Why invest in the HSPA evolution?
Where is HSPA today
Contents
Where is HSPA today
What Next – the LTE Story
Continued investment still needed today
Brief History of the GSMA
� Founded in 1987 by 15 operators committed to the joint development of a cross border digital system for mobile communications.
� Became the global trade group for the mobile industry, representing the vast majority of mobile phone networks across the world
– Now encompassing commercial, public policy and technical initiatives, ensuring mobile services work globally
� The Association’s members now serve more than 3.5 billion customers
– More than 750 operator Members across 218 countries
– Over 200 Associate Members (manufacturers and suppliers)
Why invest in the HSPA evolution?Why invest in the HSPA evolution?
The GSM Family - Delivering on PromisesGSM technology holds nearly two decades of proven development, proving a reliable future
for investment decisions
HSPA+42 Mbps
HSPA
HSPA in 2005
3G in 2001
EDGE in 2003
HSPA+ in 2008 LTE172 Mbps
HSPA14.4 Mbps
GSM9.6 kbps
GPRS in 2000GSM First call made in 1991
3G in 2001
Source: Wireless Intelligence, January, 2009
HSPA+ peak theoretical data rate reaches up to 42 Mbps when using single carrier with QAM 64 and 2x2MIMO
EDGE473 kbpsWCDMA
384 kbps
GPRS
114 kbps
3G
HSPA: 80 million subs
WCDMA: 290 million subscribers
2G GSM: 3.3 billion subscribers
HSPA Around the World - Today
HSPA Subscriptions Continue to Grow
HSPA Today� Networks
– HSDPA
• 244 in service with a further 60 in deployment or planned rollout
• 151 of the in-service networks offer 3.6Mb/s and above (with 11 operators offering 14.4Mbps)
HSUPA– HSUPA
• 53 in service with a further 24 in deployment or planned rollout
• Over 300 devices also support HSUPA as well as HSDPA
� Devices• Handsets - 409
• Embedded Notebooks - 353
• USB modems - 141
• Data cards – 98
• Wireless routers - 126
Networks Need to Meet Data DemandEnormous growth in consumer demand for data, places significant pressure on data networks to upgrade to
deliver a quality data experience
9
7
Relative Network Load
WCDMA & HSPA world average
Source: Ericsson
5
3
1
Jan07
Mar07
May07
Jul07
Sep07
Nov07
Jan08
Mar08
May08
Voice
Packet data
LTE
HSPA+HSPA
Other technologies
What Are The Criteria To Upgrade?
� What’s the ROI on my investment?
� What spectrum do I have?
� What spectrum do I need?
TimeOther technologies
Key factors in determining when to move:
� What’s my business case
� What’s my technology evolution path?
� What’s my market demand?
No single answer, but all roads compatible with LTE
Increasing Data Speeds with HSPA+As an upgrade to HSPA, HSPA+ more than doubles the speed
15 codes
Downlink
3.6 Mbps
14 Mbps
Multi Carrier
Uplink
20-40 Mbps
12 Mbps
2x2 MIMO64QAM
Multi Carrier
Combinations of Multi Carrier,64QAM + MIMO
64QAM + 2x2 MIMO
14 Mbps
21 Mbps 28Mbps
42 Mbps
80-160 Mbps
2 ms TTI
16QAM
HSPAon the uplink
12 Mbps
5.8 Mbps
1.4 Mbps
0.4 Mbps
Source: Ericsson
HSPA+: The Natural Evolution at Lower CostProviding an incremental and cost-effective Upgrade
SW upgrade to RNC
Many features requireonly SW upgrade to NodeB
Backward compatibleHSPA+ devices
An evolution path that leverages existing investmentsLeverages existing cell sites, RAN, core network and spectrum
Backward compatibility enables smooth introductionWCDMA, HSPA and HSPA+ devices operate on the same network
Mobile Broadband Technology Evolution
3GPP Release
HSPA(HSDPA)
HSPA(HSUPA)
Rel. 5 Rel. 6
HSPA+ HSPA+ Future
Rel. 7 Rel. 8
Performanceenhancement
Technical enhancement
Add 64 QAM Add 2x2 MIMO Add Multicarrier
14.4 Mbps DL 5.76 Mbps UL 21 Mbps DL42 Mbps DL11.52 Mbps UL
80-160 Mbps DL20-40 Mbps UL
High-speed downloads
High-speed uploads
Faster speedGreater capacity
Faster speedGreater capacity
Enhancing Mobile Broadband
More than doubles Speed - 42 Mbps Peak Data Rates
Doubles Data and More Than Doubles Voice CapacityProviding next generation performance today, through greater spectral efficiency
H
Enhances User ExperienceLower latency, higher data rates and better ‘always-on’ experience, enabling richer applications
Reduced power consumption>50% longer talk times
The Natural Evolution at Lower Cost Incremental and cost-effective upgrade that leverages existing assets
Backwards and forwards compatibilityLower cost per kilobyte
HSPA +
HSPA+ peak theoretical data rate reaches up to 42 Mbps when using single carrier with QAM 64 and 2x2MIMO
HSPA+ Global Momentum - Technology Endorsed by Operators
LTE Commitments
� Verizon
� AT&T
� Bell Canada
� Rogers Wireless
Telus
� Smartone Vodafone
� China Mobile
� Hutchison (Ireland)
� Telstra
NZ Telecom� Telus
� Vodafone Group
� NTT DoCoMo
� KDDI
� China Telecom
� KTF
� SKTelecom
� NZ Telecom
� Telia Sonera (Sweden & Norway)
� T-Mobile (Germany)
� Telecom Italia
� Orange France
� mobilkom austria
Sources: GSMA & GSA
What’s Needed Next
The Future for Mobile Broadband
� Frequency bands
– HSPA / LTE
• Extension bands (2.5-2.6Hz)
• 700MHz / 850MHz / 900MHz – refarming / digital dividend
1700MHz• 1700MHz
� Embedded Mobile
� Backhaul
<700MHz
708MHz
Effect of frequency on range (SCF study)
6
810
Cell Radius (km)
708MHz
850MHz
2,100MHz2
4
6
5,800MHz
Source: BBC R&D
The propagation characteristics of spectrum
Comparing device availability today
40%35%
16%9%
handsets
USB modems
data cards
notebooks
850MHz 900MHz
1700MHz 1800MHz
1900MHz 2100MHz
850MHz band – the demand continues
� 3G 850 Ecosystem Development
– 850 User group established with Telstra, AT&T, GSMA & interested operators Feb 2006
– 850 Supported in Embedded Wireless Broadband Competition Feb 2008
– GSMA Horizon Series award for 850/1900/2100 MHz 3G devices Feb 2008.– GSMA Horizon Series award for 850/1900/2100 MHz 3G devices Feb 2008.
� 850MHz 3G Today has 22 networks in operation + 6 planned
– Existing operators include AT&T, Rogers, Telstra, Vivo, Telecel
– Recent new announcements by Telus, Bell Canada, Telecom NZ, Telefonica LA
� HSPA at 850 MHz a natural evolution for
– GSM, CDMA, AMPS & Other technologies at 850 MHz
– Total market potential* of over 600M in services across 290 networks
* source data – Cellular Info Services
AWS – Advanced Wireless Service
� Prices paid for AWS spectrum reveal high market demand, with Canada being the most recent example
� AWS band is sufficiently similar to other frequency bands and HSPA gear is ready today.
� Production cost curves are comfortable and improving
� Small addressable market is poised for rapid growth
� Meaningful growth in AWS subscribers and handset volumes are projected for the Americas
Growing AWS Market
Forecast AWS Subscribers and Devices for the Americas
140.0
160.0
180.0
200.0
Esti
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AW
S S
ub
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in
Mil
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100.0
120.0
140.0
Es
tim
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illio
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EOP Subs
Implied AWS Device Unit Sales/Year
Still need
-
20.0
40.0
60.0
80.0
100.0
120.0
2008 2009E 2010E 2011E 2012E 2013E
Esti
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AW
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in
Mil
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-
20.0
40.0
60.0
80.0
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Still need multi-frequency devices
Embedded Mobile
� Starting with 2G and increasing penetration to all new industry segments such as:
– Consumer Electronics
Clean technology/environment
Consumer
electronicsUtilities
M2M
GSMA market expansion goals
– Clean technology/environment
– Healthcare
– Transport
– Utilities
Clean
technology
Health
Transport
“Devices Everywhere”
NOTE: Segment proportions are illustrative and do not
indicate a measure of relative market opportunity
Growing the Demand
Growing the Demand – introducing the Service Mark
� Significant un-tapped market for Mobile Broadband devices
– 79.5 million unit opportunity in 2008 – a US$50 billion untapped market
(GSMA / Microsoft / Pyramid Research)
� Consumers are confused about what and how to buy � Consumers are confused about what and how to buy
� Led by the GSMA, the industry united to create a simply identifying mark that helps to
– Reduce confusion
– Provide reassurance
– Drive demand for Mobile Broadband enabled devices by simplifying
the buying decision
Initiative backed by leading industry players
Creation of a new category of always-connected Mobile Broadband devices
The operator participants serve more than 795 million connections (Wireless Intelligence)
Thank YouThank You
www.gsmworld.com/HSPA
Supporting SlidesSupporting Slides
Connecting the World to the InternetDelivering broadband access to urban and rural, developed and developing countries
Urban
Rural
Residential
Business
Students
Government
Entertainment, user
generated content
Communities,
Social interaction
Personal
freedom
Personal
efficiency
Rural
Bottom of the pyramid
Farmers
Villages
Industrial
Construction
generated content
Broadband
Penetration
Industrial growth
(GDP and jobs)
Efficient
organization
Business
opportunities
Sustainable
society
A word on WiMAX…
� Financial Times, 2nd April 2009
‘Nokia has dismissed the prospects of the WiMax wireless mobile
standard, claiming it is doomed to meet the same fate as Betamax…’
� NGMN Alliance has not yet ratified WiMAX as a ‘Next Generation’ mobile technologymobile technology
– LTE ratified in June 2008; prompted Sprint to leave NGMN
� The LTE vs WiMAX debate will rumble on, but major operators and vendors are now backing LTE in increasing numbers
� Wireless Week April 2nd 2009 - From CTIA 2009: “WiMAX Vendors Accept Niche Role”
Future Mobile Broadband Deployment Scenarios
Source: Qualcomm, April, 2009