CDMA and LTECDMA and LTETechnical & Commercial Implications ofTechnical & Commercial Implications of

InteroperabilityInteroperability

Dallas, TXNovember 2009

James PersonJames PersonCOOCOO

CDMA Development GroupCDMA Development Group

2www.cdg.org

To lead the rapid evolution and deployment of 3G and 4G systems, based on open standards and

encompassing all core architectures, to meet the needs of markets around the world

Information Distribution Technical Service Development Deployment Assistance

CDG CharterCDG Charter

OperatorsSubscriberEquipment

Network Infrastructure

Network Enhancement/ Optimization

Network Interface & Access

Formed in 1993, a consortium of operator and vendor companies frFormed in 1993, a consortium of operator and vendor companies from om around the world, involved in all aspects of CDMA and next generaround the world, involved in all aspects of CDMA and next generation ation

wireless including advocacy, marketing, regulatory support, deviwireless including advocacy, marketing, regulatory support, device ce availability and roaming availability and roaming

Value-AddedServices

2www.cdg.org

More than 315 315 operators in more than 109109 countries/territories have deployed or are planning to deploy CDMA2000

CDMA: 502 Million Global SubscribersCDMA: 502 Million Global Subscribers

CDMA2000 will continue to be an LTE interoperability option for CDMA2000 will continue to be an LTE interoperability option for hundreds of operators well into the next decadehundreds of operators well into the next decade

2www.cdg.org

New CDMA2000 Operators per YearNew CDMA2000 Operators per Year(Cumulative)(Cumulative)

Most CDMA2000 operators have not yet Most CDMA2000 operators have not yet planned for their 4G networksplanned for their 4G networks

Number of CDMA2000 operators increased by nearly 30% in the pastNumber of CDMA2000 operators increased by nearly 30% in the past 3 years3 yearsCDMA Global Operator GrowthCDMA Global Operator Growth

2www.cdg.org

(Millions)

Sources: Average of ABI (Q4’08), Yankee (Q4’08), Gartner (Dec’08), IDC (Dec’08), IMS (Dec’08), iSuppli (Oct’08)

Ann

ual D

evic

e S

hipm

ents

Global CDMA2000 Device Shipments Global CDMA2000 Device Shipments CDMA2000 device shipments are shifting to CDMA2000 device shipments are shifting to ““broadbandbroadband””

Annual CDMA2000 Device ShipmentsAnnual CDMA2000 Device ShipmentsAs of December 2008As of December 2008

More than 2,300 CDMA200 devices have been More than 2,300 CDMA200 devices have been commercialized by 120 supplierscommercialized by 120 suppliers

2www.cdg.org

Global CDMA2000 Subscriber ForecastGlobal CDMA2000 Subscriber Forecast

*Source: Actual CDMA Development Group**Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008),

iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008

CDMA2000 migration from 2G (cdmaOne) completeCDMA2000 migration from 2G (cdmaOne) complete

CDMA2000 Subscribers WorldwideCDMA2000 Subscribers Worldwide(Cumulative)(Cumulative)

Subscribers(Millions)

cdmaOnecdmaOne

1X1X

EVEV--DODO

CDMA2000 RoadmapCDMA2000 Roadmap

2www.cdg.org

• Meet the growing demand for voice and data

• Offer an unsurpassed user experience

• Reduce the cost of delivering services

• Maximize the return on existing investments while preparing for the future

What do operators want?

2www.cdg.org

CDMA2000 RoadmapCDMA2000 Roadmap

DL: 2.4 MbpsUL: 153 kbps

(1.25 MHz, FDD)

DL: 3.1 MbpsUL: 1.8 Mbps

(1.25 MHz, FDD)

4X increasein voice capacity2

DL & UL: 307 kbps

CDMA2000 RoadmapCDMA2000 RoadmapCDMA2000 offers a strong longCDMA2000 offers a strong long--term path forwardterm path forward

DL: 14.7 Mbps4

UL: 5.4 Mbps(5 MHz, FDD)

DL: 32 Mbps5

UL: 12.4 Mbps(4x1.25 MHz, FDD)

DL: 9.3 Mbps3

UL: 5.4 Mbps(5 MHz, FDD)

DO Advanced

1X Advanced

H/WUpgradeRev B

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

New Channel Card

1 Capacity increase is primarily due to new EVRC-B codec, handset interference cancellation (QLIC) and Quasi-Orthogonal Functions (QOF)2 Capacity increase is primarily due to UL and DL interference cancellation, mobile receive diversity and several radio link enhancements.3 Peak rate for 3 EV-DO carriers with software upgrade. Doubles network capacity or triples peak data speeds. 4 Peak rate for 3 EV-DO carriers with hardware upgrade supporting 64 QAM in the DL. Standard supports up to 15 aggregated 1.25 MHz carriers5 DO Advanced includes smart network techniques, new device enhancements, 2x2 MIMO support, 64 QAM in the DL and 16 QAM in the UL6 Operators have the option to only implement software upgrades

1xEV-DO Rev. A

1xEV-DORel. 0

1.5X increasein voice capacity1

DL & UL: 153 kbps

33-40 ErlangsDL & UL: 153 kbps

(1.25 MHz, FDD)

EVRC-B + QLIC + QOF

1XEnhancements

CDMA2000 1X

Multi-Carrier

EV-DO

2www.cdg.org

Achievable Today

1X Advanced1X AdvancedNew handset & channel card

1X Today• EVRC• Single RX

• EVRC-B vocoder• QLIC (device IC)

New handsetNetwork upgrades

4xVoice users

xVoice users

1.5xVoice users

Relative capacity/sector (1.25 MHz)

Without MobileRx Diversity

With Mobile Rx Diversity

3xVoice users

+Radio linkEnhancements• Efficient power control• Early termination• Smart blanking

Interference Cancellation• BTS Interference Cancellation• Advanced Device IC (QLIC)

Quadruples the voice capacity of todayQuadruples the voice capacity of today’’s industrys industry--leading CDMA2000 1X networksleading CDMA2000 1X networks

CDMA2000 1X Advanced is a natural step for operators looking to CDMA2000 1X Advanced is a natural step for operators looking to lower their cost per call and provide voice service while LTE folower their cost per call and provide voice service while LTE focuses on datacuses on data

2www.cdg.org

EVEV--DO is Driving Data Revenue GrowthDO is Driving Data Revenue GrowthDemand for broadband services is driving substantial data revenuDemand for broadband services is driving substantial data revenue per usere per user

1 Commercial EV-DO market information based on Verizon press releases and other publicly available information, July 24, 2009

Ave

rage

Rev

enue

Per

Use

r (A

RPU

) 1

RetailData ARPU

(USD)

Percent ofService Revenue

Verizon WirelessVerizon WirelessRetail Data ARPU and

Data Revenue as a Percent of Service Revenue

Annual data revenues grew 33 percent over the prior year to $3.9 billion.45.5 million of Verizon’s subscribers have 3G broadband EV-DO devices.

Interoperability withInteroperability withLTELTE

2www.cdg.org

CDMA and OFDMACDMA and OFDMACDMA and OFDMA are different technologies with different capabilCDMA and OFDMA are different technologies with different capabilitiesities

CDMA2000 1X and EVCDMA2000 1X and EV--DO are more efficient in DO are more efficient in bandwidths up to 5 MHzbandwidths up to 5 MHz

OFDMAOFDMA--based solutions offers a simpler implementation inbased solutions offers a simpler implementation inbandwidths greater than 10 MHzbandwidths greater than 10 MHz

2www.cdg.org

CDMA2000 and OFDMCDMA2000 and OFDM--Based SolutionsBased SolutionsCDMA2000 is complemented with several OFDMCDMA2000 is complemented with several OFDM--based solutionsbased solutions

CDMA2000 1X

CDMA2000 Evolution PathCDMA2000 Evolution Path

OFDMAOFDMA--based Technologiesbased TechnologiesLTE

1X Advanced

1xEV-DO Rel. 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

1xEV-DORev. A

H/\WUpgrade

Rev. BMulticarrier

EV-DODO Advanced

LTE is part of the CDMA2000 technology roadmapLTE is part of the CDMA2000 technology roadmap

2www.cdg.org

CDGCDG’’s Role in the Standards Processs Role in the Standards Process

CDG is a Market Representation Partner CDG is a Market Representation Partner (MRP) to both(MRP) to both

3GPP and 3GPP23GPP and 3GPP2

Source: IDC

2www.cdg.org

The following CDMA2000 operators have announced their plansThe following CDMA2000 operators have announced their plansto deploy LTEto deploy LTE

CDMA Operators with Announced LTE plansCDMA Operators with Announced LTE plans

Most other CDMA2000 operators do not yet have the requisiteMost other CDMA2000 operators do not yet have the requisitedemand, spectrum or capital to deploy LTEdemand, spectrum or capital to deploy LTE

2www.cdg.org

LTE Interoperability: CDG Areas of FocusLTE Interoperability: CDG Areas of Focus

Seamless Mobility:To ensure service continuity, inter-standard hand-offs between LTE and CDMA2000 networks is essential

System Determination:To maximize revenue, the appropriate system determination algorithms must exist in every CDMA2000/LTE device

Device Availability and Certification:To ensure full compliance, device requirements by GHRC are defined and device certification from an independent third-party, CCF, is sanctioned

Inter-Standard Global Roaming:To enable global roaming, inter-standard roaming between LTE and CDMA2000 networks is essential

Current CDG initiativesCurrent CDG initiatives

2www.cdg.org

CDMA2000 Manufacturers Working on LTECDMA2000 Manufacturers Working on LTEThe following CDG members are developing LTE devices and equipmeThe following CDG members are developing LTE devices and equipmentnt

Infrastructure Vendors

Chipset and Device Vendors

Test Vendors

2www.cdg.org

OFDMA Broadband Overlay for Developed OFDMA Broadband Overlay for Developed MarketMarketOFDMOFDM--based solutions will be builtbased solutions will be built--out over time as demand grows and spectrum out over time as demand grows and spectrum becomes availablebecomes available

3G CDMA WAN networks will coexist with OFDM3G CDMA WAN networks will coexist with OFDM--based solutions until based solutions until next generation broadband networks are fully capable of deliverinext generation broadband networks are fully capable of delivering:ng:

1)1) Ubiquitous coverageUbiquitous coverage2)2) CarrierCarrier--grade VoIPgrade VoIP3)3) LowLow--cost devices *cost devices *4)4) Global roaming *Global roaming *

* Harmonization of spectrum for OFDM-based solutions will be necessary to build economies of scale and enable global roaming

3G CDMA3G CDMA 3G CDMA 3G CDMA

3G CDMA 3G CDMA WAN CoverageWAN Coverage

Today

Next 10 years(Coexistence)

Beyond 10 years?(Migration)

OFDMUrban-zone

OFDMAOFDMAWAN CoverageWAN Coverage

OFDMUrban-zone

OFDMUrban-zone

2www.cdg.org

EVEV--DO Evolution PeriodsDO Evolution Periods

EV-DORev. A

EV-DORev. B

LTEFirst Full ScaleDeployments

DOAdvanced

LTEFirst Volume

DevicesLTE

First SmallVolumes

MatureEV-DO

Today 2010-2011 2012 2015

% o

f Add

ress

able

Mar

ket

Mature VoIP;Concurrent VoIP/Data;High-Definition Multimedia;Integration w/LTE

SeamlessLTE Handoff

Additional CapacityFemtocellsVoIP

UbiquitousEV-DO Service

2017

LTERegional

Deployments

Source: Airvana`

2www.cdg.org

DellPrecision Series

RIM BlackBerry8830

CDMA2000 1X+

EV-DO Rev. A+

GSM+

GPRSNokia2865

LGSH-100

CDMA2000 1X+

EV-DO Rev. A+

HSPA

CDMA2000 1X+

GSM +

GPRS

EV-DO Rev. A+

HSPA

CDMA2000 WorldModeTM DevicesMore than 200 WorldMode devices from more than 57 vendorsMore than 200 WorldMode devices from more than 57 vendors

Samples shown, LTE WorldMode is concept only

What ComesNext?

Coming!

CDMA2000 1X+

EV-DO Rev. A/B+

LTE

2www.cdg.org

Initial WorldMode LTE Device AvailabilityInitial WorldMode LTE Device AvailabilityCDMA industry is developing CDMA2000 / LTE multimode/multiband dCDMA industry is developing CDMA2000 / LTE multimode/multiband devicesevices

Modes: • LTE• CDMA2000 1X• EV-DO Rev. A• EV-DO Rev. B• UMTS• HSPA+

HandsetPC Card

LTE Peak Data Rates (20 MHz):DL: 50 MbpsUL: 25 Mbps

Q220112009

Multimode LTECommercial Device Availability

Q4 2010

2www.cdg.org

What about LTE voice communicationsWhat about LTE voice communicationsMost CDMA2000 operators will rely on their CDMA2000 1X network tMost CDMA2000 operators will rely on their CDMA2000 1X network to deliver voiceo deliver voice

LTE only for voice and data?Or, LTE for data and 1X for traditional voice?

Factors to consider:How important is simultaneous voice & data?

How important is an all-IP service model?Should voice capacity be maximized?

CAPEX spending priorities? Handset complexity?Roaming Partners?

Timing?

LTE VoIP?

1X Advanced?

TraditionalC/S 1X Voice?

EV-DO VoIP?

2www.cdg.org

1G1G

2G2G

Migration TimelineMigration TimelineWith an increasing number of subscribers, the migration process With an increasing number of subscribers, the migration process is lengtheningis lengthening

Putting things into perspective.The generational migration process will take many years.

Voice will remain a key application.

Migration of SubscribersMigration of Subscribers

199519901985 2000 2005 20132010

2G subs exceed 1G subs –Roughly 15 years after inception of industry.

Growth of 2G peaks3G3G

4G4G

Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008), iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008

2www.cdg.org

Lessons Learned: Migration from 1G to 2G to 3GLessons Learned: Migration from 1G to 2G to 3G

• Takes longer, and is never as simple as it may seem

• Coverage is key

• Multimode devices are essential

• Economies of scale matters

• Graceful evolutionary change is preferred

• A mature ecosystem is desired

To sustain its exponential growth, To sustain its exponential growth, the global mobile industry should continue strengthening and the global mobile industry should continue strengthening and

expanding its existing ecosystem, while it embraces and assimilaexpanding its existing ecosystem, while it embraces and assimilates tes newer technologies and players within its foldnewer technologies and players within its fold

Source: IDC

2www.cdg.org

For more information…

www.CDG.org