Mobile BroadbandMobile BroadbandMarket DynamicsMarket Dynamics

October 3, 2007

BV RamanBV RamanCDMA Development GroupCDMA Development Group

2www.cdg.org

It took 2G technologies the better part of a decadedecade to find widespread adoption.*

Over optimism and growing pains are often intrinsic to the process that informs the introduction of any new technology.*

The migration to newer technologies takes longer, and is The migration to newer technologies takes longer, and is never as simple as it may seem.never as simple as it may seem.

Key Lessons LearnedKey Lessons Learned

Migration from 1G to 2G to 3GMigration from 1G to 2G to 3G

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry”, IDC, September 2007

2www.cdg.org

Mobile network operators, like others engaged in network-based enterprises, prefer a graceful evolutionary change to a disruptive

revolutionary change.*

Graceful evolutionary change is preferred Graceful evolutionary change is preferred over disruptive revolutionary change.over disruptive revolutionary change.

Evolutionary ChangeEvolutionary ChangeKey Lessons LearnedKey Lessons Learned

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry,” IDC, September 2007

2www.cdg.org

The coordination endeavor requires an appropriate inclusive arena —usually a standard-setting body — in which industry players can meet

to discuss and resolve their concerns and build consensus in a productive and expeditious manner.*

The process of ensuring compatibility and interoperability The process of ensuring compatibility and interoperability across multiple industries requires efficient standardacross multiple industries requires efficient standard--

setting bodies, network maturity and business setting bodies, network maturity and business predictability.predictability.

Key Lessons LearnedKey Lessons Learned

Compatibility and InteroperabilityCompatibility and Interoperability

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry”, IDC, September 2007

2www.cdg.org

IndiaIndia’’s Targets set by DOTs Targets set by DOT

Telecom Subs Internet Subs Broadband Subs(In Millions) (In Millions) (In Millions)

2005 6 3 2007 250 18 92010 500 40 20

While we are well on the way to achieve our Telecom Subscriber Targets, we are way off the mark on Internet & Broadband Subscribers.

2www.cdg.org

India Internet & Broadband SubscribersIndia Internet & Broadband Subscribers

2.32.11.81.61.30.9

9.38.68.17.76.96.7

0

5

10

Dec'05 Mar'06 Jun'06 Sep'06 Dec'06 Mar'07

Millions

Broadband Subs Internet Subs

2005 2007Targets Broadband 3 Mln. 9 Mln.

Internet 6 Mln. 18 Mln.

2www.cdg.org

Limitations to Internet & Broadband Limitations to Internet & Broadband Penetration in IndiaPenetration in India

Limited Amount of Copper Deployed by Fixed Line Operators Including the incumbents, BSNL & MTNL.

According to TRAI the Maximum number of Subs that can be accomodated is 9 Million.

So What is the Solution?

The Solution is to DEPLOY High Speed networks on diverse competing platforms.

Need a Cogent Technology Agnostic Spectrum Management Policy

Grow the emerging Advance Wireless Systems.

CDMA2000: CDMA2000: Evolution of ServicesEvolution of Services

2www.cdg.org

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 EvolutionWireless Broadband EvolutionCDMA2000 is leading the evolution to next generation mobile broaCDMA2000 is leading the evolution to next generation mobile broadband servicesdband services

2www.cdg.org

CDMA2000 Service EvolutionCDMA2000 Service Evolution

User Trend: Shift from Wired to WirelessEver increasing demand for more and higher quality videoUsers sharing content within a traditional fixed environment (wireless through the home)Place-shifting of content now accessible at all times and places with wireless

Individuals becoming content creatorsHandsets now becoming media generation and storage devicesWireless connection to social networks allows users to express themselves anytime, anywhere

User Generated Content on Social Networks

Same Rich IP Apps and Services in all environmentsSame Rich IP Apps and Services in all environments

2www.cdg.org

EVEV--DO Rev. A: Leading wireless broadbandDO Rev. A: Leading wireless broadbandThe first AllThe first All--IP, lowIP, low--latency, broadband multimedia, multicasting and mobile VoIP latency, broadband multimedia, multicasting and mobile VoIP network to be commercially deployed, with speeds over 3 Mbpsnetwork to be commercially deployed, with speeds over 3 Mbps

Dozens of Rev A networks will be deployed in 2007Dozens of Rev A networks will be deployed in 2007

Logo Not Shown: Broadband Everywhere (Philippines)

Telesystems or Ukraine MTS First Wireless (Nigeria)

Arobase Telecom (Cote d’Ivoire)

Telcel (Venzuela) Bermuda Digital Communications (BDC)

Telefonica O2 (Czech Rep)Skytel (Mongolia)EOCG (Caribbean)

Movilnet (Venzuela)

Mobilkom (Czech Rep)

2www.cdg.org

CDMA2000 AllCDMA2000 All--IP Deployment ScenariosIP Deployment Scenarios

• Centralized or Distributed network configuration• Local Exchange is not required• Cost-effective service even in very remote areas• Efficient usage of bandwidth• Can operate cost effectively over satellite links

Media GatewayPSTN

Media Gateway PSTN

DistributedServer

DistributedServer

Media Gateway PSTN

Ring

Local

Media GatewayPSTN

ChainMedia

GatewayPSTN

Star

A PacketA Packet--based network for unified voice, broadband data, and multimedia based network for unified voice, broadband data, and multimedia servicesservices

Although backhaul of remote RF network elements will remain a significant cost, with fewer sites, an all-IP CDMA2000 solution can significantly reduce the overall system cost.Although backhaul of remote RF network elements will remain a significant cost, with

fewer sites, an all-IP CDMA2000 solution can significantly reduce the overall system cost.

Media Gateway PSTN

CentralizedServer

CentralizedServer

CDMA2000 CDMA2000 Device SelectionDevice Selection

2www.cdg.org

CDMA2000: The Largest Selection of 3G DevicesCDMA2000: The Largest Selection of 3G Devices

Personal Messaging

Mobile Phones

PDAs

EV-DOUSB modems

including469 CDMA2000 1xEV-DO devicesfrom 92 Manufacturers

Over 1700 CDMA2000 devices have been introduced to the marketOver 1700 CDMA2000 devices have been introduced to the market

Fixed Wireless Phones

EV-DO PCexpress

Embedded Modulesfor PC Notebooks

EV-DOPC Cards WorldModeTM

Global RoamingPhones

Entry-levelVoice-centric

Handsets

InteractiveMultimediaCE Devices

EV-DOFixed Wireless

Terminals

Watch TVon a large screen

from your mobile phone

using TV Out cables

TelevisionPhones

2www.cdg.org

DowTelWS-6110

DowTelWS-2100

Aiji SystemsF20

AnyDataAXW-P1900

AxesstelPX110/120/130

AnyDataAWL-200C

Aiji SystemsAP-210

AxesstelP830

HantelHTP-1901 Westech

DTP-810/1910

AxesstelL-450/800/1900

AxesstelAXW-T450/800/1900

CDMA Fixed Wireless DevicesCDMA Fixed Wireless DevicesAcross 450, 800 and 1900 MHz bandsAcross 450, 800 and 1900 MHz bands

HuaweiETS2000

DowTelWS-8000

WestechDTT-810/1910

HuaweiETS1000/1200/1500

HuaweiCP800 1X

LGLSP-3000

LGLSP-340E

HuaweiETS2051

HuaweiETS2077

HuaweiETS2200/2288/2500

HuaweiSYF 005

LGLST-250

LGLST-2500

LGLST-3000

AnyDataAXW-P1900PCO

RWTFCT-CDMA

TelularPhonecell XP4P

TelularPhonecell SX4T

TelularPhonecell SX5P

TelularSX6P-200C

ZTEWF520F

ZTEWP520B/560/920B

ZTEWP960

AnyDataAWR-E100C

KyoceraKR1 Router

EVEV--DODORev. ARev. A

TelularPhonecell SX4e

Cypress SolutionsCTM-140

•• AijiAiji SystemsSystems•• AnyDataAnyData•• AudiovoxAudiovox•• AxesstelAxesstel

•• Samsung designSamsung design

•• HantelHantel•• HuaweiHuawei•• Hyundai Hyundai CuritelCuritel

•• WestechWestech•• DowTelDowTel

•• KisonKison•• KyoceraKyocera•• LGLG•• MotorolaMotorola•• NECNEC•• RWTRWT•• SynertekSynertek

•• Standard TelecomStandard Telecom•• SewonSewon ((MaxomMaxom))

•• TelularTelular•• ZTEZTE

AxesstelMV410*/420/430/440

3G Broadband Gateway

* CDMA450

EVEV--DODORev. ARev. A

LinkSysWireless G

Wi-Fi Router

Note: Above devices are representative samples. This is not an all inclusive list

EVEV--DODORev. ARev. A

Sierra WirelessMP 595 GPS

Ruggedized In-Vehicle Modem

EVEV--DODORev. ARev. A

DigiConnect Port WAN

EVEV--DODORev. ARev. A

Novatel WirelessOvation MCD3000

2www.cdg.org

PantechPX-500

Sierra WirelessAirCard 595

NovatelWireless

Merlin S720

Sierra WirelessAirCard 597E

ToshibaW47T

ToshibaDRAPE

Novatel WirelessExpedite E720

PCI Express Mini Card

Sierra WirelessAirCard 595UUSB Modem

Sierra WirelessMC5725(V)PCI Express

Mini Card

Novatel WirelessOvation MCD3000

CDMA2000 1xEVCDMA2000 1xEV--DO Rev A DevicesDO Rev A Devices26 Rev A devices 26 Rev A devices ––as of May 2007 as of May 2007 -- offer increased data speeds in both directionsoffer increased data speeds in both directions

UTStarcom5800 (HTC Libra)

DigiConnect Port

WAN

LinkSysWireless G

Wi-Fi Router

HuaweiEC 360

AxesstelMV110*/140USB Modem

* CDMA450

AxesstelMV410*/420/430/440

3G Broadband Gateway

Sierra WirelessMP 595 GPS

Ruggedized In-Vehicle Modem

KyoceraKR1 Mobile Router

2www.cdg.org

CDMA2000 CDMA2000 WorldModeWorldModeTMTM DevicesDevicesGlobal roaming enabled with CDMA2000/GSM/GPRS multiGlobal roaming enabled with CDMA2000/GSM/GPRS multi--mode/multimode/multi--band devicesband devices

SamsungSCH-i830(EV-DO)

Yulong TelecomCoolpad 728

SamsungSCH-W379

AmoiCMA8301(EV-DO)

LGEKW-9200(EV-DO)

CDMA2000 1X/EV-DO/GSM/GPRSWorldMode Devices

UTStarcomT66

SamsungSCH-i819

MotorolaA840/A860

SamsungSCH-A790/W109/A795/IP-A790

LGEW810

LGEW800

SamsungSCH-W219

SamsungSCH-W399

CECTC828

HisenseD806

SamsungSCH-W579

DaxianC8000

Yulong TelecomCoolpad C288

ZTEH500

Yulong TelecomCoolpad 728B

Yulong TelecomCoolpad 858T

SamsungSCH-W569

SamsungSCH-W531

SamsungSCH-V920

AmoiV810

(EV-DO)

CDMA2000: CDMA2000: Strong Evolution Path Strong Evolution Path

2www.cdg.org

CDMA2000 Evolution Path

WCDMA Evolution Path

CDMA: TimeCDMA: Time--toto--Market Leadership in 3G and Market Leadership in 3G and beyondbeyond

OFDMCDMA/TDMCDMA

HSPA+Phase 25

HSPA+Phase 15

Rel-6HSUPA

Rel-5HSDPA

Rel-99WCDMA

UMB3

EV-DORev B1

EV-DORev A1

CDMA20001xEV-DO

Rel-7 Rel-8

CDMA20001X

LTE6

DL: 153 kbpsUL: 153 kbps

(1.25 MHz)

DL: 2.4 MbpsUL: 153 kbps

(1.25 MHz)

DL: 3.1 MbpsUL: 1.8 Mbps

(1.25 MHz)

DL: 6.2 – 73.5 Mbps2

UL: 3.6 - 27 Mbps2

(2.5 – 20 MHz)

Requirement:DL: 140 - 291 Mbps4

UL: 34 – 79 Mbps (10 – 20 MHz)

DL: 384 kbpsUL: 384 kbps

(5 MHz)

DL: 1.8 - 7.2 MbpsUL: 384 kbps

(5 MHz)

DL: 1.8-14.4 MbpsUL: 5.72 Mbps

(5 MHz)

Requirement:DL: 150 MbpsUL: 50 Mbps

(20 MHz)

Target:DL: 14 - 42 Mbps

UL: 11 Mbps(5 MHz)

Note: timeline depicts initial commercial availability of each technology. Those introduced beyond 2008 are under standardization and are subject to variability1 EV-DO Rev A and Rev B incorporate OFDM for multicasting.2 Data rates are based on 64 QAM and a 2x20 MHz FDD band allocation and are scalable with the number of carriers assigned. Up to 15 carriers, up to 4.9 Mbps per carrier.3 Multiple modes supported: CDMA, TDM, OFDM, OFDMA, LS-OFDM. New antenna techniques used: 4x4 MIMO and SDMA. Leverages EV-DO protocol stack.4 Data rates are based on 2x20 MHz FDD band allocation and 4x4 MIMO. Data rate depends on the level of mobility. 5 Upper range of DL peak data rates for Release 7 and Release 8 introduce enhancements is based on 64 QAM, 2x2 MIMO.6 Initial requirements are based on OFDMA in the DL and SC-FDMA in the UL, FDD, 64 QAM, 2 TX MIMO in DL, and 16 QAM single TX stream in UL.

VoIP

200620052004200320022001 2007 2008 2009 2010

VoIP

VoIP

OFDM/OFDMA/MIMO/SDMAMIMO

2www.cdg.org

EVEV--DO Rev A: Enhanced Mobile BroadbandDO Rev A: Enhanced Mobile Broadband

Higher broadband data rates3.1 Mbps peak data rate on forward link1.8 Mbps peak data rate on reverse link

Greater symmetry Designed for symmetric trafficImproves user experience for UL intensive applications (sending email, pictures, etc.)

Higher spectral efficiencyIncreased rate quantization on both forward and reverse link enables more efficient use of air link resources1.2 times Rel 0 forward link sector capacity3.4 times Rel 0 reverse link sector capacity

Reduced latencySupport for delay sensitive applications such as VoIP, push-to-talk, video telephony, instant multi-media (IMM), video conferencing, and low-latency network gaming

Optimized Quality of Serivce (QoS) User-based (based on subscription), application-based, and flow-based prioritization

DO Platinum MulticastEconomical delivery of rich content to the mass market. 1.5 Mbps capacity with > 98% coverage

Backward compatibilityContinued support for existing 1X and Rel 0 devices

Higher spectral efficiency, faster data rates, greater symmetry,Higher spectral efficiency, faster data rates, greater symmetry, and lower latencyand lower latency

2www.cdg.org

Aggregates multiple EV-DO channels for higher performanceSoftware upgrade to existing Rev A channel cardsAllows deployment in “hot-zones” with high data demand

Higher broadband data ratesPeak data rates are proportional to the number of carriers aggregated

- 2 RFs = 6.2 Mbps, 3 RFs = 9.3 Mbps

Initial carrier bandwidth is 2.5 MHz (standard supports up 20 MHz)Increased (wider) bandwidth

To support more users per sector or lower cost per megabyteTo encourage longer usage

Network flexibilityAllocation of bandwidth for new devices depends on application and network availability

Higher capacityImproved spectral efficiency on both FL and RL due to multi-carrier transmissionsBetter user experience throughout the cell coverage area

Backward compatibilityCo-existence of 1X, Rev A and B devices in the same network1xEV-DO Rev A channel cards can be utilized

EVEV--DO Rev B: MultiDO Rev B: Multi--carrier Broadbandcarrier BroadbandHigher performance with greater spectrum flexibilityHigher performance with greater spectrum flexibility

2www.cdg.org

Ultra Mobile Broadband (UMB)Ultra Mobile Broadband (UMB)A technological breakthrough in next generation broadband servicA technological breakthrough in next generation broadband serviceses

Combines the best aspects of CDMACDMA,, TDMTDM,, LSLS--OFDMOFDM,, OFDMOFDM, and, and OFDMAOFDMA into a single air interface using sophisticated control and signaling mechanisms and advanced antenna techniques:

Multiple Input Multiple Output (MIMO) and Space Division Multiple Access (SDMA)

Will deliver ultra-high mobile broadband performance*:Forward link: up to 291 Mbpsup to 291 MbpsReverse link: up to 79 Mbpsup to 79 MbpsAverage network latency: 16.8 msec16.8 msecVoice over IP (VoIP): up to 500 simultaneous usersup to 500 simultaneous users

Will enable the convergence of IP-based voice, broadband data, multimedia, information technology, entertainment and consumer electronic services

Commercial availability is expected in early 2009early 2009*Based on 2x20 MHz FDD band allocation and 4x4 MIMO. Latency is based on a 32-byte Return Trip Transmission (RTT).VoIP capacity is dependent upon the feature set enabled and network load.

CDMA2000 CDMA2000 Performance Performance

2www.cdg.org

Site Count Comparison By TechnologySite Count Comparison By TechnologyCDMA2000 requires the least number of cell sites for rural markeCDMA2000 requires the least number of cell sites for rural marketsts

Assumptions:1. Coverage area = 1,000 sq. km.2. Subscriber density = 31 Subs/sq. km3. Available spectrum = 5 MHz4. Average voice traffic per sub = 200 MoU/month5. Average data traffic per sub = 5 Mb/month6. Wireless penetration = 50%, Carrier market share = 25%7. Voice usage = 100%, Voice BH = 10%8. Data usage = 100%, Data BH = 12%9. Simultaneous Calls/Sector/Carrier: EV-DO = 44, 1X = 35, GSM/EDGE = 6, WCDMA/HSDPA = 60, WiMAX = 2510. Physical Layer FL data throughput (kbps): EV-DO = 1280, 1X = 350, GSM/EDGE = 86, WCDMA/HSDPA = 3600, WiMAX = 2300

133133

2222

EV-DO Rev. A(VoIP)

@ 800 MHz

6666

WCDMA/HSDPA@2100 MHz

WiMAX@2500 MHz

7575

GSM/EDGE@900 MHz

Source: QUALCOMM, March 2007

2727

CDMA 1X@ 800 MHz

(Capacity Limited)

1515

EV-DO Rev. A(VoIP)

@ 450 MHz

2www.cdg.org

CDMA2000 Enables Lowers TariffsCDMA2000 Enables Lowers TariffsCDMA2000 1X and EVCDMA2000 1X and EV--DO enables the lowest cost per bit and ErlangDO 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 ExpenseCombined Voice and Data Network Expense(500 Minutes of Use)(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

2www.cdg.org

$0$5

$10$15$20$25$30$35$40$45

2004 2005 2006 2007 2008 2009 2010 2011

GSM/GPRS/EDGE CDMA2000

Source: Strategy Analytics, September 2006

Data Usage drives higher CDMA ARPUfor Leading Wireless Technologies

Worldwide Average Revenue Per User (ARPU)Worldwide Average Revenue Per User (ARPU)CDMA2000 will sustain the highest average revenue per user on a CDMA2000 will sustain the highest average revenue per user on a global basisglobal basis

ARPU(USD)

2www.cdg.org

Korea: CDMA2000 1xEVKorea: CDMA2000 1xEV--DO Outpaces DO Outpaces WiBROWiBROWhen given a choice, Korean endWhen given a choice, Korean end--users chose 1xEVusers chose 1xEV--DO over DO over WiBROWiBRO

Q3 and Q4 2006 subscriber net addition totals: 1,057 WiBRO subscribers since WiBRO’s commercial launch in 2006 (KT and SKT)

1.8 million EV-DO subscribers (KTF and SKT) Total WiBRO roll-out costs: W620 billion

- SKT spent ~W170 billion

- KT spent ~W450 billion

- Only available in select “zones” of the Seoul metro area

Total EV-DO roll-out costs: W300 billion- SKT spent ~W200 billion (26 cities)

- KTF spent ~W100 billion (6 cities - ~80% POPs coverage)

- EV-DO had close to nationwide coverage when launched

EV-DO cost less to roll-out over a larger area

0

500,000

1,000,000

1,500,000

2,000,000

WiBRO EV-DO

South Korean Wireless Broadband Subscriber Growth (Q3 & Q4 2006)

Source: Wireless Intelligence (1xEV-DO subscribers), media sources (WiBro subscribers, WiBro & EV-DO roll-out expenditures)

2www.cdg.org

ConclusionConclusionCDMA2000 offers affordable telephony, Internet and multimedia access to

large coverage areas that have a low population density

Rural Services: CDMA2000 addresses India’s national objectives by increasing telephony, Internet penetration, enterprise productivity, and improving vital services such as:- Telemedicine, remote learning, public safety, asset management, emergency

and disaster relief, national security, telemetry, transportation and utility services, agriculture, tourism, etc.

Coverage: CDMA2000 enables the largest coverage area using the lower 450 and 800 MHz frequency bands and extended base station coverage solutions.

Network Costs: The spectral efficiency of CDMA2000 and its All-IP architecture reduces the Total Cost of Ownership (TCO) of a network, improves performance and enables faster deployments.

Entry-level Devices: A large selection of entry-level CDMA2000 handsets are currently available. Entry level CDMA devices now well below US$30.

2www.cdg.org

Conclusion (Cont.)Conclusion (Cont.)

CDMA2000 has been widely deployed in emerging and rural marketsworldwide

Universal service: CDMA2000 is bridging the digital divide by providing affordable telephony and Internet access to some of the most remote places on earth.

Flexibility and Scalability: CDMA2000 has enabled operators to address both sparsely populated rural areas and densely populated urban areas, equally well.

Regulatory Environment: India needs a Technology Agnostic Spectrum Management Policy to enable continued economic development.

Thank YouThank You