AWS Spectrum Critical for the Growth of Mobile Broadband Across the Americas

The licensing of the Advanced Wireless Services (AWS) radio spectrum band will put the Americas on a par with Asia and Europe in terms of 3G reach according to new research conducted by Global View Partners, a US-based research firm, in partnership with the GSMA. The research found that, as a core 3G band in the Americas, AWS spectrum is vital for the growth of mobile broadband as it will accelerate the launch of new services that will drive new mobile broadband devices and applications.

"This research commissioned by the GSMA highlights that the AWS band will bring new opportunities in markets with pent-up demand for broadband services," said Ricardo Tavares, Senior Vice President at the GSMA. "The AWS band will unleash a new range of spectrum that will greatly benefit consumers and increase economic productivity due to the accessibility of mobile broadband. Regulators should move quickly and not delay in making this valuable and viable spectrum available to meet the rapidly growing broadband needs of consumers and businesses across the Americas."

The AWS band has already added significant mobile broadband capacity and coverage to the US and Canadian markets where auctions to license the spectrum have already taken place, with many Latin America markets planning to license the spectrum throughout 2009. The research found that prices paid for AWS spectrum in the US and Canada revealed high market demand.

Growth in AWS subscribers and device volumes is also projected for the Americas according to the research. Additional licensing across the region should bring total subscribers with AWS-enabled devices from an estimated 12.4 million at the end of 2009 to an estimated 177.8 million at the end of 2013, a growth rate of 94 per cent each year. As the subscriber base increases, the research suggests that device sales will also grow from an estimated 10.9 million in 2009 to an estimated 114.5 million in 2013, representing a growth rate of 80 per cent each year.

The research also highlighted operator plans. For example, T-Mobile USA plans to continue to drive AWS device and subscriber penetration over the next several years. Global View Partner's market forecast predicts approximately one half of the operator's subscriber base are expected to be using HSPA-enabled devices capable of operating in the AWS band within two years, with more than 90 per cent within five years.

"At T-Mobile USA, we are working with our suppliers to deliver a broad range of innovative AWS-banded devices to market. Our suppliers share our vision of the value the AWS band enables," said Neville Ray, Senior Vice President, Engineering Operations, T-Mobile USA. "Consistently, we observe suppliers leveraging investments made previously for the 1.9/2.1 band, and delivering high performing and price competitive AWS-banded devices. The AWS device eco-system is broadening each day and is tied to the burgeoning growth of 3G globally."

The full report is available at http://hspa.gsmworld.com/news/default.asp?cid=5.

Posted to the site on 2nd July 2009