CDMA2000 &Next Generation Services
3G CDMA Latin America Conference-May 2007Gabriel HerbelWireless Business Group Director for Latin America
2 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Outline
Mobile Internet Market Drivers & Trends
Capabilities in xEV-DO Rev. A & Beyond
New source of revenue - Applications
Take Aways
3 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
40M new subs in last
6 months
12M student
subscribers
> 57% of online teens
(12M ) in US create
content
Consumer Trends: Content Creation & Sharing
Wireless Content Sharing(Download)
Wireline Content Creation (Upload)
: :
MultimediaMultimedia
slingplayer mobile
Video broadcast /video conferencing
Info search/delivery
Info search/delivery
Video broadcast
Blogs, photos, videos sharing -70 M subs !!
Subscriber Video Creationand Sharing
Affinity group content sharing
Interactive Gaming
Subscriber Video Creationand Sharing
Subscriber Audio Creation
and Sharing
facebookPublish Text and Photos
Yahoo Moblogging
Yahoo! 360° Upload Photos New!
Source: Pew Internet Studies, November 2005
Current Upload Speed is a Barrier to UnleashingMost Popular Broadband Internet Applications
4 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Immediacy
What is Driving the Consumer Trends ?
Mobile Broadband will unleash the Wireline Broadband experience
Ease of Use
Community
PersonalizationAbility for risk free expression and experience
sharing
control who and what you show
Social aspect driving addictive behavior
keeping groups connected
Proliferation of user friendly web publishing tools
fueling content creation trend
drag and drop content upload tools
Widespread broadband access enables fast access
to wide variety of content
Wireline Experience
personalized content easily shared with friends
and family
Improved device interface and clients remove
complexity barrier
Uplink/downlink and latency Improvements
remove slow response barrier
Mobile OpportunityMigrating to mobiles
Demand for mobile access to social networking
sites is growing
5 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Enterprise Showing Strong Interest in Mobility
2006 Projected Growth in Enterprise Spending on:
7%
8%24%
0% 10% 20% 30%
Mobile Voice Wireline Data Mobile Data
% of Enterprises that have or are developing a "Mobile Strategy"
58%14%
28%
Have Developing Don't Have
Source: 4Q 05 Nemertes Convergence Trends Survey 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
6 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Cost / Coverage
Applications
Uplink Speed
Security
What is Driving the Enterprise Trends ?
Downlink problem solved. Need
improved uplink and latency for chatty
applications
Enable IT Managers to standardize
support for mobile devices
Leverage apps on Intranets;
Simultaneous voice &
data to get things done faster
Widespread coverage is essential !!
Opportunity
Enterprises Driven by Productivity Metrics faster, cheaper, better
Portable Device Management
Quality of Experience
Integrated Workforce & Real Time
Response
Ubiquitous BB Coverage
Drivers
7 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2002 2003 2004 2005 2006 2007 2008 2009 2010
1G/ 2 G ( An alog/ GSM / GPRS/ EDGE)
3 G ( CDM A2 0 0 0 1X/ 1xEV- DO/ UM T S)
The Mobile Internet is About to go on Overdrive
* Source: Strategy Analytics, Worldwide Cellular User Forecasts, 2005-2010, January 2006
Sub
scrib
ers
(Mill
ions
)
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
The global GSM subscriber base will reach its peak
in 2008
By 2010 more than 1B users…
……will have network access @ 300Kbps - 500Kbps
…will have mobile Internet ready handsets (running Java or BREW applications
…and generate billions in mobile content, advertising and commerce revenue
8 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Spread Spectrum Deployments Worldwide (2005-06)
CDM A T otal( I n cl. cdmaOn e)
CDM A2000
UM T S
1xEV-DO0
50
100
150
200
250
300
350
400
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 10/06 11/06 12/06
52.2**
98.1**
Sub
scrib
ers
(Mill
ions
)
Sources www.cdg.org, www.3gtoday.com
30.8M UMTS Subs (33% of worldwide Total) are DoCoMoJapan
* CDMA Numbers last updated 09/06
**UMTS & DO Numbers last updated 12/06
• 3G Grew Ave ~7.8% Qtr over Qtr in QE 06/06• CDMA2000 = 10.3%; UMTS 5.2%
• CDMA2000 is 79% of total CDMA base • CDMA2000 is 82% of the 3G market • CDMA2000 is 11% of total wireless users worldwide• 500 million CDMA2000 users by 2010 302*
353*
9 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
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
Typical User Experience 40 - 60 kbps
Bursts up to 100kbps
Soft hand Off for optimized voice and data performance
CDMA2000 1X Voice & Data - Key Customer Drivers
High capacity voice and medium speed Packet Data
Services
High capacity voice and medium speed Packet Data
Services
Packet Data introduces advanced all-IP
architectures to improve performance and
deployment flexibility
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
Enables service flexibility and basic web access
features. 1X provides extended coverage for 1xEV-DO
10 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
1xEV-DO Rev 0 Data Overlay Key Customer Drivers - Deployed Since 2002
Operates in increments of 1.25MHz1xEV-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 LinkTime Division Multiplexing optimizes performance in good channel conditions
Airlink drives FL Peak data rates to 2.4Mbps
Typical User Experience 400 - 600 kbps
Bursts up to 1Mbps
Reverse Link at 1X SpeedsUp to 153.6 kbps Peak data rate
Typical User Experience 40 - 60 kbps
Bursts up to 100kbps
Soft hand Off
Improved support for real-time High Speed packet applications,
including Internet access, Email, etc.
Improved support for real-time High Speed packet applications,
including Internet access, Email, etc.
Advanced all-IP architectures improves
performance and deployment flexibility
Advanced all-IP architectures improves
performance and deployment flexibility
Enhanced service flexibility and new revenue generating
services
Unparalleled coverage with 1x filling coverage
holes
Enhanced service flexibility and new revenue generating
services
Unparalleled coverage with 1x filling coverage
holes
11 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
DO Rev A Performance Improvement Key Customer Drivers (Deployed 2006)
Improved Forward LinkLarger payloads drive data rates to 3.1Mbps
User Experience 440 - 700 kbps
Bursts up to 2Mbps
Improved MAC & Packet Division Multiplexing improves performance in good channel conditions
Improved Reverse LinkUp to 1.8 Mbps data rate
User Experience 100 - 500 kbps
Bursts up to 1.2Mbps
Throughput and latency gains with hybrid ARQ
Improved MAC Layers on RL
QoSRequirements 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
Enhanced capabilities further service flexibility
and IMS revenue generating features
Unparalleled coverage with 1xEv-DO Rev 0 & 1x
filling coverage holes
Extends all-IP architectures to further
improve performance and deployment flexibility
Extends all-IP architectures to further
improve performance and deployment flexibility
Improved speeds and latencies now support
real-time packet applications, such as
VoIP, Gaming, Push-to-Speak
Improved speeds and latencies now support
real-time packet applications, such as
VoIP, Gaming, Push-to-Speak
12 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
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.”
13 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
VoIP
CDMA Evolution
2010200920082007200620052004200320022001
Sources: AT&T Wireless, SKT, Cingular, Samsung, Nokia, NTT DoCoMo, Qualcomm, CDG
DL = Down Link (Forward Link)HSDPA = High Speed Downlink Packet AdapterHSUPA = High Speed Uplink Packet AdapterLTE = Long Term EvolutionUL = Up Link (Reverse Link)
OFDM*
OFDMA/MIMO/SDMA
CDMA/TDM
CDMA
TDM1 EV-DO Rev A & B incorporate OFDM for Multicasting2 Max Data rates based on 2 x 20 MHz allocation3 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 Mobility5 Release 7 and Release 8 introduce enhancements such as MIMO and VoIP6 Utilizes OFDMA on the DL and SC-FDMA on the UL; MIMO
26E Voice40 - 60k Typ FL/RLBursts ~100k FL/RL
DL: 153 kbpsUL:153 kbps
CDMA20001X
400 - 600k Typ FLBursts of ~1M FL
40 - 60k Typ FL/RLBursts of ~100k RL
150 mS Latency
DL: 2.4 MbpsUL: 153 kbps
500 - 750k Typ FLBursts of ~2M FL
100 - 500k Typ FL/RLBursts of ~1M RL
60 - 118 mS LatencyQoS
35E VoIP
4.9M Peak FL14.7 Mbps Peak
FL 5MHz (3 carriers)
1.8 M Peak RL5.4 Mbps RL
Peak 5MHz (3 carriers)
18 Mbps in 5 MHz (2-4x with
MIMO)2x Rev B
capacity with SDMA (LU
Simul)10mS LatencyImprvd VoIPUp to 200M
Peak FL, 45M Peak RL in
20Mhz
DL: 70 - 200 MbpsUL: 30 - 45 Mbps
1.25 - 20MHz
EV-DO Rev C3, 4
DL: 3.1 MbpsUL: 1.8 Mbps
EV-DO Rev A1
DL: 3.1 - 73 MbpsUL: 1.8 - 27 Mbps
1.25 - 20MHz
EV-DO Rev B1,2
CDMA2000 1xEV-DO
14 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
CDMA450 Modular Cell 4.0 - Compact Roadmap
1999 2000 200920082007200620052004200320022001
Key Features
Sept.2006
May2006
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
450 MHz Modcell 4.0 Compact• Outdoor (available Jan 2007)
Apl.2007
450 MHz Modcell 4.0 Compact450/2100MHz Dual Band in 2
Cabinets Ethernet Backhaul
15 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
1xEV-DO Rev A Commercial Devices Available Today
au Design ProjectPENCK1.3 MP/Camcorder
Samsung SCH-i830 WorldModeCDMA2000 EV-DO / GSM /GPRSWindows Mobile 2003
*Source: www.3Gtoday.com
Sanyo W32SAWith Disney UIFM Receiver/Transmitter
LG SV3603D Gaming Graphics,
Motion Sensitive
Samsung A9903.2 MP Camera,
Music DownloadsT.V. Out
LG Chocolate (VX8500)Music Downloads, Streaming
Video, 3DGames
Franklin Wireless CDU 550USB Modem
Samsung SCH-V7707 Megapixel Camera
ZTE My 39SMS Enabled
Samsung V74014mm thin, 1.3MP
Camera
Over 184 1xEV-DO Devices From 18 Vendors
Lenovo ThinkPad Z-Series DELL
Latitude SeriesHP
Compaq nc6140
ITRONIXGOBOOK Rugged Series
ITRONIXDuoTouch Tablet
ToshibaProtégé M400 Tablet
PanasonicToughbook CF-74
DELL XPS M1210
PantechPX-500 Sierra Wireless
AirCard 595Novatel
WirelessMerlin S720
Sierra WirelessAirCard 597E
Sierra WirelessAirCard 595U
Novatel WirelessOvation MCD3000
ToshibaW47T
ToshibaDRAPE Novatel
WirelessExpedite E720
Sierra WirelessMC5725(V)
PCI Express Mini Card
16 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Service Segments Today Tomorrow Future
ConsumerEntertainment
Communication
EnterpriseProductivity
Blended Lifestyle Services
Market Evolution:
Anytime, Anywhere, Any Device Communications …
17 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Yesterday’s Networks Simply Won’t Support Next Gen Services
Links end-user value to network assets…
Drives complexity out of
the network…
Reduces operating costs…
PSTN & Best Effort Data
Network Transformation
…and converges on an Intelligent and Service-Aware IP-powered
Networkthat enables
Personalized and Blended Services
IMS
18 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
Active Phonebook - An Example of "Blended Services" with IMS and UMB
Presence Enabled Contact List
Push to X Capability across Fixed and Mobile
Single address book linked to multiple applications
Centralized data held by the network, not a single device
Contacts enhanced with availability & location information
Ability to personalize how people can contact you
• 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
An Example of a Blended Lifestyle Service
Source: Lucent Primary Qualitative & Quantitative Market Research
19 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
CDMA & WiFi for Ubiquitous Secure, Coverage
Mobile IP Client
HSDeIPSecClient
CDMA2000 CDMA2000 1X1X
1xEV1xEV--DODOPublicPublic802.11802.11
EnterpriseEnterprise802.11802.11
802.11802.11Hot SpotHot Spot
802.11802.11Hot SpotHot Spot
20 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
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
Studies in the Financial, Communications & Insurance Sectors Show Productivity Improvements of 30 to 50%
Positive ROI for the Enterprise in a Year, or Less
21 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
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
22 | 3G CDMA LATIN AMERICA | May 2007 All Rights Reserved © Alcatel-Lucent 2007
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