HSPA+ and LTE offer difficult choice for 3G operators

Posted by Paul Lambert Wednesday, November 19th, 2008

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An interesting bifurcation is emerging among 3G operators between those looking to upgrade to HSPA+ and those looking to adopt Long Term Evolution (LTE) as soon as they can, possibly as early as 2010.

At Informa Telecoms & Media’s LTE World Summit this week in London operators outlined their different strategies to upgrade to the next generation of technology.

Despite all the fanfare surrounding LTE, it emerged that the choice for operators is far from clear cut.

While LTE offers better speed, theoretically allowing data rates above 100 MB/sec, compared to 28.8 MB/ sec for HSPA+, the investment that will be required for LTE is seen by some as too much to make the business sufficiently compelling.

Within this context, operators are putting more and more pressure on the infrastructure industry to deliver on the promises of LTE, namely, IPR and cost of equipment.

All this means that the game between LTE and alternative technologies, such as HSPA+, is far from over.

However, the commitment that has been given to LTE by major operators, not least by the combined might of mobile giants Vodafone/ China Mobile/ Verizon Wireless, all-but guarantees a healthy eco-system for LTE.

Consider also the decision by a growing number of CDMA operators around the world to commit to LTE, and the businesscase for the technology couldn’t have better prospects.

Add to this the fact that HSPA+ itself is being seen by some as an expensive network upgrade offering little, considering the investment, over and above HSPA other than MIMO technology, and LTE’s future is under no real danger from HSPA+.

HSPA+ will most likely be deployed by operators who have every intention of upgrading to LTE, but at a later date than the early runners, such as Verizon Wireless and T-Mobile in Europe, who hope to begin commercial LTE services as early as 2010.

HSPA+ therefore offers operators that need to upgrade from HSPA, but don’t need to rush head-long into LTE a good stepping-stone while they wait for LTE equipment prices to come down.