Low Cost Mobile Broadband Access

                Dr. Ravi Kalavakunta
                 Director, Marketing
Wireless Broadband Evolution




      Network Evolution                Mobile Device Evolution             Service Evolut...
Wireless Evolution:
  The Right Technology for the Right Application
                                                     ...
A Well Established Mobile Broadband Evolution Path

                                                                      ...
A Well Established Mobile Broadband Evolution Path

                                                                      ...
Mobile Broadband Today!!

1 Billion People Have Access to over 177 3G Mobile Broadband Networks
Over 57 Million Mobile Bro...
Leverage From 3G Device Partnerships
                   400+ EV-DO devices / 30 vendors; 200+ UMTS devices / 26 vendors


...
3G Embedded Laptops with Mobile Broadband Today

    74 models from 10 vendors – provide either EV-DO or HSPA mobile broad...
3G Offers a Wide Range of Services




All trademarks, names of other companies, logos, products and services are the prop...
Cost per Megabyte Comparison
  CDMA2000 networks support the most affordable delivery of bits




                1xEV-DO ...
Total Cost of Ownership Advantage
CDMA Economies f scale and superior performance create significant economic advantage

 ...
3G Enables Lower Tariffs
  CDMA2000 1X and EV-DO enables the lowest cost per bit and Erlang



                           ...
3G Building Economies of Scale
Cost of 3G Devices Declining as Scale Increases

                     WCDMA & CDMA2000 Worl...
Lowering the Cost of CDMA2000 Handsets



   $120




           $87                     $83
                       $82
  ...
Lowering the Cost of WCDMA (UMTS) Handsets


    $500

           $436
               $412
                      $407
    ...
3G CDMA Lowers Device Costs
The Average Selling Price (ASP) for 3G handsets is becoming more competitive


              W...
CDMA2000: Plenty of Affordable Devices now!
  Competition and economies of scales continue to drive down prices


        ...
QUALCOMM and LG Expand the Availability of WCDMA
GSMA selects LG handset for “3G for All”


       “We congratulate QUALCO...
3G Technologies outperform WiMAX in the mobile
environment

Forward Link Sector Throughput Comparison

                   ...
UMB Provides Significant Advantage in Serving
Mixed Traffic (VoIP and Data)
                                              ...
3G’s Larger Cell Size Means Fewer Sites
      1200%


                              Number of Cell Sites Required for Mobi...
3G, Wi-Fi and WiMAX
 3G has 4-year time-to-market advantage over WiMAX
               Technical Performance               ...
Conclusions
• EV-DO and HSPA technologies are delivering mobile broadband
  today!
   –   Established strongly with major ...
Thank You


  Email: ravik@qualcomm.com
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Low Cost Mobile Broadband Access

  1. 1. Low Cost Mobile Broadband Access Dr. Ravi Kalavakunta Director, Marketing
  2. 2. Wireless Broadband Evolution Network Evolution Mobile Device Evolution Service Evolution • All-IP Network For Fixed-Mobile • Convergence of Communication, • User Behaviors Trend Convergence (VoIP & data) Computing & CE Platforms from Wired to Wireless • Co-existence of Different Access • Multi-mode Devices Connect • Same Rich IP Apps and Networks for Various Needs to Various Access Networks Services in all Environments –Coverage, Mobility, Capacity, –Service Requirements, –Ubiquitous & Consistent QoS, Data Rates … Availability, Cost … Experience Desired 2
  3. 3. Wireless Evolution: The Right Technology for the Right Application CDMA CDMA/TDM OFDM OFDMA CDMA2000 EV-DO EV-DO EV-DO 1X REL 0 REV A REV B Rev 0 Rev 1 UMB1 FLASH-OFDM FLASH-OFDM (Pre- UMB) Mobile WAN Rel-99 Rel-5 (HSDPA) Rel-6 (HSUPA) Rel-7 (Ph 1) Rel-8 (Ph 2) Technologies WCDMA HSPA HSPA + LTE EV-DO EV-DO GOLD Platinum Multicast Wide-Area Multicast WCDMA Technologies MBMS FLO/DVB-H Local-Area Technologies 802.11b 802.11a/g 802.11n 802.11 n (Full) 1999 2006 2007 2008 2009 2010 + 1-UMB (Ultra Mobile Broadband), previously referred to as Rev C LBC 3
  4. 4. A Well Established Mobile Broadband Evolution Path CDMA CDMA/TDM OFDM OFDMA – Broadband uploads – Low Latency – All-IP Services – Advanced QoS – Multi-Carrier Rev A – Broadband – VoIP, PTT an d VT – Lower delays and higher data rates downloads – OFDM Multicast – Software Upgrade CDMA2000 EV-DO EV-DO EV-DO 1X REL 0 REV A REV B DL: 2.4 Mbps peak DL: 3.1 Mbps peak DL: 6.2 – 73.5 Mbps peak2 UL: 153 kbps peak UL: 1.8 Mbps peak UL: 3.6 – 27 Mbps peak 2 DL: 3.0 Mbps peak DL: 5.3 Mbps peak DL: up to 288 Mbps peak3 UL: 900 kbps peak UL: 1.8 Mbps peak UL: up to 75 Mbps peak3 Rev 0 Rev 1 UMB1 FLASH-OFDM FLASH-OFDM (Pre- UMB) – Optimized OFDMA – K=3 frequency re-use – Highly optimized OFDMA Solution solution – VoIP – All-IP Services – 5-20 MHz carrier bandwidth4 – VoIP – FDD & TDD5 Modes 1 – UMB (Ultra Mobile Broadband) - Previously referred to as Rev C LBC – MIMO & SDMA Support 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 1999 2006 2007 2008 2009 2010 + 4
  5. 5. A Well Established Mobile Broadband Evolution Path CDMA CDMA/TDM OFDMA – Broadband uploads – Reduced end to end delay – Enhanced capacity for real- – All-IP Services – Real-time services (VoIP, time services (ie VoIP…) – Broadband packet VT, PTT) – MIMO downloads – Multicast (MBMS) – Backward compatibility Rel-99 Rel-5 (HSDPA) Rel-6 (HSUPA) Rel-7 (Ph 1) Rel-8 (Ph 2) WCDMA HSPA HSPA + DL: 384 kbps peak DL: 1.8-14.4 Mbps peak1 DL: 1.8-14.4 Mbps peak1 DL: 14-42 Mbps peak2 UL: 384 kbps peak UL: 384 kbps peak UL: 5.72 Mbps peak UL: 11 Mbps peak DL: up to 278 Mbps peak3 UL: up to 85 Mbps peak3 LTE 1 – 14.4 Mbps supported in standard, incremental product release expected – OFDMA in DL 2 – Upper range for DL peak rates includes 64 QAM and 2x2 MIMO (Rel 8) – SC-FDMA in UL – Flexible carrier bandwidths up 3 – 20 MHz, FDD, 64-QAM, 4x4 MIMO in DL and 64 QAM, 1 TX in UL. to 20MHz4 4 – 1.25 MHz option also expected to be in the standard – Common FDD & TDD modes – Higher order MIMO/SDMA 1999 2006 2007 2008 2009 2010 + 5
  6. 6. Mobile Broadband Today!! 1 Billion People Have Access to over 177 3G Mobile Broadband Networks Over 57 Million Mobile Broadband Subscribers EV-DO HSDPA EV-DO + HSDPA DO & DOrA HSDPA – 146 operators committed to DO & DOrA – 165 operators committed to HSDPA in 77 countries – 67 commercially available networks in 44 countries – 110 commercially available networks in 57 countries – 30+ vendors launched over 465 DO/DOrA devices – 62 suppliers launched over 254 HSDPA devices – 55+ Million subscribers; 50 embedded notebooks – 104 handsets, 54 datacards and 43 embedded notebooks – DO &/DOrA Mobile Broadband Data Rates: – HSDPA Mobile Broadband Data Rates: • DO Networks delivering DL data rates of 0.6 – 1 Mb/s • Most networks delivering avg of 0.6 – 1.5Mb/s • DOrA Networks Peak Data Rates of 3.1/1.8 Mbps • Peak DL data rates of 3.6Mb/s, 7.2 Mb/s and 14.4 Mb/s Sources: CDMA Development Group (cdg.org), GSMA (gsmworld.com), GSA (gsacom.com) and Informa 6
  7. 7. Leverage From 3G Device Partnerships 400+ EV-DO devices / 30 vendors; 200+ UMTS devices / 26 vendors Samsung SCH-A990 Motorola Q Samsung V740 Sierra WirelessAirCard Samsung SCH-i830 HP Compaq nc6400 Toshiba W41T LG VX8500 3.2 Megapixel Camera, Windows Mobile 5 14mm thin, 1.3MP USB EV-DO modem Windows Mobile 2003, Embedded 1xEV-DO 4GB Hard Disk Drive V-Cast - Streaming Video, TV Out Smartphone Edition Camera WorldMode 3DGames, MP3 Player, MicroSD LG KV3600 Axesstel D800A Casio W21CA Kyocera Axesstel MV420 LG CU500 Sony-Ericsson W900i Fujitsu Lifebook Q2010 Enhanced 3D Gaming EV-DO, RJ-11 Voice 2.6 inch WQVGA, Rx diversity EV-DO, 80211 b/g & HSDPA, Bluetooth MP3 Player, Walkman Embedded HSDPA Graphics Calls and FAX 2 MP Camera Ethernet Router, Motorola E1120 Sanyo SA700iS Franklin Wireless NEC N902iS Samsung P920 Sharp 703SH ONDA N501HS 3 Megapixel, 2.2” QVGA, miniSD CDU-550 4 Megapixel, Camcorder, Video Conferencing, Macromedia Flash, WCDMA / HSDPA Barcode Scanner GPS, Video Conferencing USB Modem Barcode Scanner, GPS, MP3, MP3, Bluetooth, USB Bilingual menus 21 grams, EV-DO removable miniSD Source: www.3Gtoday.com All trademarks, names of other companies, logos, products and services may be the property of their respective owners 7
  8. 8. 3G Embedded Laptops with Mobile Broadband Today 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 8
  9. 9. 3G Offers a Wide Range of Services All trademarks, names of other companies, logos, products and services are the property of their respective owners 9
  10. 10. Cost per Megabyte Comparison CDMA2000 networks support the most affordable delivery of bits 1xEV-DO 1X WCDMA EDGE GPRS $0.02 $0.06 $0.07 0.11 $0.42 Spectral efficiency affects cost Cost = “Greenfield” Network Operations Expenses + Depreciation on Capital Affordable and evolutionary mobile broadband technologies are Affordable and evolutionary mobile broadband technologies are enabling the mass market adoption of mobile multimedia services enabling the mass market adoption of mobile multimedia services Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdf Assumptions: 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 10
  11. 11. Total Cost of Ownership Advantage CDMA Economies f scale and superior performance create significant economic 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 1 2 High Minutes of Usage Higher Subscriber Growth 18% lower TCO 23% lower TCO Break even Break even in Year 2 in Year 0 1 Subscriber base growing from 750K in Year 1 to 9 million in Year 10 2 Subscriber base growing from 900K in Year 1 to 15.3 million in Year 10 11
  12. 12. 3G Enables Lower Tariffs CDMA2000 1X and EV-DO enables the lowest cost per bit and Erlang Combined Voice and Data Network Expense USD (500 Minutes of Use) $25.00 GSM/GPRS Network Expense/User/Month $22.50 EDGE WCDMA $20.00 1X 1X / EV-DO Rel. 0 $17.50 $15.00 The Lower $12.50 the better! $10.00 $7.50 $5.00 $2.50 $0.00 10 20 30 40 50 60 70 80 90 100 Megabytes per User Operators prefer network technologies that are affordable and evolutionary Operators prefer network technologies that are affordable and evolutionary Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdf Assumptions: 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 12
  13. 13. 3G Building Economies of Scale Cost of 3G Devices Declining as Scale Increases WCDMA & CDMA2000 Worldwide Handset Shipments (Millions) 700 58%* 600 500 400 650 300 578 22%* 466 200 350 272 100 194 0 2005 2006 2007 2008 2009 2010 • Percentage of total handset shipments Source: Average of Gartner Group (July 2006), Signals Research (July 2006) and Yankee Group (September 2006) handset forecasts 13
  14. 14. Lowering the Cost of CDMA2000 Handsets $120 $87 $83 $82 $77 $77 $69 $70 $68 $68 $70 $59 $57 $55 $55 $50 $51 $49 $49 $48 $43 $42 $41 $35 $37$35 $35 $24 $20 2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 Lowest 10% Lowest end Note: CDMA2000 Phones Sold per Calendar Quarter; lowest end represents complete phones sold in quantities of approx 150,000 units or higher Note: Data derived from licensee reports. Does not include modules. Source: QUALCOMM Incorporated 14
  15. 15. Lowering the Cost of WCDMA (UMTS) Handsets $500 $436 $412 $407 $400 $367 $341 $311 $290 $290 $295 $300 $287 $272 $270 $270 $254 $228 $231 $217 $221 $197 $198 $195 $200 $141 $141 $129 $128 $128 $100 2003Q4 2004Q1 2004Q2 2004Q3 2004Q4 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 Lowest 10% Lowest end Note: WCDMA Phones Sold per Calendar Quarter; lowest end represents complete phones sold in quantities of approx 50,000 units or higher Note: Data derived from licensee reports. Does not include modules. Source: QUALCOMM Incorporated 15
  16. 16. 3G CDMA Lowers Device Costs The Average Selling Price (ASP) for 3G handsets is becoming more competitive WCDMA Handset ASP Forecast CDMA2000 1X/EV-DO Handset ASP Forecast US$83 in 2009 US$33 in 2008 US$50 CDMA2000 handsets are reaching price parity with 2G handsets Yet, they provide the user with more value Source: Michael W. Thelander Signals Research Group, LLC, 2006 16
  17. 17. CDMA2000: Plenty of Affordable Devices now! Competition and economies of scales continue to drive down prices Sub-US$30 Sub-US$40 Sub-US$50 ZTE Jingpeng Motorola Rose Haier Haier Huawei Huawei Jingpeng Jingpeng Jingpeng Kyocera C160 101 W150i 631 C1000 D1000 C218 C2205 Spektra 101 C131 C132 K112 Kimpo LG LG LG LG Motorola Nokia Motorola Samsung Samsung 761 RD2330 2530 RD2670 3330 C210 1255 C131 N500 N 380 BREW-enabled low-end phones BREW- low- ZTE ZTE LG ZTE TCL LG LG LG Kyocera LG LG LG LG LG Samsung UTStarcom ZTE ZTE 202 203 2750 204 401 RD2650 RD2690 RD2710 KX 17 RD2340 RD2430 RD2530 RD2535 RD2630 S109 C1122 C133 C150 38 entry-level CDMA handsets from 13 suppliers Notes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$50. Legend: Color Screen Handsets 2. Only devices shipped in volumes above 10,000 units are shown. 17
  18. 18. QUALCOMM and LG Expand the Availability of WCDMA GSMA selects LG handset for “3G for All” “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 • 3G for All program background: – Program to bring 3G multimedia services and Internet LG KU250 access to the mass-market worldwide Winner announced at 3GSM – Builds on GSMA EMH program – 12 leading mobile operators across 6 continents and Steering Group Participants representing 620 million subscribers voted on winning Cingular Wireless Globe Telecom handset Hutchison 3G – LG KU250 chosen as winner, priced at ~30% less than KTF entry-level WCDMA handsets MTN • 15mm thin, video telephony, 1.3 MP camera, MP3, Orange Bluetooth, removable memory, Internet access Smart • Uses QUALCOMM UMTS chipset Telecom Italia – Expected to provide LG economies of scale in Telefonica Telenor manufacturing, logistics and marketing T-Mobile Vodafone 18
  19. 19. 3G Technologies outperform WiMAX in the mobile environment Forward Link Sector Throughput Comparison Effective FL Physical Layer Throughput per Sector in 10MHz 16 14 12 10 Mbps 8 6 4 2 0 Mobile DOrA DOrB HSDPA UMB WiMAX 4,500 Mbps/sector ~4.5 8.96 10.5 10.4 13.8 5MHz 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 19
  20. 20. UMB Provides Significant Advantage in Serving Mixed Traffic (VoIP and Data) 2 1.8 1.6 Normalized BE Sector Thrughput 1.4 Simulation assumptions: 1.2 SIMO, 2.5GHz UMB 10MHz TDD 2:1 1 Mobile WiMAX 4dB gain difference between primary and 0.8 secondary MS antennae Mobile WiMAX VoIP Channel model mix 0.6 - 30% PedB 3kmph Outage Capacity* - 30% VehB 10kmph - 20% VehA 30kmph 0.4 - 10 VehA 120kmph *source: - 10% Rician Outage capacity based on > 0.2 12% of users exceeding delay 0 budget of 100 ms 0 10 20 30 40 50 60 Number of VoIP users Number of VoIP Users 0 10 25 40 UMB Sector Throughput 2x 2.5x 4x 10x Advantage over Mobile WiMAX Mobile WiMAX data capacity drops dramatically as VoIP users increase 20
  21. 21. 3G’s Larger Cell Size Means Fewer Sites 1200% Number of Cell Sites Required for Mobile Scenario 1000% 800% 600% 400% 200% 0% 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 Urban [%] 100% 97% 117% 111% 308% 583% 976% Suburban [%] 100% 97% 113% 111% 273% 518% 743% Rural [%] 100% 97% 109% 111% 259% 504% 642% Link budget: HSUPA, DOrA and 802.16e (mobile WiMAX) cell edge targeted at ~64kbps data rate Propagation model: Hata model in 800MHz, Cost-Hata model in 1900MHz, 2500MHz and 3500MHz. WiMAX requires significantly more cell sites than 3G 21
  22. 22. 3G, Wi-Fi and WiMAX 3G has 4-year time-to-market advantage over WiMAX Technical Performance Time to Market • 3G data rates and capacities are comparable • 3G broadband has at least a 4-year time-to- to or better than Mobile WiMAX* market advantage over Mobile WiMAX • 3G leverages existing 2G/2.5G coverage • Since 2002, hundreds of unique 3G handsets, • 3G coverage is better than Wi-Fi & Mobile smartphones, PDAs and PC card have been WiMAX commercialized • 3G supports IP-connectivity, IP core • Leading PC vendors are now embedding 3G elements and IP-based services, such as technologies into laptop PCs VoIP & PoC * Given equivalent channel bandwidths, coverage and allocated spectrum Cost & Scale Business Case • 3G high-speed data networks are subsidized • 3G technologies lower the cost per bit for core by voice revenue operator services and expand capabilities to • 3G devices can be purchased for ~$30 in include broadband data certain markets today* • 802.11a/b/g is available today at low price points; • 3G equipment and service revenues will be 802.11n will offer better performance within the more than 50x greater than WiMAX (2009)** home and enterprise than WiMAX • 3G is expected to reach more than 960M subs, • Unlike Wi-Fi, the WiMAX market opportunity will while WiMAX may reach 32M subs (2009) require an operator business case; the case for a “data-only” Wi-Fi or WiMAX service has not yet * Commercial units shipping to Reliance and Tata in India been proven ** Source: Blended forecast: Strategy Analytics (2006), Yankee Group (2006), Gartner (2006), Forward Concepts (2005) 22
  23. 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!! 23
  24. 24. Thank You Email: ravik@qualcomm.com
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