Whether we like it or not, acronyms abound everywhere in these increasingly techie times.  One of the latest is LTE which stands for ‘Long Term Evolution’ and relates to the next generation of mobile phone technology.  An alternative label for LTE is 4G (Fourth Generation) although marketing hype has clouded exactly what is 4G and what is not.

Rural Connect had an opportunity to view the newest LTE/4G mobile broadband equipment in operation last week. The manufacturers Nokia Siemens Networks are equipment suppliers to Vodafone who set up a demo network in Auckland and Wellington.

The demo was very inspiring and represents a significant step forward in broadband capability for rural users.  Streaming four HD video channels at the same time with no picture stuttering was impressive even if the entire network lived in the same room as the receiving gear.  Even more impressive was the 3D movie segment of the meeting taken earlier in the day.    Video content will be one of the major applications that will make high speed broadband a must have service.  Whether video use is for entertainment, education or health care, all New Zealander’s must have access to the same level of service, whether they live in an urban area or rural one.

On the face of it, LTE technology appears to be capable of providing the bandwidth to make these new services available to everyone.  It will be capable of 100Mbps download speeds (but only 50Mbps up) and has an excellent latency (the delay between hitting the [Enter] button and something actually happening).  

Vodafone’s existing 3G service is in the process of being upgraded to deliver mobile broadband services that will peak at 28.8Mbps.  The addition of a directional antenna to this improved service offers a broadband connection with fewer of the problems inherent in a service that was primarily developed for voice services.      The new LTE services completely avoids those problems because it is a service designed for delivering data first.

In New Zealand, LTE will be delivered over the 700Mhz spectrum presently used for analogue TV.  That band has some distinct advantages for rural broadband.  The frequency is low enough so that a single transmission mast can cover a significant distance and penetrate buildings and walls.  So the 700Mhz band should provide better coverage than current cellular bands which are between 800MHz and 1.9Ghz.

The first networks using LTE technology are expected to be deployed in Germany before the end of 2010.  That equipment, also supplied by Nokia Siemens Networks, operates in the ‘digital dividend’ (previously analogue TV) 800Mhz frequency band.

The speed of implementing LTE will depend on how quick the government re-allocate the 700Mhz spectrum.  The Ministry of Economic Development is working on this re-allocation for 4G mobile broadband services following the switchover from analogue to digital TV in 2013 or sooner.  This move is expected to yield more than $1Bn of economic benefits over 20 years.

In determining the RBI winning bidders, the government need to set the priorities for RBI provisioning based on greatest economic benefits. Otherwise, companies like Telecom and Vodafone will determine priorities based on the best economic benefit to themselves.  What this will mean is that those communities that do not face imminent competition will get the new services before those for which there is a competitor even if that competitor is not funded by the RBI.  Remote rural communities have waited long enough for basic broadband services.