Exploring Mobile Broadband Opportunities
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1 Exploring Mobile Broadband Opportunities - Business Advantages of 3GPP2/ CDMA Ed Chao Vice President, CDMA/EVDO Business Division Wireless Business Group
2 CDMA History Second to Third Generation (1990 to Present) 1993 CDMA Specification Adopted Standardized as IS Initial Commercial CDMA Systems Deployed IS-95A CS Voice (~13E) & CS Data IS-707 Packet Data (9.6/14.4kbps) 1999 IS-95B 64kbps PD Launched in Japan Qualcomm QCP1900 (1996) st Commercial CDMA2000 1X Launch in Korea CDMA2000 1X CS Voice (~26E) RIM Blackberry 8830 WorldMode:CD MA2000/1xEV- DO/GPRS/GSM CDMA2000 1X Packet Data (153kbps) st Commercial 1xEV-DO Rel 0 Network in Korea 1xEV-DO Rel 0 PD (2.4 Mbps DL / 153 kbps UL) 2006 First 1xEV-DO Rev A Networks Launched in the US, Japan, and New Zealand 1xEV-DO Rev A PD (3.1 Mbps DL / 1.8 kbps UL) Leading the World in Commercializing Large-Scale Mobile Network Technologies 2 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
3 CDMA Viable, Thriving, Growing 243 operators in 99 countries operate CDMA2000 networks supporting >400 M subs CDMA2000 (3G) services are available across all six continents 240 operators in 97 countries operate CDMA2000 1X networks supporting >325 M subs offering next generation services with economies of scope and scale comparable to GSM 137 operators in 65 countries have launched or plan to launch 1xEV-DO networks more than 50% of all CDMA networks Approximately 6.7 million new subscribers sign on for CDMA2000 services every month 3 rd Generation (CDMA2000 1X) 3 rd rd Generation (1xEV-DO) 3 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
4 The CDMA Market Continues to show Growth Global CDMA Subscriber Growth Global ARPU Growth Subscriptions (mn) Source: EMC, Source: Merrill Lynch Global Wireless Matrix 3Q06 4 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, ##### Data Subscriptions Total Subscriptions Total ARPU (Voice + Data), $ CDMA subscriptions continue to increase year over year, reaching ~480 million by 2010 Make-up of ARPU is changing but remains flat Market pressures are reducing voice revenues Mobile data revenue is increasing substantially! North America Asia-Pacific Europe World Ave Emerging Asia Latin Amererica Emerging Europe CDMA Continues to Grow Rapidly - ARPU is Stable and Sustainable Mobile Data is Becoming an Increasingly Significant Portion of Revenues
5 Wide Variety of Devices to Meet the Differing Needs of Various Markets CDMA2000: Wide Range of Affordable Devices Competition and economies of scales are driving prices down Sub-US$30 Sub-US$40 Sub-US$50 C160 C C2801 C701 C C731 C Jingpeng 101 Motofone F3C C2285 Motorola W150i TCL 401 Haier D1600 Rose Notes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$ Only devices shipped in volumes above 10,000 units are shown. RD2330 Haier D1000 BREW-enabled low-end phones RD2650 RD2690 HUAWEI Kyocera C2285 KX 122 RD Rose 632 C762 RD2710 C2285 Haier C1000 Kyocera KX 17 RD C218 RD2670 RD C Jingpeng Spektra 101 C150 RD2430 Nokia 1325 Motorola C entry-level CDMA2000 handsets from 14 suppliers Jingpeng C131 Nokia 1255 RD2530 S109 Jingpeng C132 N500 RD2535 UTStarcom C1122 Kyocera K112 N 380 Legend: Color Screen Handsets Compared to GSM phones Offer more features at the high end, and Are competitively priced at low end CDMA offers more features than GSM at the low end because of the inherent capabilities of the technology Compared to UMTS/HSxPA phones Are less expensive with fewer manufacturers Offer more variety CDMA2000 WorldMode TM Devices Global roaming enabled with CDMA2000/GSM/GPRS multi-mode/multi mode/multi-band devices CDMA devices come in many form factors Phones, PDAs, PC-MCIA cards, USB modems SCH-A790/W109/A795/IP-A790 Motorola A840/A860 E W800 SCH-i819 E W810 SCH-W219 SCH-W379 SCH-W399 SCH-W531 SCH-W569 SCH-W579 SCH-V920 WorldMode Phones Address roaming issue Come in a variety of models CDMA2000 1X/EV-DO/GSM/GPRS WorldMode Devices Yulong Telecom Coolpad 728 Yulong Telecom Coolpad 728B Yulong Telecom Coolpad 858T Yulong Telecom Coolpad C288 H350 Price points are steadily decreasing Amoi CMA Amoi V810 BlackBerry 8830 E KW-9200 SCH-i830 Amoi V8107 UTStarcom T66 CECT C828 Daxian C8000 Hisense D806 TechFaith Ubiquam Gallic U Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
6 Wide selection of devices produced by multiple vendors 1800 CDMA2000 devices have been introduced to the market 483 CDMA2000 1xEV-DO Rel. 0 devices with color displays, cameras and GPS capabilities 40 Rev A Devices >40 World-Mode Devices PDAs Data cards/modules 92 Manufacturers (source: CDG Nov 07) Mobile Phones USB modems Notebooks Fixed terminals 6 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
7 CDMA2000 Evolution Beyond 3G CDMA2000 1X CDMA2000 1xEV-DO EV-DO Rev A 1 EV-DO Rev B 1,2 DL: 153 kbps UL:153 kbps 26E Voice 40-60k Typ FL/RL Bursts ~100k FL/RL DL: 2.4 Mbps UL: 153 kbps k Typ FL Bursts of ~1M FL 40-60k Typ RL Bursts of ~100k RL 150 ms Latency DL: 3.1 Mbps UL: 1.8 Mbps k Typ FL Bursts of ~2M FL k Typ 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) UMB 3, 4 DL: Mbps UL: Mbps MHz 8 Mbps FL 5 MHz (2-4x with MIMO) (2x Rev B capacity with SDMA ALU Simul) 17mS Latency Improved VoIP Voice High-speed data Picture, video Web browsing Broadband data VOD, MOD High-speed Internet Enterprise applications Broadband Real-time Applications Real-time apps Video Tel, VoIP, PTx, Interactive gaming, Multimedia on FL and RL Multimedia, VoIP, and Video Delivery Advanced IMS TDM CDMA CDMA/TDM OFDM* OFDMA/MIMO/SDMA DL = Down Link (Forward Link) UL = Up Link (Reverse Link) 1 EV-DO Rev A and 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 2001` Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, ##### Sources: AT&T Wireless, SKT, Cingular,, Nokia, NTT DoCoMo, Qualcomm, CDG
8 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 8 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
9 Benefits of EV-DO Rev A/B for a Pre-4G Wireless Service Deployment Support for VoIP enables a high quality, efficient, all-ip voice core network Easier service integration for voice and data services Enhance application/ad revenue, converged services and/or differentiation Rev A VoIP quality demonstrated to be superior to 3G 1X circuit voice Spectrum requirements support efficient transition Rev A can start with only 1.25 MHz Remaining spectrum remains available for next generation broadband technologies to supplement EV-DO services, like UMB and LTE Multicarrier Rev B will aggregate multiple 1.25 MHz Rev A carriers for increased performance Evolution path offers flexibility Rev A can evolve to either LTE, UMB, or WiMAX, keeping flexibility in next generation broadband technology choice for a longer period Transition to next generation broadband can easily begin in parallel with EV-DO rollout, while collecting revenue on your spectrum investment! 9 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
10 Conclusion The 3GPP2/ CDMA market is strong and leading the way globally to 3G and beyond 3GPP2/ CDMA ecosystem has a successful track record of delivering differentiated capabilities to market 3GPP2/ CDMA provides solutions for segments in both developed and developing markets, from voice to data, enabling new and profitable business models 3GPP2/ CDMA offers a time-to-market advantage for offering differentiated VoIP and real-time multimedia applications starting with Rev A/B and smoothly evolving to future 3GPP2 / CDMA offers a wide selection of devices from multiple vendors, with enormous economies of scale 10 Business Advantages of 3GPP2/ CDMA December 2007 All Rights Reserved Alcatel-Lucent 2007, #####
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