Download your free copy of the 'The LTE Imperative' from Alcatel-Lucent.
With the proliferation of new smart devices/tablets and the move towards storage, streaming and processing of all apps and content from the Cloud, there is a manifest need to provide 10x or more capacity at approximately the same capital expenditure to maintain constant profitability.
Solving this conundrum is at the heart of the operator wireless business strategy for the coming years. In this paper, it presents an analysis that quantifies the amount of bandwidth that can be profitably delivered by operators using the different technologies available (e.g., 3G, LTE and small cells). It then uses economic game theory to outline the winning strategy for operators and, in particular, the relative merits of an LTE-centric versus Single RAN (mixed 3G and LTE)-centric deployment strategy.
In short, it finds that:
> Operators can profitably offer 10x (or more) bandwidth using LTE and small cells technology than they can based on 3G technology.
> The winning strategy for operators is always to deploy an LTE-centric strategy (LTE overlay), including small cells; such a strategy always wins the market competition (game) by delivering maximum capacity at the required profitability.
> Even if an operator has begun deploying a Single RAN strategy, migrating to an LTE overlay strategy as fast as possible will allow it to also win the market in the longer term.
> The only successful Single RAN strategy is one where all operators in a market employ the same strategy and manage the capacity demand so they are able to deliver the demand at the current profitability.
However, if a single operator deviates from this 'common strategy' at any point and deploys LTE, that operator will immediately disrupt the status quo and win the dominant market share.
It validates these results by comparison with real world market dynamics that are playing out in the wireless marketplace today.
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