Over the past two years or so, the term, drones, has become more widely known. They are not only commercially available for personal use, but many businesses, especially those that ship goods, such as Amazon.com, Fedex, DHL and UPS, are also exploring the use of drones to make deliveries to their customers. With all the excitement about drones, generally, the question must be asked when might we, here in the Caribbean, experience more extensive use of drones?

What is a drone?

Unmanned Aerial Vehicles (UAVs) or Remotely Piloted Aerial Systems (RPAS), which more colloquially are known as drones are unmanned, yet remotely controlled, aerial devices. Radio controlled aircrafts have been in use by the military, since the 1950s, to assist in fighter pilots combat training. Thereafter, they also evolved into recreational use, as model airplanes that are popular with children and hobbyists alike.

As remotely controlled devices typically, drones operate in the 2.4—5.8 GHz band, which according the frequency band plan for the United States is reserved for Wi-Fi. However, some of them use frequencies in the 900 MHz band, which is also a widely used band for mobile/cellular communications.

Key benefits and applications

In being unmanned – without a human pilot – drones are especially useful in situations where manned flights are considered too risky or difficult. Additionally, using drones can be a more cost effective option than manned aircrafts, particularly when the routes are simple and covering relatively short distances. Accordingly, drones are widely used for aerial photography; land surveying, and for recreational purposes. Also, increasingly, they are being used in logistics and for making deliveries.

Will drones become ubiquitous in the Caribbean?

In a nutshell, extensive drone use in the Caribbean is still several years away. Currently, there are concerns on many fronts: telecoms, security, and even civil aviation. With regard to telecoms, and although the devices tend to use spread spectrum technology, the small size of many of our countries, and their close proximity to each other, means that their signal power to maintain control of a drone, could be a possible source of interference. In matters related to security and civil aviation, the concerns tend to be about such devices being in unauthorised areas.

As a result, the policies that would guide the importation and use of drones in most Caribbean countries are still being developed. As it currently stands, and across most of the region, drone importation is strictly controlled – either they have been banned outright, or special permits (or authorisations) must be secured to permit them for specific uses.  It therefore means that we still have a way to go before drones – and the use of drones – gain any significant foothold in the region.

Image credit:   Richard Unten (flickr)

___________________

For those who regularly read our ICT/tech news roundup published on Mondays, you may have noticed that articles pertaining to ‘digital switchover” pop up from time to time. We, here at ICT Pulse, had discussed digital switchover a few years ago, 2012 to be exact, when it had been receiving considerable attention. In our post, Switching over to digital TV: what you need to know, we mentioned that 17 June 2015 was viewed internationally as the “analogue switch-off date” – “when the radio frequencies that have been allocated to analogue TV will be made available to other applications”.

Without a doubt, we have blown past the 17 June 2015 deadline; however, the Caribbean does not appear to be any closer to completing the switchover process:

• Indotel, the Dominican Republic telecoms regulator, announced last week that the country was extending the deadline to fully adopt digital terrestrial TV (DTT) to 2021, from the earlier commitment to switch off analogue TV by September 2015 (Source: Advanced Television)
• Last year, Spectrum Management Authority, in Jamaica, stated it had pushed back the date to commence the digital switchover by three years, to 2018 (Source: Jamaica Observer);
• Guyana has an approved switchover plan, which envisages the process beginning in 2016 and being completed by 2020 (Source: Kaieteur News)

Additionally, countries across the region may have been relying on the technical assistance that has been made available through soon to be concluded regional spectrum planning and management projects, which were funded by the Inter-American Development Bank. Though consultancies attached to those projects may have advised on the approach to be employed and how to mitigate challenges that could be experienced, it would still be incumbent on the countries to implement the switchover process.

Why has the digital switchover taken so long?

As reflected by the Caribbean experience (above), transitioning from analogue to digital TV can be a very protracted process. First, the analogue standards that are still being used today were developed in the 1940s and 1950s, and so there would be considerable depth of experience in those technologies. In being relatively new in comparison, there would be a steep learning curve for broadcasters, who would not only have to redesign and reconfigure their networks, but also develop the proficiency to troubleshot and adapt those digital technologies to their needs.

Second, from a regulatory perspective, the existing analogue radio frequency allocation plans and spectrum management policies would need to be revised to support a digital transmission framework. Depending on the country, the process to amend that system of rules, policies, licences, etc., can be quite involved, and so delay implementation by the broadcasters. Furthermore, although there might be a wealth of information freely available on spectrum management, planning and coordination in relation to digital TV, similar to the broadcasters, some Caribbean regulators may not readily possess the depth of expertise to be confident in preparing such crucial national frameworks (without expert support).

Third, a frequently overlooked point in early discussions on digital switchover is the cost to transition. In summary, it is expensive, as it requires broadcasters to replace existing their equipment and infrastructure. Further, that financial burden has become even more acute in the current business/economic climate in the region, where many broadcasters are generating lower than normal revenues, due in part to a consistent decline in advertising, and their audiences/customer base.

Finally, whilst much of the focus of the switchover process is on establishing the proper framework and getting all broadcasters implementing the new regime, there are also far-reaching implications to customers, who will need to update their TVs and other receivers. Outside of the Dominican Republic so far, which indicated that customers who purchased DTT decoders would be compensated, it is likely that customers in other Caribbean countries will have to bear those costs. Consequently, the switchover period must also factor in those stakeholders, with sufficient latitude to hopefully achieve a smooth transition.

Is it really necessary?

In summary, although there are a number of benefits in switching to digital TV – such as better picture quality, more efficient use of the radio frequency spectrum, and more channels – it is a costly and involved process. However, while developing countries, and especially broadcasters, might bristle at being forced to switch, the truth is that the world is transitioning to digital TV. In time, analogue TV equipment and devices will no longer be available, and so it makes sense for countries to try to stay ahead of that eventuality.

Image credit:  Johnnie Johnson Housing

_________________

In our first post for 2012, we highlighted what we believe might be important issues during the year: see 10 topics that will be in the news in 2012. Here, we review those predictions to see how well we fared.

1.  Cyber crime and security

The year coming to a close was a big year for cybercrime and cybersecurity. A number of organisations both internationally and in the Caribbean were reported in the news as having experienced unauthorised intrusions, which in some instances resulted in the theft of information. In the region, we also had a number of cases of ATM fraud, along with lottery and advanced payment scams, which began to highlight the breadth and depth of the threats to which victims are being subject.

2.  Online piracy

In late 2011, we highlighted the draft Stop Online Piracy Act (SOPA), which Had been introduced in the United States House of Representatives. Although it was rejected early this year, other pieces of legislation, such as the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act, more commonly referred to as the PROTECT IP Act and the Anti-Counterfeiting Trade Act (ACTA), reinforced the fact that online Intellectual Property Rights was still high on developed countries’, especially the United States’, agenda.

We must also draw attention to the takedown of Megaupload, which the United States Government alleged engaged in or facilitated copyright violations. The company directors and members of its executive were arrested and Megaupload subscribers were barred from accessing data they had stored on the site, which in many instances was subsequently was deleted, all of which effectively obliterated the service.

3.  The BlackBerry

The saga of the BlackBerry continued this year, with industry analysts taking bets as to how much longer the BlackBerry and its parent company, Research in Motion (RIM), might last. Within the company, major changes occurred. Both co-founders were ousted as co-CEOs and a concerted effort to downsize operations commenced.

Although RIM was continually in the news during 2012, and even released a few new devices, it was not a stellar year for the company, and neither was it one where it attempted a comeback. Release of the much-anticipated Operating System (OS), BlackBerry 10, has been delayed by almost a year, but is slated to be launched on 30 January 2013.

4.  Near Field Communications

Near Field Communications (NFC) did not appear to gain the prominence expected over the past 12 months. Although a number of smartphones using the Android OS 4.0 (also known as Ice Cream Sandwich) were launched, the capability was not widely promoted until Samsung began to feature it in its Christmas advertising with the tagline “the next big thing is here”.

5. True 4G adoption

Although the standards for Long Term Evolution (LTE) Advanced and WiMAX 2 have been finalised, it does not yet appear that the industry is ready to begin implementing one or both of those true 4G standards. Manufacturers and policymakers in the Americas, in particular, are still referring to LTE, Evolved High Speed Packet Access (HSPA+) as “4G”, and are still releasing devices compatible with those standards.

6.  Number portability

Number portability was in the news this year throughout the Caribbean, as a several countries either embarked upon, or continued with plans to implement it. For many countries, such as Jamaica, St. Kitts and Nevis, Dominica, St. Lucia, St. Vincent and the Grenadines, Grenada, and Trinidad and Tobago, the consultation processes have been completed, and the implementation framework either has been, or is in the process of being, finalised. In many instances, the telcos will be leading the process towards number portability, which ought to be completed within specified timeframes.

7.  Sector liberalisation and competition

Evidenced by the number of entries in our weekly news roundups, sector liberalisation and competition was a hot topic this year in the Bahamas, Jamaica, and to a lesser extent Guyana. Both the Bahamas and Guyana are yet to fully liberalise all of their telecoms markets. Guyana is still in the process of enacting new legislation and establishing a timeline in which full liberalisation will be achieved. On the other hand, the Bahamas has also been roundly criticised for its attempt to retrieve a majority stake in the incumbent telecoms provider, the Bahamas Telecommunications Company (BTC). However, it appears that negotiations with BTC’s parent company, Cable and Wireless Communications, have stalled.

In Jamaica, where the telecoms sector has been fully liberalised for a number of years, 2012 saw the completion of Claro Jamaica’s assimilation into Digicel Jamaica. Additionally, amendments to the Telecommunications Act were enacted, which led to the establishment of interim interconnection charges, and a significant drop in mobile/cellular calling rates across the industry.

8.  LIME

To date, the changes in LIME across the Caribbean have not appeared to be as revolutionary as might have been expected. Having said this, initiatives such as 4G service, Fibre-to-the Home and Subscriber TV were launched, to varying degrees, across the region during the year.  Further, and as reflected in its parent company’s half year report, LIME’s operations in Jamaica are showing signs of recovery after years of significant losses.

9.  Internet Exchange Points

Internet Exchange Points (IXPs) were still widely promoted in the Caribbean over the past 12 months. However, only one additional country, St. Kitts and Nevis, publicly committed to have it installed, which brings the total to three countries in the English-speaking Caribbean that have IXPs.

10.  Mobile broadband

To varying degrees, mobile broadband service has improved across the region from where it was a year ago. Mobile data plans, using “4G”technology, have been rolled out in some markets. However, with the uncertainty around BlackBerry and the aggressive promotion of the Apple iPhone, and Android-based smartphones, there has been a growing demand for mobile data services, which has caused some adjustments in the plans and their pricing.

Image credit: digitalart (FreeDigitalPhotos.net)

_______________

In Monday’s news roundup, one of the articles indicated that submissions were being made to the Jamaican government to approve 2015 as the transition year for the ‘digital switchover’. Additionally, a Digital Switchover Study will soon be performed to “review Jamaica’s readiness and carrying capacity for the switchover” (Source: Jamaican Observer).

For those who might not be aware, the term ‘digital switchover’ speaks to the transition process from analogue TV to digital TV. Analogue TV generally refers to traditional over-the- air programming for which an antenna is required to receive the signal. With regard to digital TV, audio and video signals are digitally processed and multiplexed and can transmitted via a number of media, such as, terrestrial over the air broadcast and via satellite.

Countries worldwide have been transitioning to digital TV transmissions since 2006, and 17 June 2015 has been agreed internationally as the date when the radio frequencies that have been allocated to analogue TV will be made available to other applications.

With 17 June 2015 just over three years away, most Caribbean countries might not yet have established a plan of action to manage their switchover from analogue to digital TV. This post will highlight some of the pros and cons of the switchover, plus other matters that should be considered in light of this looming deadline.

Pros

Some of the advantages of digital TV are:

• Quality picture and sound.  Digital TV offers considerably better sound and picture quality than current analogue systems. It also allows transmission of High Definition TV (HDTV), which has been all the rage over the last few years, which again offers substantially higher viewing resolution than traditional analogue systems.
• Requires less bandwidth.  One of the key driving forces behind the transition to digital TV is that its uses considerably less bandwidth than analogue systems. Hence, the frequencies that are freed up in the switchover to digital TV can be made available to other services and applications, thus also promoting efficient use of the radio frequency spectrum.
• More channels.  With standard analogue systems, only a handful of channels can be received, but with digital TV, since its signals can be multiplexed, it is possible to offer a larger number of channels, which means a wider selection can be made available to consumers.

Cons

The article in the Jamaica Observer mentioned the “broad and enriched media experience that digital transmission brings” as a reason for the switchover, but there are number of disadvantages that frequently eventuate when moving to digital TV.

• Incompatibility with existing analogue TV equipment.  Current analogue antennae/receivers and TVs cannot process digital TV signals. Hence at the very least, consumers would need an analogue-to-digital converter box, or alternatively, replacing their analogue TV with one that has a built-in digital tuner. Additionally, depending on the age of their antennae, they may also have to be replaced, in order to success receive digital transmissions.
• Expense to end-users.  The inherent incompatibility between analogue and digital TV signals means that there are expenses that consumers will most likely have to bear to facilitate the switchover. In some countries, such as he US and UK, the government offered a subsidy to defray some of those expenses, However, that might be unlikely in the Caribbean, since most governments cannot afford to do so.
• Loss of signals.  In circumstances where analogue signals are weak, it may still be possible to view the broadcast, granted the picture and sound quality might be poor. In the case of digital TV, a weak signal often results in a blank screen – the channel content cannot be viewed, period. Hence there may be significant portions of the population who had been able to receive analogue broadcasts, albeit of poor quality, who might not be able receive digital broadcasts, leading to some degree of marginalisation.

Other considerations

The above discussion on the pros and cons of digital TV has been done primarily from the consumer’s perspective. However, TV broadcast operators will be required to update their equipment, which are expenses that they may be required to bear almost exclusively. In having a transition period over a number of years, operators might be in a better position to manage those costs and upgrades.

Furthermore, recognising that fewer people may successfully receive digital broadcasts due to weak signal strengths when compared with analogue transmissions, suggests that the deployment of broadcast towers may need to be revisited. Additional broadcast towers might be necessary to improve coverage and digital signal reception, which would mean increased costs to operators.

On another note, consideration also ought to be given to managing the environmental waste that will likely occur during a digital switchover process. In keeping with our post, Where do our electronic devices go to die?, the average cathode ray tube (CRT) TV contains between 1 lb (0.45 kg) and 11 lbs (5 kg) of lead, and is known to be highly toxic to humans, animals and aquatic life. Hence, systems must be established to properly dispose of such hazardous materials and reduce the environmental impact.

Finally, it ought to be highlighted that due to the relatively short distances between neighbouring countries, especially in the Eastern Caribbean, a coordinated approach to the switchover is advisable to reduce the possibility of signal interference between countries. This matter may be even more important since French and Dutch dependencies may have already completed their digital switchovers (as per their parent countries), but their spectrum plans would be aligned to what obtains in Europe (ITU Region 1) rather than the Americas (ITU Region 2), which again reinforces the need for coordination and clear management of the digital switchover process.

Images courtesy of “Johnnie” Johnson Housing; and kire, localsurfer and Miss Talky luvs the ocean, flickr

_________

Monday, 16 January 2012

Digicel Hits Back

Jamaica – Telecoms company, Digicel, yesterday told its competitor, LIME, to stop what it called the “outrageous public bashing” of Government officials and focus instead on its own business… more

Mobile Development Programme To Target Youth

St. Kitts & Nevis – St. Kitts and Nevis has one of the highest broadband penetration rates in the Caribbean and the local Government continues to design projects to position the youth population to capitalize on the expansion of technology… more

St. Maarten Cable TV’s Outage Update.

St. Maarten – St. Maarten Cable TV today provided an update on the network modifications being made in preparation for the upgrade to an all-digital platform on February 1, 2012… more

TELEM Execs visit Sint Maarten House

St. Maarten – Last week Thursday executives from the TELEM Group of Companies visited the Cabinet of the Minister Plenipotentiary in The Hague at the Sint Maarten House… more

Tuesday, 17 January 2012

ICT Road Show Launched

Dominica – The importance of Information and Communication Technologies, (ICT’s) was underscored on Monday when Dominica launched the second edition of the ICT road show at St. Gerard’s Hall in Roseau… more

Trinidad, St Lucia Talk ICT Education

Trinidad & Tobago – St Lucia Education Minister Dr Robert Lewis and Trinidad and Tobago Education Minister Dr Tim Gopeesingh met today to focus on issues of education in the two countries… more

Wednesday, 18 January 2012

BTC 4G Optimization Progressing Satisfactorily

Bahamas – BTC officials indicated their “satisfaction” with the progress of the 4G cell site optimization exercise currently underway in New Providence and Grand Bahama following the December launch of the new network… more

URCA opens enticing telecommunications spectrum bands

Bahamas – The Utilities Regulation and Competition Authority (URCA) is seeking public consultation on the opening of spectrum bands that could drastically improve competition in the country and ultimately boost mobile and broadband service… more

LIME Targets SME Businesses With ‘Cloud’ Services

Caribbean – The Caribbean business of Cable & Wireless Communications, LIME, is targeting more business from small and medium-sized enterprises (SMEs) in the Caribbean by extending its suite of cloud-based services… more

Technology cited as tool for positive change for St Kitts-Nevis

St. Kitts & Nevis – Participants attending the January 24 to 27 Mobile Apps Workshop in St Kitts will be challenged to unleash this aspect of technology as a tool for positive change… more

Thursday, 19 January 2012

LIME Continues Call For Better Regulation

Jamaica – The Chairman of LIME Jamaica has repeated the company’s call for the government to urgently level the playing field in the telecoms market… more

Paulwell Aiming To End LIME-Digicel Beef In Two Weeks

Jamaica – Technology Minister, Phillip Paulwell, says he’s aiming to resolve the conflict between telecommunications companies, Digicel and LIME, within two weeks… more

‘No shutdown’ – LIME says environment tough but it’s not leaving

Jamaica – LIME Jamaica yesterday strongly denied a news report that British parent company Cable & Wireless (C&W) plc has decided it will shut down its local operation in light of a ‘difficult’ regulatory environment… more

Friday, 20 January 2012

Gov’t Committed To Competitive ICT Environment

Jamaica – Minister of Science, Technology, Energy and Mining (STEM), Hon. Phillip Paulwell, says the government is committed to cultivating and preserving a competitive environment in the information and communications technology (ICT) sector… more

Gov’t to provide more computers for schools

Jamaica – Minister of State in the Ministry of Science, Technology, Energy and Mining Julian Robinson, says more computer equipment will be provided soon for educational institutions, under the Government’s e-Learning Jamaica Project… more

‘That’s not LIME’ – Dehring distances firm from old monopoly

Jamaica – LIME Jamaica yesterday sought to distance itself from the old Cable & Wireless (C&W) Jamaica monopoly. At the same time, company chairman Chris Dehring labelled bitter rival Digicel as the biggest threat to liberalisation in the telecommunications market… more

Caribbean open data movement set to open a world of possibilities

Trinidad and Tobago – A Caribbean open data initiative, backed by the University of the West Indies and the International Development Research Centre of Canada, could improve the region’s access to public information of national significance… more

Saturday, 21 January 2012

– nil –

Sunday, 22 January 2012

JPS Invited To Offer Broadband Internet Service

Jamaica – Newly returned Minister of Science, Technology, Energy and Mining, Phillip Paulwell, has called for the Jamaica Public Service (JPS) to enter the broadband Internet market… more

Image courtesy of johnthurm, flickr

____________

The tech/ICT issues that made the headlines or had us talking in 2011 were diverse and interesting, from cloud computing and server virtualisation, to the impact of social media in civic matters and the death of Steve jobs. In this our first full week of 2012, we have an excellent opportunity to give some thought to topics that will feature prominently in 2012.

Our list highlights important issues we believe will grab considerable attention in the coming year, but is by no means exhaustive. Do have a read and let us know what you think…

1.  Cyber crime and security

It should come as no surprise that cyber threats, including hacking, malware, cyber crime and computer security, will continue to dominate the headlines in the coming year. The Stuxnet computer worm, which was discovered in mid-2010, and which compromised the security of nuclear reactors in Iran, highlighted the sophistication and the resources available for hacking. Furthermore, although hacking is frequently done for profit and other gains, increasingly, the breaches appear gratuitous – if only to show companies how vulnerable their networks are. Although governments and organisations are keen to stay one step ahead of all threats that is rarely the case, resulting in dire consequences.

2.  Online piracy

Late last year, the draft Stop Online Piracy Act (SOPA) was introduced in the US House of Representatives. The document has been roundly criticised by industry players and other stakeholders, because some key provisions are considered highly oppressive. Nevertheless, SOPA has been receiving strong support in the House and is following  the legislative process. At this point, it does not appear that SOPA will be rejected, but it may be modified to address some of the issues raised. Due to the criticisms being levelled at the current draft and the calibre of opposition to the Act, this topic is likely to be in the news for the next several months as it works its way to resolution.

3.  The BlackBerry

The saga of the BlackBerry, specifically the changes that the device and the parent company, Research in Motion (RIM), will experience in the coming year will remain big news in 2012. Many analysts have been forecasting the BlackBerry’s demise and that RIM will be sold before year-end. However, this week, RIM announced that an independent committee has been established to review the company’s operations. The results of the review should be available by the end of January, and will likely be the basis for some major decisions going forward. Stay tuned…

4.  Near Field Communications

As mentioned in last year’s post, 7 insights on the future of technology and the Internet,

Near Field Communications (NFC) is a set of short-range technologies that enable mobile phone users to execute simple transactions such as purchases and data exchange just by waving their handsets in the vicinity of the receiver, or by touching the receiver. The technology is already available but is not yet widely used, and so far its application has been relatively limited…

This is expected to change in 2012. One of the key drivers of that change will be availability of NFC capability on the latest Android OS release, 4.0 Ice Cream Sandwich:

5. True 4G adoption

Over the past year, the standards for Long Term Evolution (LTE) Advanced and WiMAX 2 have been finalised, and manufacturers began testing the technologies. Hence during the course of 2012, more decisive moves towards implementing one or both of those 4G standards will occur. Although two standards currently exist, it appears that LTE Advanced might already have an advantage, as several smartphone manufacturers have been releasing devices based on the preceding standard, LTE.

And a bit closer to home…

The above points are topics that are expected to feature prominently in international ICT/tech news in the coming year. However, to varying degrees, those issues might not have as significant or as immediate an impact in the Caribbean. Five key topics that are likely to affect the region in 2012 are outlined below.

6.  Number portability

Considerable movement on number portability, particularly mobile number portability, is expected in 2012 in at least seven countries – Cayman Islands, Jamaica, St. Kitts and Nevis, Dominica, St. Lucia, St. Vincent and the Grenadines and Grenada. The Cayman Islands are likely to be the first to introduce number portability this year; a working date of end of January 2012 has been announced. For the other countries, activity is likely to occur in the latter half of the year. Nevertheless, number portability, when launched, is expected to change the dynamics of the telecoms market, as customers are more likely to vote with their feet and change providers, if they are able to have their numbers shifted to other networks.

7.  Sector liberalisation and competition

It is often taken for granted that all Caribbean countries enjoy the benefits of having a fully liberalised telecoms sector. However, this is still not the case. Of particular note are the Bahamas, Belize and Guyana, where competition has been introduced in some markets. Recognising the considerable benefits be gained from sector liberalisation and competitions, there is a growing cry for the necessary measured to be introduced.

8.  LIME

In recent years and in most Caribbean countries LIME has been experiencing a number of challenges in remaining competitive, and has been struggling to reposition itself in changing markets. However, towards the latter half of 2011, and with the acquisition of Bahamas Telecommunications Company, its standing seems to be improving. Further, the company announced that a number of initiatives – such as 4G service, Fibre-to-the Home and Subscriber TV – will be launched in 2012. These activities are expected to broaden the scope and focus of LIME, and have the potential to change the market as we currently know it.

9.  Internet Exchange Points

In the past year, Internet Exchange Points (IXPs) received wide coverage as game-changing feature to Internet development in the region. (See: Are IXPs the turning point for content development in the region?). As at year-end, IXPs were introduced in Grenada and the British Virgin Islands, and installations are being actively considered throughout the rest of the English-speaking Caribbean.

10.  Mobile broadband

The Blackberry has been, by far, the most popular smartphone in the region. However, the rising uncertainty of its continued existence, along with the growing visibility of other devices and platforms, provide customers with a more developed web browsing capability that they might be keen to explore. This change in emphasis may cause mobile broadband rates and/or speeds to be revisited. It will be interesting to see the extent to which providers focus on this issue in the coming year.

Is there anything we missed? What topics do you think will be big in 2012?

Image courtesy of RambergMediaImages, Flickr

___________

Long Term Evolution (LTE) was first showcased around 2006, and has since been adopted by a number of telecoms operators as an emerging technology for mobile broadband. Its foundations lie in GSM, but unlike 3G technologies that were designed primarily to carry voice, with data in a supplementary role, LTE is designed to carry data rather than voice. Hence its network architecture is IP-based, but is still compatible with older and currently applied technologies.

Figure 1: Evolution of GSM technology

Use of LTE should result in a number of advantages:

• superior performance for data
• increased capacity]
• the capability to handle the increasing volume of packets on networks
• more efficient use of resources
• greater cost-effectiveness decreasing the unit cost per Mbit.

LTE is indicative of the next generation of mobile technology, and according to the ITU, as at December 2010, it qualifies as 4G. The next generation of LTE, “LTE Advanced”, is already being developed, and it is expected exceed LTE’s performance, as illustrated in the table below.

In recent months there have been urgent calls for operators to start implementing LTE. There have even been auctions of additional spectrum, most notably in the USA, to facilitate rollout. Although widespread deployment of LTE might be on the horizon, a number of issues, some of which are outlined below, must still be addressed by industry stakeholders.

Technical implications: LTE and 4G technologies can significantly increase mobile network capacity, but achieving those throughputs will be dependent on the amount of radio spectrum assigned. For example, in order to provide peak data rates of up to 1 Gbit/s, LTE Advanced networks will need to occupy continuous allocations of bandwidth of up to 100 MHz

Mobile broadband applications work optimally in the 300 to 3500 MHz range, but in many countries, this band of frequencies has already been divided into a number of sub-bands that support a range of other uses, including aeronautical and maritime radio-navigation, maritime mobile, amateur radio and broadcasting (ITU Region 2). Hence, to be in a position to offer high-speed mobile broadband service to a significant number of customers at the same time, there is a need for large amounts contiguous spectrum bandwidth, which may require existing users to be migrated out of certain bands.

In addition to the spectrum requirements, the full capabilities of LTE can only be achieved with considerable upgrade to network infrastructure, especially base station backhaul. Most GSM base stations support 2 Mbit/s backhaul, but achieving the speeds and capacity promised by LTE require significantly higher backhaul capacities.

Business implications: Currently, voice calls are considered a high-value revenue stream, since they are measurable with well-established systems for pricing and calculating costs. However, with regard to mobile Internet and data services, the pricing regimes are not as clearly established. Telecom operators are therefore making a concerted effort to protect voice revenues, especially since they have been under threat from VoIP providers such as Skype.

In LTE networks, all traffic is packet-based. Additionally, broadband services consume a considerably larger portion of the network resources in comparison to voice traffic. Hence operators are under considerable pressure to develop commercially viable business models for LTE and 4G data services, that will cover their costs and provide a reasonable return on investment, but will also drive service take-up and increased market share.

Further, into the foreseeable future many operators are opting to retain their circuit-switched networks, as VoIP service with the expected functionality and quality is still a serious challenge. Some operators are therefore prepared to run two networks: one for 3G voice, the other for LTE data.

Regulatory implications: First, to achieve the full potential of LTE and 4G it is essential that radio spectrum planning and allocation strategies recognise the future requirements of these networks. Current spectrum allocation may need to be freed up and reallocated for mobile/mobile broadband services and applications, and this will require time to implement.

Secondly, to facilitate widespread rollout and commercially viable 4G services, operators may be required share infrastructure, such as towers, antennas, backhaul and even switches. In many regulatory regimes, and especially in the Caribbean region, matters related to infrastructural sharing tend not to be rigorously applied, or are not already applied to the extent that might be necessary for commercially viable 4G. As a result, current policy and regulatory ethos may have to change to facilitate implementation of this new technology.

Further, to address the migration of voice revenue to data revenue, there are reports that industry players are developing an elaborate IP interconnection architecture with the purpose of maintaining the per-minute charging for voice, even if it is delivered over IP networks. However, the extent to which regulators might accept such cost/pricing regimes, which appear to inherently discriminate against different types of traffic over the same network, remains to be seen.

Financial implications: The financial implications of adopting LTE and 4G cannot be minimised, as they are considerable and are likely to cut across the entire sector.  Firstly, operators will be required to acquire additional spectrum in order to realise acceptable speeds and capacities. However, as a national resource, governments place a premium on the sale of spectrum, so prices might be especially high.

Secondly, operators must undertake significant upgrade of existing infrastructure to support 4G. Although there might be options to share facilities with other operators, considerable capital outlay is still expected, and parts of the current network may need to be written off early.

Thirdly, implementation of LTE and 4G may require national policy approval, since current users of certain bands might be required to vacate that spectrum and to take up new assignments. The incumbent users will most likely have to secure new equipment suitable to the new assignments, which can be costly. Hence, it must be clearly determined who will absorb the costs for the reallocation and reassignment processes.

Expected capability and competing standards: LTE is not the only technology poised for the 4G market: there is also WiMAX. In some quarters, WiMAX (Worldwide Interoperability for Microwave Access) is considered the most viable alternative to LTE. Under the current standard, IEEE 802.16e, WiMAX offers transmission speeds of up to 128 Mbit/s (download) and 56 Mbit/s (upload) in a 20 MHz channel. The update, IEEE 802.16m, is expected to offer rates of approximately 1Gbit/s for fixed users and 100 Mbit/s to mobile users.

Strictly speaking and when comparing potential capability, LTE/LTE Advanced might be considered far superior to WiMAX, but the performance realised from LTE technologies is highly dependent on the resources and infrastructure provided. In practice, operators face a serious challenge in the current wireless environment to realise LTE’s full capability and to offer viable services, when balanced against financial, technical and all of the other imperatives that must be considered.

____________