low cost mobile broadband access
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Low Cost Mobile Broadband Access
Dr. Ravi KalavakuntaDirector, Marketing
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• Convergence of Communication,Computing & CE Platforms
• Multi-mode Devices Connectto Various Access Networks
–Service Requirements, Availability, Cost …
Mobile Device EvolutionMobile Device Evolution
• User Behaviors Trendfrom Wired to Wireless
• Same Rich IP Apps and Services in all Environments
–Ubiquitous & Consistent Experience Desired
Network EvolutionNetwork Evolution
• All-IP Network For Fixed-MobileConvergence (VoIP & data)
• Co-existence of Different Access Networks for Various Needs
–Coverage, Mobility, Capacity,QoS, Data Rates …
Service EvolutionService Evolution
Wireless Broadband Evolution
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Wireless Evolution:The Right Technology for the Right Application
2006 2007 2008 2009 2010 +1999
Wide-Area Multicast Technologies
Local-Area Technologies
EV-DOPlatinum Multicast
EV-DOGOLD
WCDMAMBMS
FLO/DVB-H
CDMA CDMA/TDM OFDM OFDMA
MobileWANTechnologies
802.11 n (Full)802.11n802.11a/g802.11b
LTE
EV-DOREV B
EV-DOREV A
EV-DOREL 0
CDMA20001X
UMB1Rev 0FLASH-OFDM
Rev 1FLASH-OFDM (Pre- UMB)
HSPA +Rel-7 (Ph 1) Rel-8 (Ph 2)Rel-5 (HSDPA)
HSPA Rel-6 (HSUPA)Rel-99
WCDMA
1-UMB (Ultra Mobile Broadband), previously referred to as Rev C LBC
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A Well Established Mobile Broadband Evolution Path
2006 2007 2008 2009 2010 +1999
CDMA CDMA/TDM OFDM OFDMA
1 – UMB (Ultra Mobile Broadband) - Previously referred to as Rev C LBC
2 – Peak rates scalable with number of carriers – standard supports up to 15 carriers. Upper range highlights introduction of 64-QAM (1 RF carrier – 4.9 Mbps peak) 3 – Expected rates for 20 MHz, FDD, 4x4 MIMO
4 – 1.25 MHz option also included in the standard
5 – TDD mode is under discussion
DL: 2.4 Mbps peakUL: 153 kbps peak
– All-IP Services– Broadband
downloads
DL: up to 288 Mbps peak3
UL: up to 75 Mbps peak3DL: 5.3 Mbps peakUL: 1.8 Mbps peak
DL: 3.0 Mbps peakUL: 900 kbps peak
DL: 6.2 – 73.5 Mbps peak2
UL: 3.6 – 27 Mbps peak 2DL: 3.1 Mbps peakUL: 1.8 Mbps peak
– Highly optimized OFDMA solution
– 5-20 MHz carrier bandwidth4
– VoIP– FDD & TDD5 Modes– MIMO & SDMA Support
– K=3 frequency re-use– VoIP
– Optimized OFDMA Solution
– All-IP Services
– Broadband uploads– Low Latency– Advanced QoS – VoIP, PTT an d VT– OFDM Multicast
– Multi-Carrier Rev A– Lower delays and higher data rates– Software Upgrade
EV-DOREV B
EV-DOREV A
EV-DOREL 0
CDMA20001X
UMB1Rev 0FLASH-OFDM
Rev 1FLASH-OFDM (Pre- UMB)
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A Well Established Mobile Broadband Evolution Path
2006 2007 2008 2009 2010 +1999
1 – 14.4 Mbps supported in standard, incremental product release expected
2 – Upper range for DL peak rates includes 64 QAM and 2x2 MIMO (Rel 8)
3 – 20 MHz, FDD, 64-QAM, 4x4 MIMO in DL and 64 QAM, 1 TX in UL.
4 – 1.25 MHz option also expected to be in the standard
DL: 1.8-14.4 Mbps peak1
UL: 384 kbps peak
– All-IP Services– Broadband
downloads
DL: 1.8-14.4 Mbps peak1
UL: 5.72 Mbps peak
– Broadband uploads– Reduced end to end delay– Real-time services (VoIP,
packet VT, PTT)– Multicast (MBMS)
DL: 14-42 Mbps peak2
UL: 11 Mbps peak
– Enhanced capacity for real-time services (ie VoIP…)
– MIMO– Backward compatibility
– OFDMA in DL– SC-FDMA in UL– Flexible carrier bandwidths up
to 20MHz4
– Common FDD & TDD modes– Higher order MIMO/SDMA
LTE
DL: up to 278 Mbps peak3
UL: up to 85 Mbps peak3
HSPA +Rel-7 (Ph 1) Rel-8 (Ph 2)Rel-5 (HSDPA)
HSPA Rel-6 (HSUPA)Rel-99
WCDMADL: 384 kbps peakUL: 384 kbps peak
CDMA CDMA/TDM OFDMA
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Mobile Broadband Today!!
1 Billion People Have Access to over 177 3G Mobile Broadband NetworksOver 57 Million Mobile Broadband Subscribers
HSDPA– 165 operators committed to HSDPA in 77 countries– 110 commercially available networks in 57 countries– 62 suppliers launched over 254 HSDPA devices– 104 handsets, 54 datacards and 43 embedded notebooks– HSDPA Mobile Broadband Data Rates:
• Most networks delivering avg of 0.6 – 1.5Mb/s• Peak DL data rates of 3.6Mb/s, 7.2 Mb/s and 14.4 Mb/s
DO & DOrA– 146 operators committed to DO & DOrA– 67 commercially available networks in 44 countries– 30+ vendors launched over 465 DO/DOrA devices– 55+ Million subscribers; 50 embedded notebooks– DO &/DOrA Mobile Broadband Data Rates:
• DO Networks delivering DL data rates of 0.6 – 1 Mb/s• DOrA Networks Peak Data Rates of 3.1/1.8 Mbps
EV-DOHSDPAEV-DO + HSDPA
Sources: CDMA Development Group (cdg.org), GSMA (gsmworld.com), GSA (gsacom.com) and Informa
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Leverage From 3G Device Partnerships400+ EV400+ EV--DO devices / 30 vendors; 200+ UMTS devices / 26 vendorsDO devices / 30 vendors; 200+ UMTS devices / 26 vendors
Source: www.3Gtoday.com
All trademarks, names of other companies, logos, products and services may be the property of their respective owners
Samsung SCH-i830Windows Mobile 2003,
WorldMode
LG VX8500V-Cast - Streaming Video,
3DGames, MP3 Player, MicroSD
HP Compaq nc6400Embedded 1xEV-DO
Samsung SCH-A9903.2 Megapixel Camera,
TV Out
Samsung V74014mm thin, 1.3MP
Camera
Motorola QWindows Mobile 5
Smartphone Edition
Toshiba W41T4GB Hard Disk Drive
Sierra WirelessAirCardUSB EV-DO modem
KyoceraRx diversity
LG KV3600Enhanced 3D Gaming
Graphics
Casio W21CA2.6 inch WQVGA,
2 MP Camera
LG CU500HSDPA, Bluetooth
Sony-Ericsson W900iMP3 Player, Walkman
Axesstel D800AEV-DO, RJ-11 Voice
Calls and FAX
Axesstel MV420EV-DO, 80211 b/g &
Ethernet Router,
Fujitsu Lifebook Q2010Embedded HSDPA
Samsung P920Video Conferencing, MP3, Bluetooth, USB
Sharp 703SHMacromedia Flash,
Bilingual menus
Motorola E11203 Megapixel,
Barcode Scanner
NEC N902iS 4 Megapixel, Camcorder,
Barcode Scanner, GPS, MP3, removable miniSD
Sanyo SA700iS2.2” QVGA, miniSD
GPS, Video Conferencing
ONDA N501HSWCDMA / HSDPA
Franklin Wireless CDU-550
USB Modem 21 grams, EV-DO
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74 models from 10 vendors – provide either EV-DO or HSPA mobile broadband
All trademarks, names of other companies, logos, products and services may be the property of their respective owners
3G Embedded Laptops with Mobile Broadband Today
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3G Offers a Wide Range of Services
All trademarks, names of other companies, logos, products and services are the property of their respective owners
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Cost = “Greenfield” Network Operations Expenses + Depreciation on Capital
Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdfAssumptions: On demand Traffic: a) 15% of traffic demand occurs at the busy hour, b) 7,600 kbps / sq km at busy hour, c) 5 MHz
Multicast Traffic: a) 2,000 subscribers / cell, b) 30 live streaming minutes / day at 128 kbps data rate, c) 1.25 MHz
Spectral efficiency affects cost Spectral efficiency affects cost
GPRS$0.42
EDGE0.11
1X$0.06
1xEV-DO$0.02
WCDMA$0.07
Cost per Megabyte ComparisonCDMA2000 networks support the most affordable delivery of bitsCDMA2000 networks support the most affordable delivery of bits
Affordable and evolutionary mobile broadband technologies areenabling the mass market adoption of mobile multimedia servicesAffordable and evolutionary mobile broadband technologies are
enabling the mass market adoption of mobile multimedia services
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Total Cost of Ownership Advantage
•Over a multi-year period, CDMA2000 is up to 8% less expensive than GSM/EDGE with moderate network usage •The CDMA2000 advantage increases with higher network usage
High Minutes of UsageHigh Minutes of Usage11
Higher Subscriber GrowthHigher Subscriber Growth22
18% lower TCO
Break even in Year 2
23% lower TCO
Break even in Year 0
2 Subscriber base growing from 900K in Year 1 to 15.3 million in Year 10
1 Subscriber base growing from 750K in Year 1 to 9 million in Year 10
CDMA Economies f scale and superior performance create significCDMA Economies f scale and superior performance create significant economic advantageant economic advantage
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3G Enables Lower TariffsCDMA2000 1X and EV-DO enables the lowest cost per bit and Erlang
Net
wor
k Ex
pens
e/U
ser/M
onth
Net
wor
k Ex
pens
e/U
ser/M
onth
Combined Voice and Data Network Expense(500 Minutes of Use)
$0.00
$2.50
$5.00
$7.50
$10.00
$12.50
$15.00
$17.50
$20.00
$22.50
$25.00
10 20 30 40 50 60 70 80 90 100
GSM/GPRSEDGEWCDMA1X1X / EV-DO Rel. 0
USD
The LowerThe Lowerthe better!the better!
Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdfAssumptions: On demand Traffic: a) 15% of traffic demand occurs at the busy hour, b) 7,600 kbps / sq km at busy hour, c) 5MHz Multicast Traffic: a) 2,000 subscribers / cell, b) 30 live streaming minutes / day at 128kbps data rate, c) 1.25MHz
Megabytes per User
Operators prefer network technologies that are affordable and evolutionaryOperators prefer network technologies that are affordable and evolutionary
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3G Building Economies of Scale
194272
350466
578650
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010
(Millions) WCDMA & CDMA2000 Worldwide Handset ShipmentsWCDMA & CDMA2000 Worldwide Handset Shipments
58%*
22%*
• Percentage of total handset shipments
Source: Average of Gartner Group (July 2006), Signals Research (July 2006) and Yankee Group (September 2006) handset forecasts
Cost of 3G Devices Declining as Scale Increases
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Lowering the Cost of CDMA2000 Handsets
$83
$70 $68
$55
$41$37 $35
$82$87
$77
$59
$49$43
$24
$35$35
$49$55
$50
$57
$69$68
$77
$51$48
$42
$20
$70
$120
2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4
Lowest 10% Lowest endNote: CDMA2000 Phones Sold per Calendar Quarter; lowest end represents complete phones sold in quantities of approx 150,000 units or higherNote: Data derived from licensee reports. Does not include modules.
Source: QUALCOMM Incorporated
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Lowering the Cost of WCDMA (UMTS) Handsets
$231
$195
$436
$290$270
$197 $198
$407
$341
$290 $295
$228$221
$270$254
$272$287
$311
$367
$412
$217
$141 $129 $141$128 $128
$100
$200
$300
$400
$500
2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4
Lowest 10% Lowest endNote: WCDMA Phones Sold per Calendar Quarter; lowest end represents complete phones sold in quantities of approx 50,000 units or higherNote: Data derived from licensee reports. Does not include modules.
Source: QUALCOMM Incorporated
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The Average Selling Price (ASP) for 3G handsets is becoming more competitive
WCDMA Handset ASP ForecastWCDMA Handset ASP Forecast CDMA2000 1X/EVCDMA2000 1X/EV--DO Handset ASP ForecastDO Handset ASP Forecast
US$83in 2009 US$33
in 2008
US$50
3G CDMA Lowers Device Costs
CDMA2000 handsets are reaching price parity with 2G handsetsYet, they provide the user with more value
Source: Michael W. Thelander Signals Research Group, LLC, 2006
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MotorolaC210
LGRD2330
KyoceraK112
Huawei C218
HaierD1000
JingpengSpektra 101
SamsungN 380
ZTEC133
Nokia1255
ZTEC150
SamsungN500
BREWBREW--enabled lowenabled low--end phonesend phones
LGRD2340
LGRD2430
LGRD2530
LGRD2630
UTStarcomC1122
38 entry-level CDMA handsets from 13 suppliers
Sub-US$50
Notes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$50. 2. Only devices shipped in volumes above 10,000 units are shown.
MotorolaC131
LGRD2535
LGRD2670
SamsungS109
KyoceraKX 17
Sub-US$40Sub-US$30
ZTEC160
LG2750
Rose631
Jingpeng101
TCL401
Competition and economies of scales continue to drive down prices
LGRD2650
LGRD2690
LGRD2710
MotorolaW150i
HaierC1000
HuaweiC2205
JingpengC131
JingpengC132
LG2530
LG3330
Legend: Color Screen Handsets
ZTE204
ZTE203
ZTE202
Kimpo761
CDMA2000: Plenty of Affordable Devices now!
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QUALCOMM and LG Expand the Availability of WCDMAGSMA selects LG handset for “3G for All”
• 3G for All program background:– Program to bring 3G multimedia services and Internet
access to the mass-market worldwide– Builds on GSMA EMH program– 12 leading mobile operators across 6 continents and
representing 620 million subscribers voted on winning handset
– LG KU250 chosen as winner, priced at ~30% less than entry-level WCDMA handsets
• 15mm thin, video telephony, 1.3 MP camera, MP3, Bluetooth, removable memory, Internet access
• Uses QUALCOMM UMTS chipset– Expected to provide LG economies of scale in
manufacturing, logistics and marketing
Steering Group ParticipantsCingular Wireless Globe TelecomHutchison 3GKTFMTNOrangeSmartTelecom ItaliaTelefonicaTelenorT-MobileVodafone
LG KU250Winner announced at 3GSM
“We congratulate QUALCOMM on the outcome of the '3G for All' selection process. QUALCOMM has provided enthusiastic support for the GSMA's goals for the program, as well as significant efforts on behalf of their vendor partners, such as LG.”
- Rob Conway, CEO of the GSM Association
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02468
10121416
MobileWiMAX
DOrA DOrB HSDPA UMB
Effective FL Physical Layer Throughput per Sector in 10MHz
Mbp
s
Mbps/sector4,5005MHz
Forward Link Sector Throughput Comparison
Simulation assumptions:• SIMO Full Buffer, Forward Link physical layer performance• 3GPP2 frame work• DV channel model mix• Equalizer gain simulated for DOrA, DOrB and HSDPA• Preliminary: 10MHz TDD 2:1Mobile WiMAX sector throughput is 3Mbps, scaled to 10MHz effective Forward Link• 5MHz FDD carrier for HSPA+ , 2 carriers in 2x10MHz. 1.25MHz FDD carrier for DOrA and DOrB, 7 carriers in 2x10MHz
~4.5 8.96 10.5 10.4 13.8
3G Technologies outperform WiMAX in the mobile environment
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0 10 20 30 40 50 600
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Number of VoIP users
Nor
mal
ized
BE
Sec
tor T
hrug
hput
UMBMobile WiMAX
UMB Provides Significant Advantage in Serving Mixed Traffic (VoIP and Data)
Mobile WiMAX data capacity dropsdramatically as VoIP users increase
Simulation assumptions:SIMO, 2.5GHz
10MHz TDD 2:1
4dB gain differencebetween primary andsecondary MS antennae
Channel model mix- 30% PedB 3kmph- 30% VehB 10kmph- 20% VehA 30kmph- 10 VehA 120kmph- 10% Rician
Number of VoIP Users 0 10 25 40UMB Sector Throughput Advantage over Mobile WiMAX
2x 2.5x 4x 10x
Mobile WiMAX VoIP Outage Capacity*
*source: Outage capacity based on > 12% of users exceeding delay budget of 100 ms
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3G’s Larger Cell Size Means Fewer Sites
0%
200%
400%
600%
800%
1000%
1200%
Urban [%] 100% 97% 117% 111% 308% 583% 976%
Suburban [%] 100% 97% 113% 111% 273% 518% 743%
Rural [%] 100% 97% 109% 111% 259% 504% 642%
DOrA 1900 HSUPA 1900 HSUPA 2100 UMB 2500 UMB TDD 2:1 2500 802.16 TDD 2:1 2500 802.16 TDD 2:1 3500
Number of Cell Sites Required for Mobile ScenarioNumber of Cell Sites Required for Mobile Scenario
Link budget: HSUPA, DOrA and 802.16e (mobile WiMAX) cell edge targeted at ~64kbps data ratePropagation model: Hata model in 800MHz, Cost-Hata model in 1900MHz, 2500MHz and 3500MHz.
WiMAX requires significantly more cell sites than 3G
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3G, Wi-Fi and WiMAX
Technical Performance
Cost & Scale Business Case
Time to Market• 3G data rates and capacities are comparable
to or better than Mobile WiMAX*• 3G leverages existing 2G/2.5G coverage• 3G coverage is better than Wi-Fi & Mobile
WiMAX• 3G supports IP-connectivity, IP core
elements and IP-based services, such as VoIP & PoC
• 3G broadband has at least a 4-year time-to-market advantage over Mobile WiMAX
• Since 2002, hundreds of unique 3G handsets, smartphones, PDAs and PC card have been commercialized
• Leading PC vendors are now embedding 3G technologies into laptop PCs
• 3G technologies lower the cost per bit for core operator services and expand capabilities to include broadband data
• 802.11a/b/g is available today at low price points; 802.11n will offer better performance within the home and enterprise than WiMAX
• Unlike Wi-Fi, the WiMAX market opportunity will require an operator business case; the case for a “data-only” Wi-Fi or WiMAX service has not yet been proven
• 3G high-speed data networks are subsidized by voice revenue
• 3G devices can be purchased for ~$30 in certain markets today*
• 3G equipment and service revenues will be more than 50x greater than WiMAX (2009)**
• 3G is expected to reach more than 960M subs, while WiMAX may reach 32M subs (2009)
* Commercial units shipping to Reliance and Tata in India** Source: Blended forecast: Strategy Analytics (2006), Yankee Group (2006), Gartner (2006), Forward Concepts (2005)
* Given equivalent channel bandwidths, coverage and allocated spectrum
3G has 43G has 4--year timeyear time--toto--market advantage over WiMAX market advantage over WiMAX
23
Conclusions• EV-DO and HSPA technologies are delivering mobile broadband
today!– Established strongly with major commercial investments– Thriving on a robust 3G eco-system and economies of scale– Proven high performance with a strong backward compatibility framework– Providing services with extensive range of devices– Significant time-to-market advantage over competing alternatives
• Mobile WiMAX offers no advantage over DO/HSDPA mobile broadband
• Leveraging on a strong 3G Eco-System, UMB as a highly optimized OFDMA provides ultra fast user experience and maximizes revenues from all segments– UMB and LTE provide more advantages for mobility, capacity, VoIP and real-
time application support with low latency.
• LTE is designed as an optimized OFDMA solution for Mobile Broadband but its commercial realization may be further away
DO & HSDPA are logical mobile broadband choices to an operator today!!
