With over 7 million subscriptions and a penetration level of over 11 %, the UK is one of the leading mobile broadband markets not only in Western Europe but throughout the world. As a result, the UK was one of the first countries to witness HSPA rollouts over UMTS networks, followed by widespread commercialization of USB dongles and mobile broadband subscription packages. In the UK, a similar adoption strategy was anticipated with the introduction of the 3GPP LTE standard, that is widely endorsed as the next generation and most cost efficient standard for mobile broadband, with over 36 commercial deployments worldwide. However, spectrum congestion issues have considerably delayed commercial LTE adoption in the UK, putting the UK behind other major mobile broadband markets such as Germany, the U.S, Sweden, Saudi Arabia and South Korea that have already started offering commercial mobile broadband services over LTE. Nonetheless, due to rising pressure from operators, the Government and consumers alike, spectrum auctions are expected by Q4’2012 and commercial commitments expected by Q1’2013. With a number of LTE trials already operating, most notably O2’s recently launched trial in London; LTE adoption is set to become a reality, in the UK, with subscriptions anticipated to reach 8 million by 2015, representing a CAGR of 198.76 % between 2013 and 2015. This report provides insights to the key factors affecting LTE adoption within the UK, including operator strategies and roadmaps, spectrum and regulatory issues and subscriptions forecasts up to 2015, in addition to providing an overview of the current state of the worldwide LTE market.

The Signals and Systems Telecom team follows a thorough process when examining the market under consideration. The primary steps of the process are information gathering, organization and analysis.

The primary sources of the information gathering process are interviews with executives, business professionals, and engineers within the telecommunications industry sector. Secondary data sources are also utilized which include corporate financial performance reports, industry periodicals and trade group reports.

The information is then organized into a database incorporating industry trends, regional policies and demographics. Assigned analysts and query specialists then apply statistical models to forecast industry trends. The information is then generated in a graphical format to allow quick identification of market developments.

Contents

1 INTRODUCTION

1.1 Executive Summary
1.2 Acronyms

2 WORLDWIDE LTE INDUSTRY OUTLOOK

2.1 Worldwide LTE Subscription Projections 2011 - 2015
2.2 Worldwide LTE Spectrum Adoption
2.3 Q3’2011 Worldwide LTE Commercial Deployments and Subscriptions
2.4 Worldwide Regional LTE Market Share

3 LTE IN THE UK

3.1 UK & Western Europe Subscriptions Projections 2011 – 2015
3.2 Regulatory Updates and Spectrum Strategies
  3.2.1 800 MHz and 2.6 GHz Auction
  3.2.2 Government Pressure for LTE Deployments.
  3.2.3 Re-farming Activities
3.3 Commercial LTE Trials and Operator Roadmaps
  3.3.1 O2 UK
    3.3.1.1 Trial Engagements
    3.3.1.2 Plans for In-Building Coverage
    3.3.1.3 Vendor Selection
    3.3.1.4 User Feedback
    3.3.1.5 Future Roadmap
  3.3.2 Clear Mobitel
    3.3.2.1 Cornwall Trial Engagement
    3.3.2.2 Video over LTE
    3.3.2.3 Jersey LTE License
    3.3.2.4 Future Roadmap
  3.3.3 Arqiva
    3.3.3.1 Arqiva Trial
    3.3.3.2 Vendor Selection
    3.3.3.3 Support for Wholesale retail LTE Deployments
    3.3.3.4 Future Roadmap
  3.3.4 Everything Everywhere
    3.3.4.1 Cornwall FMC Trial with BT
    3.3.4.2 Vendor Selection
    3.3.4.3 User Feedback
    3.3.4.4 Future Roadmap
  3.3.5 UK Broadband
    3.3.5.1 Planned Wholesale LTE Deployment & Vendor Selection
    3.3.5.2 3.5 GHz Spectrum Ownership
    3.3.5.3 Future Roadmap
  3.3.6 Vodafone UK
    3.3.6.1 Overseas LTE Deployments
    3.3.6.2 Future Roadmap
3.4 LTE Deployment Strategies for the UK MNOs
    3.4.1.1 800 MHz for Wide scale and Rural Deployments
    3.4.1.2 2.6 GHz for Supplementary Capacity
    3.4.1.3 Converged Wholesale and Commercial Network Deployments
3.5 Consumer Demand and Pricing Strategies
    3.5.1.1 Consumer Demand
    3.5.1.2 Pricing Strategies
      3.5.1.2.1 Discounts to present HSPA Tariffs
      3.5.1.2.2 Discounted Pricing in Rural Areas
      3.5.1.2.3 Mixed LTE/HSPA Bundled Pricing
      3.5.1.2.4 Free LTE Service Trials

COMPANIES MENTIONED

Arqiva,
British Telecom (BT),
Vodafone,
T-Mobile,
Orange,
Everything Everywhere,
UK Broadband,
Verizon Wireless,
O2 Telefonica,
AT&T,
Saudi Telecom Company (STC),
Clear Mobitel,
PCCW,
Nokia Siemens Networks,
Huawei,
Samsung,
Alcatel-Lucent,
Cambridge Broadband Networks Limited (CBNL),
NEC,
European Television Guild

COUNTRIES COVERED

UK