CDMA2000 Expanding the M2M Market

Transcription

1 Norman Lindsey Senior Principal Expert Huawei Technologies (USA) March CDMA2000 Expanding the M2M Market HUAWEI TECHNOLOGIES CO., LTD.

2 Key Attributes for a Successful M2M Platform Key Attribute Ubiquitous Coverage Network Longevity Low Total Cost of Ownership Network Reliability Enhanced Security Network Capacity & Speed Energy Efficiency Low Latency IP-based Packet Data Accurate Position Location Global Roaming Private Network Option CDMA2000 Focus on Coverage, Longevity, Cost and Margin Source: Harbor Research, Inc., September 2010 Page 2

3 CDMA2000 Coverage: Key for M2M Services Globalization & Mobility of Things drive need for wide coverage 4x The solution is CDMA2000 Most M2M apps require ubiquitous coverage: Retail Telematics Health Care Transportation Fleet Management Consumer Electronics Remote Asset Tracking, etc. CDMA2000 Data Coverage Map CDMA2000 Provides Ubiquitous Coverage for Customers Source: Aeris Communications, March 2011 Page 3

4 1X Advanced: 4x capacity increase or 70% more coverage 1X Advanced 4x higher voice capacity frees up spectrum for M2M 1X Today x 4x 70% greater coverage enables better in-building M2M services 70% coverage increase 1X Advanced Further Improves Coverage and Capacity Note: Based on Qualcomm simulations, coverage is defined as the maximum area with less than 1% of the users in outage; Page 4 Assumption: 3GPP2 simulation frame work, embedded sector, with all 1X Advanced features including MRD, FL and RL interference cancellation, new RC

5 Longevity of Revenue Streams CDMA2000 networks and services will be around for many years Subscribers (Billions) 4x 3G 4G 1G 2G CDMA2000 Provides M2M Investment Protection Source: Wireless Intelligence (WCIS+) and CDG, July 2010 Page 5

6 M2M Module Price Comparison CDMA2000 modules are becoming more price competitive CDMA2000 provides a balance between cost and capability Source: Harbor Research, Inc., September 2010 Page 6

7 Valuable Revenue Source for Operators More Lucrative Business Models More connections More Revenue Price/ MB 3X+ Higher price per M2M bit More AMPU Lower marketing costs and churn Higher Margins Low bandwidth price models More Profitability X Mobile Phone data service M2M service Service M2M Data service Tariff Plan Monthly fee ($ per month) Free Package Price ($/MB) Plan S KB 12.9 Plan M MB 9.8 Basic Plan 17 ~ ~ 17.4 MB 3.4 (Tariff plan in Japan) High Margin data plans ensure CDMA2000 Success in M2M Note: AMPU Average Margin Per User Page 7

8 Key Metrics of M2M Success It s About Coverage Tier 1 players indicating that ubiquitous coverage is critical Many applications require national roaming capability It s About Longevity M2M apps have lower device churn resulting in lower marketing and upgrade costs Technologies with longevity are favored to minimize marketing and upgrade installation costs It s About Cost Device cost is critical component to successful business case Devices must provide balanced tradeoff between cost and functionality It s About Optimizing Margin Similar to SMS business model, low bandwidth apps can provide high margin Time management of data transfer minimizes network impact improving margins Focus On Coverage, Longevity, Cost, and Margin

9 Thank you