Global Applications and Services Over CDMA
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1 Global Applications and Services Over CDMA Steve Bahlmann Director, CDMA Product Management CDG, Washington Seminar October 16, 2003 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc
2 Contents Introduction CDMA paves the way and enables advanced wireless data services Trends in Wireless Data New revenue generating services enhance the consumer experience and expand the value chain Wireless Data Enablers Success enabled by global standards that facilitate large scale application development Page 2
3 Introduction CDMA paves the way and enables advanced wireless data services Page 3
4 CDMA Paves For Making 3G A Reality Drivers! Smooth migration to 3G (CDMA2000 1X)! no new license requirements! is backward compatible with second generation CDMA (IS-95) Globally, CDMA2000 1X has lead 3G in widespread commercial availability 53 commercial CDMA2000 1X networks in 5 continents over 50 million subscribers worldwide Source: CDMA Development Group 300+ CDMA2000 1X-capable devices on the market!cdma2000 1X provides additional voice capacity and inherently enables data services! Operators experiencing significant ARPU increases! 18%-39% in Voice ARPU! 102%-253% in Data ARPU! Opportunities evolving for CDMA 450 MHz etc. Page 4
5 Future Wireless Growth Will Be Driven by Data Services Wireless Market Trends Subscribers Operator Revenue Voice + Data Services Minutes of Voice Use per Subscriber Operator Revenue Voice only Time Page 5
6 New IP Services Enhance the Consumer Experience Game Download/Play Internet & Enterprise Network Access Location Services Streaming Video Multimedia Messaging images video voice/audio Wireless Web Access Press-to-Talk & Voice over IP (VoIP) Music Download & Playback CDMA Data Generating Revenue! 26% of KDDI ARPU is from Packet Data services (Q2, Financial Report)!In addition some regions realizing 36% revenue, supplementing for Voice ARPU declines.!customized applications driving wireless data uptake.!open standards based solutions drive down the development costs and increase widespread participation from the development community Page 6
7 CDMA Technology Leads the Way to Wireless Data Services High Data Rate & Capacity Non-Real Time w/ Attachment Music Download S/W Download Full Web Browsing Location Multi-Media Messaging Live Video Broadcast Video Conference Interactive Gaming Video Streaming Real Time 1xEV-DV (Available-E05/06) " Peak 3.1 Mbps circuit/packet data " Multimedia 3G services " Voice & Data spectrum reuse " Real-time services 1xEV-DO (Available-Now) " Peak 2.4 Mbps packet data " Data only services " Best effort data services Download Ringers Transaction- Based Apps SMS Voice CDMA2000 1X " Peak 153 Kbps circuit/packet data " Voice & Data spectrum reuse Low-Med Data & Capacity Page 7
8 Trends in Wireless Data New revenue generating services enhance the consumer experience and expand the value chain Page 8
9 Messaging Will Continue As a Key Revenue Generating Technology SMS Short Message Service Text EMS Enhanced Message Service Text Lo-res graphics/animations Simple melodies MMS Multimedia Message Service Text High-res still/moving images Video Audio/speech Complex presentation Page 9
10 Growth of Data Services Strategy Analytics* estimates that wireless streamed media services to handheld devices will generate revenues of around $5.7 Billion in Main opportunity over the next few years lies in the audio/video clips (10 to 15 sec length). Philip Taylor. Wireless Internet, Applications, May 21, 2003 Page 10
11 The Value Chain Universe is Expanding Operator s Network Multimedia Comm. Mgmt. Profile & Personalization Billing Customer Care Event Mgmt. (Info. Filtering) TRANSACTIONS MESSAGING DATABASE MGMT. Access Networks Home Page Mgmt. Packet GW Middleware Feature Server WAP Gateway Internet Service Delivery Platform ecommerce Transactions Information Services Video Content Location Server Mail/Calendar Server Directory Services/Security Reservation Services New External Partners and Service enablers Page 11
12 Example: Location with Motorola s GOVIAMOTO POIs Customer Provides Origin / Destination TBT Navigate to Customer s Destination Request for service Destination Entry Methods Destination Origin Preferences Roads Traffic Prefs Server/Content Calculates routes Service Operator Download route to device Delivery to Consumer Tiered Delivery to Device(s) Directions Page 12
13 Example: PTT Over Cellular 1. See who is available in address book (Presence) 2. Select group with multiple target users 3. Press PTT button and begin talking Mobile users 4. Fast and easy way to communicate with many people at once Who is working the third floor today? Let s meet at 11:30. Wired user (Internet or Intranet) Did you hear what Sarah said in class today.? Page 13
14 Wireless Data Enablers Success enabled by global standards that facilitate large scale application development Page 14
15 Key Enablers for Global Services - Pushing the Envelope to the Edges Service Creation (Large Scale Application Development) # Voice Capacity Interoperability # Data Capacity # Digital Rights Management # Handset & Device Availability Page 15
16 How Does CDMA Leverage the Global Application Development Community? Application W3C JAVA WAP SyncML OMA LIF MGCP Wireless Village Others Transport IETF Wireline Domain IEEE BREW 3GPP2 CDMA 3GPP GSM/WCDMA Wireless Cellular Standards CDG Mobile Requirements Application development compatible with global standards accelerates data take-up! Page 16
17 Digital Rights Management: Music labels launch mobile song-swapping technology Reuters, Monday October 13, 11:05 am ET : With OMA DRM, the music labels can collect revenues for each song downloaded off a central computer server and for those that are swapped between mobile phone users, said Jan Rune Hetle, chief executive of Beep Science. Content Providers Wireless Network Wireless browsing to webpage to download content and purchase rights Provides content on a web page Rights protected Transfers content & rights object Owns Content/Rights Object Server 3 rd party or content provider maintained Page 17
18 Summary Future wireless growth will be driven by data services CDMA continues paving the way to advanced wireless data services New IP Services Enhanced consumer experience Expanded value chain Sustaining CDMA Success requires accelerating data take-up Application development compatible with global standards New Digital Rights Management (DRM) standards provide a technical means for protecting content providers revenue stream Page 18
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