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