CDMA Migration Path to LTECDMA Migration Path to LTECDMA Migration Path to LTECDMA Migration Path to LTETechnical & Commercial ImplicationsTechnical & Commercial ImplicationsTechnical & Commercial ImplicationsTechnical & Commercial Implications

Tina RadfordTina RadfordCDMA Development GroupCDMA Development Group

Hong KongSeptember 2009

CDG CharterCDG CharterFormed in 1993, a consortium of operator and vendor companies from Formed in 1993, a consortium of operator and vendor companies from around the world, involved in all aspects of CDMA and next generation around the world, involved in all aspects of CDMA and next generation

wireless including advocacy, marketing, regulatory support, devicewireless including advocacy, marketing, regulatory support, device

OperatorsSubscriberEquipment

wireless including advocacy, marketing, regulatory support, devicewireless including advocacy, marketing, regulatory support, deviceavailability and roamingavailability and roaming

Value-AddedServices

NetworkInfrastructure

Network Enhancement/ Optimization

Network Interface & Access

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

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

2www.cdg.org

Information Distribution Technical Service Development Deployment Assistance

Growth of CDMA is StrongGrowth of CDMA is StrongNetworkNetworkGrowthGrowth

SubscriberSubscriberGrowthGrowth

Data RevenueData RevenueGrowthGrowth

2007 200912 more networks12 more networks

being launchedbeing launched

2008 2013Over ½ billionOver ½ billionsubscriberssubscribers

ff

2007 200835 percent35 percent

growth from topgrowth from topC *C *

2www.cdg.org

in 2009in 2009 as of June 2009as of June 2009 3 CDMA carriers*3 CDMA carriers*

* Top 3 CDMA carriers in terms of data revenue: Verizon, KDDI and Sprint

Source: CDG, August 2009 Source: Chetan Sharma, 2009Source: 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 has built a strong ecosystem and enormous economies of scaleCDMA2000 has built a strong ecosystem and enormous economies of scaleCDMA: Strong Global PresenceCDMA: Strong Global Presence

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

502 million CDMA Subscribers

1X EV-DORel. 0

EV-DORev. A

Commercial 281 109 70

2www.cdg.org

Commercial 281 109 70

In Deployment/Trial 23 36 38

CDMA2000 will continue to be the core business offering for CDMA2000 will continue to be the core business offering for hundreds of operators well into the next decadehundreds of operators well into the next decade

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

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

2www.cdg.org

Most CDMA2000 operators will deploy EVMost CDMA2000 operators will deploy EV--DODOwireless broadband data serviceswireless broadband data services

Global CDMA2000 Device Shipments Global CDMA2000 Device Shipments CDMA2000 device shipments are expandingCDMA2000 device shipments are expanding

(Millions) Annual CDMA2000 Device ShipmentsAnnual CDMA2000 Device ShipmentsAs of December 2008As of December 2008

nts

evic

e S

hipm

eA

nnua

l De

2www.cdg.org

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

More than 2,110 CDMA200 devices have been More than 2,110 CDMA200 devices have been commercialized by 120 supplierscommercialized by 120 suppliers

Global CDMA2000 Subscriber ForecastGlobal CDMA2000 Subscriber ForecastCDMA2000 continues to grow at a rapid doubleCDMA2000 continues to grow at a rapid double--digit pacedigit pace

CDMA2000 Subscribers WorldwideCDMA2000 Subscribers Worldwide(Cumulative)(Cumulative)

Subscribers(Millions)

EVEV--DODOEVEV--DODO

1X1X

cdmaOnecdmaOne

2www.cdg.org

*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 RoadmapCDMA2000 Roadmap

What do operators want?

• Meet the growing demand for voice and data

p

• Offer an unsurpassed user experience

• Reduce the cost of delivering services

• Maximize the return on existing investments• Maximize the return on existing investments

2www.cdg.org

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

CDMA2000 RoadmapCDMA2000 Roadmap 1XAd d

1XE h t

CDMA20001XCDMA2000 RoadmapCDMA2000 Roadmap

4X increasein voice capacity2

DL & UL: 307 kbps

Advanced

New Channel Card1.5X increase

in voice capacity1

DL & UL: 153 kbps

33-40 ErlangsDL & UL: 153 kbps

(1 25 MHz FDD)

EVRC-B + QLIC + QOF

Enhancements1X

DL & UL: 307 kbps

DOH/W

Upgrade1xEV-DO1xEV-DO

DL & UL: 153 kbps(1.25 MHz, FDD)

Multi-Carrier

DL: 2.4 MbpsUL: 153 kbps

(1 25 MH FDD)

DL: 3.1 MbpsUL: 1.8 Mbps

(1 25 MHz FDD)

DL: 14.7 Mbps4

UL: 5.4 Mbps(5 MH FDD)

DL: 32 Mbps5

UL: 12.4 MbpsDL: 9.3 Mbps3

UL: 5.4 Mbps(5 MHz FDD)

DOAdvanced

UpgradeRev BRev. ARel. 0

CarrierEV-DO

(1.25 MHz, FDD) (1.25 MHz, FDD) (5 MHz, FDD) (4x1.25 MHz, FDD)(5 MHz, FDD)

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

2www.cdg.org

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

1X Advanced1X AdvancedQuadruples the voice capacity of today’s industryQuadruples the voice capacity of today’s industry--leading CDMA2000 1X networksleading CDMA2000 1X networks

1X Advanced1X AdvancedNew handset & channel card

Achievable Today

4xVoice users

3xV i

xV i

1.5xVoice users

Voice users

1X Today • EVRC-B vocoder

Voice users

Without MobileRx Diversity

With Mobile Rx Diversity

Radio linkInterference1X Today• EVRC• Single RX

EVRC B vocoder• QLIC (device IC)

New handsetNetwork upgrades

Relative capacity/sector (1.25 MHz)

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

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

2www.cdg.org

p y ( )

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 free up channels for broadband data serviceslower their cost per call and free up channels for broadband data services

1X Advanced Benefits1X Advanced BenefitsCapacity gain enabled by 1X Advanced offers several benefitsCapacity gain enabled by 1X Advanced offers several benefits

Lower Cost per Call

y g yy g y

Lower Cost per CallGreater spectral efficiency

M Mi t f UMore Minutes of UsageEnables increased voice offerings

More Efficient Use of SpectrumImportant for spectrum constrained markets

Meets Increased Data DemandFrees up channels that can be used for EV-DO services

2www.cdg.org

EVEV--DO Evolution PathDO Evolution PathEVEV--DO offers a practical solution to satisfy the real demand for broadband dataDO offers a practical solution to satisfy the real demand for broadband data

EV-DO Rev. A

Add i

Rev. A: High sector capacity, very good link budget and user-experience

– DL: 3.1 MbpsUL 1 8 MbAdd carriers

as demand increases

– UL: 1.8 Mbps

Multicarrier EV-DO: A software upgrade that EV-DO Rev AEV-DO Rev A

EV-DO Rev. AMulticarrier EV-DO

(channel aggregation)

aggregates up to three Rev. A channels– Triples peak data rates / Doubles network capacity

Rev. B: New channel card - more capacity(channel aggregation)

Add more carriers or channel cards

as demand increases

– DL: 14.7 Mbps– UL: 5.4 Mbps

DO Advanced: More network capacity and speed

– DL: 32 MbpsUL: 12 4 Mbps

DO Advanced

2www.cdg.org

– UL: 12.4 Mbps

Operators can improve network capacity and user experience with incremental software upgrades and network optimizations

EVEV--DO Evolution BenefitsDO Evolution BenefitsSelective and costSelective and cost--effective software upgrades offer several benefitseffective software upgrades offer several benefits

Improved User ExperienceGreater network capacity

Investment PreservationSoftware upgrades to existing equipmentSo t a e upg ades to e st g equ p e t

Addresses Real-World DemandIncremental upgrades at site specific locationsIncremental upgrades at site-specific locations

Service Continuity

Unified operation of Advanced Topology Networks

Backward compatibility � No service interruptions

2www.cdg.orgNote: 1. Operator demand for each enhancement varies. Some carriers may not adopt the complete set of enhancements.

Smart Network techniques

Preservation of Existing InvestmentsPreservation of Existing InvestmentsExisting 3G CDMA networks are fulfilling the demand for an extensive selection Existing 3G CDMA networks are fulfilling the demand for an extensive selection of desired applications and servicesof desired applications and servicesof desired applications and servicesof desired applications and services

2www.cdg.org

EVEV--DO is Driving Data Revenue GrowthDO is Driving Data Revenue GrowthDemand for EVDemand for EV--DO services is driving substantial data revenue per userDO services is driving substantial data revenue per user

RetailData ARPU

(USD)

Percent ofService Revenue

Verizon WirelessVerizon WirelessRetail Data ARPU and

Data Revenue as a Percent of Service Revenue

ser (

AR

PU) 1

even

ue P

er U

sAv

erag

e R

e

Annual data revenues grew 33 percent over the prior year to $3 9 billion

2www.cdg.org1 Commercial EV-DO market information based on Verizon press releases and other publicly available information, July 24, 2009

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.

I t bilit ithI t bilit ithInteroperability withInteroperability with

LTELTELTELTE

CDMA vs. OFDMACDMA vs. OFDMACDMA and OFDMA are different technologies with different capabilitiesCDMA and OFDMA are different technologies with different capabilities

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 b d l ti ff i l i l t ti ib d l ti ff i l i l t ti i

2www.cdg.org

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

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

CDMA2000 E l ti P thCDMA2000 E l ti P th

CDMA2000 1X

CDMA2000 Evolution PathCDMA2000 Evolution Path

1X Advanced

1xEV-DORel. 0

1xEV-DORev. A

H/\WUpgrade

Rev. BMulticarrier

EV-DODO Advanced

OFDMAOFDMA--based Technologiesbased Technologies

Mobile WiMAX

LTE

oror

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

2www.cdg.org

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

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

• Graceful evolutionary change is preferred• Graceful evolutionary change is preferred

• Coverage is king

• Multimode devices are essential

E i f l tt• Economies of scale matters

• 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

di itdi it i tii ti t hil it b d i il tt hil it b d i il t

2www.cdg.org

expanding itsexpanding its existingexisting ecosystem, while it embraces and assimilatesecosystem, while it embraces and assimilatesnewer technologies and players within its foldnewer technologies and players within its fold

Source: IDC

CDMA Operators with Announced LTE plansCDMA Operators with Announced LTE plans

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

2www.cdg.org

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

LTE Interoperability: CDG Areas of FocusLTE Interoperability: CDG Areas of FocusCurrent CDG initiativesCurrent CDG initiatives

Seamless Mobility:To ensure service continuity, inter-standard hand-offs between LTE and yCDMA2000 networks is essential

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

Device Certification:To ensure full compliance, device certification from an independent third-party is sanctioned

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

2www.cdg.org

networks is essential

CDMA2000 Manufacturers Working on LTECDMA2000 Manufacturers Working on LTEThe following CDG members are developing LTE devices and equipmentThe following CDG members are developing LTE devices and equipment

Infrastructure Vendors

Chipset and Device Vendors

Test Vendors

2www.cdg.org

CDMA: Efficient and Flexible Spectrum UtilizationCDMA: Efficient and Flexible Spectrum UtilizationCDMA2000’s 1.25 MHz bandwidth facilitates subscriber traffic managementCDMA2000’s 1.25 MHz bandwidth facilitates subscriber traffic management

Minimizes “stranded” spectrum assets required to support embedded user equipment while moving between technologies

1X 1X 1X

CDMA2000 1X

1XAdvanced

EV-DOEV-DO

1X Advanced

LTE1XEV-DO

#2 M l i l

EV-DO Rev. A

EVDORev. BEV-DO Rev. B

#1 Multiple

#2 MultipleBands, One Antenna Set

#3 Multi- Bands & Technologies, One OA&M Umbrella

pTechnologies, One Backhaul 1X

AdvancedEV-DO LTE

2www.cdg.org

CDMA offers greater flexibility to implement LTESeveral vendors support LTE in existing CDMA2000 base stations,

with common radios & antennas

OFDMA Broadband Overlay TimelineOFDMA Broadband Overlay TimelineOFDMOFDM--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 3G CDMA WAN CoverageWAN Coverage

Today

3G CDMA3G CDMA 3G CDMA 3G CDMA

Co e ageCo e age

Next 10 years(Coexistence)

Beyond 10 years

OFDMUrban-zone

OFDMAOFDMA

OFDMUrban-zone

OFDMUrban-zone

3G CDMA WAN networks will coexist with OFDM3G CDMA WAN networks will coexist with OFDM--based solutions until based solutions until t ti b db d t k f ll bl f d li it ti b db d t k f ll bl f d li i

Beyond 10 years(Migration)

OFDMAOFDMAWAN CoverageWAN Coverage

next generation broadband networks are fully capable of delivering:next generation broadband networks are fully capable of delivering:1)1) Ubiquitous coverageUbiquitous coverage

2)2) CarrierCarrier--grade VoIPgrade VoIP

2www.cdg.org

3)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

EVEV--DO Evolution PeriodsDO Evolution Periods

Mature VoIP;Concurrent VoIP/Data;High-Definition Multimedia;

SeamlessLTE Handoff

Aditional CapacityFemtocellsVoIP

UbiquitousEV-DO Service

EV-DODO

Advanced

MatureEV-DO

Mar

ket

gIntegration w/LTE

EV-DORev. A

EV DORev. B

Advanced

dres

sabl

eM

LTEFirst Full Scale

LTEFirst Volume

DevicesLTE

First SmallV l

% o

f Add

LTERegional First Full Scale

Deployments Volumes

Today 2010-2011 2012 2015 2017

RegionalDeployments

2www.cdg.org

y

Source: Airvana`

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

CDMA2000 1X+

EV DO Re A

CDMA2000 1X+

GSMEV-DO Rev. A

+

RIM BlackBerry

EV-DO Rev. A+

GSM+

GPRSNokia

GSM+

GPRSHSPA

DellPrecision Series

y8830GPRSNokia

2865

CDMA2000 1X+

EV DO Rev A

WhatComesNext?

CDMA2000 1X+

EV DO R A/BEV-DO Rev. A+

HSPA

Next?Coming!

EV-DO Rev. A/B+

LTE

2www.cdg.org

LGSH-100

Samples shown, LTE WorldMode is concept only

World’s First 3G/4G WorldModeWorld’s First 3G/4G WorldModeTMTM DeviceDeviceEnables Mobile WiMAX devices to roam onto EVEnables Mobile WiMAX devices to roam onto EV--DO Rev A networksDO Rev A networksEnables Mobile WiMAX devices to roam onto EVEnables Mobile WiMAX devices to roam onto EV--DO Rev. A networksDO Rev. A networks

EV-DO Rev. A + Mobile WiMAX

FranklinU300

2www.cdg.org

Several CDMA2000/LTE multimode and multiband devicesare being developed

Next Generation Multimode DevicesNext Generation Multimode DevicesNext generation mobile broadband devices will leverage the learning curve of Next generation mobile broadband devices will leverage the learning curve of CDMA2000 W ldM dCDMA2000 W ldM d TMTM d id iCDMA2000 WorldModeCDMA2000 WorldModeTMTM devicesdevices

LTE

LTEWiMAX*EV-DO Rev. BEV-DO Rev. AEV DO R l 0

WiMAX*WCDMAHSPA+EV-DO Rev. BEV-DO Rev. AEV DO Rel 0EV-DO Rel. 0

GPS1X

EV-DO Rel. 0GPS1X

Radio Frequency Links:450 MHz 700 MHz 800 MHz 900 MHz 1500 MHzGPS 1700 MHz 1800 MHz

1900 MHz AWS 2100 MHz 2500 MHz 3500 MHz

2www.cdg.org

Radio frequency selection is carrierRadio frequency selection is carrier--dependentdependent* WiMAX is enabled using a separate chipset ** MDM 9800 and MDM 9600 chipsets will support FDD and TDD duplex modes and different carrier bandwidths.

InitialInitial WorldModeWorldMode LTE Device AvailabilityLTE Device AvailabilityCDMA industry is developing CDMA2000 / LTE multimode/multiband devicesCDMA industry is developing CDMA2000 / LTE multimode/multiband devices

Multimode LTECommercial Device Availability

Modes:• LTE• CDMA2000 1X

LTE Peak Data Rates (20 MHz):

Commercial Device Availability

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

DL: 50 MbpsUL: 25 Mbps

• HSPA+

HandsetPC Card

Q220112009

Q42010

2www.cdg.org

What about LTE voice communicationsWhat about LTE voice communicationsMost CDMA2000 operators will rely on their CDMA2000 1X network to deliver voiceMost CDMA2000 operators will rely on their CDMA2000 1X network to 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?Should voice capacity be maximized?

CAPEX spending priorities? Handset complexity?

LTE VoIP?TraditionalC/S 1X Voice? p y

Roaming Partners?Timing?1X Advanced? EV-DO VoIP?

2www.cdg.org

Migration TimelineMigration TimelineWith an increasing number of subscribers the migration process is lengtheningWith an increasing number of subscribers the migration process is lengthening

4G4GMigration of SubscribersMigration of Subscribers

4G4G

Growth of 2G peaks3G3G

2G2G2G2G2G subs exceed 1G subs –

Roughly 15 years after inception of industry.

1G1G

Putting things into perspective.199519901985 2000 2005 20132010

2www.cdg.org

utt g t gs to pe spect eThe generational migration process will take many years.

Voice will remain the most important applicationSource: 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

For more information…

www.CDG.org

2www.cdg.org

Backup Charts

2www.cdg.org

DO AdvancedDO AdvancedSubstantially improves network capacity and user experience using software Substantially improves network capacity and user experience using software upgrades new devices and an optional hardware upgradeupgrades new devices and an optional hardware upgradeupgrades, new devices and an optional hardware upgradeupgrades, new devices and an optional hardware upgrade

SoftwareUpgrade

OptionalH/W Upgrade

Infra/StandardsIndependent

SoftwareUpgrade

Ad d

Upgrade H/W UpgradeIndependentUpgrade

SmartNetworks

AdvancedTopology Networks

AdvancedDevices

AdvancedAntenna

Techniques

Smart network techniques that optimize network

Smart network techniques applied MIMO

15% i

New device enhancements:p

utilization:Smart interference management and smart load balancing that exploits partial

t k l d

q ppto advanced topology networks:microcells, picocells, femtocells and remote radio heads

~15% improvementin spectral efficiency

Enhanced equalizer, Reverse link transmit diversity, and Higher-order receive diversity

2www.cdg.org

network loads

Improved Performance with Advanced Topology Improved Performance with Advanced Topology NetworksNetworksNetworksNetworks

Smart network techniques applied to pico, femto cell deployments

N t k C it (DL)Network Capacity (DL)(Macro + Pico)

4.5X

Macro(1 Carrier)

X

EV-DO

Pico cell(2 carrier)

DO

2www.cdg.org

Source: Qualcomm simulations. assumes 1 single carrier macro, with 2 double carrier picocells. Pico-cells are placed in high demand areas of the network. Typical loading assumed on the macro BTS. MIMO not considered`

EV DORev. A

DOAdvanced

(with smart network techniques)