIP) applications on                                  was born LTE. In practice, LTE turned out to be more of
some 3G networks. This can also translate into poor                                      a revolution rather than evolution.
user perception of applications that require a lot of
                                                                                         The LTE technology was not only driven from a technol-
server side interaction. It is possible to produce mobile-
                                                                                         ogy viewpoint, but also from a reduction in operating
only cloud applications but then features may have to
                                                                                         costs to improve profitability in an increasingly competi-
be omitted making the experience significantly less
                                                                                         tive environment. Both of these factors combined to
than perfect. Tweaking the TCP/IP parameters in the
                                                                                         produce a network technology which is much more apt
laptop or smartphone has been the route taken by some
                                                                                         for the current mobile world than had been available in
companies, but this only really acts as a Band-Aid to a
                                                                                         the past.
problem that needs a fundamental solution which is an
improvement in latency.                                                                  The next few sections will examine the new LTE tech-
                                                                                         nology and explain a few things the operators may not
With the introduction of WiMAX, the first to claim the 4G
                                                                                         want you to know.
title, the focus changed to producing the ideal network
to support the required enterprise mobility model. The                                   To set LTE in context as of Feb 2011, there are6 :
user requirement drove the application rather than                                        ■■   180 operators deploying LTE
the network. Now with the introduction of the next 4G
technology – LTE – the focus has once again shifted                                       ■■   17 operators have already deployed
to the utopian view of standard cloud applications on                                     ■■   63 Terminal (USB dongles or Smartphones) devices
desktop, laptop, tablets and even smartphones, provid-                                         to be launched in 1H11
ing employees with a seamless view of their data and
                                                                                         It is hard to argue that LTE is merely paperware: the
corporate services.
                                                                                         networks are real and you can now buy devices for use
                                                                                         on those networks.




LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                           4
LTE network overview                                                                     means is how many bits/s can I squeeze into my fre-
LTE began with the premise that the all pervasive IP                                     quency range. In the days of 1G or 2G networks, things
network would be the underlying transport for the new                                    were not very spectrally efficient. This meant I would
fledgling network. This immediately moved the network                                    be paying quite a sizeable amount of money to provide
from the old domain of circuit switched connections in                                   bit/s to my user, so the Bits/s/$ would be high. Moving
use since Alexander Graham Bell first asked Mr Watson                                    through the 3G and then to 4G, the efficiency improved
to “come here”, to the packet domain that is now famil-                                  by several orders of magnitude. With the move to 4G,
iar to us from the use of VoIP networks. The cost benefit                                the bits/s/$ has come down significantly.
of such a move is quite significant. Voice has now simply                                In order to really improve those operating expenses,
become a very low speed packet data service. The other                                   the network architecture in Figure 3 evolved. As you
driving force was to flatten the network. Figure 2 pro-                                  can see from this network, we now only need three
vides a flavor of the current, very hierarchical, GSM/3G                                 entities to achieve our network goals. Not only have we
network which is a hybrid of the circuit switched domain                                 reduced our operating expenses by about one-third, but
(Voice) and packet domain (GPRS). Even in the simplest                                   we have also improved the network performance – in
form there are 13 different network entities. All of these                               very simple terms, fewer nodes need to touch the data
physical units cost money to run, take up space and                                      so we have a faster response time or lower latency. The
need to be maintained. Bottomline it is very expensive                                   control for the network is all via IP systems rather than
to run a 2G/3G network, which means that making a                                        traditional database models. Keep in mind that this is
profit and keeping the network going becomes increas-                                    a greatly simplified view of the network, however it is a
ingly more difficult.                                                                    fair comparison to existing 2G/3G networks.




Figure 2: Existing 2G/3G simplified Architecture

The other cost is the number of bit/s you can put into
the radio spectrum you have just bought from your lo-
                                                                                         Figure 3: New simplified LTE network
cal licensing body. Most people have probably read the
stories about operators paying significant amounts of                                    In order to keep the hardware costs low, it was decided
money to license the precious spectrum. Without spec-                                    to use a radio technology that was already well under-
trum, you do not have a network!                                                         stood from its use in military radio and more recently in
Generally, the licensing terms provide for a fixed period                                802.11a WLAN - Orthogonal Frequency Division Mul-
of use in a defined frequency range. Clearly to get the                                  tiplexing (OFDM). OFDM is very simple to implement
biggest benefit, an operator will want to put as many                                    in terms of software or hardware. This means that the
bits/s as possible into their newly purchased bandwidth.                                 cost of the radio station can be very low. Indeed many
You may already have heard the term spectral efficiency.                                 of the new generation of radio stations can be defined
Although it sounds a very complex term, all it really                                    by the software they have loaded. It is therefore very



LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                          5
easy to change the radio technology being used on the                                    even earlier in some cases. Once this is added to the
system. This is unlike the ‘old days’ when a new radio                                   network, the reason for the existence of 2G and even 3G
would require a total hardware replacement, some-                                        networks becomes questionable.
times euphemistically referred to as a “fork lift up-
                                                                                         These are just a few of the enhancements that will be
grade.” The basic OFDM system can also be enhanced
                                                                                         available with LTE. There are already features that are
by the use of multiple antennas, sometimes referred
                                                                                         now in the planning stage that will further enhance
to as MIMO (multiple-ins, multiple-outs), power con-
                                                                                         the LTE experience; watch out for LTE Advanced. The
trol and forward error correction coding. With all these
                                                                                         other great benefit is that some of the world’s largest
enhancements, OFDM turns out to be very spectrally
                                                                                         equipment vendors are 100% behind the standard, and
efficient based on the current level of technology avail-
                                                                                         with over 200+ networks committing to deploy LTE, the
able.
                                                                                         cost savings due to the volume of network and terminal
One of the other benefits of OFDM is that it is quite easy                               equipment brings its own benefits.
to pick how much bandwidth you want to use. So with
LTE OFDM it is possible to use anywhere from 1.5MHz                                      The reasons operators like LTE
up to 20MHz of bandwidth in easy increments. What                                        Even from this very brief introduction to LTE, it is quite
does this mean? Well it means an operator can initially                                  clear that the LTE network is a significant departure
roll out LTE using spare bandwidth. When users are mi-                                   from the previous networks deployed by most opera-
grated across to the new system, an operator can start                                   tors. The biggest change has been the flattening of the
to take over more spectrum from the previous genera-                                     network architecture. It has very few nodes and relies
tions of network, slowly removing bandwidth from a 2G                                    heavily on IP for most of the protocol/control which
or 3G service. This is sometimes referred to as “spec-                                   means that operators can take advantage of the huge
trum refarming.” In this case with, for example, 900MHz                                  pool of Internet engineers out there. The other aspect
spectrum, it would be possible to slowly replace the                                     often neglected in most discussions of the LTE network
2G technology currently residing there with new LTE                                      is that it allows operators to consider the possibility of
technology. Since the radio in the new LTE hardware is                                   switching off their 2G and 3G networks in the not-too-
software defined, it is simply a matter of upgrading the                                 distant future. Most operators feel that their 2G net-
software when the time comes to change the band-                                         works will be gone within a few years, and the spectrum
width. In some cases this may not even be required.                                      they occupied taken over by LTE. The 3G networks will
One other additional benefit of such an approach is that                                 probably follow suit within a few more years. So by 2015
an operator can take advantage of new enhancements                                       most of the 2G and 3G networks could be gone and the
in the standard without having to upgrade hardware. So                                   spectrum reused.
the lifetime of the new hardware is greatly enhanced.                                    With the flat network and upgraded equipment, the
Thus far in this discussion there has been no mention                                    operational expenses (OPEX) drop dramatically as can
of THE killer network application – voice, although voice                                be seen from Figure 4. The addition of a very efficient
may soon be linked with video. The voice application                                     radio interface both spectrally and in terms of band-
does exist in LTE and goes by the not very exciting acro-                                width use means that operators are free to choose how
nym of VoLTE – Voice over LTE. Because the LTE net-                                      to roll out the network, either slowly in some areas or
work is highly optimized, delivering voice is not a major                                rapidly in others where they can offer better broadband
problem although sometimes it does seem to have been                                     experiences, while still maintaining the legacy 2G and
an afterthought. In this case, however it is well worth                                  3G networks. The cost per bit/s is much lower with LTE
waiting for because it will pave the way for HD voice                                    than with the incumbents which means the operator
quality. More simply, it will be possible to put behind                                  can drop the cost to remain competitive if needed or
us the highly questionable voice quality introduced by                                   increase profits if they are so inclined. Most operators
the compressed speech that was inherited from the                                        are claiming that the ROI for their new LTE network is
old fixed telephony network. Most networks that are                                      under 12 months and in some markets under 6 months.
deploying will see VoLTE added by the end of 2011 or                                     As the new networks stabilize and the operators take




LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                           6
on the task of driving their new networks it is not un-                                  The issue with HSPA+ is that it suffers from the same
reasonable to expect that not only will the data rates                                   issues that plague the current 3G networks. The cover-
improve but those rates will be maintained under load.                                   age and performance are not consistent. At the cell
                                                                                         edges the data rates, even with HSPA+, may be no
Whether the data plans return to the days of fixed all-
                                                                                         better than are available with current 3G technologies.
you-can-eat pricing or whether the tiered approach will
                                                                                         However closer to the cell tower, the data rates can be
still be used, it is hard to say. However, the competition
                                                                                         quite high, but on average a user may not notice a sig-
in the LTE space will be fierce in the coming years, so
                                                                                         nificant improvement in their data rates. This problem
expect network pricing to vary significantly as operators
                                                                                         is not present in the LTE solution as the data rate is
vie to retain their customer base. If all goes well with
                                                                                         mostly consistent over the whole cell coverage.
the new LTE networks starting in 2012, or sooner in
some cases, the drive will be on to begin the move from                                  Another option for improving performance, again based
2G/3G to LTE with operators offering incentives to move                                  on the existing 3G technology, is to aggregate more
to the new networks and thereby free up the 2G/3G                                        channels or carrier frequencies together. This approach
networks for removal in the later part of the decade. In                                 is known as Multi Channel-HSPA (MC-HSPA) or in its
countries with tight spectrum controls, this move may                                    current form Dual Channel-HSPA (DC-HSPA). The im-
be much quicker or as the license for the 2G/3G spec-                                    provement in bandwidth is achieved by adding a second
trum expires in some cases.                                                              channel into the original data connection when the ap-
                                                                                         plication demands more data. Initially the application on
                                                                                         the laptop may only require the bandwidth provided by
                                                                                         one channel. However, if needed it is possible to add in
                                                                                         another channel to boost the performance even further.
                                                                                         This approach benefits from using existing technology
                                                                                         and simply adding in the ability to dynamically allocate
                                                                                         a second channel. Since there is no increase in the bits
                                                                                         used in the bandwidth, the solution does not suffer from
                                                                                         the same cell range issues as HSPA+. The additional
                                                                                         channel allocation also means that it is possible to gain
                                                                                         from transmit diversity in that the data takes two inde-
                                                                                         pendent routes to the mobile broadband cards. Since
                                                                                         the second channel is only allocated when needed, it
                                                                                         means that it can be used by other users when idle.
                                                                                         Hence the network is more efficient. It is always a good
                                                                                         idea to fully utilize the spectrum allocated to your net-
                                                                                         work.
Figure 4: OPEX for 2G, 3G and LTE networks
                                                                                          The HSPA+ and DC-HSPA routes are, at best, a stopgap
The pretender to the throne – HSPA+                                                      measure and, at worst, a diversion by the operators
Although it may appear that LTE is the only 4G option                                    who have taken this path. It can also be argued as to
for providing mobile broadband solutions to all, there                                   whether or not these enhancements to existing tech-
is another technology that some operators are promot-                                    nology are in the spirit of the 4G network drive. In their
ing as their 4G offering. Called HSPA+, also known as                                    defense, some operators have been forced down this
Evolved High-Speed Packet Access, this technology is a                                   path by lack of available spectrum for new network in-
derivative of the existing 3G WCDMA networks. It uses                                    troduction. If the spectrum to deploy LTE is not available
the same schemes as 3G and improves the data rates                                       it might be almost impossible to begin the move from
to about 84Mbps using higher modulations (more bits                                      3G to LTE. A number of operators who have quickly
in the same bandwidth) and some of the same antenna                                      deployed HSPA+ or DC-HSPA7 have also announced
techniques used by LTE. With even more added features,                                   their intention to deploy LTE as soon as the spectrum is
it will be possible to push the data rate even higher; up                                available.
to 600+Mbps if all the features are implemented.


LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                           7
As of Feb 2011 there were 76 live HSPA+ networks                                         Indeed just in 2011, there are predicted to be over 400
regionally broken down as:                                                               million smartphones on the existing 3G and 4G net-
                                                                                         works generating data traffic that would be equivalent
  ■■   North America 8
                                                                                         to 4 billion 2G GSM users! All this data leads to the
  ■■   Middle East and Asia 12                                                           conclusion that the current 4G networks (WiMAX, LTE
  ■■   N Europe 20                                                                       and HSPA+) may not be able to satisfy the insatiable
                                                                                         appetite that is being generated for data services. The
  ■■   W Europe 21
                                                                                         use of cloud services will certainly drive the data use
  ■■   Asia-Pac 15                                                                       for most enterprises. If smartphones and laptops can
  ■■   6 networks support 28Mb/s and higher                                              be configured to support telepresence, that may drive
                                                                                         usage even further. It was not that long ago (1994) that
The Future of 4G                                                                         it was very hard to find a good use for mobile data!
In this whitepaper we have reviewed the new additions
to the 4G family. As both LTE and HSPA+ are relatively                                            MBB Subscriptions                Technology Share 2016
new incumbents to the 4G arena, they already have
                                                                                           5000
quite an extensive evolutionary path ahead of them. As                                                                               HSPA TD-SCDMA
                                                                                                                Mobile PC                       CDMA2000
can be seen from Figure 5, the plan is to head towards                                     4000                 & Tablets                          EV-DO
much higher data rates on HSPA+ and LTE by 2015. So                                                                                                  Mobile WiMax
                                                                                           3000
there is a very extensive five year window for LTE and                                                          Handheld
                                                                                                                devices
probably a three year window for HSPA+.                                                    2000

                                                                                           1000
                                                               168 336...
  HSPA Evolution                                        84                                    0        2010   2016
                                                                       84
                                                42                                                85% of subscriptions on HSPA and LTE in 2016
                                                                            126 68
                                                                42




                                        28
                                                                                1
                                                                0




                                                                                         Figure 6: Projected growth of Mobile Broadband users by 2016 (Source: Erics-
                                21                                                       son MWC, Feb 2011)
                          7                      World record: 168 MPS
                                                                                         So should you move to a 4G network?

  LTE                                                                                    As with most things - it depends. Certainly if your con-
  150 million people                                                                     tract is due to expire and your operator offers incentives
  covered daily                                                      1000 bps            to move to 4G, then you should seriously consider that
                                     50 bps          150 bps
                                                                                         move. The 2G network is very likely to disappear soon,
                                                                                         squeezing users on those networks into a deteriorating
Figure 5: Evolutionary paths for HSPA and LTE (Source: Ericsson MWC, Feb 2011)           service spiral. Of course operators want to move you off
                                                                                         that network. Similarly as the 3G network bandwidth
From Figure 6, it is clear there will be at least a 5x
                                                                                         is reduced, to be used by the 4G network, performance
projected growth in mobile broadband subscriptions
                                                                                         will most likely degrade. The early adopters of 4G net-
by 2016. Although HSPA is shown as the bigger slice
                                                                                         works are likely to see similar changes in the network
of the pie, this may change slightly depending on the
                                                                                         not only in improving data rates but also expanding
success of LTE. Some operators are already seeking to
                                                                                         coverage – more positive network aspects.
supplement or replace their HSPA network with LTE so
as with all future predictions; who really knows? The
use of 3G technologies may be limited to certain areas
in the world, however with the scarcity of spectrum (it is
a finite resource), 3G may well disappear quite quickly.
Furthermore it should be noted that some of these sub-
scriptions will be for Machine 2 Machine (M2M)
interactions and that growth could be phenomenal in
the next 5-10 years.


LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                                              8
So if you are considering a change then keep in mind                                     What to consider
the following points:                                                                    Looking at 4G in your enterprise mobility strategy, con-
  ■■   Does the 4G network have coverage in the areas I                                  sider these tips:
       will be working? Coverage will roll out more slowly                                ■■   Pick the carrier whose coverage matches up best
       in some areas. However most operators are using                                         today and in the coming year with where your mo-
       lower frequencies for their LTE networks so the cov-                                    bile employees will need the service.
       erage might actually be better than the 3G coverage.                               ■■   Feel free to mix and match carriers and also consid-
  ■■   Are there devices that will support my working                                          er Wi-Fi as an option until 4G becomes ubiquitous in
       methods? Do you need a laptop, tablet or smart-                                         the US. The connection for Wi-Fi is predictable and
       phone to perform essential tasks, and will employ-                                      the cost model is well known and fairly transparent.
       ees have a mix of devices?                                                              Some operators bundle a WiFi service into their
  ■■   Can I roam internationally with my chosen network                                       offering making this option seamless to the user.
       (if required)? If this is an important requirement                                 ■■   Go ahead and commit to a 2-year deal, knowing
       then LTE and HSPA are the only ways to go to pro-                                       that you will likely have true competition between
       vide a reasonable chance of roaming.                                                    carriers in 2013 and that you will, in all likelihood,
  ■■   Are there any incentives to move? Data cards                                            benefit from the fact that you will continue to have
       change on an almost 6-monthly basis so the card                                         some leverage.
       you have now is probably already obsolete. If it is                                ■■   There will still be handoff issues between networks.
       an old 3G card then it might be best to move. Or                                        As a user is handed off from an older network to
       if you use an embedded card in your laptop per-                                         a newer one, it might not be a smooth transition.
       haps it’s time to upgrade that laptop. In terms of                                      The coverage of LTE will be much better than 3G.
       smartphones, the picture is even more bleak. They                                       In practice most LTE operators will not provide a
       become obsolete even more quickly.                                                      handover option to 3G, there will be no need.
  ■■    Are there methods to control my data costs?                                       ■■   Carefully consider 3-year commits with a carrier,
       Current plans are tiered but this may swing back to                                     as 2013 could be an inflexion point as it relates to
       the all-you-can-eat model when competition begins                                       service pricing, performance, availability and device
       to bite. However managing these costs is an impor-                                      support.
       tant consideration. Using LTE with a 5GB cap could                                 ■■   The Clearwire network architecture will support a
       mean you use that limit within 32 minutes down-
                                                                                               move to LTE. Clearwire states an 80% overlap and
       loading a file or streaming some video formats.
                                                                                               announced their move to LTE in May 2011. Every
                                                                                               Sprint handset/data card built in 2011 will have LTE
                                                                                               capability.
                                                                                          ■■   If Sprint 4G provides the required footprint then they
                                                                                               may be a good interim solution until 2012-13.




LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                                  9
About iPass                                                                               access from any device on any network, while providing
Founded in 1996 iPass (NASDAQ:IPAS) is a leading                                          the visibility and control necessary to contain spiraling
provider of enterprise mobility services with over 3,500                                  mobility costs, maximize mobile user productivity and
customers, including more than 370 of the Forbes Global                                   maintain security in a world where consumers drive
2000. The company’s mission is to be the voice of the                                     enterprise IT.
enterprise in the market for mobility services by provid-                                 For more information, visit www.iPass.com
ing solutions that simply, smartly and openly facilitate                                  or follow iPass on Twitter at www.twitter.com/iPass

References
 1.	MetroPCS’ New 4G LTE Plans Offer Unprecedented Value and Choice With Prices Starting at Just $40 (1/3/11)http://investor.
     metropcs.com/phoenix.zhtml?c=177745&p=irol-newsArticle&ID=1511941&highlight=

  2.	 Verizon Wireless Brings 4G LTE To More Than 145 Markets By The End Of 2011 (3/22/11)
     http://news.vzw.com/news/2011/03/pr2011-03-21a.html

  3.	 Sprint 4G Expansion Plans to Stretch Coast-to-Coast from Los Angeles to Miami (3/23/10)
     http://newsroom.sprint.com/article_display.cfm?article_id=1410

  4.	 Sprint CEO Says WiMAX Bet Paid Less Than Hoped (12/7/10)
     http://www.pcworld.com/article/212878/sprint_ceo_says_wimax_bet_paid_less_than_hoped.html
     video at: http://kara.allthingsd.com/20101227/d-dive-into-mobile-the-full-interview-video-of-sprint-nextels-dan-hesse/

  5.	 Will Sprint Dump WiMax For LTE? (3/7/11)
     http://www.informationweek.com/news/mobility/wifiwimax/showArticle.jhtml?articleID=229300496

  6.	 Sprint Could Be Ditching WiMax For LTE (2/10/11)
     http://www.businessinsider.com/sprint-well-tell-you-more-about-our-4g-plans-later-this-year-2011-2

  7.	 Sprint talks seriously about LTE, suggests it could complement WiMAX (2/17/11)
     http://www.engadget.com/2011/02/17/sprint-talks-seriously-about-lte-suggests-it-could-complement-w/

  8.	 Sprint’s CEO Says Clearwire in ‘Every Option’ for Future (3/9/11)
     http://www.businessweek.com/news/2011-03-09/sprint-s-ceo-says-clearwire-in-every-option-for-future.html



 Bearer Technology                           Peak Rate Available (Kbps) Potential Rates (Kbps)                        Year

 GSM CSD (2G)                                9.6                                         9.6                          1991
 HSCSD                                       115                                         115                          ~1999
 CDMA2000 1xRTT                              153                                         153                          1999
 GPRS (2.5G)                                 115                                         115                          ~2000
 UMTS/3G                                     384                                         384                          2002
 1xEV-DO Rev.A                               3,072                                       3,100                        2007
 HSDPA/HSUPA (3.5G)                          2,000-5,760                                 1,200-14,400                 2009
 HSPA+ (~3.99G)                              21,600                                      17,600-42,000                2009
 WiMAX (~3.99G)                              2,700                                       10,000                       2008
 3xEV-DO Rev.B                               4,900-14,900                                14,900                       2010
 DC-HSPA+                                    23,400-42,200                               23,400-84,000                2010
 LTE (~3.99G)                                12,000                                      100,000                      2010
 LTE-Advanced (4G)                           X                                           100MBps-1GBps                >2012



LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.                                                           10
Glossary                                                                                                                             HSPA: High Speed Packet Access. A family of high-
2G: Second Generation Wireless. A digital cellular in-                                                                               speed 3G digital data services available to GSM carriers
cluding GSM systems, CDMA, TDMA.                                                                                                     worldwide. The service works with HSPA cellphones
                                                                                                                                     as well as laptops and portable devices with HSPA
3G: Third Generation Wireless. A generation of stan-                                                                                 modems. Although based on WCDMA, HSPA is a major
dards for mobile phones and mobile telecommunication                                                                                 enhancement with more channels and different modu-
services fulfilling the International Mobile Telecommu-                                                                              lation and coding techniques.
nications-2000 (IMT 2000) specifications; also com-
monly described as graceful enhancements to the GSM                                                                                  HSPA+: Evolved High-Speed Packet Access. A wire-
cellular standards.                                                                                                                  less broadband standard defined in 3GPP release 7
                                                                                                                                     and above. HSPA+ provides HSPA data rates up to 84
3GPP: Third Generation Partnership Project (3GPP) was                                                                                Megabits per second (Mbit/s) on the downlink and 22
formed in 1998 to foster deployment of 3G networks                                                                                   Mbit/s on the uplink through the use of a multiple-
that descended from GSM, as well as those standards                                                                                  antenna technique known as MIMO (for “multiple-input
that evolved from cdmaOne (IS-95).                                                                                                   and multiple-output”) and higher order modulation
4G: Fourth Generation Wireless. The latest wireless                                                                                  (64QAM).
wide area network (WWAN) technology. Designed to in-                                                                                 LTE: Long Term Evolution. The next-generation 4G
crease data transfer speeds for Web surfing and video,                                                                               technology for both GSM and CDMA cellular carriers.
the ITU has designated LTE, LTE-Advanced, WiMAX 2                                                                                    Approved in 2008 with download speeds up to 173 Mbps,
and HSPA+ as 4G technologies. For example, as of 2011,                                                                               LTE was defined by the 3G Partnership Project in the
Verizon uses LTE; Sprint uses WiMAX; T-Mobile uses                                                                                   3GPP Release 8 specification. LTE uses a different
HSPA+, and AT&T uses LTE and HSPA+.                                                                                                  radio interface and packet network architecture than
CDMA: Code Division Multiple Access. A method for                                                                                    previous 3G systems.
transmitting multiple digital signals simultaneously                                                                                 WCDMA: Wideband Code Division Multiple Access. This
over the same carrier frequency (the same channel).                                                                                  is another name for UMTS (Universal Mobile Telecom-
The most widely known application is for cellphones.                                                                                 munications System), a cellular network also referred
GPRS: General Packet Radio Service. The first data                                                                                   to as 3GPP. As the name suggests, WCDMA is based
service for GSM cellular carriers. GPRS added a packet                                                                               on CDMA technology and was envisioned for the next
capability to GSM.                                                                                                                   generation of GSM. It’s a European standard designed
                                                                                                                                     to support data transmission rates of 144kbps for use in
GSM: Global System for Mobile Communications. A                                                                                      vehicles, 384kbps for pedestrian use and up to 2mbps
digital cellular phone technology based on TDMA that                                                                                 for use indoors.
started in Europe and migrated to other continents. In
the US, it uses a different frequency.                                                                                               WiMAX: Worldwide Interoperability for Microwave
                                                                                                                                     Access. Also known as the IEEE 802.16 group of stan-
                                                                                                                                     dards, which defines a packet-based wireless technol-
                                                                                                                                     ogy that provides high-throughput broadband connec-
                                                                                                                                     tions over long distances. This was originally intended
                                                                                                                                     for point-to-point microwave links, but later extended to
                                                                                                                                     support mobile applications.




Corporate Headquarters                         +1 650-232-4100
iPass Inc.                                     +1 650-232-4111 fx
3800 Bridge Parkway
                                               www.ipass.com
Redwood Shores, CA 94065



© Copyright 2011 iPass Inc. All rights reserved. iPass and the iPass logo are registered trademarks of iPass Inc. and iPassConnect is a trademark of iPass Inc. All other company

and product names may be trademarks of their respective companies. While every effort is made to ensure the information given is accurate, iPass does not accept liability for any

errors or mistakes which may arise. Specifications and other information in this document may be subject to change without notice.

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LTE's Impact on Enterprise IT

  • 1. WHITE PAPER LTE - the Other 4G - and its Impact on Enterprise IT Corporate Headquarters +1 650-232-4100 iPass Inc. +1 650-232-4111 fx 3800 Bridge Parkway www.ipass.com Redwood Shores, CA 94065 LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc.
  • 2. Table of Contents Abstract 3 Introduction 3 The current mobile broadband scene 3 Long term evolution of universal terrestrial radio access network 4 LTE network overview 5 The reasons operators like LTE 6 The pretender to the throne – HSPA+ 7 The Future of 4G 8 So should you move to a 4G network? 8 What to consider 9 About iPass 10 References 10 Glossary 11 LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 2
  • 3. What is 4G and the Impact on Enterprise IT Abstract This paper will discuss the move to 4G, in terms of LTE, WiMAX, LTE, HSPA+, DC-HSPA, 4G, 3G. If this alpha- nu- and the implications on enterprises making mobile meric soup is somewhat overwhelming, then you are broadband decisions in the near term. Even with the probably not alone. Most people who are not part of highly touted 4G appearing in markets, there are still the industry find the rapidly evolving mobile broadband commercial and technical data constraints, particularly market quite daunting. Not only is it influencing the way as networks are pieced together to form enterprise people work, it is impacting the corporate IT strategies mobility solutions. you had carefully put together 2-3 years ago. This year The current mobile broadband scene alone there will be over 300 new mobile broadband de- vices launched: laptop USB cards, smartphones and tab- Currently if you have a mobile broadband card or lets. Already 100 new LTE devices have been announced smartphone, then you are probably using a 3G or in for 2011. In this whitepaper we take a look at two 4G some cases, a 2G network. Most likely this network is technologies that will need to be considered as you plan one of the types listed in Figure 1. In these cases the for the coming decade: LTE and HSPA+. Hopefully mak- data rates available just about satisfy the application ing the alpha-numeric soup more digestible. requirements on a laptop and are more than adequate for all current smartphones. The delivery of vanilla Introduction email is easily addressed by 2G technologies; it does To paraphrase a now very famous movie… In a world not need to be real time. far, far away, we have heard of 4G. Well now that world is far closer than you may think. For the last five or so years, industry leaders have been telling us that 4G is just around the corner. In the last few months, we have had a plethora of announcements about LTE from Me- troPCS1 , Verizon2, etc. So it now appears appropriate to take a look at the new incumbent to the 4G crown – LTE. Much has been written about WiMAX (Worldwide Interoperability for Microwave Access) in previous literature, and it is not the intention of this whitepaper to rehash any of those discussions. The purpose here is to present LTE in a format that is easily understood and can be used to supplement the decision process on mobile broadband data options going forward. The next 12-18 months are going to be a very dynamic time in the mobile broadband arena and setting a 2 or 3 year strategy could be quite challenging. In addition to LTE, we also discuss another alternative, HSPA+, which might be more readily and quickly avail- able in some markets. Although LTE is strong in some areas, the European market is only now starting to get Figure 1: Evolution of the mobile data market into motion to auction off the desired frequencies that If you want near real time access for web browsing or are optimum for LTE – with lower frequencies being more serious streaming applications, then you have better, in the case of LTE. For some, the HSPA+ route probably already moved onto the higher data rate 3G might be a very reasonable stop gap measure until LTE networks, in an attempt to overcome latency issues. becomes more readily available. However if you are contemplating using the enterprise LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 3
  • 4. cloud while on the move, then most of the current Long term evolution of universal terrestrial mobile broadband technologies will not easily support radio access network that aspiration. To effectively deploy a mobile enterprise Although the heading may seem daunting this is just cloud, higher data rates and lower delays are required, the full name for LTE. As a user of mobile broadband otherwise the user experience is so bad that no one re- you have been assailed with the term “4G” for at least alistically wants to use the applications. With the advent the last 5 years. Initially all the emphasis was on the of 4G networks, and in particular LTE, the path to the IEEE standard known as WiMAX, at least in North fully mobile enterprise may at last become a reality. America. Sprint was one of the first to introduce a 4G3 Although most people focus on data rates as THE claim into its promotional advertising when it decided to measure of performance, there are quite a few other go with WiMAX as its broadband path. data network features that need to be considered. The However since that initial introduction, the spread of latency, or how long it takes to deliver the data to or WiMAX has been less than stellar. Sprint had released a from the network, is a significant consideration. If the set of confusing claims about their 4G direction4. While latency is too long then packets carrying voice are de- WiMAX was stealing the pseudo-4G5 limelight, the 3GPP layed, significantly impacting the quality of the service. partnership (the folks responsible for GSM, CDMA and You may have noticed this problem if you have tried to WCDMA) announced their evolutionary plans and so use Skype or other Voice over IP (VoIP) applications on was born LTE. In practice, LTE turned out to be more of some 3G networks. This can also translate into poor a revolution rather than evolution. user perception of applications that require a lot of The LTE technology was not only driven from a technol- server side interaction. It is possible to produce mobile- ogy viewpoint, but also from a reduction in operating only cloud applications but then features may have to costs to improve profitability in an increasingly competi- be omitted making the experience significantly less tive environment. Both of these factors combined to than perfect. Tweaking the TCP/IP parameters in the produce a network technology which is much more apt laptop or smartphone has been the route taken by some for the current mobile world than had been available in companies, but this only really acts as a Band-Aid to a the past. problem that needs a fundamental solution which is an improvement in latency. The next few sections will examine the new LTE tech- nology and explain a few things the operators may not With the introduction of WiMAX, the first to claim the 4G want you to know. title, the focus changed to producing the ideal network to support the required enterprise mobility model. The To set LTE in context as of Feb 2011, there are6 : user requirement drove the application rather than ■■ 180 operators deploying LTE the network. Now with the introduction of the next 4G technology – LTE – the focus has once again shifted ■■ 17 operators have already deployed to the utopian view of standard cloud applications on ■■ 63 Terminal (USB dongles or Smartphones) devices desktop, laptop, tablets and even smartphones, provid- to be launched in 1H11 ing employees with a seamless view of their data and It is hard to argue that LTE is merely paperware: the corporate services. networks are real and you can now buy devices for use on those networks. LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 4
  • 5. LTE network overview means is how many bits/s can I squeeze into my fre- LTE began with the premise that the all pervasive IP quency range. In the days of 1G or 2G networks, things network would be the underlying transport for the new were not very spectrally efficient. This meant I would fledgling network. This immediately moved the network be paying quite a sizeable amount of money to provide from the old domain of circuit switched connections in bit/s to my user, so the Bits/s/$ would be high. Moving use since Alexander Graham Bell first asked Mr Watson through the 3G and then to 4G, the efficiency improved to “come here”, to the packet domain that is now famil- by several orders of magnitude. With the move to 4G, iar to us from the use of VoIP networks. The cost benefit the bits/s/$ has come down significantly. of such a move is quite significant. Voice has now simply In order to really improve those operating expenses, become a very low speed packet data service. The other the network architecture in Figure 3 evolved. As you driving force was to flatten the network. Figure 2 pro- can see from this network, we now only need three vides a flavor of the current, very hierarchical, GSM/3G entities to achieve our network goals. Not only have we network which is a hybrid of the circuit switched domain reduced our operating expenses by about one-third, but (Voice) and packet domain (GPRS). Even in the simplest we have also improved the network performance – in form there are 13 different network entities. All of these very simple terms, fewer nodes need to touch the data physical units cost money to run, take up space and so we have a faster response time or lower latency. The need to be maintained. Bottomline it is very expensive control for the network is all via IP systems rather than to run a 2G/3G network, which means that making a traditional database models. Keep in mind that this is profit and keeping the network going becomes increas- a greatly simplified view of the network, however it is a ingly more difficult. fair comparison to existing 2G/3G networks. Figure 2: Existing 2G/3G simplified Architecture The other cost is the number of bit/s you can put into the radio spectrum you have just bought from your lo- Figure 3: New simplified LTE network cal licensing body. Most people have probably read the stories about operators paying significant amounts of In order to keep the hardware costs low, it was decided money to license the precious spectrum. Without spec- to use a radio technology that was already well under- trum, you do not have a network! stood from its use in military radio and more recently in Generally, the licensing terms provide for a fixed period 802.11a WLAN - Orthogonal Frequency Division Mul- of use in a defined frequency range. Clearly to get the tiplexing (OFDM). OFDM is very simple to implement biggest benefit, an operator will want to put as many in terms of software or hardware. This means that the bits/s as possible into their newly purchased bandwidth. cost of the radio station can be very low. Indeed many You may already have heard the term spectral efficiency. of the new generation of radio stations can be defined Although it sounds a very complex term, all it really by the software they have loaded. It is therefore very LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 5
  • 6. easy to change the radio technology being used on the even earlier in some cases. Once this is added to the system. This is unlike the ‘old days’ when a new radio network, the reason for the existence of 2G and even 3G would require a total hardware replacement, some- networks becomes questionable. times euphemistically referred to as a “fork lift up- These are just a few of the enhancements that will be grade.” The basic OFDM system can also be enhanced available with LTE. There are already features that are by the use of multiple antennas, sometimes referred now in the planning stage that will further enhance to as MIMO (multiple-ins, multiple-outs), power con- the LTE experience; watch out for LTE Advanced. The trol and forward error correction coding. With all these other great benefit is that some of the world’s largest enhancements, OFDM turns out to be very spectrally equipment vendors are 100% behind the standard, and efficient based on the current level of technology avail- with over 200+ networks committing to deploy LTE, the able. cost savings due to the volume of network and terminal One of the other benefits of OFDM is that it is quite easy equipment brings its own benefits. to pick how much bandwidth you want to use. So with LTE OFDM it is possible to use anywhere from 1.5MHz The reasons operators like LTE up to 20MHz of bandwidth in easy increments. What Even from this very brief introduction to LTE, it is quite does this mean? Well it means an operator can initially clear that the LTE network is a significant departure roll out LTE using spare bandwidth. When users are mi- from the previous networks deployed by most opera- grated across to the new system, an operator can start tors. The biggest change has been the flattening of the to take over more spectrum from the previous genera- network architecture. It has very few nodes and relies tions of network, slowly removing bandwidth from a 2G heavily on IP for most of the protocol/control which or 3G service. This is sometimes referred to as “spec- means that operators can take advantage of the huge trum refarming.” In this case with, for example, 900MHz pool of Internet engineers out there. The other aspect spectrum, it would be possible to slowly replace the often neglected in most discussions of the LTE network 2G technology currently residing there with new LTE is that it allows operators to consider the possibility of technology. Since the radio in the new LTE hardware is switching off their 2G and 3G networks in the not-too- software defined, it is simply a matter of upgrading the distant future. Most operators feel that their 2G net- software when the time comes to change the band- works will be gone within a few years, and the spectrum width. In some cases this may not even be required. they occupied taken over by LTE. The 3G networks will One other additional benefit of such an approach is that probably follow suit within a few more years. So by 2015 an operator can take advantage of new enhancements most of the 2G and 3G networks could be gone and the in the standard without having to upgrade hardware. So spectrum reused. the lifetime of the new hardware is greatly enhanced. With the flat network and upgraded equipment, the Thus far in this discussion there has been no mention operational expenses (OPEX) drop dramatically as can of THE killer network application – voice, although voice be seen from Figure 4. The addition of a very efficient may soon be linked with video. The voice application radio interface both spectrally and in terms of band- does exist in LTE and goes by the not very exciting acro- width use means that operators are free to choose how nym of VoLTE – Voice over LTE. Because the LTE net- to roll out the network, either slowly in some areas or work is highly optimized, delivering voice is not a major rapidly in others where they can offer better broadband problem although sometimes it does seem to have been experiences, while still maintaining the legacy 2G and an afterthought. In this case, however it is well worth 3G networks. The cost per bit/s is much lower with LTE waiting for because it will pave the way for HD voice than with the incumbents which means the operator quality. More simply, it will be possible to put behind can drop the cost to remain competitive if needed or us the highly questionable voice quality introduced by increase profits if they are so inclined. Most operators the compressed speech that was inherited from the are claiming that the ROI for their new LTE network is old fixed telephony network. Most networks that are under 12 months and in some markets under 6 months. deploying will see VoLTE added by the end of 2011 or As the new networks stabilize and the operators take LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 6
  • 7. on the task of driving their new networks it is not un- The issue with HSPA+ is that it suffers from the same reasonable to expect that not only will the data rates issues that plague the current 3G networks. The cover- improve but those rates will be maintained under load. age and performance are not consistent. At the cell edges the data rates, even with HSPA+, may be no Whether the data plans return to the days of fixed all- better than are available with current 3G technologies. you-can-eat pricing or whether the tiered approach will However closer to the cell tower, the data rates can be still be used, it is hard to say. However, the competition quite high, but on average a user may not notice a sig- in the LTE space will be fierce in the coming years, so nificant improvement in their data rates. This problem expect network pricing to vary significantly as operators is not present in the LTE solution as the data rate is vie to retain their customer base. If all goes well with mostly consistent over the whole cell coverage. the new LTE networks starting in 2012, or sooner in some cases, the drive will be on to begin the move from Another option for improving performance, again based 2G/3G to LTE with operators offering incentives to move on the existing 3G technology, is to aggregate more to the new networks and thereby free up the 2G/3G channels or carrier frequencies together. This approach networks for removal in the later part of the decade. In is known as Multi Channel-HSPA (MC-HSPA) or in its countries with tight spectrum controls, this move may current form Dual Channel-HSPA (DC-HSPA). The im- be much quicker or as the license for the 2G/3G spec- provement in bandwidth is achieved by adding a second trum expires in some cases. channel into the original data connection when the ap- plication demands more data. Initially the application on the laptop may only require the bandwidth provided by one channel. However, if needed it is possible to add in another channel to boost the performance even further. This approach benefits from using existing technology and simply adding in the ability to dynamically allocate a second channel. Since there is no increase in the bits used in the bandwidth, the solution does not suffer from the same cell range issues as HSPA+. The additional channel allocation also means that it is possible to gain from transmit diversity in that the data takes two inde- pendent routes to the mobile broadband cards. Since the second channel is only allocated when needed, it means that it can be used by other users when idle. Hence the network is more efficient. It is always a good idea to fully utilize the spectrum allocated to your net- work. Figure 4: OPEX for 2G, 3G and LTE networks The HSPA+ and DC-HSPA routes are, at best, a stopgap The pretender to the throne – HSPA+ measure and, at worst, a diversion by the operators Although it may appear that LTE is the only 4G option who have taken this path. It can also be argued as to for providing mobile broadband solutions to all, there whether or not these enhancements to existing tech- is another technology that some operators are promot- nology are in the spirit of the 4G network drive. In their ing as their 4G offering. Called HSPA+, also known as defense, some operators have been forced down this Evolved High-Speed Packet Access, this technology is a path by lack of available spectrum for new network in- derivative of the existing 3G WCDMA networks. It uses troduction. If the spectrum to deploy LTE is not available the same schemes as 3G and improves the data rates it might be almost impossible to begin the move from to about 84Mbps using higher modulations (more bits 3G to LTE. A number of operators who have quickly in the same bandwidth) and some of the same antenna deployed HSPA+ or DC-HSPA7 have also announced techniques used by LTE. With even more added features, their intention to deploy LTE as soon as the spectrum is it will be possible to push the data rate even higher; up available. to 600+Mbps if all the features are implemented. LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 7
  • 8. As of Feb 2011 there were 76 live HSPA+ networks Indeed just in 2011, there are predicted to be over 400 regionally broken down as: million smartphones on the existing 3G and 4G net- works generating data traffic that would be equivalent ■■ North America 8 to 4 billion 2G GSM users! All this data leads to the ■■ Middle East and Asia 12 conclusion that the current 4G networks (WiMAX, LTE ■■ N Europe 20 and HSPA+) may not be able to satisfy the insatiable appetite that is being generated for data services. The ■■ W Europe 21 use of cloud services will certainly drive the data use ■■ Asia-Pac 15 for most enterprises. If smartphones and laptops can ■■ 6 networks support 28Mb/s and higher be configured to support telepresence, that may drive usage even further. It was not that long ago (1994) that The Future of 4G it was very hard to find a good use for mobile data! In this whitepaper we have reviewed the new additions to the 4G family. As both LTE and HSPA+ are relatively MBB Subscriptions Technology Share 2016 new incumbents to the 4G arena, they already have 5000 quite an extensive evolutionary path ahead of them. As HSPA TD-SCDMA Mobile PC CDMA2000 can be seen from Figure 5, the plan is to head towards 4000 & Tablets EV-DO much higher data rates on HSPA+ and LTE by 2015. So Mobile WiMax 3000 there is a very extensive five year window for LTE and Handheld devices probably a three year window for HSPA+. 2000 1000 168 336... HSPA Evolution 84 0 2010 2016 84 42 85% of subscriptions on HSPA and LTE in 2016 126 68 42 28 1 0 Figure 6: Projected growth of Mobile Broadband users by 2016 (Source: Erics- 21 son MWC, Feb 2011) 7 World record: 168 MPS So should you move to a 4G network? LTE As with most things - it depends. Certainly if your con- 150 million people tract is due to expire and your operator offers incentives covered daily 1000 bps to move to 4G, then you should seriously consider that 50 bps 150 bps move. The 2G network is very likely to disappear soon, squeezing users on those networks into a deteriorating Figure 5: Evolutionary paths for HSPA and LTE (Source: Ericsson MWC, Feb 2011) service spiral. Of course operators want to move you off that network. Similarly as the 3G network bandwidth From Figure 6, it is clear there will be at least a 5x is reduced, to be used by the 4G network, performance projected growth in mobile broadband subscriptions will most likely degrade. The early adopters of 4G net- by 2016. Although HSPA is shown as the bigger slice works are likely to see similar changes in the network of the pie, this may change slightly depending on the not only in improving data rates but also expanding success of LTE. Some operators are already seeking to coverage – more positive network aspects. supplement or replace their HSPA network with LTE so as with all future predictions; who really knows? The use of 3G technologies may be limited to certain areas in the world, however with the scarcity of spectrum (it is a finite resource), 3G may well disappear quite quickly. Furthermore it should be noted that some of these sub- scriptions will be for Machine 2 Machine (M2M) interactions and that growth could be phenomenal in the next 5-10 years. LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 8
  • 9. So if you are considering a change then keep in mind What to consider the following points: Looking at 4G in your enterprise mobility strategy, con- ■■ Does the 4G network have coverage in the areas I sider these tips: will be working? Coverage will roll out more slowly ■■ Pick the carrier whose coverage matches up best in some areas. However most operators are using today and in the coming year with where your mo- lower frequencies for their LTE networks so the cov- bile employees will need the service. erage might actually be better than the 3G coverage. ■■ Feel free to mix and match carriers and also consid- ■■ Are there devices that will support my working er Wi-Fi as an option until 4G becomes ubiquitous in methods? Do you need a laptop, tablet or smart- the US. The connection for Wi-Fi is predictable and phone to perform essential tasks, and will employ- the cost model is well known and fairly transparent. ees have a mix of devices? Some operators bundle a WiFi service into their ■■ Can I roam internationally with my chosen network offering making this option seamless to the user. (if required)? If this is an important requirement ■■ Go ahead and commit to a 2-year deal, knowing then LTE and HSPA are the only ways to go to pro- that you will likely have true competition between vide a reasonable chance of roaming. carriers in 2013 and that you will, in all likelihood, ■■ Are there any incentives to move? Data cards benefit from the fact that you will continue to have change on an almost 6-monthly basis so the card some leverage. you have now is probably already obsolete. If it is ■■ There will still be handoff issues between networks. an old 3G card then it might be best to move. Or As a user is handed off from an older network to if you use an embedded card in your laptop per- a newer one, it might not be a smooth transition. haps it’s time to upgrade that laptop. In terms of The coverage of LTE will be much better than 3G. smartphones, the picture is even more bleak. They In practice most LTE operators will not provide a become obsolete even more quickly. handover option to 3G, there will be no need. ■■ Are there methods to control my data costs? ■■ Carefully consider 3-year commits with a carrier, Current plans are tiered but this may swing back to as 2013 could be an inflexion point as it relates to the all-you-can-eat model when competition begins service pricing, performance, availability and device to bite. However managing these costs is an impor- support. tant consideration. Using LTE with a 5GB cap could ■■ The Clearwire network architecture will support a mean you use that limit within 32 minutes down- move to LTE. Clearwire states an 80% overlap and loading a file or streaming some video formats. announced their move to LTE in May 2011. Every Sprint handset/data card built in 2011 will have LTE capability. ■■ If Sprint 4G provides the required footprint then they may be a good interim solution until 2012-13. LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 9
  • 10. About iPass access from any device on any network, while providing Founded in 1996 iPass (NASDAQ:IPAS) is a leading the visibility and control necessary to contain spiraling provider of enterprise mobility services with over 3,500 mobility costs, maximize mobile user productivity and customers, including more than 370 of the Forbes Global maintain security in a world where consumers drive 2000. The company’s mission is to be the voice of the enterprise IT. enterprise in the market for mobility services by provid- For more information, visit www.iPass.com ing solutions that simply, smartly and openly facilitate or follow iPass on Twitter at www.twitter.com/iPass References 1. MetroPCS’ New 4G LTE Plans Offer Unprecedented Value and Choice With Prices Starting at Just $40 (1/3/11)http://investor. metropcs.com/phoenix.zhtml?c=177745&p=irol-newsArticle&ID=1511941&highlight= 2. Verizon Wireless Brings 4G LTE To More Than 145 Markets By The End Of 2011 (3/22/11) http://news.vzw.com/news/2011/03/pr2011-03-21a.html 3. Sprint 4G Expansion Plans to Stretch Coast-to-Coast from Los Angeles to Miami (3/23/10) http://newsroom.sprint.com/article_display.cfm?article_id=1410 4. Sprint CEO Says WiMAX Bet Paid Less Than Hoped (12/7/10) http://www.pcworld.com/article/212878/sprint_ceo_says_wimax_bet_paid_less_than_hoped.html video at: http://kara.allthingsd.com/20101227/d-dive-into-mobile-the-full-interview-video-of-sprint-nextels-dan-hesse/ 5. Will Sprint Dump WiMax For LTE? (3/7/11) http://www.informationweek.com/news/mobility/wifiwimax/showArticle.jhtml?articleID=229300496 6. Sprint Could Be Ditching WiMax For LTE (2/10/11) http://www.businessinsider.com/sprint-well-tell-you-more-about-our-4g-plans-later-this-year-2011-2 7. Sprint talks seriously about LTE, suggests it could complement WiMAX (2/17/11) http://www.engadget.com/2011/02/17/sprint-talks-seriously-about-lte-suggests-it-could-complement-w/ 8. Sprint’s CEO Says Clearwire in ‘Every Option’ for Future (3/9/11) http://www.businessweek.com/news/2011-03-09/sprint-s-ceo-says-clearwire-in-every-option-for-future.html Bearer Technology Peak Rate Available (Kbps) Potential Rates (Kbps) Year GSM CSD (2G) 9.6 9.6 1991 HSCSD 115 115 ~1999 CDMA2000 1xRTT 153 153 1999 GPRS (2.5G) 115 115 ~2000 UMTS/3G 384 384 2002 1xEV-DO Rev.A 3,072 3,100 2007 HSDPA/HSUPA (3.5G) 2,000-5,760 1,200-14,400 2009 HSPA+ (~3.99G) 21,600 17,600-42,000 2009 WiMAX (~3.99G) 2,700 10,000 2008 3xEV-DO Rev.B 4,900-14,900 14,900 2010 DC-HSPA+ 23,400-42,200 23,400-84,000 2010 LTE (~3.99G) 12,000 100,000 2010 LTE-Advanced (4G) X 100MBps-1GBps >2012 LTE - the Other 4G - and its Impact on Enterprise IT | v.1 05.27.11 | ©2011 iPass Inc. 10
  • 11. Glossary HSPA: High Speed Packet Access. A family of high- 2G: Second Generation Wireless. A digital cellular in- speed 3G digital data services available to GSM carriers cluding GSM systems, CDMA, TDMA. worldwide. The service works with HSPA cellphones as well as laptops and portable devices with HSPA 3G: Third Generation Wireless. A generation of stan- modems. Although based on WCDMA, HSPA is a major dards for mobile phones and mobile telecommunication enhancement with more channels and different modu- services fulfilling the International Mobile Telecommu- lation and coding techniques. nications-2000 (IMT 2000) specifications; also com- monly described as graceful enhancements to the GSM HSPA+: Evolved High-Speed Packet Access. A wire- cellular standards. less broadband standard defined in 3GPP release 7 and above. HSPA+ provides HSPA data rates up to 84 3GPP: Third Generation Partnership Project (3GPP) was Megabits per second (Mbit/s) on the downlink and 22 formed in 1998 to foster deployment of 3G networks Mbit/s on the uplink through the use of a multiple- that descended from GSM, as well as those standards antenna technique known as MIMO (for “multiple-input that evolved from cdmaOne (IS-95). and multiple-output”) and higher order modulation 4G: Fourth Generation Wireless. The latest wireless (64QAM). wide area network (WWAN) technology. Designed to in- LTE: Long Term Evolution. The next-generation 4G crease data transfer speeds for Web surfing and video, technology for both GSM and CDMA cellular carriers. the ITU has designated LTE, LTE-Advanced, WiMAX 2 Approved in 2008 with download speeds up to 173 Mbps, and HSPA+ as 4G technologies. For example, as of 2011, LTE was defined by the 3G Partnership Project in the Verizon uses LTE; Sprint uses WiMAX; T-Mobile uses 3GPP Release 8 specification. LTE uses a different HSPA+, and AT&T uses LTE and HSPA+. radio interface and packet network architecture than CDMA: Code Division Multiple Access. A method for previous 3G systems. transmitting multiple digital signals simultaneously WCDMA: Wideband Code Division Multiple Access. This over the same carrier frequency (the same channel). is another name for UMTS (Universal Mobile Telecom- The most widely known application is for cellphones. munications System), a cellular network also referred GPRS: General Packet Radio Service. The first data to as 3GPP. As the name suggests, WCDMA is based service for GSM cellular carriers. GPRS added a packet on CDMA technology and was envisioned for the next capability to GSM. generation of GSM. It’s a European standard designed to support data transmission rates of 144kbps for use in GSM: Global System for Mobile Communications. A vehicles, 384kbps for pedestrian use and up to 2mbps digital cellular phone technology based on TDMA that for use indoors. started in Europe and migrated to other continents. In the US, it uses a different frequency. WiMAX: Worldwide Interoperability for Microwave Access. Also known as the IEEE 802.16 group of stan- dards, which defines a packet-based wireless technol- ogy that provides high-throughput broadband connec- tions over long distances. This was originally intended for point-to-point microwave links, but later extended to support mobile applications. Corporate Headquarters +1 650-232-4100 iPass Inc. +1 650-232-4111 fx 3800 Bridge Parkway www.ipass.com Redwood Shores, CA 94065 © Copyright 2011 iPass Inc. All rights reserved. iPass and the iPass logo are registered trademarks of iPass Inc. and iPassConnect is a trademark of iPass Inc. All other company and product names may be trademarks of their respective companies. While every effort is made to ensure the information given is accurate, iPass does not accept liability for any errors or mistakes which may arise. Specifications and other information in this document may be subject to change without notice.