Telenor aims high with LTE

It’s a bold claim. In its current marketing campaign, Telenor promises that its mobile broadband will change Swedes’ way of living and their way of working. mobile broadband will be like the “right of common access” it will be as natural for Swedes as it is for them to pick blueberries anywhere in the woods.

“We have solid plans to deliver on that promise. It may take a few years but we will deliver the best data network and the best voice network in Sweden,” claims Telenor CTO, Magnus Zetterberg. “We will reshape Sweden’s communications landscape by providing broadband connectivity to 99 percent of the Swedish population at wireless data rates of up to 150 Mbps in urban areas, and up to 80 Mbps elsewhere. LTE is the only way to provide that level of service.”

To achieve its ambition, Telenor has teamed up with Tele2 in a joint venture to construct a national LTE network that both operators will share to offer mobile services. The plan is to combine the networks, pool spectrum resources, and deploy LTE while at the same time increasing the coverage on GSM. Much of the work will happen during 2010 and 2011, with completion planned in 2013.

“The communications industry has widely confirmed that the first commercial launch of LTE will be able to deliver up to 150 Mbps and will cater for extreme speeds in the long run. Only LTE can offer a true DSL replacement service. Currently there are some 800,000 mobile broadband subscribers in Sweden, a number predicted to rise sharply in the next few years. The real growth in broadband in Sweden will be on the mobile side,” explains Zetterberg.

Mobility to dominate

It is this mobility aspect that Zetterberg believes gives LTE its enormous potential, adding to the customer value that HSPA technologies have created, changing people’s behavior and ways of living.

In Sweden, Zetterberg says, there are huge areas where people cannot get broadband or if they can, at very high prices. “We will change that,” he says. “Some people will adopt LTE as a complementary service to their fixed broadband, but many will go straight to mobile broadband – there will be no reason to keep fixed lines.”

Zetterberg is firm in believing that LTE can compete with fixed DSL-broadband in the long run, although he does sound a note of caution about focusing too much on peak data rates. He explains: “It is the lowest constant data rate delivered that is the dominating factor, not peak rates. The customer experience of a network that provides a high constant speed at all times, is higher than that for a network offering inconsistent yet very high peak rates for short times. LTE will cost effectively lift that bottom level dramatically.”

Cost conscious investments

Cost-effectiveness is a key factor in the drive for LTE; “Like many other companies during the current difficult economic environment, we have increased our focus on getting more value from our investments,” Zetterberg comments.

“Operational expenditure is, of course, vital. Every year our ambition is to reduce OPEX. Each generation of base station must be more energy efficient, be easier to maintain, and offer more software, rather than hardware, upgrades. We need equipment that is multi-capable from day one.”

Finally, Zetterberg expresses the importance of LTE being robust from the outset. “We had teething problems when 3G was launched. With LTE we want to focus on delivering IP data services before introducing new elements such as voice,” he says. “I am confident in the very strong commitment to LTE worldwide, but in the Nordic countries we will be front runners in LTE.”