KDDI s Future Plan Taking Advantage of CDMA Evolution Path
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1 KDDI s Future Plan Taking Advantage of CDMA Evolution Path Dr. Hideo Okinaka VP & GM, Emerging Technologies and Spectrum KDDI Corporation 20th October 2010 CDG Webcast
2 Table of Contents 1. Landscape has changed: Lessons from The Internet 2. Explosion of Data Traffic and Bandwidth Demands 3. What Has KDDI Been Doing to Accommodate The Growing Market Demands? 4. Challenges and Opportunities Ahead for the Future 1
3 Lessons from The Internet and Its Applications Source Professional Generated Customer Generated Contents Music Video Text www information Heavy contents Super Heavy contents Portal Engine Technology Modem ADSL CATV FTTH s 2
4 Innovations of Devices Driving Traffic Growth Smartphones Feature Phones Modem-embedded Tablets PC Modems Modem-embedded Notebooks WWAN-WiFi Routers 3
5 Evolving Contents Demanding Bandwidth YouTube in HD Single Lens Digital Camera 2450 pixels ebooks On-line Games A typical Japanese Dictionary 609MB 4
6 Table of Contents 1. Landscape has changed: Lessons from The Internet 2. Explosion of Data Traffic and Bandwidth Demands 3. What Has KDDI Been Doing to Accommodate The Growing Market Demands? 4. Challenges and Opportunities Ahead for the Future 5
7 Growth in The Internet Traffic and Its Attribute Fixed Internet Downlink Fixed Internet Uplink HTTP/Streaming P2P P2P Traffic per user has grown 2x in 2 years for downlink. Mobile Total Traffic from EZweb Per User Traffic from EZweb Web etc. Web etc. Motion picture DL Motion picture DL Traffic per user has grown 2x in 3 years for downlink. 6
8 A Forecast of Mobile Data Traffic by Japan s MIC 200x in 10yrs Forecasted Mobile Data Traffic in Japan from 2007 to Cisco Systems forecasted that the monthly total mobile traffic in Japan in 2014 will be; beyond 342PB or 20x compared with Source: Report from a Working Group under the Information and Communications Council of Minister of Internal Affairs and Communications (MIC), December
9 A Forecast of Mobile Data Traffic by U.S. NBP Forecasted Mobile Data Traffic in North America Cisco Systems forecasted that the monthly total mobile traffic in USA in 2014 will be; beyond 773PB or 47x compared with Source: 8
10 Table of Contents 1. Landscape has changed: Lessons from The Internet 2. Explosion of Data Traffic and Bandwidth Demands 3. What Has KDDI Been Doing to Accommodate The Growing Market Demands? 4. Challenges and Opportunities Ahead for the Future 9
11 Our Approach towards Mobile Broadband Era Mobile- Phone Market 3G 3.5G 3.9G CDMA OFDMA EV-DO Rev. 0 Rev. A EV-DO Multi-Carrier CDMA2000 1x Planned for 2010 Planned for 2012 LTE (OFDMA : FDD) Internet Access Market Wi-Fi 2009 WiMAX (OFDMA : TDD) One of our competition s W-CDMA HSDPA Planned for 2010 LTE (OFDMA : FDD) HSPA / HSPA+ 2010/6/2 10
12 Why Is KDDI Going to Upgrade DOrA to EVDO MC? What is EVDO MC by KDDI definition? EVDO MC is a subset of EVDO Rev.B. EVDO MC supports bundling up to three (3) DOrA carriers, compared with EVDO Rev.B bundling up to 15 DOrA carriers. EVDO MC does not support 64QAM that composes EVDO Rev.B Consequently, EVDO MC can be implemented solely by the software upgrade of radio access network equipment. Expected Throughput Improvement by EVDO MC: Simulated user throughput over the nationwide au EVDO network beyond Devices slower than MC Devices beyond slower than 1Mbps 500kbps 23% 26% 47% 53% 74% 51% 500kbps - 1Mbps 11
13 KDDI s Plan for LTE (1) : Overlay Deployment Across Freqs. At KDDI, 20MHz (10MHz x 2) is available at 850MHz band and at 1,500MHz band each for the LTE deployment. 850MHz spectrum is the digital dividend of TV broadcasting as well as the fruit of the painful clean-up process of its own 800MHz spectrum being used for 3G CDMA operations. The clearing process will complete in July ,500MHz spectrum is unique to the Japan market and the dividend of the 2G TDMA cellular operations. au s LTE Deployment Plan Rural Area Urban Area Rural Area & 2.1GHz CDMA2K 1x@850MHz & 2.1GHz 12
14 KDDI s Plan for LTE (2): 1xCSFB KDDI positions LTE as a means of efficiently accommodate the data traffic within the cellular mobile services offering and will continue to use the existing CDMA2000 1x for voice traffic. KDDI has been actively working in both 3GPP and 3GPP2 to complete the specifications for the circuit-mode fall back to 1x for incoming voice calls during a data session over LTE. MSC Falling back to 1x when a terminated voice call is received during the LTE data session, and returning back to LTE at completion of the voice call. 1x-Core NW for Voice LTE-Core NW Page MME CBSC IWS 4. Call Setup 3. Page Responded enb BTS LTE NW 1. Page Received 5. Fallback to 1x 1x NW Operation Concept LTE-Area 2. 1x Measurement 1x-Area 13
15 Table of Contents 1. Landscape has changed: Lessons from The Internet 2. Explosion of Data Traffic and Bandwidth Demands 3. What Has KDDI Been Doing to Accommodate The Growing Market Demands? 4. Challenges and Opportunities Ahead for the Future 14
16 Revenue Opportunities and Competition Applications/ Contents MNOs MVNOs Internet Portal Co. Device Venders 3 rd Party Co. A 3 rd Party Co. B 3 rd Party Co. C Portal MNOs MVNOs Internet Portal Co. Devices Venders Platform Delivery DRM Payment MNOs MVNOs Devices Venders Network MNOs Device Data Card USB Dongle Smart Phone Feature Phone 15
17 Challenges ahead for Mobile Broadband (1) Limit in spectrum availability This is the challenging issue regardless of CDMA, UMTS, LTE or WiMAX under the circumstance of bandwidth hungry Internet era. How can we add new spectra for 3G and beyond, and how can we refarm existing spectra used by 2G and 3G? Globally common spectra for LTE deployment unlikely In 3GPP, many band classes have been defined: 700MHz, 800MHz, 900MHz, 1.5GHz, 1.7GHz, 1.8GHz, 2.1GHz and 2.6GHz. This leads to the advantage of existing 3G networks including CDMA and EV-DO, for which most of deployment are globally at 850MHz and 2.1GHz. Infrastructure cost The customer perception for the broadband access service is the All-You- Can-Eat flat rate. How can MNOs manage the ROI in bandwidth without the expectation of increase in ARPU? Can the single standard and welldefined interface specification between nodes, leading to the real multivendor procurement environment, be the answer? 16
18 Challenges ahead for Mobile Broadband (2) Backhaul availability and cost This is another issue relevant to the infrastructure deployment. As the bandwidth of radio link evolves larger, the bandwidth requirements for the backhaul grow as well. The availability and cost of the backhaul will be a bottle neck of network deployment. IPv4 Address Space The public IPv4 address has become a scarce resource. The emerging deployment of networks could be designed to use IPv6 addressing for its own internal purpose, but this could cause a limitation in the access to the Internet running on the public IPv4 addresses on which many of services nodes rely. 17
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