1

How to meet data demand?June 2011

2

The Biggest Platform in the History of Mankind

~5.5 BILLION WIRELESS SUBSCRIPTIONS WORLDWIDE

~3.1B3G SUBSCRIPTIONS

BY 2015

Source: Wireless Intelligence estimates as of Apr 18,2011 for the quarter ending Mar 31, 2010

~1.3B3G SUBSCRIPTIONS

AS OF 1Q 2011

3

Evolved 3G Will Continue to Lead Mobile Broadband

Subscriptions (Millions)

0

500

1,000

1,500

2,000

2,500

2010 2011 2012 2013 2014 2015

HSPA Family

EV-DO Family

TD-SCDMA

LTE

WiMax

Source: HSPA, EV-DO ,TD-SCDMA and LTE subs – Wireless Intelligence (Apr’11) and WiMax - ABI (Mar’11)Note:* 3G includes EV-DO family, HSPA family and TD-SCDMA,

3G* MBB subscriptions to surpass 1B by 2012

EV-DOSubs

HSPA/HSPA+ Subs

4

Operators Worldwide Show Strong Data Growth

Sources: Company reports from Vodafone, Telstra, Verizon and AT&T

27% Growth 24% Growth 22% Growth 24% Growth

Dec’09

£1.04B

Dec’10

£1.32B

$383M

$477M

1Q’10

$4. 5B

1Q’11

$5.5B

1Q’10

$4.1B

1Q’11

$5.1B

Data Revenues (British £) Mobile Broadband Data Revenues (Australian $)

Data Revenues (US $) Data Revenues (US $)

1H’10/Dec’09 1H’11/ Dec’10

5

Addressing Data Demand Growth

Evolve 3G and leverage advanced receivers

Increase voice capacity to free up resources for data

Free up 2G spectrum for more efficient 3G

Boost data capacity with LTE for new and wider spectrum

Bring network closer to the user—add small cells like femtocells

6

Qualcomm is a Leader in 3G and 4G 2012 2013 2014+2011

1X AdvancedCDMA20001X

SIMULTANEOUS 1X VOICE AND EV-DO/LTE DATA (SVDO/SVLTE)

DO AdvancedMulticarrier

EV-DO

Rev A H/W Upgrade

EV-DO Rev. B(Commercial)

HSPA+ Advanced

HSPA+(Future)

Rel-11 & BeyondRel-10Rel-9

HSPA+(Commercial)

Rel-8Rel-7

HSPA

Rel-11 & BeyondRel-10Rel-9Rel-8

LTEAdvanced

LTE(Commercial)

(LTE TDD expected to be commercial end 2011)

Created 06/20/2011

LTE Leverages new, wider and unpaired spectrum LTE

(Future)

CommercialNote: Estimated commercial dates.

7

Evolve 3G and Leverage Advanced Receivers

8

Significant Capacity Gain by Evolving 3G and Leveraging Advanced Receivers

1Base Station interference cancellation is available for EV-DO (CSM 6850). Many HSPA+ vendors have announced NodeB IC support. Device Equalizers are commercially available

~1.8x Capacity Gain ~1.7 Capacity GainUPLINKDOWNLINK

HSPA

HSPA+

1x(3.5 Mbps)

1.8x(6.2 Mbps)

R6(2-RxDiv+ Rake)

R7(Equalizer

+ 2x2 MIMO)

HSPA

HSPA+

1x(2.2 Mbps)

1.7x(3.7

Mbps)

R6 (Rake+1x2 SIMO

R7 (IC1 +1x2 SIMO)

~80% ~50%

EV-DO Rel. 0

EV-DO Rel. 0 + 2-Rx Diversity

EV-DO Rev. A + Equalizer

EV-DO Rel. 0

EV-DO Rev. A

EV-DO Rev. A+ BTS IC1

~70%

9

Similar Evolved 3G and LTE PerformanceWHEN ALSO LEVERAGING ADVANCED RECEIVERS

Bandwidth HSPA+ LTE5 MHz 42 Mbps 37 Mbps

10 MHz 84 Mbps 73 Mbps

20 MHz 168 Mbps2 150 Mbps

SIMILAR PEAK DATA RATES with same bandwidth and number of antennas(Downlink peak data rate)

Note: Assuming 2x2MIMO. LTE supports 4x4MIMO but initial deployments will be 2x2 MIMO. LTE takes required overhead into account, 172 Mbps possible per standards

Note: HSPA+ spectral efficiency would improve with multicarrier.

SIMILAR SPECTRAL EFFICIENCY with same number of antennas and bandwidth(Downlink sector capacity in 10 MHz FDD)1

SIMILAR RTT LATENCYTransport NW key for low latency—can be same for LTE&HSPA+

HSPA+ LTERT T3 28 ms +

Transport network22 ms + Transport network

HSPA+LTE

(15.1 Mbps)(12.5 Mbps)

1x1.2x

LTE R8(2x2 MIMO)

R7(EQ.+ 2x2 MIMO)

1 Source: Qualcomm Simulation, details in 3GPP R1-070674. NGMN 500m ISD, HSPA+ R7 results scaled up from 10 MHz. HSPA+. HSPA+ multicarrier (R8 and beyond) and DL Interference Cancellation not considered and would narrow the gap with LTE. 2168 Mbps in 20Mhz beyond HSPA+ R9. 3Source: Qualcomm assuming similar operating points, processing delays, excludes transport network delay that is dependent on actual network used

10

Continued Improved Connection Capacity and User Experience—Meeting Smartphone Growth

HIGHER CONNECTION-CAPACITY BETTER USER EXPERIENCE Supports more interactive users such as

“push-pull” mobile email

More efficient use/higher capacity of paging and access channels

Improved “Always ON” experience

Improved battery life

DO ADVANCED: ENHANCED CONNECTION MANAGEMENTHSPA+: ENHANCED CELL_FACH/PCH AND CPC

11

Increase Voice Capacity to Free up Resources for Data

12

1X Advanced: up to 4x Increase Compared to CDMA2000’s Excellent Capacity

EVRCSingle RX

EVRC-B (4GVTM)QLIC (device IC)

New handsetNetwork upgrades

CDMA2000Achievable Today

BTS IC + Adv. QLICRadio Link Enhancements

1X Advanced

1.5xVoice usersx

Voice users

4xVoice users3x

Voice users

New handset and new channel card

Single Antenna

Mobile Rx Diversity

FREED-UP SPECTRUM CAN BE USED FOR EV-DO DATA

1X AdvCDMA2000 1X EV-DO

13

Voice over HSPA Frees Up Resources for Data

1 Network support for “CS over HS” in HSPA+ R8, but UE capability in R7 enabling early implementation. 2Enhanced mobility, E-SCC is part of R8 and required for high capacity voice over HSPA. 3The R8 feature VCC enables call continuity outside VoIP coverage. Source: QUALCOMM simulations for VoIP, 3GPP Channel Mix 1km inter-site distance and AMR 12.2 Kbps codec. HSPA+ includes NodeBIC. CS voice over HSPA would result in 15 %to 20% lower capacity.

WCDMA CS Voice

VoIP over HSPA23

No impact oncore network

Requires IMS

CS voice over HSPA12

Remaining Data capacity with Voice over HSPAData

capacity with CS Voice

5& VoIP

(Kbps)

Downlink data throughout vs. voice users

Voice over HSPA is either CS voice over HSPA or VoIP over HSPA

MORE THAN DOUBLES VOICE CAPACITYUP TO 50% EXTENDED TALK TIME

FREES UP RESOURCES FOR DATA

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Free up 2G Spectrum for More Efficient 3G

15

Multicarrier Helps to Free Up 2G Spectrum for More Efficient 3G

1Source: GFK. 2Multicarrier across bands supported in 3GPP R9

HSPA+ MULTICARRIER ACROSS BANDS—ANOTHER DRIVER FOR 900 AND 1800 MHz

Low bandE.g. 900/850 MHz

High bandE.g. 2.1/1.9/1.8 GHz

Multicarrier HSPA+ Device

Across bands in R9 4x downlink in R101

UMTS900 ALMOST CLOSES 2G COVERAGE GAP—ELIMINATES 3G POROSITY

ADDITIONAL 2G BANDS SUCH AS 1800MHz SUITABLE FOR 3G REFARMING

UMTS900 ENABLED DEVICES >50% OF MONTHLY SALES IN EU51

Carrier 1

Carrier 2

Carrier 3

Carrier 4

Aggregated Data Pipe

Up to 20 MHz

2x downlink in R8 Across Bands R94x downlink in R10

FDD Band

1 to 2 Carriers

FDD Band

1 to 3 Carriers

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Leverage Unpaired Spectrum for More Downlink Capacity

Supplemental downlink addresses traffic asymmetry Implemented using HSPA+ R9 carrier aggregation1

F1’F1 F1

FDD Downlink

(Paired, e.g., 2GHz)

FDD Uplink

(Paired, e.g., 2GHz)

Supplemental Downlink

(Unpaired spectrum)

L-Band (1.4GHz) key opportunity• Harmonization possible in Europe and beyond, with up to 40 MHz of unpaired spectrum2

• Other opportunities, such as 700MHz in the US, depend upon country-specific spectrum situations

1Aggregation across bands already supported in 3GPP R9, but each additional band combination has to be defined in 3GPP.2L-Band in Europe:1452 MHZ to 1492 MHz.

17

Boost Data Capacity with LTE for New and Wider Spectrum

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LTE Leverages New Wider Spectrum to Boost Data Capacity

3G CoverageSeamless 3G service continuity from day one—Evolved 3G ensures similar user experience

Industry’s first LTE multimode solutions

LTE/3GMultimode

LTE (FDD or TDD)

Available in smaller bandwidths

20 MHz15 MHz1.4MHz 10 MHz5 MHz3 MHz

LTE relative performance decreases with bandwidth due to higher overhead; 40% overhead in 1.4 MHz vs. 25% in 20 MHz results in 25% better relative performance in 20 MHz vs. 1.4 MHz.

Best suited to leverage new and wider contiguous spectrum

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LTE TDD: The Global Solution for Unpaired Spectrum

2011 2012+2010

LTE FDD MultimodeCommercial Launches

LTE FDD Single Mode

LTE TDD MultimodeCommercial Launches

3G Evolution (HSPA/HSPA+, EV-DO Rev. A/B , 1X/DO Advanced)

LTE TDDTrials

GLOBAL TDD Spectrum Potential Spectrum

2.5/2.6 GHz (IMT Extension gap)B383: 2570 MHz to 2620 MHz

50 MHz

2.3 GHzB404: 2300 MHz to 2400 MHz

100 MHz

China and India to deploy LTE TDD

Strong industry support1

Leverages LTE FDD Shares most of FDD design and standard Common core network

3IMT extension band provides 50 MHz TDD in addition to 70 MHz + 70 MHz FDD in most countries. 2B40 will e.g. be used for India and China, can provide up to 100 MHz, but less spectrum may be available in some markets.

LTE TDD operator trials in 2010, commercial launches in 20112

1Basically all vendors offering LTE TDD, WiMAX industry support declining: Clearwire announced LTE trials in press release Aug 4th 2010. Russia’s Yota announced plans to drop WiMAX in favor of LTE in some markets. 2Single mode LTE TDD trials 2H2010, multimode trials 1H 2011 and commercial multimode launch end 2011

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HSPA+ andHSPA+ Advanced

EV-DO and DO Advanced LTE Advanced

Bring Network Closer to User for Next Significant Performance LeapIT IS NOT JUST ABOUT ADDING SMALL CELLS—OPTIMIZATIONS FURTHER IMPROVE PERFORMANCE:

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Radio Link Improvement is Slowing, What Is Next?

Evolved 3G withAdvanced Receivers(EV-DO Rev. B & HSPA+)

Data optimized 3G(EV-DO & HSPA)

3G (IMT-2000): Voice & Data(e.g. CDMA2000 1X & WCDMA)

2G: Voice Capacity(Digital e.g. GSM & IS-95)

1G: Voice(Analog e.g. AMPS)

LTE(OFDMA)

Next Gen.Leap

Next Gen.Leap

Next GenerationLeap

2G

3G

1G

Evolved 3G

Radio Link approaching

the theoretical limit

Bring network closer to user—adding small cells1—and mitigate interference will provide next leap in performance

Relative C

apacity Multiples

1Leveraging heterogeneous network topology: macro network with added small cells like picocells and femtocells

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Operator DeployedPicocells

Adding Small Cells Is a Great Start—Optimization Further Improves Performance

Remote Radio heads

User Deployed Femtocells

Macro provideswide coverage

Operator deployed Relays

Optimizations to FurtherIncrease PerformanceSuch as range expansion—better utilization of picocellsIncreased cooperation across nodesInnovative Iiterference management required for femtocells

Smart Network TechniquesExploiting uneven load—even more common in Hetnets

Self-Organizing Networks (SON)Simplifying Hetnet deployments

Bring Network Closer to User and Increase Spectral Efficiency per Coverage Area1

1Leveraging heterogeneous network topology (Hetnets): macro network with added small cells like picocells and femtocells

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Macro usersserved by macro

Home usersserved by

1) macro 2) femto Macro

only

180 kbps

Y

250 kbps

X

Macro only

Femtos Can Provide Next Performance LeapFEMTOS WORK WELL WITH INNOVATIVE INTERFERENCE MANAGEMENT

MACRO NETWORK OFFLOADED—CAPACITY GAIN CAN EXCEED 10X

Example for HSPA+. Similar gain achieved for EV-DO Rev. A/B

1.5x

80Y

390 kbps

14.5 Mbps

Femtosadded

Femtosadded

Assumptions: Example for HSPA+. 16 Users per cell for dense urban HSPA+ system: 10 macro users and 6 home users served either by macrocell or added femto cells. Rx diversity and MMSE Equalizer used. The median user data rates are shown. Note: Also, the worst 10% of macro users get ~15% higher throughput with proper interference management techniques.

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Macro(1 carrier)x

Macro

NETWORK CAPACITY (DL)

Pico cell(2 carrier)

1.7x

Macro+Pico

3.3x

DO Advanced(Macro + Pico)

DO Advanced Increases Hetnet PerformanceTHROUGH SMART NETWORK TECHNIQUES

INCREASED PERFORMANCE BY EXPLOITING UNEVEN NETWORK LOADING (SMART NETWORK TECHNIQUES)

Source: Qualcomm simulations. assumes 1 single carrier macro, with 2 double carrier picocells. Pico-cells are randomly placed in the network. The data loading ratio of 4:1 between high-demand and low-demand areas

Example: Improvement with DO Advanced Pico cell deployment

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Macro Only

LTE

R8

Macro+Picos

1.2x

LTE

R8

LTE Advanced Increases Network Capacity, User Experience and Ensures Fairness

Picocell

Picocell

Picocell

1x

Median UserDownlink (similar uplink gain)

Macro+Picos

2.2x

LTE

Adva

nced

with

rang

e ex

pans

ion

ENSURES USER FAIRNESSBetween users and between nodes

RANGE EXPANSION Better utilization of small cells

Assumptions: 4 Picos per Macro randomly dropped within macro coverage, see 3GPP R1-101509. Based methodology in TR 36.814: 10 MHz FDD, 2x2 MIMO, 25 users and 500m ISD . Advanced interference management : enhanced time-domain adaptive resource partitioning, advanced receiver devices with enhanced RRM and RLM

26

Additional Solutions to Address Demand—Spectrum Is a Limited Resource

DIFFERENT CHARGING MODELS

Usage-based charging Application-based charging Service classes

PRIORITIZED DELIVERY BASED ON TRAFFIC/APPLICATION

Over-the-air prioritization New class for delay insensitive traffic: serve

only when resources become idle

WIFI OFFLOAD—LEVERAGE UNLICENSED SPECTRUM

Today: application based switch of all IP traffic between 3G/WiFi

Future: seamless and selective offload Selected traffic, e.g. QoS services on 3G and

best effort on Wi-Fi controlled by operator

OFFLOAD 3G WITH DEDICATEDMULTICAST NETWORK

Multicast complements 3G to reduce mass market delivery cost

Push and cache for later on-demand viewing (e.g. video and electronic media)

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Evolve 3G and leverage advanced receivers

Increase voice capacity to free up resources for data

Free up 2G spectrum for more efficient 3G Boost data capacity with LTE for new and

wider spectrum Bring network closer to the user—add

small cells like pico and femtocells There are more solutions…

leveraging unlicensed spectrum—WIFI offload

Summary: Addressing Data Demand Growth

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http://www.qualcomm.com/blog/contributors/prakash-sangam

@qualcomm_tech

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