Wireless Wide Area Networks: Past, Present and Future

Presentation to CA Expo Hong Kong 2002Presentor: Leon Perera

Group MD, Spire Research and Consulting

– 9 Aug 2002 –

Presentation Structure

Spire provides Market Environment Research in ICT and other sectors across the Asia-PacificSpire’s remarks on W-WAN will be from the standpoint of market researchOur presentation will address the following, with a special focus on Asia and Hong Kong:

Definitions and brief history of W-WANTrends in penetration of W-WAN technologiesVertical and horizontal segments outlook

Case studies in W-WAN applicationsIssues in distributionIssues in regulationOutlook for the future role of W-WAN in Asia and what it means for business

WAN Defined…

A physical or logical network that provides capabilities for a number of independent devices to communicate with each

other over a common transmission-interconnected topology in geographic areas larger than those served by local area

networks. (techdictionary.com)

The Wireless Network - PAN

PAN (Bluetooth

30 ft max

Low level device recognition and communication

E.g Bluetooth

The Wireless Network - LAN

WLAN1000 ft max

Ethernet based infrastructure

E.g 802.11a and 802.11b

The Wireless Network - WAN

WWAN

1000s of miles

Many standards apply

Eg. GSM, CDMA

Wireless Wide Area Network

WIRELESS W

IDE A

REA N

EYWO

RK

Mobile WWAN Fixed WWAN

A wireless link that employs specified parts of radio spectrum to transmit and receive data, where ‘line-of-sight’ positioning of fixed equipments needed: RF IEEE 802.11a, 802.11b, GSM , GPRS and…

A wireless link that employs terminals or receiving units that are not fixed in position, such as a cellular phone. Two key mobile solutions are satellite system and mobile phone technology : GSM, CDMA ….

+VE Factors Affecting WWANS AdoptionAn Affordable Alternative Communication Link(F)

Widening Corporate Network and Clients’ Support (F&M)

Wireless Bridges Not Restrain By Terrains and Geographical Boundaries (F&M)

To Satisfy Intensive Bandwidth Applications (F)

Deployment Ease (F&M)

–VE Factors Affecting WWANS Adoption

Low Awareness of Wireless Technologies (F &M)

Government Regulations (F & M)

Performance Reliant on Service Provider (M)

Slow Transfer Rate (M)

Line of Sight Limitations (F&M)

WWAN Technology Trends

Point to Multipoint Point To Point

Direct Sequence Spread Spectrum (DSSS)

Frequency Hopping Spread Spectrum (FHSS)

CODING TECHNIQUES

WWAN Technology Trends

Point to Multipoint Point To Point

Direct Sequence Spread Spectrum (DSSS)

•Frequency Hopping Spread Spectrum (FHSS

CODING TECHNIQUES

INTEREFERENCE

Packet Switching: IP Networks

Circuit Switching: PSTN

Advanced Modulation solutions such as Orthogonal Frequency Division Multiplexing (OFDM)

Products with better spectral efficiency to cater for foreign markets

WWAN Technology Trends

Point to Multipoint Point To Point

Local Multipoint Distribution SystemsBroadband Wireless

that transmits bi-directional high speed signals at competitive

cost

In 2001, Chowking Food Corporation installed wireless connection between its head office in Pasig City and its plant in Muntinlupa. Wireless connection for mainly email, Internet access in the 802.11b 5.7 GHz band at a speed of 1.2 Mps.

WWAN Technology Trends

Competing Information Transmitting Technologies

• Direct Cable Connections

• Telephone and Leased Lines

• Broadband Satellite Stations

Less Costly 3G Licenses

In Asia Pacific, countries issuing 3G licenses

High Broadband Connectivity

High PC Penetration

WWAN Technology Trends

Point to Multipoint Point To Point

Competing TechnologiesDirect Cable Connections

Telephone and Leased LinesBroadband Satellite Stations

Hong Kong:

•In June 2001, 60.6 % of Households have PCs at home

•In June 2001, 1,009,800 or 48.7% of all households connected to Internet

•65.9% connected with narrowband and 39.4% to Broadband

•High Urban Density

Hong Kong Broadband Connections*

Source: OFTA* For Households, Schools and Offices

Asian Countries’ Total 3G License Costs

523,981Hong Kong CSL Limited, Hutchison 3G HK Limited, SmarTone 3G Limited and SUNDAY 3G (Hong Kong) Limited

4Hong Kong

NAJapan Telecom, KDDI Corp andNTT DoCoMo

3Japan

1,398,000,000Asia Pacific Broadband Wireless Comm., Chunghwa Telecom, Far EasTone, Taiwan Cellular and Taiwan PCS

5Taiwan

165,840,000MobileOne (Asia) Pte Ltd, Singapore Telecom Mobile Pte Ltd and StarHub Mobile Pte Ltd

3Singapore

35,390,000,000BT Cellnet, Hutchison 3G Limited, One2One Personal Communications, Orange 3G Limited and Vodafone

5UK

Total Cost of licenses (US$)

Companies’ namesNo. of 3G Licenses issued

Country

Source: 3G Newsroom

WWAN Asia Pacific Growth Drivers

Wireless WANSGSM

CDMAGRPS

Less Costly 3G Licenses

In Asia Pacific, countries has been issuing 3G licenses

High Broadband Connectivity

High PC Penetration

3G

WWAN Current Technology Limiting Factors

Mobile WWANSGSM

CDMAGRPS

Packet Loss and quality distortion

Slow transfer speed2G: 10Kbps2.5G: 64-144 Kbps

3G’s Capability3G System Capabilities

Capability to support circuit and packet data at high bit rates:- 144 kilobits/second or higher in high mobility (vehicular) traffic - 384 kilobits/second for pedestrian traffic - 2 Megabits/second or higher for indoor traffic

Interoperability and roaming

Common billing/user profiles:- Sharing of usage/rate information between service providers- Standardized call detail recording- Standardized user profiles

Capability to determine geographic position of mobiles and report it to both the network and the mobile terminal

Support of multimedia services/capabilities:- Fixed and variable rate bit traffic Bandwidth on demand- Asymmetric data rates in the forward and reverse links- Multimedia mail store and forward- Broadband access up to 2 Megabits/second Source: 3G Newsroom

3G WWANs Industry Overview

3G

Less Costly 3G Licenses

In Asia Pacific, countries issuing 3G licenses

High Broadband Connectivity

High PC Penetration

Packet Loss and quality distortion

Slow transfer speed2G: 10Kbs2.5G: 64-144 KbsX X

3G WWAN Industry Key Challenges

3G$$$$ Infrastructure Costs

3G Handsets availability

Alternative standards 2.5G

Wireless WAN Application

Vertical ApplicationsTransportationUtilitiesRetail Trade/Point of Sale (POS)Wholesale TradeFinancial/Insurance/Real EstateHealth CareCommunicationsProfessional BusinessDurable Manufacturing

Horizontal ApplicationsE-mail, Database QueryField Service and Sales AutomationInformation-Based SystemsLocation-Based SystemsMessaging TransactionsVehicle Location and PositioningAccessing Web Portals

Horizontal Application Issues

Bandwidth

Support Multiple Device

Transaction Recovery

Security

Support for Modern Payment

United Parcel Service-UPS

Allow same-day package-tracking information for air and ground packagesUtilize cellular technology Broad alliance with more than 70 cellular carriersTransmit package delivery information from company’s 50,000 vehicles to UPS mainframe repository in Mahway, NJHong Kong was the first country in Asia Pacific to implement this technology

United Parcel Service-UPS (cont)

UPS Delivery Information Acquisition Device (DIAD)

Hand-held electronic data collectorCapture customer signature and package information

Custom built for UPS by Motorola, Southwestern Bell, GTE and Pac TellComes in native languages (including Chinese, simplified Chinese, Japanese, and English) Source: UPS

UPS (cont)

UPScan has started investigating Bluetooth and wireless LAN technologies within warehouse and customer drop off centers

Implementation cost over US$100 million over the next five years

Expects quick payback in 16 months

Source: UPS

Wireless WAN for Indian Farmers

“Simple Inexpensive Mobile Computer”

Linux Operating System

Feature picture-based touch sensitive screen

Allows Indian farmer to access crop prices etc

Wireless WAN in the Wine Industry

Southern Wines and Spirits of CaliforniaUtilize Advanced BusinessLink’s Pocket StrategiTAllows sales reps to :

Browse clients and products data in the serverAutomatically send orders and updates data

Total cost : S$3,000 per sales repIncrease sales callsIncrease customers’ satisfaction

Distribution Channels For WWANs

Manufacturers/Vendors

Valued Added Resellers

System Integrators

END USERS such as ISPs, schools, Corporate and others

Better Client Management and highest profit margins: better future sales from continuing relationships and real-time knowledge on the products performance.

•Lower Profit Margins•Market with other Company’s items as a total solution

Regulations and Standards WWANS•Spectrum Allocation

•Granted to service provider or to a government body

•Auctioned off the spectrum licenses: Singapore and Taiwan

•Granting of licenses with conditions applied.

•In Hong Kong, the telecom regulator awarded its four 3G licenses without an auction . However conditions applied include:

Winners will pay 50 million Hong Kong dollars ($6.5 million) per year for the first 5 years. Furthermore 5 percent of their 3G revenues each year thereafter for the 15-year license period. Among other requirements is a license condition that will force 3G operators to reserve at least 30 percent of their network capacity for "mobile virtual network operators.

Regulation and Standards WWANS

Government Controls to limit the availability of spectrum

Inhibit the growth of telecommunication networks

Manufacturers find it difficult to develop equipment supporting various spectra

Time Consuming approval process may impede speed of growth