Applications Generated on a CDMA2000 1xEV-DO Rev. A Platform
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1 Applications Generated on a CDMA2000 1xEV-DO Rev. A Platform Ed Chao, Director Product Management CDG Technology Forum November 9, Lucent Technologies Use pursuant to company instruction
2 Outline Mobile Internet Market Drivers & Trends Applications Enabled by 1xEV-DO Rev. A 2
3 The Mobile Internet is About to go on Overdrive 2,000 Subscribers (Millions) 1,800 1,600 1,400 1,200 1, G/ 2G (Analog/ GSM/GPRS/EDGE) 3G (CDMA2000 1X/1xEV-DO/UMTS) Within 5 years, 3G reached 350M users Over 30M 3G subscribers added every quarter CDMA2000 and WCDMA will account for 41% of the market WW in 2010 By 2010 more than 1B users The global GSM subscriber base will reach its peak in 2008 will have network 300Kbps - 500Kbps will have mobile Internet ready handsets (running Java or BREW applications and generate billions in mobile content, advertising and commerce revenue Lucent Technologies Use pursuant to company * instruction Source: Strategy Analytics, Worldwide Cellular User Forecasts, , January
4 Consumer Trends: Content Creation & Sharing 40M new subs in last 6 months 12M student subscribers Wireline Content Creation (Upload) facebook Subscriber Audio Creation and Sharing Multimedia Blogs, photos, videos sharing - 70 M subs!! : Yahoo Moblogging Publish Text and Photos Yahoo! 360 Upload Photos New! Wireless Content Sharing (Download) Video broadcast Video broadcast / video conferencing > 57% of online teens (12M ) in US create content Subscriber Video Creation and Sharing Affinity group content sharing slingplayer mobile Source: Pew Internet Studies, November 2005 Subscriber Video Creation and Sharing Interactive Gaming Info search/delivery Info search/delivery Current Upload Speed is a Barrier to Unleashing Most Popular Broadband Internet Applications 4
5 What is Driving the Consumer Trends? Wireline Experience Widespread broadband access enables fast access to wide variety of content 35% penetration in US Proliferation of user friendly web publishing tools fueling content creation trend drag and drop content upload tools Social aspect driving addictive behavior keeping groups connected Ability for risk free expression and experience sharing control who and what you show Migrating to mobiles Immediacy Ease of Use Community Personalization Mobile Opportunity Uplink/downlink and latency Improvements remove slow response barrier Improved device interface and clients remove complexity barrier Demand for mobile access to social networking sites is growing personalized content easily shared with friends and family Mobile Broadband will unleash the Wireline Broadband experience 5
6 Enterprise Showing Strong Interest in Mobility % of Enterprises that have or are developing a "Mobile Strategy" 2006 Projected Growth in Enterprise Spending on: 28% 14% 58% 8% 7% 24% 0% 10% 20% 30% Have Developing Don't Have Source: 4Q 05 Nemertes Convergence Trends Survey Mobile Voice Wireline Data Mobile Data Source: Share of Wallet: Telecom Trends and Expenditures in the US Business Market, In-Stat, November 2005 Productivity Enhancements Anticipated to Outweigh Conversion Hurdles of Cost and Security 6
7 What is Driving the Enterprise Trends? Drivers Ubiquitous BB Coverage Integrated Workforce & Real Time Response Quality of Experience Portable Device Management Cost / Coverage Applications Uplink Speed Security Opportunity Widespread coverage is essential!! Leverage apps on Intranets; Simultaneous voice & data to get things done faster Downlink problem solved. Need improved uplink and latency for chatty applications Enable IT Managers to standardize support for mobile devices Enterprises Driven by Productivity Metrics faster, cheaper, better 7
8 What are CDMA Operators saying about Rev A? KDDI: CDMA continues to be the most innovative wireless technology for service providers and their customers, said Dr. Hideo Okinaka, vice president and general manager, Technical Standards and Spectrum Division of KDDI. With Release 0, and now Revision A, KDDI has a clear competitive advantage in the marketplace where CDMA and UMTS are competing head to head as 3G technologies and in the eyes of our customers. Sprint- Nextel: Revision A augments our Power VisionSM network expansion, already the nation's largest mobile broadband network," said Iyad Tarazi, VP, Network Development for Sprint Nextel. It's a first-to-market initiative to provide consumers and enterprises with enhanced mobile broadband and innovative data services, including multimedia. Telecom New Zealand: Revision A is key to maintaining our leadership in the mobile broadband market, said Kevin Bowler, General Manager Mobile, Telecom New Zealand. We chose CDMA2000 because it clearly offers performance and a business case that no other wireless technology will match anytime soon. Verizon Wireless: Our award-winning broadband services BroadbandAccessSM for business users and V CAST SM Music and Video are the best in class thanks largely to our underlying EV-DO network, said Ed Salas, VP Network Strategy, Verizon Wireless. With Revision A, we are gaining significant advantages over our competitors and have the flexibility to stay ahead of the demands of today s mobile users. 8
9 Evolution of Standards by Technology IS2000 (CDMA2000 1X) Mobility IS856 Rev 0 (1xEV-DO) IS856 Rev A (1xEV-DO) Opt. VoIP IS856 Rev B (1xEV-DO) IS856 Rev C (1xEV-DO) OFDM Interop? IS (BCMCS) IS A (EBCMCS) R'99 (UMTS) Rel'5 (HSDPA) Rel'6 (EDCH, MBMS) Rel'7 (E-HSDPA) LTE Mobility Init. VoIP Opt. VoIP OFDM Interop? TDM CDMA CDMA/TDM OFDM* (WiMax) a (WiMax) d (WiMax) DL = Down Link (Forward Link) HSDPA = High Speed Downlink Packet Adapter HSUPA = High Speed Uplink Packet Adapter LTE = Long Term Evolution UL = Up Link (Reverse Link) e (WiMax) Mobility Init. VoIP e+ (WiMax) Date TBD Opt. VoIP Dates shown are standards completion dates (or expected completion dates.) Initial VoIP not as spectrally efficient as Optimized VoIP. Optimized VoIP for is TBD. Mobility indicates when each particular standard supports mobility interoperability between the terminal and BTS. OFDMA/MIMO/SDMA 9
10 1xEV-DO Rev A Enables New Applications Application CDMA 1X DO Rev 0 DO Rev A Yes Yes Yes Messaging Attachments Limited Large files Larger files, faster Video Limited Streaming video 2 Way Streaming Conferencing Voice & Data Voice, Text Netmeeting slow VC, VoIP, IM, PTT Industry Specific Real Time Application Initiated Alerts Simple text Simple text Text and graphics Two-way text and video Faster uplink Two-way text and "live" video. Internet Web Browsing Text, Graphics Fast page refresh Faster page refresh Consumer Various Video/Audio Clips, Photos Streaming video, Web Access Gaming, Movies DOrA improves end user experience for existing applications & paves the way for new multimedia applications 10
11 A Day in The Life Mobile Video Applications Live P2P call between two mobile video users Video Telephony Video Telephony User initiates a video call 2-way stream of video and voice signals between two mobile handsets Video call answered Requires 3G network for high quality video User initiates a video call Busy/no answer Multi- Media Message Store Caller receives a video greeting & is prompted to leave a video message Multi- Media Message Store Video message stored for retrieval Notification of Message Waiting Video Mail Video Mail MMS message containing video MMSC Multimedia Messaging Multimedia Messaging Store and forward Notification Opportunities for Revenue Generating Services 11
12 A Day in The Life Click to X Description: One click to connect service allows quick connection with instant setup and fast content delivery. User Benefits: Getting people and services connected instantly with the single click of a button; simplicity & immediacy leading to replay value, entertainment value, and truly usable services; sharing experiences and content in real time, enabling active mobile communities. Value to Service Provider: Revenue Multiplier Effect Mobile Meeting Hosting Corporate Security VIRTUAL PERSONA VIRTUAL Dispatch PERSONA Intelligent Avatars Intelligent Avatars Helps Enterprises Boost Efficiency by Enabling Teams to Communicate Easily, Quickly, and Cost-effectively 12
13 A Day in The Life VoIP Description: Simultaneous voice, video & data for Phase I; VoIP replacing circuit voice in Phase II. Value to Service Provider: Compete with UMTS operators; Expand offering of differentiated ARPU generating multimedia applications Phase I: Simultaneous voice, video & data End user initiates a VoIP call VoIP enables new capabilities Surf web while on voice call. Send / receive video stream while on voice call. Initiate a video telephony call 1X circuit switched voice remains available for traditional voice calls. Phase 2: VoIP replaces circuit voice End user initiates voice call Call handled as VoIP in DOrA coverage areas Call handled as circuit switched voice In non-dora coverage areas Enterprise VoIP (IP PBX features) Offer VoIP as a Complimentary Solution to Circuit Voice to Increase Near Term Revenue Potential 13
14 In Summary Market trends are pointing to the need for realtime, symmetric services for both consumer and enterprise segments 1xEV-DO Rev. A offers a time to market advantage for Service Providers to meet these Market Trends and offer differentiated capabilities to enable new revenue streams 14
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