enabling notebook users with wide-area broadband access

Enabling Notebook Users with Wide-Area Broadband Access

QUALCOMM IncorporatedSeptember, 2005


9/2005

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Market Drivers for the Notebook with Émbedded 3G WWAN Capability . . . . . . . . . 3

The Shift toward Notebook Computers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

The Growing Demand for Wireless Broadband . . . . . . . . . . . . . . . . . . . . . . . . 4

The Growth of 3G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

WLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3G Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CDMA2000 1xEV-DO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

WCDMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3G and WLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Complementary Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3G/WLAN Interoperability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Embedded 3G Modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Inside the Notebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Improved RF Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Convenience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Optimized Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Benefits to End Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Benefits to Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Table of Contents


9/2005

Executive Summary

The benefits and convenience of having wireless broadband connectivity are

so compelling that enterprises now desire to provide connectivity to their

mobile workforces anytime and anywhere. The global introduction of 3G (third

generation) wireless networks satisfies this desire by making it possible for

notebook computer users to enjoy wireless broadband connectivity far beyond

the coverage areas of WLAN (Wireless Local Area Networks).

3G is a proven technology, enjoys favorable economies of scale, ensures investment

protection and allows for interoperability with existing WLAN networks. As a

result, several industries have come together to offer notebooks integrated with

3G technology, making wide-area wireless broadband service a reality.

Notebooks with embedded 3G improves employee productivity and effectiveness.

More importantly, embedded 3G enables enterprises to benefit from convenience,

cost savings and optimized performance.

Introduction

The need for mobile connectivity is growing dramatically around the world.

Over the last several years, there has been an increased demand by computer

users for a full desktop computing experience in a mobile environment—users

want to be able to access email with large attachments, files on corporate

servers and the Internet while away from their desks. And nowhere is

this need more evident than among businesses with mobile workforces.

Employees that stay connected are more productive and effective—

resulting in greater profitability for the enterprise.

Since the introduction of the WLAN its popularity and use in providing

wireless broadband access to notebook users has grown noticeably in

offices, hotels, homes and campuses. In fact, the demand for WLAN

has been so high that the reduction in WLAN component costs has

made it common practice for computer manufacturers to integrate

WLAN technology directly into their notebook computers.

Furthermore, the increase in demand has created a business opportuni-

ty for WLAN service providers who now charge fees for WLAN access.

page 1

Enabling Notebook Users withWide-Area Broadband Access

9/2005

The benefits and convenience of having wireless broadband connectivity are

so compelling that users now desire connectivity anytime and anywhere. The

global introduction of 3G wireless technologies, such as CDMA2000®1 and

WCDMA2 (wideband CDMA), satisfies this desire by making it possible for

notebook users to enjoy wireless broadband connectivity across a very large

coverage area—a typical 3G base station can provide a range of several miles,

whereas a typical WLAN access point provides a practical range of 50-100

feet. 3G networks are Wireless Wide Area Networks (WWAN) and provide users

with access across cities, states and even entire countries. And unlike

other wireless broadband technologies that have yet to be commercialized,

such as fixed WiMAXTM or mobile WiMAX, 3G is available on a large scale today with

more than 195 million subscribers and has a solid growth path moving forward.

The proliferation of 3G networks, the growing demand for wireless broadband

access and the favorable economies of scale have led leading notebook

manufacturers to integrate 3G wireless technology along with WLAN technology

into their products, solidifying the complementary nature of the technologies

and providing users with greater coverage and much needed flexibility.

Using notebooks embedded with 3G and WLAN technologies, the enterprise

can improve its bottom-line results through cost savings and optimized

performance. In addition, 3G and WLAN-equipped notebooks afford the

enterprise’s mobile and remote workforces with convenient access to all

applications as if users were wired to the company LAN (Local Area Network),

enhancing their productivity and effectiveness.

This paper discusses:

• The market drivers for the embedded 3G notebook

• The capabilities offered by today’s 3G networks

• 3G and WLAN interoperability

• The performance advantages of embedding 3G into the notebook

• The benefits of 3G technologies to the enterprise

page 2[1] CDMA stands for Code Division Multiple Access. [2] Also known as UMTS® Universal Mobile Telecommunications System.


9/2005

Market Drivers for the Notebook with Embedded 3G WWAN Capability

Three trends should be considered early indicators of the future success of

broadband access via 3G wireless networks. The first trend is the ongoing shift

from desktop computers to notebook computers; second is the growing

demand for wireless broadband currently represented by WLAN; and third is

the continuing proliferation of 3G networks around the world.

The Shift Toward Notebook Computers

Notebooks are no longer for road warriors only. The combination of computing

power, portability and affordability has made notebooks an increasingly popular

choice for general purpose computing. Beyond the enterprise, notebooks are

also widely used in homes and in schools.

A recent report by Gartner3 estimates that global notebook shipments currently

represent over 30% of all personal computers shipped today and will account

for 40% of all personal computers shipped by 2009. Figure 1 shows the

increasing share of notebooks as a percentage of total computer sales.

Figure 1. Gartner Worldwide Mobile PC Shipments 2001-2009

page 3

120

100

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60

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20

0

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2001 2002 2003 2004 2005 2006 2007 2008 2009

Shipments of Notebook Computers

Mill

ions

Per

cent

of

Per

sona

l Com

p ute

rs

Total Notebooks

% of Personal Computers

[3] Source: Gartner Dataquest Marketview Database, June 2005.


The Growing Demand for Wireless Broadband

The corporate sector has embraced WLAN technology. Enterprises have

deployed WLANs in their offices and corporate campuses. These networks

are being used for corporate intranet access as well as access to vertical

applications in warehouses, factories and loading docks. The increased

demand for WLAN-enabled notebook computers demonstrates the need for

wireless broadband access.

WLAN connectivity was initially achieved through PC cards. Today, most WLAN

modems are embedded directly into notebooks as a standard configuration.

The rapidly growing sales of notebooks with embedded WLAN modems are

highlighted in Figure 2. Including consumer and enterprise notebooks,

Strategy Analytics4 estimates that more than 70% of notebooks sold today

have an embedded WLAN modem.

Figure 2. Strategy Analytics Global Notebook PC Sales

9/2005

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Share of Notebook Sales

Embedded WLAN Notebook Sales

page 4[4] Strategy Analytics, Global Notebook PC Sales Forecast, Dec. 2004.


Today, WLAN is used in most corporations to provide employees with wireless

broadband access throughout office campuses including conference rooms,

cafeterias and building lobbies. The familiarity of using WLAN access in the

enterprise and the growing number of notebook computers with embedded

WLAN capabilities has led to increased use outside the office environment.

A common place to find WLAN coverage is in locations

frequently visited by business travelers. Many hotels,

convention centers and airport lounges now offer a pay-per-

use WLAN service to its visitors. In addition, some coffee

shops and restaurants offer WLAN access that is not only

targeted at business people, but also consumers looking to

stay connected. Finally, there has been a large trend in the

deployment of WLANs in homes. Deploying a WLAN in the

home provides notebook users wireless access from

anywhere within the home network coverage area, including

the living room, kitchen or outside on the patio.

The Growth of 3G

3G is an ITU (International Telecommunication Union)5 specification for the

3rd generation of wireless communications technology. 3G delivers among

other capabilities, higher peak data transmission rates, greater system capacity

and improved spectrum efficiency over 2nd generation systems and support

services.

3G technology has been deployed on a large scale and is well established.

CDMA2000 1X networks have been in commercial service since 2000.

Commercial WCDMA networks were introduced in 2001 and CDMA2000

1xEV-DO networks were introduced in 2002. There are a total of 70 countries

in which 3G services are provided, with North America, Western Europe, Japan

and South Korea leading the uptake in subscribers. Figure 3 provides a world

view of the countries in which 3G networks have been deployed.

9/2005 page 5[5] The ITU is the telecommunications arm of the United Nations.


Figure 3. Worldwide 3G Presence (Source: 3GToday.com)

There are more than 155 commercial 3G networks providing service to

more than 185 million paying subscribers6. Today, the market potential

for 3G has led to significant support from the 3G device and infrastructure

manufacturing community, resulting in favorable economies of scale. To

date, more than 730 3G devices have been commercialized and more than

10 leading infrastructure manufacturers are providing 3G network equipment.

As seen in the figure below, industry research firm Strategy Analytics

expects CDMA2000 and WCDMA technology families to account for more

than 1.3 billion subscribers worldwide, or nearly 50% of the mobile subscriber

base, by 20107. Such a high growth rate is a strong indication of the

competitive nature of the 3G market and the technology itself. And with

the increase in 3G subscribers globally, it is expected that the cost of

devices and network infrastructure will continue to decline. And with network

operators all vying for these subscribers, the cost of 3G services is also

expected to drop.

9/2005 page 6

[6] Source: 3G Today, www.3GToday.com, June 2005.[7] Source: Strategy Analytics, Wireless Network Strategies (WNS)

Strategic Advisory Service, Dec. 2004.


Figure 4 - Strategy Analytics: CDMA2000 and WCDMA Subscriber Growth

3G service providers continue to invest in 3G by expanding their network

coverage areas. Today in the US, 3G services including CDMA2000 1X,

CDMA2000 1xEV-DO and WCDMA are available to almost 90% of the

population. Other markets throughout the world have similar plans to pro-

vide 3G services to a greater number of subscribers. So not only does 3G

have a large presence throughout the world, it also has an increasing foot-

print within individual markets.

Within the last few years, alternative technologies have been proposed and

marketed to meet the needs of the wireless broadband user, with WiMAX

receiving the most attention. A common misperception is that WiMAX will

be deployed on a large scale to address the market needs not being served

by 3G. The reality is that WiMAX was initially developed for backhaul8 and

dedicated connections among one or multiple points—Fixed WiMAX. The

mobile version, or Mobile WiMAX, is being positioned as an alternative

technology to 3G, yet the technology is unproven and is not currently standardized

9/2005 page 7[8] Backhaul is the connection between the WLAN access

point and the fixed broadband network.

1400.0

1200.0

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50%

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0% 2003 2004 2005 2006 2007 2008 2009 2010

Per

cent

of

all m

obile

sub

scri

bers

sub

scr i

bers

CDMA2000 & WCDMA subscribers

CDMA2000 & WCDMA % of total

8.3%

13.5%

17.9%

22.6%

28.9%

36.0%

43.9%

50.0%


(impacting aspects such as economies of scale and interoperability). A

standardized Mobile WiMAX solution will not be available in the near future

and when available, will unlikely provide the coverage areas to support the

expectations of today’s end users.

3G technology and its evolution path provide the following advantages to notebook

users now:

• Large scale coverage—3G service providers worldwide continue toenhance coverage areas

• True mobility—remain connected while moving in a train, bus or taxi

• Investment protection—backward compatibility enables devices tocontinue working even after advancements in the network are made

• Reduced cost—high volumes and competitive environment will drivedown cost of access

• Access to the full suite of enterprise applications—access to applications and corporate data as if being in the office

The three trends discussed indicate that real demand exists for broadband

access via 3G wireless notebooks. 3G’s large coverage areas and favorable

economies of scale are evidence that a solution already exists today to meet

the needs of the wireless broadband user.

9/2005 page 8


Technology

Wireless Local Area Networks (WLAN)

WLAN technologies are based on the family of IEEE9 802.11 standards, including

802.11a, 802.11b, 802.11g and future versions such as 802.11n.

Most commercial WLAN networks today are characterized by peak transmission

speeds of 11Mbps although they are usually constrained by the backhaul

connection to much lower speeds. The typical range of WLAN is approximately

50-100 feet, depending upon the antenna, the physical environment and

interference levels. WLAN is designed to operate over short distances and to

operate in designated unlicensed spectrum. Since unlicensed spectrum can be

used by different radio frequency (RF) systems, there is an increased probability

of interference that can have an adverse impact on network performance.

3G Technologies

3G technologies, represented by the CDMA2000 and WCDMA standards, are the

latest generation in the evolution of mobile phone networks. 3G networks provide

high-speed data services over a wide coverage area, enabling notebook users to

accomplish tasks at the office, at home or on the road. 3G networks also allow

roaming and interconnection between domestic and international markets.

CDMA2000 and WCDMA are both built on a similar underlying CDMA air interface

technology and have clearly defined evolution paths with enhancements and

performance improvements. 3G provides investment protection to the end user

with backward compatibility such that as networks are upgraded and

enhanced, existing 3G devices will continue to operate. Backward compatibility

ensures embedded 3G notebooks will continue to get services into the future.

9/2005 page 9

[9] IEEE is the acronym for Institute of Electrical and Electronics Engineers.


The diagram below highlights the roadmap and performance of both technologies

as defined or being discussed in the standards bodies.

Figure 5. Technology Evolution Roadmap

CDMA2000 1xEV-DO10

CDMA2000 1xEV-DO (EV-DO) is the natural evolution path for CDMA2000 1X

operators that want to offer higher bandwidth 3G capabilities. Optimized to meet

the growing demands of today’s wireless needs, EV-DO is a high-performance,

cost-effective technology based on an IP network architecture. Commercial

EV-DO systems can provide peak data rates11 of 2.4Mbps in the downlink12. In

commercial networks, operators commonly advertise average EV-DO end-user

data rates between 400kbps and 700kbps. Users moving outside of EV-DO

coverage will still have access to 3G services from the underlying 1X network.

9/2005 page 10

[10] For more information on CDMA2000 1X and 1xEV-DO visitwww.3gpp2.org.

[11] Peak data rates refer to the maximum data rate supported for each user.[12] Downlink refers to the flow of data from the network to the device.

3G TECHNOLOGIES 3G TECHNOLOGIES

WCDMA (UMTS) 5 MHZDATA + VOICE 3GPP Release 99

HSDPA Release 5

HSUPA Release 6

• 64/384 kbps circuit-switched/packet data• 64–250 kbps average end user rates

• 1.8 to 14.4 Mbps forward link• IP voice and data

• 5.7 Mbps reverse link (EUL), IMS, MBMS

DESIGNED FOR NEW SPECTRUM

• Dedicated for packet data• 2.4 Mbps peak rates (forward link)• 400–700 kbps average end user rates

• 3.1 Mbps forward link• 1.8 Mbps reverse link • VoIP, lower latency, Flow-based QoS, Platinum Multicast

• Double voice capacity over cdmaOne • 153.6 kbps packet data• 50–90 kbps average end user rates

DESIGNED FOR IN-BAND MIGRATION OR NEW SPECTRUM

• Aggregates up to 15 carriers• Up to 46 Mbps forward link• Up to 27 Mbps reverse link

DESIGNED FOR IN-BAND MIGRATION

DESIGNED FOR IN-BAND MIGRATION

Scalable Bandwidth EV-DOCDMA2000 1xEV-DO1.25 MHZDATA + IP VOICE IS-856 Release 0

Enhanced EV-DORevision A

CDMA2000 1X IS-2000 Release 0 Revision A Revision C Revision D

1.25 MHZDATA + VOICE

• Software QoS, Gold Multicast


The next revision of the standard, CDMA2000 1xEV-DO Revision A (EV-DO

Rev. A) is designed for more symmetric applications. It has a downlink peak

data rate of 3.1Mbps (average end-user data rates between 600kbps and

1.3Mbps) and an uplink13 peak rate of 1.8Mbps. EV-DO Rev A will also

improve the connection set-up time and support delay-sensitive traffic.

Higher peak data rates will be supported in the future with the evolution to

Scalable Bandwidth EV-DO. Scalable Bandwidth EV-DO is being planned to

support peak data rates of up to 46Mbps. The system will be backward

compatible with support for existing EV-DO and EV-DO Rev. A devices and will

be able to dynamically support different data rates based on application

needs, device capabilities and available resources.

WCDMA14

WCDMA is the evolution path to 3G for GSM/GPRS operators. WCDMA

provides a clear migration path to provide enhanced data capabilities over

time. Today, commercial WCDMA networks are deployed in multiple markets

offering peak data rates up to 384kbps (average end-user data rates between

150kbps and 250kbps).

The evolution of WCDMA is HSDPA (High Speed Downlink Packet Access).

HSDPA provides a converged packet network that allows support for end-to-end

IP services. Commercial HSDPA systems are expected to support downlink peak

data rates of up to 7.2Mbps15 (average end-user data rates between 400kbps

and 1.5Mbps). To enhance the uplink data capabilities, WCDMA operators

plan to deploy a further enhancement referred to as HSUPA (High Speed

Uplink Packet Access). HSUPA systems are expected to support peak uplink

data rates of 5.7Mbps. Both HSDPA and HSUPA will be backward compatible

with WCDMA systems, enabling an efficient upgrade path for operators and the

ability to continually support existing devices.

9/2005 page 11

[13] Uplink refers to the flow of data from the device to the network.[14] For more information on WCDMA visit www.3gpp.org.[15] The standard defines support up to 14.4Mbps.


3G and WLAN

Complementary Technologies

3G and WLAN networks together will be used to meet end users’ wireless

broadband needs.

There are a growing number of public locations that now provide WLAN

coverage including airports, hotels and coffee shops. More and more often,

pay-per-use fees are being charged for WLAN access in public areas. With a

notebook capable of supporting both 3G and WLAN, most users will use WLAN

in select areas where it is both available and free of charge, such as in corporate

offices, some public places or in the home. And since WLAN coverage is

limited and is not sufficient to meet end-users’ need for wireless broadband

access anytime anywhere, users will use 3G in all areas outside of free WLAN

coverage. 3G’s large footprint complemented by WLAN local coverage ensures

wireless broadband access across a wide area as shown in Figure 6.

Figure 6. Complementary Coverage of WLAN and 3G Networks

3G/WLAN Interoperability

Both the wireless and IT industries are taking the necessary steps to ensure

3G and WLAN interoperability. The 3G standards groups that are actively

working on this convergence and standardization are the Third Generation

Partnership Project (3GPP), which concentrates on the development of WCDMA

standard; and the 3GPP2, which focuses on the development of CDMA2000

9/2005 page 12

HOTEL

Hotels & Conferences

College Campuses

Offices

Homes

Airports

Train Stations

3G Coverage

WLAN Hot Spots


standards. Furthermore, efforts are taking place within the IEEE to enhance

users’ experience with mobile devices by supporting seamless handover

between heterogeneous networks, such as 3G and WLAN.

Switching mechanisms are already in place to support users moving from 3G

to WLAN or vice-versa, and future work includes making the convergence

between 3G mobile wireless technologies and WLAN technologies more seam-

less. Ultimately, a user will not know or care what network is being used—as

long as it works. 3G/WLAN convergence will enable common billing, customer

care and user authentication mechanisms over both 3G and WLAN.

Notebook vendors are planning to incorporate software functionality into

their operating systems that allows users to seamlessly roam between 3G

and WLAN networks.

Embedded 3G Modules

Inside the Notebook

In July 2004, the Peripheral Component Interconnect

Special Interest Group (PCI-SIG), a part of IEEE, ratified

a new standard of the PCI architecture named PCI Express

Mini Card Electromechanical Specification (PCIe Mini Card).

Today, manufacturers are preparing to introduce this technology

into notebook computers in the last half of 2005 and into

2006. The PCIe Mini Card allows vendors to create devices

with smaller form factors than those possible with traditional

PCI interfaces, via the use of low pin-count connectors. The

PCIe standard provides the flexibility for manufacturers to

implement either a PCI Express bus or a USB 2.0 bus.

9/2005 page 13


Improved RF Performance

Antennas play a critical role in the performance of wireless technology and are

a key element of the embedded WLAN and 3G modem. Antennas provide the

means by which signals from the modem are transmitted to the network and

signals from the network are received by the modem. Their placement, exposure

to interference and size play a critical role in the overall performance of the

modem such as throughput rates, number of dropped connections and

ultimately, end-user experience and satisfaction.

A notebook computer is a highly complex RF (Radio Frequency) environment

with a multitude of components packed tightly together. Much of the interference

in a notebook comes from the bottom half, below the keyboard, where the

main components reside. The main CPU, memory chips, video circuits and

other components are located on the motherboard and generate high frequency

noise which could potentially fall within the receive bands of 3G radios.

Other sources of interference include radiation from transmission lines routed to

circuitry embedded in the display area. Interference in the radio receiver

affects the overall wireless performance and user experience.

Therefore, the placement of the antenna with respect to the sources of

interference plays a key role in the overall performance of a wireless connection.

For example, to minimize interference, it is preferred to position the antennas

as far as possible from the bottom half of the notebook—either at the top of

the lid/screen or high up on the side of the notebook lid/screen.

One of the key advantages of an embedded module is that both the notebook

and modem vendors work together at the time of the initial design; optimizing

the design and placement of both the module and antennas to minimize any

interference. Since the antennas are no longer constrained to the PC card slot,

more efficient antenna elements are also possible. Multiple antennas can be

placed inside the notebook to leverage RF receive diversity techniques as well

as support multiple frequency bands. Receive diversity is a technique that

leverages the use of a secondary antenna and receive chain. Because the

secondary antenna is placed separately from the primary one, the receiver can

combine the signals received from both antennas to improve performance.

9/2005 page 14


In the computing industry, the introduction of the PCIe Mini Card and the

large scale availability of 3G technologies are driving manufacturers to integrate

3G modems directly into notebooks. Figure 7 shows the expected transition

from PC cards to embedded modems and by 2009, more than 50% of all

cellular modems sold will be embedded16.

Figure 7. In-Stat/MDR Share of PCMCIA vs. Embedded Cellular Modem Shipments Worldwide16

An indication that embedded 3G notebooks are a reality is that modem

manufacturers are producing 3G PCI Express Mini Card Modules.

Manufacturers such as Novatel Wireless, Sierra Wireless and Pantech all have

product plans for the embedded notebook market.

Tighter development and integration of 3G modules into the notebook platform

and the use of more efficient antennas will result in a more reliable product

that achieves the advertised and realizable performance of 3G networks.

Ultimately, embedded technology ensures that module vendors, notebook

manufacturers and 3G service providers work together closely to provide the

best end-user experience possible.

9/2005 page 15

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2003 2004 2005 2006 2007 2008 2009

PCMCIA Embedded

Share of PCMCIA vs. Embedded Cellular Modem Shipments

[16] In-Stat/MDR Cellular Modem Worldwide Shipment Forecasts &Market Overview, Dec.2004.


The Enterprise

It is clear that the demand for wireless broadband data access across a wide

area exists today. Many of the 3G network operators around the world have

been successful in deploying these services. Enterprises around the world

are realizing the following benefits of wide-area wireless broadband access

from notebook computers with 3G capabilities:

• Convenience

• Cost Savings

• Optimized Performance

Convenience

Enterprises are always looking for ways to improve the productivity and

effectiveness of their employees. By providing notebooks with 3G wireless

broadband capabilities to mobile workforces, enterprises enable employees such

as sales people to safely and remotely access corporate databases, check on

inventory levels and make delivery commitments to their clients—from anywhere

within 3G coverage, in real time—just as if they were physically in their offices

and their computers were wired to the LAN. 3G also improves mobile workers’

productivity by making it easy for them to work during down time in their schedules.

With easy access to email and the corporate servers, mobile workers can now

check and send emails during layovers at airports or while sitting in a customer’s

office or lobby. In addition, wireless broadband capabilities enable employees

to better serve their clients with improved response time to queries.

Notebooks with embedded 3G capabilities will make it easier for users to begin

using wireless broadband access. Pre-configured systems from the factory and

tighter integration of the hardware and software will allow users to gain wireless

broadband access right out of the box and experience true mobility.

9/2005 page 16

"84% of survey respondents fromFortune 100 companiessaid they were interestedor very interested inlaptops with embeddedhigh-speed modems"-iGillottResearch, 2005

Sierra Wireless

Pantech

Novatel Wireless


Cost Savings

When evaluating different options for improving workforce productivity, IT

departments evaluate both the cost and associated savings with any new

technology. Notebooks with embedded 3G technology provide wide-area

wireless broadband access resulting in cost savings to the enterprise in the

areas of reduced WLAN costs, standardized configurations and asset management.

Hidden Cost of “WLAN Usage”

Although there are a growing number of WLAN coverage areas, more and more

now charge access fees based on hourly, daily or even monthly rates. Without

access to 3G networks, a frequent business traveler may use several different

WLAN networks on a single business trip to stay

connected to critical corporate information—and

at $10.00 to $15.00, single day access prices

add up for IT departments. With the continuing

decrease in cost of 3G broadband access, an end

user on a week-long business trip may spend more

money on WLAN access than he or she would

have spent for an entire month of 3G service. And

often times, the costs for WLAN access is so

buried in expense reports that upper management

never sees them. By giving users a communication

solution that works nationwide with “all you can

eat” plans, companies can eliminate the need to

pay variable fees for WLAN access.

Standardized Configuration

Notebooks with embedded 3G devices make it easier for IT departments to

standardize wireless broadband access across the company. Standardized

solutions reduce overall IT costs and improve the serviceability and scalability

of the equipment.

9/2005 page 17


With external PC cards, IT departments may have to maintain and service multiple

versions of hardware and software in their installed base. Supporting multiple

devices impact all tiers of technical support and can result in higher costs for

staffing, training and documentation. Doing so also makes it more difficult for

IT departments to provide the highest level of service to mobile workforces.

In contrast, the process of maintaining and updating drivers and software is

simplified when IT departments move to a standardized, embedded platform.

Additionally, Remote Access Server (RAS) management can be simplified with

a single solution for access to corporate data and mobile applications

development can be unified—meaning developers can focus on application

development with less effort spent on platform inconsistencies or hardware

compatibility issues.

A standardized, embedded solution also provides flexibility to the service

provider and enterprises in regards to provisioning devices. Embedded notebooks

will make it possible for the provisioning process to be centrally managed by

the IT department. The IT department, together with the service provider, can

activate or deactivate modules on demand. The enterprise can then activate or

deactivate a subscription without having to go through the time consuming

process of purchasing, installing and configuring a PC card on a user’s machine.

Asset Management

No matter how much control and auditing is in place, when users have a plug-

in wireless network card for their computer, there will be times of “asset drift,”

where employees loan devices to other users of notebooks or they are misplaced.

External data cards are also prone to theft and damage. Issues such as these

can be avoided with embedded 3G devices.

9/2005 page 18

"With the availability oflaptops with embeddedhigh-speed modems, 2/3of survey respondents fromFortune 100 companiesexpect an increase inwireless data usage inthe enterprise."-iGillottResearch, 2005


Optimized Performance

Convenience and cost savings alone will not drive an enterprise to adopt a

new technology. Performance of the solution also needs to be evaluated. In

addition to improved data rate performance due to a tighter integration

between the notebook and the 3G modem, IT departments will experience

improved performance in terms of security and connection management.

Security

IT security groups are experiencing ever-growing pressure to protect intellectual

property from theft and leakage. Security issues associated with unprotected

access to WLAN networks have been well documented and have caused concern

throughout IT departments. This issue can be resolved by using secure end-

to-end connections such as IPSec or SSL-based VPNs that are layered with

at least two factor authentications for full IP connectivity.

However, the choice to use a VPN connection from a public or home WLAN

is the choice of the user each time a connection is made. For example, an

employee may log in to a WLAN hotspot from a hotel for general Internet

access and choose to forgo using the VPN. However, while

connected the employee may start an IM chat session with

a colleague and provide the status of a development project

or an update on contract negotiations—leaving confidential

information exposed.

In a WLAN environment, any user with a device set to promiscuous

mode can listen to a neighbor’s communications with easily

downloadable software from the Internet. That same approach

is not possible if a user is connected to a 3G network. 3G

systems are not susceptible to easy eavesdropping like those

of WLAN networks, requiring sophisticated and expensive

equipment to gain access. IT departments can rest easier

knowing that confidential information is not being compromised.

9/2005 page 19


Connection Management

Tight integration of an embedded solution with its corresponding connection

manager provides for an optimized solution. With both 3G and WLAN devices

embedded into the notebook, connection manager software can manage the

connection to different networks and different technologies both automatically

and transparently by making intelligent decisions about service availability,

ultimately providing the end user with an improved experience when access

wireless broadband services. Some PC manufacturers will develop advanced

connection managers that have a "one stop" application that incorporates multiple

service providers, all wired and wireless technologies, diagnostics and support,

and allows the user to develop customized profiles to make the setup and

usability of communications simple and easy to use.

Conclusion

The success of WLAN and increased sales in notebook computers has led to

an increased demand for wireless broadband access anytime, anywhere. 3G

networks provide the wide-area coverage that complements the limited coverage

provided by WLAN technology. 3G is a proven technology, enjoys favorable

economies of scale, provides investment protection and allows for interoperability

with existing WLAN networks. As a result, several industries have come together

to make notebooks embedded with 3G capabilities a reality. The integration

of 3G modules into the notebook and the use of more efficient antennas will

result in a high performance, reliable wireless broadband solution.

Benefits to End Users

Embedded 3G technology simplifies the end-user experience of staying connected

and provides notebook users with wireless broadband access in most areas

covered by their mobile phone subscription. Staying connected anytime,

anywhere improves the mobile worker’s productivity and effectiveness. The use of

internal antennas and tighter integration of hardware and software also provides

improved performance overall.

9/2005 page 20


9/2005

Benefits to Enterprises

IT departments can provide their mobile workforce with secure, seamless

access to their corporate IT systems in areas covered by 3G—protecting

company assets and improving overall productivity. By giving users a

communication solution that works nationwide with “all you can eat”

plans, companies can eliminate the need to pay variable fees for WLAN

access. Furthermore, the deployment of embedded technologies provides

cost savings in areas of asset management, configuration, support and training.

.

The global success of 3G and the arrival of embedded 3G modules into notebooks are

making wide-area wireless broadband service a reality. These technologies are

converging inside the notebook to provide convenience, cost savings and optimized

performance. The entire value chain of end users, IT departments, notebook manufacturers

and service providers will enjoy the benefits from this trend.

page 21

enabling notebook users with wide-area broadband access

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