RIO DE JANEIRO – Puerto Rico now has a second LTE player as Open Mobile launched LTE commercial services this week following U.S.-based AT&T, which unveiled LTE last November as part of a national roll out. The unincorporated U.S. territory in the northeastern Caribbean is seen as a pioneer in launching LTE services.
Initially, LTE will be provided in metropolitan area of country’s capital, San Juan. By the end of 2012, Open Mobile plans to reach 70% of the island’s total population and expand it throughout the country.
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Deep smartphone penetration and high data usage led Open Mobile to make its LTE commitment, since it previously relied on its CDMA 1x/EV-DO network.
“It was more expensive to meet data demand using 3G technologies than using LTE,” Luis Omar Rivera, infrastructure director of Open Mobile, told RCR Wireless News at Informa’s LTE Latin America event this week. “So we have decided to migrate to LTE to increase user experience, to avoid churn, and to compete with others.”
In addition, Rivera noted that “by the end of 2012, all carriers in Puerto Rico will launch LTE.” Puerto Rico, which is 100 miles long and 35 miles wide, has mobile penetration of 78% with five wireless operator competitors: AT&T, Claro, T-Mobile USA, Sprint Nextel, and Open Mobile.
The LTE network was deployed in the 700 MHz band using Ericsson technology for eNode B, RAN/MME; Cisco for PGW, SGW and HSGW; and Amdocs for PCRF and HSS.
Open Mobile conducted trials with approximately 150 friendly users and employees. After that, in early April, the carrier led a soft launch. During the first phase, Open Mobile, whose business model is based on paid-in-advance and unlimited local call services, allowed its 3G clients to migrate to LTE. Then, the carrier used telemarketing to advertise to all 3G clients in metropolitan area of the capital San Juan. Finally, LTE was available in stores within the metropolitan area.
Rivera said approximately 60%-70% of its subscribers use smartphones and about 10% of its total client base of 350,000 buy data-only plans.
Formerly known as Movistar Telefónica, Open Mobile operates in the 1.9 GHz, 1.7/2.1 GHz and 700 MHz spectrum bands. The company was established on June 12, 2007, as a relaunch of NewComm Wireless Services (formerly Movistar). Its new owners, M/C Partners and Columbia Capital, acquired Movistar’s assets for US $160 million after Movistar filed for Chapter 11 bankruptcy protection on December 2006.
