CDMA2000 & Next Generation Services. 3G CDMA Latin America Conference-May 2007 Gabriel Herbel Wireless Business Group Director for Latin America
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1 CDMA2000 & Next Generation Services 3G CDMA Latin America Conference-May 2007 Gabriel Herbel Wireless Business Group Director for Latin America
2 Outline Mobile Internet Market Drivers & Trends Capabilities in xev-do Rev. A & Beyond New source of revenue - Applications Take Aways 2 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
3 Consumer Trends: Content Creation & Sharing Wireline Content Creation (Upload) Wireless Content Sharing (Download) 40M new subs in last : 6 months Blogs, photos, videos sharing - 70 M subs!! 12M student subscribers facebook Subscriber Audio Creation and Sharing Multimedia Yahoo Moblogging Publish Text and Photos Yahoo! 360 Upload Photos New! Video broadcast Video broadcast / video conferencing > 57% of online teens Affinity group content sharing slingplayer mobile (12M ) in US create content Source: Pew Internet Studies, November 2005 Subscriber Video Creation and Sharing 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 3 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
4 What is Driving the Consumer Trends? Wireline Experience Migrating to mobiles Mobile Opportunity Widespread broadband access enables fast access to wide variety of content Immediacy Uplink/downlink and latency Improvements remove slow response barrier 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 Ease of Use Community Personalization 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 4 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
5 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 Business Market, In-Stat, November 2005 Productivity Enhancements Anticipated to Outweigh Conversion Hurdles of Cost and Security 5 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
6 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 6 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
7 The Mobile Internet is About to go on Overdrive 2,000 1,800 1,600 1G/ 2 G ( An alog/ GSM / GPRS/ EDGE) 3G (CDMA2000 1X/ 1xEV-DO/ UMTS) The global GSM subscriber base will reach its peak Subscribers (Millions) 1,400 1,200 1, 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 G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007 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 * Source: Strategy Analytics, Worldwide Cellular User Forecasts, , January 2006
8 Spread Spectrum Deployments Worldwide ( ) Subscribers (Millions) G Grew Ave ~7.8% Qtr over Qtr in QE 06/06 CDMA2000 = 10.3%; UMTS 5.2% 353* CDMA2000 is 79% of total CDMA base CDMA2000 is 82% of the 3G market CDMA Total CDMA2000 is 11% of total wireless users worldwide (Incl. cdmaone) 500 million CDMA2000 users by * CDMA2000 * CDMA Numbers last updated 09/06 **UMTS & DO Numbers last updated 12/ UMTS 98.1** 52.2** 30.8M UMTS Subs (33% of worldwide Total) are DoCoMo Japan 1xEV-DO 0 03 /05 04 /05 05 /05 06 /05 07 /05 08 /05 09 /05 11/05 12/05 01 /06 02 /06 03 /06 04 /06 05 /06 06 /06 07 /06 08 /06 09 /06 1 0/ / /06 Sources G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
9 CDMA2000 1X Voice & Data - Key Customer Drivers Operates in increments of 1.25MHz CDMA2000 1X Supports Voice and data on same carrier 26.4 Erlangs of Voice traffic per sector 153.4Kbps Peak Packet Data Defaults to cdmaone when 1X not available Symmetric Forward and Reverse Links Supplemental data channels assigned as data demand, voice demand and RF conditions permit Airlink drives actual data rates up to 153kbps High capacity voice and medium speed Packet Data Services Packet Data introduces advanced all-ip architectures to improve performance and deployment flexibility Enables service flexibility and basic web access features. 1X provides extended coverage for 1xEV-DO Typical User Experience kbps Bursts up to 100kbps Soft hand Off for optimized voice and data performance 9 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
10 1xEV-DO Rev 0 Data Overlay Key Customer Drivers - Deployed Since 2002 Operates in increments of 1.25MHz 1xEV-DO Carrier is dedicated to Data IMS "Blended" Lifestyle Services HSDe (Enterprise), HSDsmb (Small-Medium Business), HDDmm (Mass Market) Deployed Worldwide in 450/700/850/1800/1900MHz Fastest 3G Forward Link Time Division Multiplexing optimizes performance in good channel conditions Airlink drives FL Peak data rates to 2.4Mbps Improved support for real-time High Speed packet applications, including Internet access, , etc. Advanced all-ip architectures improves performance and deployment flexibility Typical User Experience kbps Bursts up to 1Mbps Reverse Link at 1X Speeds Up to kbps Peak data rate Typical User Experience kbps Bursts up to 100kbps Soft hand Off Enhanced service flexibility and new revenue generating services Unparalleled coverage with 1x filling coverage holes 10 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
11 DO Rev A Performance Improvement Key Customer Drivers (Deployed 2006) Improved Forward Link Larger payloads drive data rates to 3.1Mbps User Experience kbps Bursts up to 2Mbps Improved MAC & Packet Division Multiplexing improves performance in good channel conditions Improved Reverse Link Up to 1.8 Mbps data rate User Experience kbps Improved speeds and latencies now support real-time packet applications, such as VoIP, Gaming, Push-to- Speak Extends all-ip architectures to further improve performance and deployment flexibility Bursts up to 1.2Mbps Throughput and latency gains with hybrid ARQ Improved MAC Layers on RL QoS Requirements for VoIP/PTT applications Broadcast/ Multicast (BC-MCS) Multimedia content to multiple users using OFDM Enhanced capabilities further service flexibility and IMS revenue generating features Unparalleled coverage with 1xEv-DO Rev 0 & 1x filling coverage holes 11 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
12 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. 12 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
13 CDMA Evolution VoIP CDMA2000 1X CDMA2000 1xEV-DO EV-DO Rev A 1 EV-DO Rev B 1,2 EV-DO Rev C 3, 4 DL: 153 kbps UL:153 kbps 26E Voice 40-60k Typ FL/RL Bursts ~100k FL/RL TDM CDMA CDMA/TDM OFDM* OFDMA/MIMO/SDMA DL: 2.4 Mbps UL: 153 kbps k Typ FL Bursts of ~1M FL 40-60k Typ FL/RL Bursts of ~100k RL 150 ms Latency 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) DL: 3.1 Mbps UL: 1.8 Mbps k Typ FL Bursts of ~2M FL k Typ FL/RL Bursts of ~1M RL ms Latency QoS 35E VoIP DL: Mbps UL: Mbps MHz 4.9M Peak FL 14.7 Mbps Peak FL 5MHz (3 carriers) 1.8 M Peak RL 5.4 Mbps RL Peak 5MHz (3 carriers) DL: Mbps UL: Mbps MHz 18 Mbps in 5 MHz (2-4x with MIMO) 2x Rev B capacity with SDMA (LU Simul) 10mS Latency Imprvd VoIP Up to 200M Peak FL, 45M Peak RL in 20Mhz 1 EV-DO Rev A & B incorporate OFDM for Multicasting 2 Max Data rates based on 2 x 20 MHz allocation 3 May have multiple modes, with at least one mode being backwards compatible with EV-DO (all versions); will likely utilize CDMA/OFDM or a combination of OFDMA and CDMA; MIMO/SDMA; leverages EV-DO protocol stack 4Data Rates depend on degree of Mobility 5 Release 7 and Release 8 introduce enhancements such as MIMO and VoIP 6 Utilizes OFDMA on the DL and SC-FDMA on the UL; MIMO Sources: AT&T Wireless, SKT, Cingular, Samsung, Nokia, NTT DoCoMo, Qualcomm, CDG 13 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent
14 CDMA450 Modular Cell Compact Roadmap Key Features 450 MHz Modcell 4.0 Compact 1-3 Carriers BC-5 EV-DO Rev A Ready Indoor (available now) -48VDC & AC Battery Plinth 450 MHz Modcell 4.0 Remote Unit-Base Unit 1-2 Carriers BC-5 (3C at reduced power) EV-DO Rev A Ready RU Indoor/Outdoor BU Indoor (available now) -48VDC & AC IP Backhaul May MHz Modcell 4.0 Compact Outdoor (available Jan 2007) Sept MHz Modcell 4.0 Compact 450/2100MHz Dual Band in 2 Cabinets Ethernet Backhaul Apl G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
15 Over 184 1xEV-DO Devices From 18 Vendors Samsung SCH-V770 7 Megapixel Camera Franklin Wireless CDU 550 USB Modem Sanyo W32SA With Disney UI FM Receiver/ Transmitter Samsung V740 14mm thin, 1.3MP Camera ITRONIX GOBOOK Rugged Series ITRONIX DuoTouch Tablet ZTE My 39 SMS Enabled LG SV360 3D Gaming Graphics, Motion Sensitive Samsung SCH-i830 WorldMode CDMA2000 EV-DO / GSM /GPRS Windows Mobile 2003 LG Chocolate (VX8500) Music Downloads, Streaming Video, 3DGames Toshiba Protégé M400 Tablet Lenovo ThinkPad Z-Series HP Compaq nc6140 au Design Project PENCK 1.3 MP/Camcorder Samsung A MP Camera, Music Downloads T.V. Out DELL Latitude Series Panasonic Toughbook CF-74 DELL XPS M1210 Pantech PX-500 Novatel Wireless Merlin S720 Sierra Wireless AirCard 595 Sierra Wireless AirCard 597E Sierra Wireless AirCard 595U Novatel Wireless Ovation MCD3000 Toshiba W47T Toshiba DRAPE 1xEV-DO Rev A Commercial Devices Available Today Novatel Wireless Expedite E720 Sierra Wireless MC5725(V) PCI Express Mini Card 15 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007 *Source:
16 Market Evolution: Service Segments Today Tomorrow Future Consumer Entertainment Communication Blended Lifestyle Services Enterprise Productivity Anytime, Anywhere, Any Device Communications 16 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
17 Yesterday s Networks Simply Won t Support Next Gen Services PSTN & Best Effort Data Network Transformation Drives complexity out of the network Reduces operating costs IMS Links end-user value to network assets and converges on an Intelligent and Service-Aware IP-powered Network that enables Personalized and Blended Services 17 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
18 Active Phonebook - An Example of "Blended Services" with IMS and UMB End-users demonstrate willingness to change network provider to capitalize on converged services 70% willing to switch operator End-users are likely to upgrade their device to get APB 80% willing to upgrade the device Source: Lucent Primary Qualitative & Quantitative Market Research Presence Enabled Contact List Push to X Capability across Fixed and Mobile Contacts enhanced with availability & location information Single address book linked to multiple applications Ability to personalize how people can contact you Centralized data held by the network, not a single device An Example of a Blended Lifestyle Service 18 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
19 CDMA & WiFi for Ubiquitous Secure, Coverage Public xEV-DO Enterprise Hot Spot CDMA2000 1X Hot Spot Mobile IP Client IPSec Client HSDe 19 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
20 1x-EVDO Rev 0 Value Proposition For (the Service Provider): New Revenue Streams and Extended Service Offerings in the Emerging Mobile Data Sector First Operators to Market Establish Leadership Roles Open Architecture and Professional Services Support for Integration With Alternate Suppliers Complete Pre-Integrated End-to-End Solution of Products and Integration Services, Along With Marketing Support Simple Network Upgrades to 1xEV-DO Rev A, B and C For the Enterprise: Enhanced Productivity With Anytime, Anywhere Access to Enterprise Data Across Seamless, Secure, Easy to Use Solutions Enables Improvements in Current Business Practices Reduce Operations Costs With Media Access Optimised to Maximize Cost and Bandwidth Efficiencies Studies in the Financial, Communications & Insurance Sectors Show Productivity Improvements of 30 to 50% Positive ROI for the Enterprise in a Year, or Less 20 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
21 Key Take-Aways CDMA2000 (1X and 1xEV-DO) leads all 3G technologies in global scale Multiple 1xEV DO Rev 0/Rev A devices continue to be introduced to the market 1xEV-DO Rev A enables new, two-way, real time services Differentiated QoS capabilities starting in 1H07 Voice Over IP Trials starting in 1H07 Video Telephony, PTT, SMS over DORA starting 2H07 All major wireless technologies have similar performance/ capacity capabilities, but CDMA2000 offers a time-to-market advantage EV-DO Deployed Worldwide in 450/700/850/1800/1900MHz 21 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
22 22 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
23 Questions? 23 3G CDMA LATIN AMERICA May 2007 All Rights Reserved Alcatel-Lucent 2007
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