CDMA450 Evolution Seminar Warsaw, Poland 15 th June 2004

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1 Frank Mulholland Director, CDMA Europe Sales & Business Development Lucent Technologies Office Mobile CDMA450 Evolution Seminar Warsaw, Poland 15 th June 2004

2 450MHz Overview June 14 th, 2004 Lucent Technologies Proprietary Page 2

3 Romanian 3G1X Network Launched in Dec 2001 as IS-95 and then upgraded to 3G1X First High Speed Data network in Europe Consisting of 580 Base Stations, 1 ECP and 5 switches. Max Download speeds of up to 153 Kbps Average Speeds of approx 80 Kbps Subscriber base increasing by approx 10K subs per month. Lucent Technologies Proprietary Page 3

4 Flexent CDMA450 Modcell 2.0 Configuration Details Indoor or Outdoor 1-3 Sectors, 1-3 Carriers Footprint: 910x1010x1800mm (36x40x72in) -48V DC Output power J4 12 T1/E1 lines CRC, CBR CCU / CCU-II, max. 256 CE per Carrier ULAM Amplifiers Duplex filter Support for IS95, 3G1X and 1XEV-DO Growth Field Upgrades for 1x, DO, and 3 rd carrier T1/E1 sharing, Sector pooling Filter Panels 450 CTUs 2.0 Digital Shelf Lucent Technologies Proprietary Page 4 2C3S Shown

5 Flexent CDMA450 Modcell ES Configuration Details Indoor, +5 C to +40 C 1-3 Sectors, 1-3 Carriers Footprint: 600x600x1800mm (24x24x72in) -48V DC Output power J4 12 T1/E1 lines URCm, SBCBR CCU / CCU-II, max. 256 CE per carrier nblam Amplifiers, Triplex filter Support for IS95, 3G1X and 1XEV-DO Simple, Flexible Growth Field Upgrades for 1x and DO, All frames are 3 rd -carrier-ready Lucent Technologies Proprietary Page 5 2C3S Shown

6 Flexent CDMA450 Modcell ES Benefits Carrier Density smaller footprint than Modcell 2.0 Growth Field Upgrades for 1x and DO Ready for 3 rd Carrier Higher efficiency New amplifier T1/E1 sharing, Sector pooling Same equipment assets as Compact 450, simplifies sparing Optimized for 450 high-capacity markets Increased carrier density Proven, reliable designs leveraging experience and economies of scale with 850 and PCS designs Indoor, 1C 3S Lucent Technologies Proprietary Page 6 2C3S Shown

lines URCm, SBCBR 4 channel cards (CCU / CCU-II), max.

7 Flexent CDMA450 Compact 3.0 Configuration Details Indoor 1-3 Sectors, 1 Carrier Footprint: 600x600x1200mm (24x24x50in) -48V DC Output power J4 4 T1/E1 lines URCm, SBCBR 4 channel cards (CCU / CCU-II), max. 256 CE nblam Amplifiers Support for IS95, 3G1X Benefits Optimized 1C Backplane + Small Cell Enclosure for rural and inbuilding areas Easier & quicker installation Higher efficiency New amplifier Sector pooling Same equipment assets as Modcell 450 ES, simplifies sparing Indoor, 1C 3S Lucent Technologies Proprietary Page 7

8 1xEV-DO Cost-Effective and Revolutionary Offer 1xEV-DO Deployment Options 1xEV-DO Integrated With CDMA2000 1X Meets and Surpasses the IMT G Requirements Peak Rates of 2.4 Mbps per Carrier CDMA2000 1X Voice and Data Doubles Voice Capacity, 50% Longer Battery Life, 153 Kbps PD Stand Alone Overlay Network No Dependence On MSC Release Cycle Overlay CDMA, TDMA, GSM or PDC Networks Leverages Current Infrastructure Investment Maximum Investment Protection Base Station Architecture Flexent: Modular Cell, OneBTS Cellular or PCS networks Cell sites, Towers, Antennas, Network equipment Seamless handover between CDMA 1X / EVDO / Wi-Fi Lucent Technologies Proprietary Page 8

1xEV-DO Overlays CDMA2000 1X Internet 1xEV-DO BTS 1xEV-DO BTS T1 / E1 T1 MUX 1xEV-DO CDMA20001x 1xEV-DO BTS Dual mode BTS DO-RNC PCF

CDMA20001x PCF (A10-A11) R-P Lucent VPN Firewall PDSN AAA DNS DHCP CDMA20001x BTS CDMA20001x BTS T1/E1 CDMA20001x BTS DCS HLR ECP

Name Server NMS - Network Management System PCF - Packet Control Function 1xEV-DO PDSN - Packet Data Service Node Components RAN -

9 1xEV-DO Overlays CDMA2000 1X Internet 1xEV-DO BTS 1xEV-DO BTS T1 / E1 T1 MUX 1xEV-DO CDMA20001x 1xEV-DO BTS Dual mode BTS DO-RNC PCF 1xEV-DO Controller Channelized DS3 RCS/AP Ethernet Ethernet OMP-FX 1xEV-DO EMS CDMA20001x EMS Ethernet R-P (A10-A11) Ethernet Router CDMA20001x PCF (A10-A11) R-P Lucent VPN Firewall PDSN AAA DNS DHCP CDMA20001x BTS CDMA20001x BTS T1/E1 CDMA20001x BTS DCS HLR ECP SMSC AAA - Authentication, Authorization and Accounting AT - Access Terminal DHCP - Dynamic Host Configuration Protocol DNS - Domain Name Server NMS - Network Management System PCF - Packet Control Function 1xEV-DO PDSN - Packet Data Service Node Components RAN - Radio Access Network Standard IP Components Wireless IP CDMA2000 1X Components Network Network Lucent Technologies Proprietary Page 9

10 Advantages of CDMA at any Frequency CDMA2000 1X offers unparalleled capacity today Up to 30 Erlang of voice traffic per sector/carrier Plus peak data data speeds of 153Kbps 1XEV-DO delivers unmatched data capacity today CDMA carrier dedicated to data Peak speeds of 2.4 Mbps in a single 1.25MHz carrier 5 times the data traffic capability of CDMA2000 1X Current market deployments prove CDMA delivers the highest data throughput Typical CDMA user experience: Kbps (1X); Kbps (1XEV-DO) Typical GPRS/EDGE user experience: 10 to 40 Kbps CDMA is the most cost effective solution available Easiest migration path with unequalled spectral efficiency 1XEV-DO Upgrade does not require new spectrum or new base stations; implemented by adding channel cards and software Investment Protection: Leverages existing core network equipment 1XEV-DV will provide data rates of up to 3.9Mbps and voice Lucent Technologies Proprietary Page 10

11 Technology Comparison Lucent 450 also has a substantial footprint advantage over GSM and UMTS due to greater propagation at lower frequency Lucent 450 GSM 900 (EFR FH) UMTS 2100 Cell Radius* (in km) With capacity as the limiting factor and not coverage # of base stations needed (scaled) Relative total cost/site (include estimated base station cost and site cost) * Based on field measurements in Sweden ( 450 and UMTS) and Hata model (900) for suburban morphologies Lucent Technologies Proprietary Page 11

12 Using RF Propagation to its best advantage Fact: The lower the frequency the greater the cell range. cdma450 coverage area GSM900 GSM1800 IMT-2000/2100 Lucent Technologies Proprietary Page 12

13 Technology Comparison 3G1x allows the operator to not only take advantage of high subscriber capacity but also high demonstrated speeds (153 Kbps) that will allow them to leapfrog the competition in the marketplace and is available NOW! CDMA450 GSM NMT Voice capacity (in 5 Mhz spectrum) in erlangs Voice capacity (in 5 Mhz spectrum) in number of subs Voice capacity improvement in 2 years (SMV & Tx Diversity) 2.5-3X X None Data capacity (in number of subs) (GPRS) None Data speed (maximum) 153 Kbps/307 in 1 year 56 Kbps (GPRS) None Lucent Technologies Proprietary Page 13

14 Spectral Efficiency 2.6 MHz Spectrum Per Carrier Rates Per Carrier Relative to GPRS Peak Data Rate per Carrier Average Data Rate per User 1.25 MHz Spectrum Per Carrier 3.4x 2.5x 2x 1x 1x 1.3x 1.3x 0.7x 114k 50k 384k 130k 153k 38k 153k 100k 2.4M 600k GPRS EDGE CDMA2000 1X Voice70% Data 30% CDMA2000 1X Data Only 21.1x 9.8x 1X-EV DO 17.5x 2M Fixed 144k Mobile 5 MHz Spectrum Per Carrier 187k UMTS 3.7x 3.75 MHz 2.5 MHz 1.25 MHz Lucent Technologies Proprietary Page 14

15 Frequency Migration Plan:CDMA can be overlayed over time onto an NMT network. 21 Analog Control Channels (262.5 khz) 21 Analog Control Channels (262.5 khz) 21 Analog Control Channels (262.5 khz) 3rd CDMA RF Carrier 28 Voice CH/Sector 4.5 MHz 338 Analog Voice Channels (4225 khz) 16.1 Voice Channels/Sector khz 360 Guard Bands 185 Analog Voice Channels ( khz) 8.8 Voice Channels/Sector 85 Analog Voice CH (1050 khz)--4 Voice CH/Sector 3050 khz 2nd CDMA RF Carrier 28 Voice CH/Sector 4300 khz 2nd CDMA RF Carrier 28 Voice CH/Sector 1800 khz 1st CDMA RF Carrier 28 Voice CH/Sector khz 1st CDMA RF Carrier 28 Voice CH/Sector khz Unused Unused 1st CDMA RF Carrier 28 Voice CH/Sector khz 1250 khz Lucent 179 Technologies Proprietary 279 Page 15 NMT Analog Only Dual-mode: One CDMA Carrier Dual-mode: Two CDMA Carriers All-digital: Three CDMA Carriers

16 CDMA450 is a platform for a number of services Services & Market Next - Generation PAMR Mobile Data Wireless Access in Rural areas Public Cellular Technology & Standards CDMA2000-family of technologies High Spectrum Efficiency Maximum site capacity use Ubiquitous coverage Efficient data transmission Economies of scale for production of network equipment and terminals Technical harmonisation of frequency use on an international level Lucent Technologies Proprietary Page 16

17 CDMA Market Applications Basic and Advanced High Quality Voice and Data applications. SMS, WAP, Multimedia Messaging Services, Voice Mail, Pre-Paid.. Last Mile, alternative to dial-up and ADSL/Cable Modem type services. Push to Talk providing PAMR & Nextel type services. Very lucrative and profitable services. Private Enterprise Applications Corporate, Small Medium Enterprises and Small office Home Office Private Logistics & Transport Voice & High Speed Data Private Network. Public Transport Sector Voice & High Speed Data Private Network Railways Voice & High Speed Data Private Network. Oil Fields and Mining sites Voice & High Speed Data Network. Airports High Speed Data Network. Large Factory Sites Voice & High Speed Data Private Network. Police, Fire and Ambulance Voice & High Speed Data Private Network. Lucent Technologies Proprietary Page 17

18 First to Market Advantages throughout the Value Chain Operator Enterprise Take share in a commoditized voice market by offering bundle of HSD and voice services Attract dissatisfied 2/2.5G data users Establish market share in the lucrative enterprise market Capture (and keep) the early-adopter enterprise users Early to market is critical Adopt a service that can bring immediate cost savings and productivity improvements with minimal disruption to existing IT infrastructure Use HSD as a key differentiator by bringing a higher level of customer service or through a more efficient cost structure Increase employee satisfaction by streamlining work processes and increasing worker flexibility Lucent Technologies Proprietary Page 18

19 Push To Talk (PTT)? Half Duplex point-to-point (private) and point-to-multipoint (group) calls across wireless service coverage area with a pre-identified party or group, at the push of a button Member A Wireless Network Member E Member B Member D Member C Lucent Technologies Proprietary Page 19

CDMA-PAMR Brief Overview CDMA-PAMR provides the following services in addition to voice and data: Push-to-talk voice (PTT) services Group Calls Dispatch Services Prioritization and Queuing Emergency

20 CDMA-PAMR Brief Overview CDMA-PAMR provides the following services in addition to voice and data: Push-to-talk voice (PTT) services Group Calls Dispatch Services Prioritization and Queuing Emergency Services Status and short data messages High Speed Packet Data (153.6 UL, DL) / IP services Simultaneous voice and data services Dynamic Group Management Location Services CDMA-PAMR in Europe will bring new and innovative professional services to the market, complementing other wireless solutions. Lucent Technologies Proprietary Page 20

21 CDMA-PAMR Brief Overview, cont. CDMA-PAMR is a PAMR (Public Access Mobile Radio) system that provides services to professionals using the spectrally efficient CDMA technology. CDMA-PAMR is an integrated system that uses VoIP technology running over a CDMA-1X radio access network to provide most of the PAMR services. In addition, CDMA-PAMR supports the circuit switched voice calls and interconnection to the PSTN networks. CDMA-PAMR functionality can be implemented using a combination of PAMR software application and servers connected to the CDMA radio network. CEPT & CEE decisions open the way for widespread deployment of CDMA-PAMR systems in Europe Lucent Technologies Proprietary Page 21

Lucent Brings a Lot to the Table For Our Customers We know networks The industry's most extensive services capability powered by systems expertise and software tools from Bell Labs Ability to

22 Lucent Brings a Lot to the Table For Our Customers We know networks The industry's most extensive services capability powered by systems expertise and software tools from Bell Labs Ability to leverage and evolve service providers' existing network investments A network vision of how to drive new revenues, while reducing complexity and cost Industry-leading offerings in optical, packet and circuit switching, and network operations software designed by Bell Labs Leadership in spread-spectrum wireless solutions with the most experience and expertise building 3G networks Lucent Technologies Proprietary Page 22

23 Frank Mulholland Director, CDMA Europe Sales & Business Development Lucent Technologies Office Mobile

Lucent Technologies CDMA450 Applications. Amer El-Nahi CDMA450 Workshop Hong Kong-November, 2004

Lucent Technologies CDMA450 Applications Amer El-Nahi CDMA450 Workshop Hong Kong-November, 2004 The Digital Divide In General many Asian & Developing countries the population is typically split 50/50 between