Further work is required on the question of connectivity for SMEs to quantify the 4.34
issue more precisely and understand the extent to which gaps in superfast broadband coverage are affecting SMEs.
As part of our SME plan, we have issued a Call for Inputs (CFI) to ask small 4.35
businesses and communications providers for their views on current levels of availability as well as choice and quality of communications services for SMEs.
Responses are due by 2 January.77 We encourage interested parties to respond in order to highlight issues in relation to the provision of communications services to SMEs.
Responses to this CFI will inform a report on how the market is serving SMEs in 4.36
relation to fixed and mobile connectivity. This will be published in spring 2015. This initial report will outline any further work we plan to undertake. We will also assess
77 http://stakeholders.ofcom.org.uk/consultations/smes-cfi/
whether adequate protection is in place for SMEs, if we found there are specific barriers and problems faced by SMEs.
Alongside this, we have recently launched a business portal on our website with 4.37
advice specifically tailored for businesses. It includes information on choosing or switching to a new provider, navigating and negotiating contracts, and resolving complaints with a provider.78
78 www.ofcom.org.uk/adviceforbusinesses
Section 5
5 Mobile networks and Wi-Fi
Overview
Mobile services are now at the heart of how most people stay in touch, at home or 5.1
out and about. In the UK, 95% of households use mobile phones and 16% have no voice landline at all. Mobiles are also vitally important to business: 79% of SMEs use mobile phones.
In this section we provide an update on:
5.2
• The levels of coverage provided by 2G, 3G and 4G mobile networks;
• The increasing and changing use of mobile data services, including video and over the top messaging services;
• The increasing number and usage of public Wi-Fi hot spots;
• Emerging developments in the Internet of Things sector and next generation 5G mobile services.
A short summary of the key developments in each of these areas is provided below, 5.3
which are then set out in greater detail later in this section.
• The variety of ways in which consumers use mobile devices has led us towards a more refined approach to measuring mobile coverage: A
consequence of increasing mobile usage is that consumers increasingly expect to be able to reliably use mobile phones in more locations than ever before – indoors, outdoors, on the move, in cars, and in more rural areas. To provide mobile coverage estimates that are likely to more representative of the
consumer experience of using mobile services we have made two adjustments to our reporting of mobile coverage in this year’s report:
o We have assumed a higher average mobile signal level, -86dBm, is needed to make a reliable voice call on a 2G network. This increased level takes into account the higher operational signal levels required by some more recent smartphones. It also accounts for the signal levels we have found from drive tests to be needed in practice to make reliable voice calls in vehicles fitted with external mobile aerials;
o We have provided estimates of in-building mobile coverage and coverage in vehicles without an external aerial, based on an assumed additional propagation loss factor of 10 dB. In practice the actual in-building loss factor is subject to large variations depending on the building type and the construction materials used.79 Similarly different types of vehicle are likely to reduce in-vehicle signal levels by different amounts. Given this, the in-building and in-vehicle coverage estimates provided in this report should be viewed as indicative.
79 http://stakeholders.ofcom.org.uk/market-data-research/other/technology-research/2014/buildingmaterials/
Based on these adjustments the headline levels of 2G, 3G and 4G coverage are:
5.4
• 2G voice and low data rate coverage: 99% of premises are covered outdoors by at least one MNO and 97% are covered by all three of the MNOs that
operate 2G networks. Rural coverage is lower, with 98% of premises covered outdoors by at least one MNO, and only 82% covered by all operators. Indoor premises coverage in the UK by all three 2G networks is 83%.
• 3G high speed data coverage: 84% of UK premises are covered outdoors by all four MNOs, although this falls to 75% of premises in Scotland, 65% in Wales and 63% in Northern Ireland. Indoor premises coverage in the UK by all four 3G networks is 71%.
• 4G very high speed data coverage: The current major technological development in mobile is the ongoing roll-out of fourth generation (4G) networks. Good progress is being made with 35% of premises now having coverage by Vodafone, EE and O2, and 72% of premises have coverage from at least one of them. Initial analysis suggests that between June and October 2014, these three MNOs have increased coverage by between 2 and 14 percentage points.
We are supporting a number of initiatives to improve mobile coverage: To help 5.5
improve mobile coverage and support competition Ofcom is taking steps to increase the amount of lower frequency spectrum, which has good outdoor and indoor
propagation characteristics, for use by mobile networks. This included the recent award of the 800 MHz band which formed part of the 4G auction, and future plans to enable the release of the 700 MHz band. In addition the Government’s Mobile
Infrastructure Project is aiming to extend mobile coverage to up 60,000 premises that are in mobile ‘not-spots’ locations. The Government is also consulting on a range of options to ensure mobile coverage is available from more than one MNO in ‘partial mobile not-spots’ locations. These options include: national roaming, whereby a consumer unable to access their normal network could roam to another operator’s to make a call; increased infrastructure sharing; “virtual network” arrangements; and, extended coverage obligations. Ofcom is providing technical support to this
programme. In addition, technological developments may also help: for example, MNOs are increasingly using femtocells to improve mobile coverage in some areas.
Mobile data usage continues to grow rapidly but SMS messaging has reduced:
5.6
The growth in consumer demand for mobile data has been rapid: at the time of our first Infrastructure Report in 2011, only 32% of adults were using their mobile to access the internet. Three years later, 57% of adults do. Total data throughput has increased by 53% this year, which is similar to the increase in 2013. This has been driven to a large degree by the continued growth in both the numbers and use of smartphones and tablet PCs. Video continues to represent a significant proportion of mobile traffic at 39%. In contrast the number of SMS messages sent in 2013 fell from 172 million in 2011/12, to 130 million. This is likely to be due to a substitution of SMS messaging by over the top messaging applications such as Whatsapp and Kik. The number of reported users of over the top messaging services grew by over a third over this period80.
80 CMR 2014
There are is already significant interest in moving beyond 4G: LTE advanced, 5.7
sometimes known as 4G+, has been launched in some cities, increasing both capacity and speeds of mobile broadband. Looking further ahead, research is underway to establish the capabilities of future 5G networks, which could be available for deployment from 2020 onwards. In addition to providing enhanced mobile performance, high speed 5G technology may also potentially be used in the future to provide fixed wireless ultrafast broadband connectivity to homes (see the Fixed Broadband section).
The Internet of Things is starting to become reality: The number of applications 5.8
and devices communicating with each other without human involvement are expected to grow. Existing examples include home management sensors, smart meters, vehicle traffic management and wearable technologies such as fitness bands. The capacity requirements of these first generation services are relatively modest and can be most likely met by existing, mobile, and license exempt bands.
However, they are likely to raise a new set of network security and reliability, consumer privacy, and ubiquitous coverage requirements.