New Study Shows Every 10% Increase in 4G Adoption Creates 231,000 Jobs

Today leading economists Rob Shapiro and Kevin Hassett released a study analyzing the impact of the adoption of 4G mobile technologies on the U.S. economy. (The study is available in pdf here.) A comparison of wireless technology penetration rates to state-by-state employment data shows that the transition from 3G to 4G mobile technologies should create more than 231,000 jobs for every 10 percentage point gain in adoption rates within a year. This means that a 40 percent gain in 4G adoption would produce nearly 1 million new jobs. These results provide powerful evidence that our national job creation strategy should seek to accelerate the deployment of 4G infrastructure.

The study also demonstrates the critical role 4G mobile technologies will play in achieving other national goals related to health care, energy, e-commerce, and cloud-based innovation. The shift to 4G would:

• Accelerate mobile e-commerce, which grew from about $1.4 billion in 2009 to between $6 billion and $9 billion in 2011;
• Enhance savings from the wide use of electronic medical records created and accessed wirelessly, along with other “mHealth” applications;
• Save $10 billion by further reducing power outages in the nation’s electricity networks; and
• Enable the market for cloud-based services to reach $39 billion by 2016.

Mobile service providers are already investing billions of dollars to deploy 4G infrastructure. But they can’t achieve these goals on their own. Congress and the FCC must make available more spectrum for the United States to sustain its mobile advantage. Today’s evidence shows just how much the success of our economy depends on it.

To hear directly from the authors about the paper, come see them in person in Washington on Thursday, or participate in a live web video briefing/discussion later that afternoon. You can learn more about each presentation or RSVP here.

4G Service

What is 4G Wireless Service?

When purchasing a wireless device, consumers are often confused about the meaning of 4G service and the speed of their wireless phone service. At the request of the Consumer Awareness Project, WCAI President Fred Campbell created a field guide to simplify this very technical issue and provide background information on the wireless technology and the history of its development. Read more here.

Expanded 4G Coverage in NYC

Clearwire, Time Warner Cable and Sprint Expand 4G Coverage in New York City

By Clearwire

The city that never sleeps just got another reason to stay awake.

When we first launched our 4G network in New York City 8 months ago we changed the way New Yorkers were able to experience the Internet and stay connected on the go. We’ve been hard at work with Sprint and Time Warner Cable ever since then to continually upgrade and expand our game-changing network, and as of today we’ve added coverage for an extra 91,363 people. That means our total NYC area coverage now reaches over 11,927,000 people.

“Sprint 4G customers in the Greater New York area will benefit from these enhancements,” said Karen Paletta, Sprint’s East region Vice President. And it’s true! We know how busy you are, and these upgrades have made our network bigger, faster and strong enough to keep up with you as you run around making things happen in your city.

“Across New York and New Jersey, Clearwire’s 4G speed continues to set the standard in delivering a high-speed network that businesses and consumers demand,” said Sean Reid, Regional General Manager for Clearwire. It’s never been easier to get things done on the go – whether you’re downloading a file for work or sending your friend a video clip you took during an outdoor concert in the park. As Lou Lazzaro, Vice President of Wireless, Time Warner Cable New York City said, we’re “offering our customers multiple ways to access the information and content they want at home, at work and on the go.”

Reprinted from CLEAR blog

WCAI to Hold a Webinar on Using Real-Time Analytics on 4G Networks

Next-generation 4G networks will create new opportunities for wireless operators and service providers, but will also present a range of fresh challenges. WCAI will hold a webinar to take an in-depth look at the implications of 4G for the way wireless services are delivered and networks are run. The webinar will focus on the strategic role of real-time analytics in providing the fine-grain data analysis that will enable providers to deliver compelling, revenue-generating new services—while controlling operating costs.

The webinar – "Real-Time Actionable Intelligence Strategies for 4G Operators" – is scheduled for Wednesday, May 18 at 11 am (U.S. Eastern Time). Moderated by Berge Ayvanzian of Heavy Reading, it will feature David Wiseman, Director Telecom Business Development at Sybase an SAP Company. Sponsored by Sybase an SAP Company, the webinar is free of charge and open to all. Register now!

Clearwire and Sprint (peanut butter and jelly, peas and carrots…you get the idea)

By Clearwire

We’re pretty proud of the Sprint and Clearwire match – it’s a partnership that’s been one of the most productive in the U.S. wireless market to date. Together we’ve deployed the first true 4G network in North America and made 4G a household word. So, we’re happy to report that this partnership continues with an updated long-term wholesale agreement between Clearwire and Sprint.

There are a number of details that you can read about here, but the really big news for Clearwire is that Sprint will commit a minimum of $1 billion in cash to Clearwire for 4G wholesale services. This money will be used to support Clearwire’s ongoing operations, and it underscores the interdependent and strategic relationship we have with Sprint.

Our all IP-network is Sprint’s 4G network. (It’s also the same 4G network used by Comcast, Time Warner Cable, Best Buy, Cbeyond, Mitel, and Locus Telecommunications to offer mobile broadband to their customers.) Our unmatched spectrum provides Sprint with a strategic advantage in terms of network capacity. As data usage rises, the need for a rich spectrum portfolio will become even more acute.

With the only 4G wholesale network in the country, coverage for more than 120 million people, and a growing customer and revenue base, we look forward to continuing our partnership with Sprint to deliver outstanding 4G service.

This article is reprinted from the Clearwire blog.

WCAI 4G Caucus Kicks Off with Discussions on Spectrum, AT&T/T-Mobile Merger, 4G Migration Strategies

Gerry Salemme, Partner at Eagle River, kicked off the WCAI 4G Caucus this morning with a fireside chat keynote led by WCAI President Fred Campbell. In a lively discussion of the future of mobile technologies Mr. Salemme spoke about the growing data demand and spectrum issues, the AT&T/T-Mobile merger and the chances of its approval, the gaining momentum of LTE and its potential impact on Clearwire and regional players in the 2.5 GHz band, as well as the economy and the availability of investment capital affecting 4G network deployment in the U.S. Mr. Salemme, who is an advisor to the Clearwire CEO on business and spectrum strategy, also clarified the relationship between Clearwire and Sprint, saying that it’s “more cooperative than people expect.”

The opening keynote was followed by a panel on 4G network migration strategies led by one of the most distinguished industry analysts Berge Ayvazian of Heavy Reading. During the panel, experts from Sprint, AT&T, FiberTower and Tessco discussed their views on the transition from 3G to 4G networks, key challenges of the migration the industry faces, and how policy management solutions can help manage the transition.

Still ahead is the day packed with lively discussions and networking opportunities. Iyad Tarazi, Vice President, Network Development and Engineering at Sprint, will speak about how Sprint’s Network Vision is expected to consolidate multiple network technologies into one, seamless network. Following his keynote presentation, Mr. Campbell of WCAI will lead the discussion on adapting regulations to the new realities of 4G technologies. The panel will feature FCC Wireless Bureau Chief Ruth Milkman, along with regulatory experts from AT&T, Sprint, Clearwire and Wilkinson Barket Knauer.

Other program highlights include a keynote from Sybase an SAP Company on real-time actionable intelligence strategies for 4G operators; a keynote from Alvarion on building 4G smart grid, as well as panel discussions on broadband spectrum options for smart grid applications and on fixed wireless innovations.

Wrapping up the first day of the event will be the popular WCAI Networking Dinner at Ruth’s Chris, one of the best steak houses in town.

So if you are not already here, come join us for the exciting day of discussions and networking!

WCAI Applauds President Obama’s National Wireless Initiative

U.S. President Barack Obama Thursday outlined his plan for expanding high-speed wireless Internet service to 98% of Americans as part of the Administration’s National Wireless Initiative. The speech came after President Obama viewed a demonstration of a WiMAX system operated by Northern Michigan University in the Upper Peninsula of Michigan on EBS spectrum.

“WCAI applauds the Obama Administration’s commitment to bring wireless broadband service to all Americans, including in rural areas, and to promote investment in America’s broadband infrastructure,” WCAI President and CEO Fred Campbell said in a statement. “As the only broadband platform that is capable of providing access everywhere, all the time, and at affordable prices, wireless broadband is essential to improving education, creating new jobs and growing the American economy. We look forward to working with President Obama, the FCC and Congress to implement this initiative.”

The key elements of the administration’s plan are:

• Freeing up 500 MHz of spectrum, including the use of “voluntary incentive auctions” and more efficient use of government spectrum, estimated to raise $27.8 billion over the next decade.

• Provide at least 98% of Americans with access to 4G high-speed wireless via a one-time investment of $5 billion and reform of the Universal Service Fund.

• Catalyze innovation by devoting $3 billion of the spectrum proceeds to a Wireless Investment (WIN) fund supporting research and development of emerging wireless technologies and applications.

• A $10.7 billion commitment to support the development and deployment of a nationwide wireless broadband network to afford public safety agencies with far greater levels of effectiveness and interoperability. An important element of this plan is the reallocation of the D Block for public safety and $500 million within the WIN Fund.

• $9.6 Billion of spectrum auction revenue will be devoted to deficit reduction.
  

Further information may become available when the Administration releases its budget proposal next week.

The National Association of Broadcasters Is Wrong about Spectrum

It appears that the National Association of Broadcasters (“NAB”) is trying to thwart incentive auction legislation by arguing there is no spectrum crisis. In a letter sent to the leaders of the Senate and House Commerce Committees, NAB claims that wireless carriers are sitting on $15 billion of spectrum. They base this claim on an article published by dailywireless.org.

The article’s allegation that wireless providers are sitting on spectrum is just plain wrong. For example, the dailywireless.org article claims that AT&T won’t use its 700 MHz spectrum anytime soon (even though it will begin deployment this year), and that “[t]elecommunication companies should loose [sic] it or use it.” The reality is that, if 700 MHz licensees don’t use their spectrum in a timely manner, they will lose it. The buildout requirements applicable to the 700 MHz band are the strictest the FCC has ever adopted and were designed to ensure that 700 MHz licensees quickly deploy next generation 4G networks based on the LTE standard. Those FCC standards already contain a “use it or lose it” provision that provides more than enough incentive for rapid deployment at 700 MHz. (Disclaimer: I was Chief of the FCC’s Wireless Telecommunications Bureau when the 700 MHz rules were adopted and the auction was held.)

The author of the article apparently believes wireless providers should have begun deploying their 700 MHz networks the moment they received their licenses. Of course, that was impossible. New standards and hardware need to be developed whenever a new spectrum band is made available, which takes time. Hardware designers hadn’t even begun designing chipsets, test equipment, and base stations for LTE when the 700 MHz auction was held, and the LTE standard continues to be further refined and developed. Given this reality, the timetables for deployment in the 700 MHz band are very aggressive: These networks are already under construction only a few years after the auction was held and are relying on the earliest hardware implementations of the LTE standard. In contrast, the broadcasters’ transition from analog to digital took more than 20 years. Work on the digital television standard began in the late 1980’s, but the digital transition wasn’t complete until 2009 – and even then it was the result of a Congressional mandate rather than the voluntary efforts of the broadcasters.

The facts also show that even this aggressive deployment of 4G networks on current spectrum won’t be enough to satisfy consumer demand. AT&T’s mobile network traffic increased 5,000 percent after it began offering the iPhone, and data usage levels continue to rise. If more spectrum isn’t made available, service providers will face a spectrum crisis as early as 2014. America can’t afford to let this happen, and American consumers won’t stand for it.

The Chicken Soup Debate

By Mike Sievert, Chief Commercial Officer, Clearwire

Yesterday Verizon announced it will officially launch its 4G service on December 5th, and as you’ve likely noticed, the marketing muscle of both Verizon and T-Mobile has suddenly become squarely focused on our space. This has prompted many in the industry to start a debate over the definition of “4G”.

Well, as the pioneer in 4G and developer of the first 4G network in the country, we have been doing this for a while now and we think we have a pretty good idea of what 4G is. For us, the definition is quite simple: 4G is next generation. It’s a big leap over 3G, offering you speed and capacity that is several times greater, giving you the ability to have much more than just a thin layer of 3G Internet for checking sports scores and doing email. With 4G, people can experience the magic of true broadband, and have digital lifestyle options that were never available before.

We think “next generation” equals three things – Speed, Capacity, and Value. To be next generation, you have to be fast, and we are. But it also means you have to have higher capacity to be able to handle the tons of megabytes of data that we know you all want. There also has to be a breakthrough in cost so that everyone can have a great value.

The debate going on about who is or isn’t 4G is unimportant because whether it’s called 3G, 4G, WiMAX, LTE, or HSPA+…. all that matters, in the end, is getting a great price on a fast connection with a ton of included usage - a combination that requires the kind of network and capacity that only Clearwire has.

Having a powerful, portable device that’s with you all the time, connecting you without compromise, is also high on that list. The number of devices available is another area to consider when choosing a 4G service. Today our network supports the first (and only) 4G smartphones on the market. And we have an ecosystem of nearly 70 devices to connect you to the power of 4G.

In this increasingly noisy market, the mistake anyone can make is only looking at speed when the real differentiator in 4G is capacity. Because our network has so much spectrum (which translates into capacity) we can offer unlimited usage at a good price. For example, take a CLEAR customer using 20GB a month for $45. With Verizon and its usage caps on the 10GB plan, the same person could be paying $180 a month. Our advice to Verizon customers? Watch the clock every minute and count every megabyte. Our unlimited plans are our most popular plans, because no one wants to feel like they are on the clock.

What do we really think of all of this new competition? We welcome it! When you are as well positioned in a market as we are, you want that market to grow. The more people who hear about mobile broadband, the bigger the market, and the more opportunity for Clearwire to differentiate ourselves and grow.

So remember, when it comes to mobile broadband, speed is important, but capacity is king. And in this area, Clearwire is unrivaled.

Click here to view a comparison table of CLEAR 4G WiMAX and Verizon LTE.

WCAI to Hold a Webinar on Creating a New IPR Model to Speed the Proliferation of 4G

With the introduction of 4G, the first true packet-switched wireless technology, the possibility of a truly ubiquitous wireless protocol becomes possible. In addition to consumer broadband services, opportunities range from smart grid utility meters to medical monitoring equipment to law enforcement - the scope of applications that 4G offers extends far beyond the traditional limitations of previous wireless 3G technology.

But if that’s the case, why haven’t we seen more of these applications? The answer is – the risks and costs associated with IPR litigation. The currently unsettled state of Intellectual Property Rights for 4G has made a lot of vendors nervous about the costs and litigation risks of incorporating this revolutionary technology into their products and services.

WCAI will hold a webinar on Aug. 25 at 11 am ET to clarify the problems as they stand now, the industry’s efforts to resolve them and the potential for dramatic change that 4G represents for consumer electronics everywhere. The webinar will feature Yung Hahn, president of the Open Patent Alliance, and Jean-Michel Bourdon, president of Via Licensing. Register Now!

WCAI Summer Summit: Learn, Network, Prosper!

The WCAI Summer Summit is less than two weeks away and we hope that you are just as excited as we are about all the perks that we filled the two-day program with. The event’s highlights include an FCC workshop on the National Broadband Plan, a keynote address by Clearwire Executive Vice President Gerry Salemme on what it takes to bring 4G to America, a presentation by Motorola Networks CTO Bill Payne on the WiMAX migration paths to 802.16m or TD-LTE, and a discussion of operator best practices for 4G networks. But that’s not all…

Did you ever want to take a peek at how industry leaders in the 4G marketplace run their operations? Well here is your opportunity! WCAI members Clearwire and DigitalBridge will be opening doors of their 4G lab and network operations center for Summit attendees to tour their facilities. Clearwire will also have a 4G-equipped vehicle onsite to demo its mobile network operation. The DigitalBridge tour will feature DBC’s network management systems, test WiMAX systems, and proprietary network optimization technology. Visitors will be able to see best practices in the following areas: WiMAX network operations and management, device interoperability, and network and subscriber optimization techniques.

There will also be plenty of opportunities for social networking, especially during the reception and dinner at the end of the first day of the event.

And the best part is that the Summit registration is absolutely FREE for WCAI members who register by June 25. After that, the rate goes up to $79. Non-members are also welcome at the event for $79.

The Summit will be held on June 30-July 1 at the NRTC Headquarters, 2121 Cooperative Way, Herndon, VA. See you next week!

FCC Choose LTE for Public Safety

It’s official: LTE is the chosen 4G technology for interoperable public safety networks in the 700 MHz band. Yesterday the FCC granted conditional approval of 21 petitions filed by cities, counties and states that sought waivers to move forward with the construction of regional or statewide interoperable wireless broadband networks in the 700 MHz public safety broadband spectrum. In doing so, the FCC mandated use of the LTE air interface.

Alvarion Joins WCAI Board of Directors

WCAI today announced the addition of Alvarion Ltd., a global leader in 4G wireless communications, to its Board of Directors. Representing the company on the WCAI Board is Dr. Mohammad Shakouri, Corporate Vice President, Innovation and Marketing.

“Alvarion has been at the forefront of delivering the true 4G broadband experience in the United States and around the world,” said WCAI President and CEO Fred Campbell. “WCAI welcomes Alvarion on Board and looks forward to working together to promote next-generation wireless broadband access in support of achieving ubiquitous broadband deployment and technology innovation.”

An industry visionary and well-known expert in the field, Dr. Shakouri serves on Alvarion’s executive management team. Instrumental in growing WiMAX into a multi-billion dollar industry, including through his involvement with WiMAX Forum, Dr. Shakouri is considered to be the leading voice for the WiMAX industry.

“We are pleased to become part of WCAI Board to help US market enhance the broadband services across the country,” said Dr. Shakouri. “WCAI is a world class industry organization that is at the forefront of developments related to wireless broadband and we look forward to collaborating on new industry initiatives.”

Alvarion continues to demonstrate leadership in the wireless broadband industry. As the world’s leading provider of 4G WiMAX solutions with more than 270 WiMAX networks deployed around the globe, Alvarion offers fully integrated end-to-end all IP WiMAX solutions.

WCAI to Hold a Webinar on Spectrum Challenges and Availability for IMT in the Middle East

As the ITU is moving closer to finalizing its work on IMT-Advanced designation, regulators around the world are looking at the potential spectrum bands and working on the rules for these true 4G technologies. WCAI and its Global Development Committee (GDC) will hold a webinar on Wednesday, April 14 at 10 am (U.S. Eastern Time) to examine spectrum challenges, allocations and availability for the IMT and IMT-Advanced services in the Middle East. The webinar will feature Hasan Sharif, Senior Manager Spectrum Strategy at the Telecommunications Regulatory Authority in the United Arab Emirates (UAE). This webinar is free of charge and open to all. Register Now!

2010 Prediction: A Mix of WiMAX Smartphones and Low-Cost Devices to Emerge

By Guest Blogger Pascal Deriot, Senior Analyst & Partner, WiMAX & LTE Equipment, Maravedis

In a recent interview, Sprint CEO Dan Hesse commented that not only was its network up and running, but its compelling and cool devices, such as dual-mode 3G/4G smartphones, will make WiMAX a successful adoption. On the same front, Clearwire CEO Bill Morrow explained that the second stage of Clearwire’s business model, targeting the PDA/smartphone market, is to happen in the second half of 2010. Although Yota has proved that smartphones can be a great vehicle to promote the fantastic bandwidth capability of the first 4G technology, we also project that the cost of the WiMAX platform is another angle that needs to be considered.

As previously seen in Wi-Fi or 3GPP/3GPP2 markets, WiMAX chipset vendors have leveraged their first or second generations to further reduce chipset costs by migrating to a smaller geometry process node, and/or by introducing monolithic dies. At the same time, new packaging approaches, such as System-in-Package and optimized Bill Of Material (BOM), have significantly reduced the footprint of the WiMAX platform, allowing device manufacturers to launch a new generation of products that are more appealing, integrated, and that combine 3G and 4G standards.

The new research report released by WCAI member Maravedis in partnership with Reveal Wireless, “WiMAX Wave2 Subscriber Station Chipset Vendors Competitive Analysis” provides a detailed comparison of the key WiMAX chipset vendors, identifying system architectures, estimating chipset and system BOM, and cost of available devices such as CPEs, USB dongles or Express Cards. One of the report’s major findings is that WiMAX mass-market adoption may require sub-US$10 chipsets that are power and performance optimized for each application-specific segment. Maravedis and Reveal Wireless have identified three chipset vendors best positioned to achieve the US$10 price target through base-band and RF monolithic die integration in 65-nm.

Although most of the available chipsets are not highly optimized because they were compelled to cover a broad range of application segments, an additional study revealed that device manufacturers could build a basic WiMAX USB dongle solution for as low as sub US$50, while maintaining healthy profit margins. The figure below presents the breakdown of the cost of the USB dongle: the electronic BOM (eBOM) is composed of all the platform components, excluding the chipset. A basic USB dongle platform can be divided into 3 main sub-systems: base-band, RF and power management sub-systems, bringing the component count to 150-200 components. The rBOM, also called sometimes mBOM, defines the mechanical Bill-Of-Material. It contains the non-electronic components such as connectors, USB plug, antennas, PCB, housing, shielding or screws. Our total manufacturing cost estimation includes the labor cost, profit and SG&A. According to our research the WiMAX chipset, by its complexity and silicon die size, represents 44% of the total cost.

Moreover, our analysis shows that a combination of an aggressive Bill-Of-Material reduction by 20-30%, combined with a second generation chipset and higher production volumes, could further shrink the cost of the USB dongle by roughly 20%, providing a sub-US$40 product in 2010 time-frame.

We believe that WiMAX mass-market adoption requires a ubiquitous coverage and technology maturity, a mixed portfolio of appealing, integrated and low cost devices, and competitive WiMAX chipsets. We have no doubt that all these ingredients will be ready next year contributing to a fantastic growth of the WiMAX market, in all regions.

MARAVEDIS is a leading analyst firm focusing on disruptive technologies including smart networks using WiMAX, IEEE, and 3GPP/LTE. For more information about Maravedis, please visit http://www.maravedis-bwa.com/ or contact info@maravedis-bwa.com.