Australian Mobile Telecommunications Association

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Australian Mobile Telecommunications Association

• Productivity - Connectivity - Mobility
• Mobile Broadband
• A Key Economic Driver

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Overview
Broadband is the centrepiece of the digital age
NBN in partnership with latest generation mobile telecommunications will drive our digital economy
Aim to deliver - Productivity - Connectivity - Mobility
Spectrum is critical mobile infrastructure What do Australian mobile operators need ? retention of existing bands access to Digital Dividend (700MHz) and 2.5GHz
The risk of indecision Australia must keep up!
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Latest data (June 30 2008)Australian
Communications and Media Authority

• The number of 3G subscriptions grew by 88 in
  2007-08 from 4.6 million to 8.6 million
• There were 22.12 million mobile phone services in
  Australia at June 30 2008, up from 21.26 million
• The welfare gained by customers (consumer
  surplus) from using mobile telecommunications
  services was 3,287.80 million compared to
  317.50 million for internet services. The ACMA
  report says the majority of the increase in the
  consumer surplus is attributable to changes in
  the mobile telecommunications sector as prices
  fell and subscriber demand grew
• In estimating the consumer surplus for mobiles,
  ACMA calculated that mobile phone calls fell in
  price by 21.5 and the price of SMS/MMS decreased
  by 41.5.

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Economic Contributions of Mobile
Telecommunications

Source Access Economics 2008
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Mobile Broadband - economic contribution
Why mobile broadband will continue to drive
productivity gains across all sectors of the
Australian economy
Forecast
Increasing take up of 3G data services will contribute an additional 2.1 billion to Australias economic input by 2010 Annual real household consumption will be 1.4 greater than it would be in a scenario without mobile broadband services Real GDP increases by 0.9 more than it otherwise would without mobile broadband
Current
As at June 2008 there were an estimated 1m mobile broadband connections via fixed CPE, data card, USB modem, handset as modem or embedded connection
3G in Australia HSPA mobile broadband boom,
Ovum, 10 November 2008 Australian Mobile
Telecommunications Industry Economic
Significance and Contributions, Access Economics,
2008 NextG Productivity Impacts Study, Concept
Economics, 13 February 2009
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Demand for Mobile Broadband Fact or Fiction?
Broadband subscription forecast
2100
Fixed
Mobile
1800
1500
1200
Subscriptions (Millions)
900
600
300
0
2005
2006
2007
2008
2009
2010
2011
2012
Mobile Broadband includes CDMA2000 EV-DO, HSPA,
LTE, Mobile WiMAX, OtherFixed broadband
includes DSL, FTTx, Cable modem subs and other
Mobile Broadband 2/3 of all subscriptions by 2012
Source Ovum RHK Internal Ericsson
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(No Transcript)
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Global Spectrum Demand Forecast 2010 - 2020
Source ITU-R Report M.2078 (2007) Demand
Forecast 2010-2020
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Retention of existing bands
Incumbent spectrum licences in 800MHz, 1800MHz and 2100MHz expire from 2013 -17
AMTA supports the Minister making a determination under s.82(3) of the Radcoms Act 1992 that mobile telecommunications including future mobile broadband services are a class of services where reissuing spectrum licences to incumbents is in the public interest
No guarantee that incumbents will retain use of existing spectrum licences
Impacting investor confidence in next generation networks
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Getting the most out of the digital dividend
Research shows that the Australian Economy will be 7 to 10 billion better off if the Government unlocks the full potential of the digital dividend to support both broadcast and mobile use
AMTA considers that demand for mobile broadband will require at least 120MHz of usable UHF spectrum to be allocated to the mobile industry
Support for allocation of the Digital Dividend for mobile broadband use avoids Australia being isolated from the emerging global band plan

• Spectrum Value Partners, Getting the Most out of
  the Digital Dividend, April 2009

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Getting the most out of the digital dividend
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Reallocation of 2.5 GHz for mobile use
International agreement on International Mobile Telecommunications (IMT) use reached Universal international roaming band for LTE
This is not a healthy environment for business investment Senator Conroy, RadComs, 2008 Govt announced way forward - limited progress
No certainty - LTE deployment, ENG redeployment
Roll out plans from 2010 (US) - many other countries 2011 - 2013
2000
2008
2009
2010 gt
Australia urgently needs conformity with global
band plan
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Summary

• Mobile demand growth (3G) strong and prices
  falling ACMA
• Mobile economic contribution direct and
  indirect Access
• Mobile Broadband productivity enabling
  technology
• Global and local demand for mobile broadband on
  the rise
• Technology pathway speed and capacity evolution
  
• New spectrum allocations critical future
  infrastructure
• Key spectrum issues
• Retention of existing bands re-issue licences
• Digital Dividend (700MHz) unique opportunity -
  7 - 10 billion from optimal allocation latest
  research
• 2.5GHz spectrum band key to 4G and beyond
• Australia must keep up.