The LTE Business Case: Spectrum

Abstract

LTE looks set to be deployed on the 2.6GHz band and the digital dividend spectrum. While several auctions have signalled that the appetite for high spectrum prices remains, Ovum does not expect a repeat of the high prices previously paid for spectrum.

Table of Contents

• Executive summary
• In a nutshell
• Ovum view
• About the LTE business case
• Spectrum for LTE deployment
• LTE supports flexible channel bandwidth
• Technology/service neutrality drives LTE spectrum
• Survey hints at a preference for 2.6GHz
• Potential spectrum for LTE FDD
• Potential spectrum for LTE TDD
• The reality with spectrum
• Some bands will be the spectrum winners
• Digital dividend
• 700MHz
• AWS
• IMT Extension band
• WiMAX spectrum
• Operators will ‘mix and match' spectrum where possible
• Re-farming existing spectrum
• Complex spectrum strategies are an option
• Cost of LTE spectrum
• Mixed result on prices
• Disappointing interest in unpaired bands so far
• Current prices will be lower than historical trends
• Factors that influence the price of spectrum
• Favourable propagation characteristics
• Channel bandwidth
• Competition in the market
• New entrants are stepping up
• Rollout obligations are crucial
• Service and technology neutrality
• Question mark over uncertain customer demand
• Recession dampens cost
• Re-farming creates opportunities
• Design of the auction process

List of Tables

• Table 1: Potential LTE FDD spectrum & available channel bandwidth
• Table 2: Potential LTE TDD spectrum & available channel bandwidth

List of Figures

• Figure 1: LTE channel bandwidth needs
• Figure 2: Spectrum bands expected to be set aside for LTE (MHz)
• Figure 3: Prices for LTE-capable spectrum (2007 - 09)
• Figure 4: Historical prices for spectrum