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Wireless Broadband USA
 

Wireless Broadband USA

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  • In this report, a flexible definition is used for Wireless Broadband (or Mobile Broadband, or Wireless Internet Access). These terms refer to either 2G, 2.5G, 3G mobile (cellular, Personal Communication System, 2G, 2.5, 3G) or other wireless technologies (Wi-Fi, WiMAX, WiBRO, or 4G) for high bandwidth wireless access to Internet/Data services. In some cases, the term is used in a more narrow sense to indicate either of the categories.
  • Source: U.S. Census Bureau, 2004
  • Source: TIA, U.S. Wireless Market to Reach $212.5 Billion by 2008. TIA Press Release Feb. 2, 2005. Available at www.tiaonline.org WiMAX stands for Worldwide Interoperability for Microwave Access. Note: “The U.S. wireless market consists of transport services, handsets, capital expenditures and infrastructure equipment including Wi-Fi® equipment plus the emerging market for broadband access (e.g., WiMAX™) equipment and professional services in support of the wireless infrastructure.” Press Release 02.10.2005, TIA.
  • Source: Brosnan Gerard, Trends in the Mobile Data Services Market, p. 5. Mitrek, 2005. Available at www.mitrek.org. (ITU, Gartner, CTIA) Series blue: Wireless internet users, red: total wireless subscribers. In this graph, the term Wireless Internet refers to the number of users accessing Internet using cellular (2G, 2.5G, 3G) and personal communications (PCS) technologies. There is a lot of activity in the U.S. markets among existing service providers, as well as new entrants, to leverage the opportunity of Wireless Internet. Penetration of wireless communications increases steadily, and carriers have to be strong in competing about customers. New users are being attracted by flat fee Wireless Internet, entertainment, messaging and business services, among others. Wireless technologies augment the mobile connectivity in situations where it is more economical to use wireless (cost), or more practical (coverage).
  • Source: Brosnan Gerard, Trends in the Mobile Data Services Market, p. 5. Mitrek, 2005. Available at www.mitrek.org. (ITU, Gartner, CTIA). The figure shows an estimate that wireless data services revenues in the USA grow approximately by 42% annually. Availability of new services for bersonal and business use increases adoption of wireless data services. Increased competition causes costs of basic offerings go down while new niche applications and services are made available, which in turn attracts more customers.
  • Source: Data from carriers. Please note that data from Sprint Nextel is from 3Q05, as this was the first quarterly update of Sprint together with Nextel, post-merger. The five largest U.S. cellular providers are Cingular, Verizon, SprintNextel, T-Mobile USA and Alltel. Acquisitions and mergers have been seen during the last years, changing the wireless ecosystem significantly. Cingular Wireless became the largest carrier in the USA after acquiring AT&T Wireless in 2004. Cingular reported 51.596 million Cellular/PCS subscribers end of 2Q05. Source: Cingular Investor Relations, 2005 Verizon Wireless is a joint venture of Verizon Communications and Vodafone. Verizon Wireless reported 47.4 million users end of 2Q05. Source: Verizon Wireless Investor Relations, 2005. Sprint and Nextel communications merged during 2005. Sprint Nextel reported in in 8/2005 having altogether over 44 million users. Source: Sprint Nextel completes Merger, News Release 8/2005, www2.sprint.com. In Q305, the official number reported in Quarterly update was 45.6 million. T-Mobile USA (Formerly Voicestream) is a subsidiary of Deutche Telekom as a result of acquisition in 2001. In 2Q2005 T-Mobile USA reported 19,243 subscribers. Source: T-Mobile USA Financial Releases. Alltel corporation completed merger with Western Wireless during 2005. Alltel reports having over 10.5 million customers. Source: Alltel Fact Sheet, 2005
  • Sources: Company websites, viewed September 2005: Cingular www.cingular.com Verizon Communications, www.verizon.com Sprint Nextel, www.sprint.com T-Mobile USA, www.tmobile.com Alltel, www.alltel.com Please note that data from Sprint Nextel is based in 3Q 2005 quarterly report, as this was the first quarterly update of Sprint together with Nextel, post-merger.
  • Source: Telephia, The Mobile Internet Report. Telephia Press Release, 2005. The entertainment category includes movies, music, online magazines, celebrity news, horoscopes, and tarot reading Web sites. Games and Sports are tracked in two separate categories. Search URLs are broken out separately from the portals category (e.g., search.yahoo.com vs. www.yahoo.com).
  • Sources: Cingular Wireless www.cingular.com T-Mobiel www.tmobile.com Verizon Wireless www.verizonwireless.com Sprint Nextel www2.sprint.com Alltel www.alltel.com GSM (Global System for Mobile Communications) GPRS (General Pacet Radio Service) EDGE (Enhanced Data rates for GSM Evolution) CDMA (Code Division for Multiple Access) CDMA2000 (3G CDMA) AMPS (Advanced Mobile Phone System) 1xRTT (Radio Transmission Technology for CDMA2000) EV-DO (Evolution Data Optimized) W-CDMA (Wideband CDMA) UMTS (Universal Mobile Telephone System) iDEN (Integrated Digital Enhanced Network) HSDPA (High Speed Downlink Data Packet Access)
  • Sources: Cingular Wireless www.cingular.com
  • Source: Cingular Wireless www.cingular.com Data services continued its strong growth in the second quarter, increasing more than 12 percent to $4.16 compared to $3.70 in the first quarter of this year. This growth continued to be spurred bythe increasing popularity of text messaging, mobile instant messaging, mobile e-mail, downloadable ringtones, games, photo messaging and media bundles. Cingular delivered 5 billion text messages during the quarter. During 2Q05, Cingular's Business Markets Group introduced several new products andservices. These included: the Sony VAIO(R), the first widelyavailable notebook PC with integrated high-speed wireless wide area network (WAN) technology; Good Technology's GoodLink(TM) wireless messaging and data access software and service; and two new flagship offers, Cingular Corporate Digital Advantage and Cingular BusinessEdge, which are targeted to large and small businesses, respectively. Cingular Wireless is the largest wireless carrier in the United States,serving 51.6 million customers. Cingular, a joint venture between SBCCommunications Inc. (NYSE: SBC) and BellSouth Corporation (NYSE: BLS), has the largest digital voice and data network in the nation -- the ALLOVER(SM)network - and the largest mobile-to-mobile community of any national wireless carrier.
  • Source: Verizon Communications www.verizon.com
  • Source: Verizon Communications www.verizon.com Data services revenue for the second quarter 2005 climbed to 7.0 percent of service revenues, contributing $483 million, as sales of high-speed and broadband 3G (third-generation) data services to businesses and consumers exceed company expectations.  The company now has more than 19 million data customers -- a 50 percent increase compared with a year ago. The company is ahead of plan with the $1 billion national buildout by year-end of its 3G EV-DO (Evolution-Data Optimized) wireless broadband network.  During the second quarter, the company expanded broadband to now include more than 50 major metropolitan markets and surrounding areas, as well as 57 airports nationwide.  This network, the largest wireless broadband network in the U.S., currently reaches one-third of the population and is expected to be available to nearly half the population by year-end. Contributing to the company’s data revenue growth, a new BroadbandAccess PC Card and a new Pocket PC were introduced, giving business customers additional choices for accessing the Verizon Wireless broadband network.  The company launched new pricing that combines unlimited data use from a PDA, BlackBerry or Smartphone bundled with voice calling minutes.  The company also launched behind-the-corporate-firewall software for use with NationalAccess and BroadbandAccess services, allowing access to business-critical data and applications when out of the office. For consumers, the company continued to add handsets and video from leading content providers for its exclusive broadband service V CAST, the nation’s first 3G consumer multimedia service, which delivers high-quality video, movies, 3D games and music clips to 3G handsets.  Popularity of the company’s Get It Now continued to soar with 4.6 billion text messages and 62 million picture and video messages exchanged during the second quarter 2005, and 36 million downloads of games, exclusive content, ringtones and ringback tones, which replace the standard ring callers hear while waiting for their call to be answered.
  • Source: Sprint, Investor Update 2Q 2005 p3, and Sprint, Investor Update 3Q 2005. Available at www.sprint.com PCS (Personal Communications Service)
  • Source: Sprint Nextel www.sprint.com Note: The data is based on the first quarterly update of Sprint together with Nextel, post merger, third quarter 2005. Sprint has launched its new EV-DO (Evolution Data Optimized) services in initial markets and expects to extend this service to approximately half the U.S. population by early 2006. This new high-speed data service is expected to fuel additional growth in Sprint's array of wireless data services for businesses and consumers. Approximately 40% of the year-to-date capital spending in Wireless is associated with EV-DO. Sprint also expanded Wi-Fi hotspots in the quarter to more than 19,000 and announced separate agreements with Intel and Motorola to advance development of broadband wireless technology. Second quarter wireless data revenues increased 64% year-over-year, and 9% sequentially. At the end of the quarter, there were 8.1 million data subscribers including 7.0 million Sprint PCS VisionSM subscribers. For the quarter, data revenues contributed nearly $6.50 to the average revenue per unit (ARPU). ARPU was $62 during 2Q05.
  • Sources: T-Mobile www.t-mobile.com
  • Source: T-Mobile www.t-mobile.com Average Revenue Per User (“ARPU,“ as defined in the footnotes to the Selected Data, below) was $54 in the second quarter of 2005, the same as in the first quarter of 2005 and slightly down from $55 in the second quarter of 2004. Data services revenue growth continued in the second quarter, and now represents 8.2% of postpay ARPU, compared to 7.6% in the first quarter of 2005 and 5.0% in the second quarter of 2004. A key factor in data services revenue growth in the second quarter was a net increase of 92,000 BlackBerry customers during the quarter, bringing the total number of BlackBerry users to 594,000.
  • Total number of subscribers is 10.5 million Acquired Western Wireless in Jan 2005, becoming the fifth largest U.S. wireless operator, with customers in 33 states Operates networks with CDMA, AMPS technologies Launched 1x EV-DO in March 2005 in three markets, targeting primarily enterprises, in Ohio, Cleveland and Florida. Planning to expand the service so it covers 6 to 10 markets by year-end EV-DO available for about $70/mo Roaming agreement primarily with Verizon Wireless
  • Source: Alltel www.alltel.com Average revenue per wireless customer was $50.55, a 6 percent increase year-over-year and the highest average rerenue per unit (ARPU) in 5 years, driven by improvements in data revenue and quality customer growth.
  • The U.S. service providers offer two main cellular technologies, CDMA based and GSM based technologies. 3G is already deployed, and enhancements are expected.
  • Sources: CDG, America´s CDMA Subscribers Reached 150 Million in Q2 2005. CDA, Sep. 8, 2005. Available at www.cdg.org Marek Sue, Smaller Operators Mull 3G Upgrade. Wireless Week, Apr. 15, 2005. Available at www.wirelessweek.com Cingular’s and T-Mobile’s plans for HSDPA bring the available speeds for consumers to the same level or even higher than those of the EV-DO networks of SprintNextel and Verizon. This brings an interesting new competitive factor to the 3G markets, making it more important for all service providers to look for innovative ways to attract and retain customers, to differentiate their offering. T-Mobile will deploy upgraded UMTS/HSDPA, upgrading directly from GPRS/EDGE networks In addition to cellular data services, T-Mobile has the advantage of offering Wi-Fi Hot Spot services.
  • Sources: CDG, America´s CDMA Subscribers Reached 150 Million in Q2 2005. CDG, Sep. 8, 2005. Available at www.cdg.org Service provider web sites: www.alltel.com, www2.sprint.com, www.verizonwireless.com Heavy competition in Wireless Broabdand has caused some service providers to drop prices to $60 price point. Service providers need new attractive services to compete, as basic wireless Internet access is becoming common offering among cellular providers. In addition to competing with HSDPA and W-CDMA, Increasing availability of Wi-Fi hotspots also adds a factor to competition. Operators will have to pay attention to Wi-Fi marketplace as well as the evolution of WiMAX service business, in order to keep their competitive positions in marketplace and not lose customers for new entrants.
  • MIMO (Multiple Input Multiple Output)
  • Source: Marek Sue, Smaller Operators Mull 3G Upgrade. Wireless Week, Apr. 15, 2005. Available at www.wirelessweek.com
  • Sources: TIA, Wi-Fi and WiMax Key Drivers of Wireless Equipment Spending with Market Reaching $29.3 Billion by 2008. TIA Press Release, Apr. 21, 2005. Available at www.tiaonline.org CAGR (Compound Annual Growth Rate) “ Spending on services in support of the wireless infrastructure (including Wi-Fi and WiMAX), such as basic services and support (e.g., field maintenance and repair), professional services, and depot repair and logistics rose 13.6 percent in 2004, rebounding from the 31.8 percent drop in 2003 associated with the drop in wireless infrastructure spending.“ TIA, 2005 “ Infrastructure revenue includes CPE, point-to-point equipment used in backhauling LANs to the Internet and point-to-multipoint equipment used in broadband access. WiMAX is potentially disruptive, in that it could compete with other high-speed fixed solutions, including DSL and cable modems, as well high-speed mobile solutions like 3G. “ TIA, 2005 “ The number of Wi-Fi hot spots in the United States increased more than six-fold from 2002 to 2004, from 3,400 to 21,500.” TIA, 2005
  • Source: TIA, Telecommunications Market Review and Forecast. TIA, 2005. Summary available at www.tiaonline.org WiMAX is gaining more attention from the industry, and there are already some trials going on. Fixed WiMAX and in the next few years the adoption of mobile WiMAX will provide opportunities for service providers to serve more customers. As benefits, carriers can eliminate some of the last mile complexities and costs associated with fixed broadband, as well as they can provide service in more geographical areas.
  • OFDM (Orthogonal Division Frequency Multiplexing)
  • Sources: TGnSync (Task Group n) - www.tgnsync.org WWise (World-Wide Spectrum Efficiency) - www.wwise.org EWC (Enhanced Wireless Consortium) – www.enhancedwirelessconsortium.org Airgo Networks – www.airgonetworks.com Nortel Networks – www.nortel.com
  • Sources: eChannelLine, Nortel Unveils Fixed, Mobile WiMax Strategy and Strategic Relationships. Integrated mar.com Corp, Sep. 15, 2005. Available at www.integratedmar.com OFDMA (Orthogonal Frequency Division Multiple Access)
  • UMA (Unlicensed Mobile Access) technology is a 3GPP standard (3 rd Generation Partnership Program) which defines seamless handoff of mobile voice and data from cellular wide area network to wireless local area network
  • Sources: Cingular www.cingular.com Verizon Wireless www.verizonwireless.com Sprint www.sprint.com T-mobile www.tmobile.com This table shows a comparative example of pricing voice plans per each service provider. As it can be seen, providers package their offering based on flat fee bounded by a certain amount of minutes. Additional minutes are charged separately unless the subscriber signs up for a plan with “unlimited minutes”. Service providers offer also family and business plans (this table only lists individual plans, for simplicity). As examples, prices for family plans start from $59.99/month for 700 minutes (first two lines), varying slightly between operators. Business plan prices range from $29.99/month for 300 minutes (T-Mobile USA), $39.99/month for 600 minutes (Cingular Wireless), to $199.99/month for 6000 minutes, varying between operators. Access to Mobile/Wireless broadband services are sold, many times, as an add-on price, bundled on top of the voice plan. Area code 94107 (San Francisco, CA) has been used for this pricing comparison.
  • Sources: Cingular Wireless at www.cingular.com Verizon Wireless at www.verizon.com Sprint Nextel at www.sprint.com T-Mobile at www.tmobile.com The table above lists simplified examples of Wireless data plans (access to Internet wirelessly), describing various different access methods for each operator. In the table, the following access methods are selected, to ease comparison: access from phone ; access from Blackberry handheld device (gained popularity for business email users) ; and laptop access. Further details can be seen in the following slides, for each service provider. It can be seen that $19.99
  • Source: Cingular Wireless www.cingular.com
  • Source: Verizon Communications, Store Brochure and www.verizon.com
  • Source: Sprint: Store Brochure and www.sprint.com
  • Source: T-Mobile, Store Brochure and www.tmobile.com
  • An example of roaming agreements can, for example, be read at the following article. According to the article, T-Mobile USA operates over 5000 hot spots in the USA: T-Mobile Hotspot Announces Wi-Fi Roaming Agreements With Six Other International Wireless Carriers. www.t-mobile.com, Press Release 11/2004
  • Sources: Boingo, Sep. 2005 www.boingo.com T-Mobile, USA monthly prices were taken from store brochure. Daily and hourly/minutes prices were taken from web site www.tmobile.com, Sep. 2005 SBC priving taken from web site www.sbc.com
  • Sources: Telephia, The Mobile Internet Report Total U.S. wireless users 191 million, Press Release, Sep. 7, 2005. Available at www.telephia.com According to research by Telephia, e-mail, weather, search and sports are the most accessed sites by U.S. wireless users, with 4.8%, 3.9%, 2.9% and 2.5% of the total of 191 Million wireless population in the USA.
  • Frost and Sullivan: Revenues from the North American mobile Internet market expected to be $24.6 billion in 2008 (Nua, 2002) Strategy Analytics: Revenues from sales of mobile content will nearly quadruple from $3.2 billion this year to $13 billion in 2009, a CAGR of 37,2%, with video infotainment exhibiting strongest growth of 107% (Strategy Analytics, 2005) Sources: Logica CMG, Mobile content market set to triple to more than 7.6 billion euros within a year. Logica CMG Pressroom, July 6, 2005. Available at www.logicacmg.com. - Research undertaken in May/June 2005 1000 adults/territory NUA Surveys, Mobile Internet Revenues Set to Soar. Jupiter Media, Dec. 2002. Available at www.nua.ie/surveys/index Strategy Analytics, Inc., Open Access Billing Strategies Drive Strong Cingular/T-Mobile Data APRU Growth – Mobile Video Content Accelerating in North America. Press Release, Aug. 2005. Available at www.strategyanalytics.com
  • Source: Strategy Analytics, Inc.,Open Access Billing Strategies Drive Strong Cingular/T-Mobile Data APRU Growth. Press Release, Aug. 2005. Available at www.strategyanalytics.com
  • Sources: OECD; Digital broadband content: Mobile content, New content for new platforms, May 2005. Available at www.oecd.org JETRO SF, Online and Mobile Gaming Market – United States, May 2005. Available at www.jetrosf.org Koprowski Gene, Wireless World – Phone Games a big hit. Science Daily, 2005. Available: www.sciencedaily.com OECD, Digital broadband content: Mobile content, New content for new platforms, May 2005. Available at www.oecd.org
  • Source: Jamdat Mobile, IDC, U.S. Wireless Gaming 2004-2008 Forecast and Analysis: Gaming…Together, White Paper, Dec. 2004. Available at www.jamdat.com
  • Sources: Qualcomm www.qualcomm.com Strategy Analytics, Inc, Open Access Billing Strategies Drive Strong Cingular/T-Mobile Data APRU Growth – Mobile Video Content Accelerating in North America. Press Release Aug, 2005. Available at www.strategyanalytics.com
  • Sources: Wired News, IDC Forecasts U.S. Wireless Music Market To Surge By 2009. All Internet News, Jul. 2005. Available at www.all-internet-news.com Reed Keith, Moving beyond the ringtone – New iPod cell phone marks a growing convergence of music, wireless industries, Sep. 2005. available at www.boston.com Carew Sinead, Mobile Music Buys May Bring Meager Carrier Profit. Sep. 2005. Available at go.reuters.com
  • Sources: The Register, TV: Coming to a mobile near you. May 26, 2005. Available at www.theregister.co.uk Idetic, Inc. www.idetic.com nForcer, Mobile TV Phones by the end of the year. nForcer, Apr. 29, 2005. Available at www.nforcershq.com OECD, Digital broadband content: Mobile content, New content for new platforms, p34. OECD, May 2005. Available at www.oecd.org Poe Robert, Video Streaming Enters the Mobile Realm: Service Providers Focus on Content to Build New revenue Base. America’s Network, Dec. 1, 2004. Available at www.americasnetwork.com
  • Sources: www.cingular.com, nws.vzw.com
  • Sources: The Yankee Group, An Analysis of UMTS as a Mobile Data Solution for the Enterprise Market. Wireless Mobile Research/Marshall P., Signorini E., and Entner R., Jul. 2004. Available at www.yankeegroup.com
  • Sources: The Yankee Group, An Analysis of UMTS as a Mobile Data Solution for the Enterprise Market. Wireless Mobile Research/Marshall P., Signorini E., and Entner R., Jul. 2004. Available at www.yankeegroup.com
  • Sources: www.nokia.com, Critical Path, Inc., U.S. Consumer Demand for Mobile Email Widespread According to New Survey, Aug. 2005. Available at www.criticalpath.net It can also be noted that a survey made this year shows there is a significant market opportunity for mobile email, also for consumer segment. A majority (82%) of respondents wants to be able to choose which emails reach them to their mobile phones. 71% see low costs as an extremely important feature of mobile email, other very important features were ease to use (63%), 53% have no need to upgrade services, 96% are not willing to buy an expensive cell phone just to get email. Now there is 2 million enterprise wireless email users, and of this, BlackBerry has 1.6 m customers. Gartner expects that 50% of white-collar mobile workers will globally have wireless email access by the year 2007, with higher adoption rates in email centric North America.
  • Sources: www.mobiletechnews.com Sprint 2005, www.sprint.com
  • Sources: Intel, Intel, Clearwire to Accelerate Deployment of Wimax Networks Worldwide. Intel Press Release, Oct. 2004. Available at www.intel.com NTIA, Promoting Broadband Deployment in Rural America. Gallagher Michael, Jan. 12, 2005. Available at www.ntia.doc.gov. Brown Karen, Sprint, Samsung Team for WiMax Trials. Wireless Week, Sep. 2005. Available at www.wirelessweek.com and www.sprint.com
  • Sources: NTIA, Promoting Broadband Deployment in Rural America. Gallagher Michael, Jan. 12, 2005. Available at www.ntia.doc.gov.
  • Sources: Intel, Intel, Clearwire to Accelerate Deployment of Wimax Networks Worldwide. Intel Press Release, Oct. 2004. Available at www.intel.com NTIA, Promoting Broadband Deployment in Rural America. Gallagher Michael, Jan. 12, 2005. Available at www.ntia.doc.gov. Brown Karen, Sprint, Samsung Team for WiMax Trials. Wireless Week, Sep. 2005. Available at www.wirelessweek.com and www.sprint.com
  • Sources: www.fcc.gov www.motorola.com
  • *Vonage Q2 2005 Region: NY Metro USD received: $200 million Finance Sequence: 6 Investors in Q2 2005: 3i, Bain Capital, Institutional Venture Partners, Meritech Capital Partners, New Enterprise Associates (MoneyTree, 2005) Sources: Marek Sue, Wireless Still Piques Interest of VCs. Wireless Week, Jun. 1, 2005. Available at www.wirelessweek.com Duffy Marsan Carolyn, VC Investment in Telecom Industry Tops $537 million in Q1. NetworkWorld, May 5, 2004. Available at www.networkworld.com MoneyTree Survey, Q2 2005 Results – U.S. Report, Investments by industry. PricewaterhouseCoopers LLP, 2005. Available at www.pwcmoneytree.com Sources: Marek Sue, Wireless Still Piques Interest of VCs. Wireless Week, Jun. 1, 2005. Available at www.wirelessweek.com.. MoneyTree Survey, Vonage Holding Company. PriceWaterHouseCoopers, Spring 2005. Available at www.pwcmoneytree.com Canaan Partners, VoIP, Physical Security Attract New VC Money. Canaan Partners, Canaan in the News 2005, Aug. 29, 2005. Available at www.canaanpartners.com
  • Sources: MoneyTree Survey, Historical Trend Data: Telecommunications. PricewaterhouseCoopers, 2005. Available at www.pwc.com The graph shows development on Telecommunications investment in the USA. After the spike of the year 2000, the recent years seems to have stabilized.
  • The MoneyTree Survey identified in 2004 65 telecom start-ups that had received funding in the 1Q. The average deal size was approximately $8.3 million. (Marsa, 2004) MoneyTree Survey: Wireless sector received $951 million from VCs last year, and in 2003 the number was $820. Although figures show increasing interest in the wireless industry, the investment level is still nowhere near 2000 when $4 billion was invested (Marek, 2005) Telecommunications industry is the third most funded industry area after Software and Biotechnology. According to MoneyTree Survey 61 companies were funded in Q2 2004 and Q1 2005. In Q2 2005 less companies received funding from VCs (51) but at the same time the amounts invested rose to $562.4 (in comparison in Q1 2005 it was $364.1 and in Q2 2004 $482.0) (MoneyTree, 2005) Source: MoneyTree Survey, Full Year and Q4 2004 Results. PricewaterhouseCoopers, 2004. Available at www.pwc.com MoneyTree Survey, Q1 2005 Results. PricewaterhouseCoopers, 2005. Available at www.pwc.com MoneyTree Survey, Q2 2005 Results. PricewaterhouseCoopers, 2005. Available at www.pwc.com
  • Sources: MetroPCS Communications, Inc., MetroPCS Announces a $739 Million Investment Led by Madison Dearborn Partners/TA Associates. MetroPCS Commnicaitions, Inc, Oct. 5, 2005. Available at www.metropcs.com *Borrowing the Quarterly Venture Capital Report by Ventureone and Ernest & Young, 2005 Sources: Garretson Cara, Report: VC telecom funding on the rise. Networkworld, May 5, 2005. Available at www.networlworld.com.
  • A survey made this year shows there is a significant market opportunity for consumer mobile email. A majority (82%) of respondents want to be able to choose which emails reach them to their mobile phones. 71% see low costs as an extremely important feature of mobile email, other very important features were ease to use (63%), 53% have no need to upgrade services, 96% are not willing to buy an expensive cell phone just to get email. Now there is 2 million enterprise wireless email users, and of this, BlackBerry has 1.6 m customers. Gartner expects that 50% of white-collar mobile workers will globally have wireless email access by the year 2007, with higher adoption rates in email centric North America Some information on a. BlackBerry Research in Motion, Ltd. Launched Blackberry in 1996 Operates on T-Mobile’s GPRS network, which is the only provider currently Costs between $40 to $90 USD a month (T-Mobile) b. Treo Launched in 2003 by Palm One, Inc. Costs in average $15 USD/month (Sprint) Currently Treo650’s operates in Sprint’s CDMA network Sprint is the only carrier for Treo650, but Treo600 is carried by Cingular, Verixzon, Sprint and T-Mobile c. MPx220 Motorola, Inc.’s product Cost in average is $20/month (Cingular’s Media Works plan) Operates in Cingular’s GSM/GPRS network Only provided by Cingular Sources: www.nokia.com Critical Path, Inc., U.S. Consumer Demand for Mobile Email Widespread According to New Survey, Aug. 2005. Available at www.criticalpath.net
  • Sources: FCC. Available at www.fcc.gov Gross Grant, Nortel Chief: U.S. Needs New Broadband Vision. Network World, Aug 2005. Available at www.networkworld.com The White House, A New Generationof American Innovation. Washington, Apr. 2004. Available at www.whitehouse.gov) CPR: Report for Congress. Science and Technology Policy Issues For The 109th Congress, Mar. 2005. Available at www.fas.org Last year FCC began launching some new policy approaches to maximize the deployment of wireless broadband. FCC issued a wireless broadband access task force report. In this. FCC suggests a ”pro-competitive” national framework of rules that would handle broadband wireless services in the same way as less-regulated information services or long-distance services. This means, for example, voluntary frequency coordination for unlicensed spectrum and voluntary best practices for unlicensed users with Bush’s Administration has supported FCC’s actions. As a an outcome, FOCUS, FTTH Council and TIA stated in May that the amount of communities with fiber built outs has grown 83% from 217 communities to 398 communities in 43 states. (Rockwell Mark, Battle of Spectrum: What’s Next?. Wireless Week Mar. 1, 2005. Available at www.wirelessweek.com). One part of administration's strategy is to focus on broadband and wireless communications, e-government and cyber security technologies. (Greenemeier Larry, R&D Funding and IT Policy to Play Major Role in Bush’s Second Term. Information Week, Jan. 4, 2005. Available at www.informationweek.com, Gross Grant, Nortel Chief: U.S. Needs New Broadband Vision. NetworkWorld Aug. 23, 2005. Available at www.networkworld.com).
  • Source: www.fcc.gov
  • Federal research and development funding has increased 44% since 2001. The Administration contributes $2 billion annually to networking and IT R&D alone, at agencies such as NIST and National Science Foundation, and areas within the Defense Department (Greenemeier Larry, R&D Funding and IT Policy to Play Major Role in Bush’s Second Term. Information Week, Jan. 4, 2005. Available at www.informationweek.com). The president has also proposed making the Research and Experimentation Tax Credit permanent, promoting private sector investment in new technologies such as broadband. (The White House, A New Generation of American Innovation. Washington, Apr. 2004. Available at www.whitehouse.gov)
  • Sources: FCC. Available at www.fcc.gov
  • Sources: Baller Jim, Broad-Based Groups Band Together to Support Community Broadband Choices. U.S. Newwire, Jun. 23, 2005. Available at http://releases.usnewswire.com.
  • Source: NTIA, Promoting Broadband Deployment in Rural America. Gallagher Michael, Jan. 12, 2005. Available at www.ntia.doc.gov.
  • Sources: Muniwireless, 2005 Municipal Wireless State of the Market Report, authored by Esme Vos and Microcast Communications, Sep 2005. Summary available at www.muniwireless.com, more info also at www.pti.org Gross Grant, Nortel Chief: U.S. Needs New Broadband Vision. Network World, Aug 2005. Available at www.networkworld.com, The Community Broadband Act of 2005, Bill introduced in the Senate on July 1, 2005, by Senator s McCain and Lautenberg. Act available as a pdf at www.publicknowledge.org/issues/fedwifibill
  • Sources: UCLA at www.cs.ucla.edu UCSD at www.cwc.ucsd.edu
  • Sources: Stanford at www.wireless.stanford.edu UC Berkeley at www.bwrc.eecs.berkeley.edu
  • Sources: MIT www.mit.edu Virginia Tech at www.ecpe.vt.edu Georgia Tech at www.ece.gatech.edu/research/labs/bwn/projects.html
  • Sources: Greenemeier Larry, R&D Funding and IT Policy to Play Major Role in Bush’s Second Term. Information Week, Jan. 4, 2005. Available at www.informationweek.com The White House, A New Generation of American Innovation. Washington, Apr. 2004. Available at www.whitehouse.gov

Wireless Broadband USA Wireless Broadband USA Presentation Transcript

  • Wireless Broadband in the USA for GIGA Technology Program Miika Nevalainen, Veijo Iivonen Finpro USA, Silicon Valley November 14, 2005
  • Table of Contents
    • 1. Introduction
    • 2. Market Overview
      • 2.1 Business Volume
      • 2.2 Major Service Providers
    • 3. Technology
      • 3.1 From 2G to 3G
      • 3.2 3G
      • 3.3 Beyond 3G
      • 3.4 Wi-Fi and WiMax
      • 3.5 UWB and Bluetooth
      • 3.6 MediaFLO, DVB-H
      • 3.7 MIMO
      • 3.8 WiBRO, WiMAX, Flash-OFDM
      • 3.9 Seamless Interoperability, Handover
    • 4. Services
      • 4.1 Services – 2G/2.5G/3G
      • 4.2 Services - Wi-Fi
      • 4.3 Consumer Applications
      • 4.4 Business Applications
      • 4.5 Trends
  • Table of Contents
    • 5. Private Sector R&D Activities
      • 5.1 Research Activities
      • 5.2 Funding
      • 5.3 Components: Terminals
    • 6. Policymaking and the Role of the Public Sector
      • 6.1 The Government Role
      • 6.2 Municipal Action
    • 7. Public Sector R&D Activities
      • 7.1 Research Activities
      • 7.2 Funding
      • 7.3 Organizations
    • 8. Possibilities for Finnish Companies
    • 8.1 Services and Applications
    • 8.2 Leveraging Expertise
    • 9. Foreseeable Radical Changes
    • 9.1 3G Networks and Services
    • 9.2 Wi-Fi and WiMAX
    • 9.3 Voice over IP
    • 9.4 Wireless Enterprise, Home and Community
  • 1. Introduction
    • This report has been written for the GIGA program of Tekes, focusing on converging networks. The report provides information on the U.S. wireless broadband markets.
    • This report discusses the following issues
      • Overview of the U.S. wireless broadband market
      • Competitive environment
      • Technology adoption and outlook
      • Available services
      • Government’s role in the development of the wireless broadband
    Introduction 1. Introduction
  • United States in a Nutshell 1. Introduction Source: U.S. Census Bureau, 2004 9,158,000 km ² (Finland 338,000 km²) Land area 230 million Metropolitan population 106 million Households 32.1 km ² (Finland15.7/km²) Population density 294 million (Finland 5.3 million) Population U.S. National Statistics 2004
  • 2. Market Overview 2.1 Business Volume 2.2 Major Service Providers
  • Wireless Market
    • Emerging wireless internet and content services stimulate market growth
        • Wireless Internet and applications for cellular & Wi-Fi (and WiMAX in the future) attract new users
        • 2008, wireless market reaches $212.5 billion
          • 10 percent CAGR from 2005 to 2008
        • Revenues in 2004 totaled $145.1 billion
          • up 11.6 percent from 2003
        • 12.4 million smartphones will be sold in 2005, 98.5 million by 2009
      • Source: TIA, 2005
    Source: TIA, 2005 2. Market Overview 2.1 Business Volume
  • Wireless Internet Users in the U.S. Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan) 2. Market Overview 2.1 Business Volume
  • U.S. Mobile Data Revenue Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan) 2. Market Overview 2.1 Business Volume
  • Top U.S. Cellular Providers - Subscribers 2. Market Overview Source: Data from carriers, Sep. 2005 2.1 Major Service Providers
  • Top U.S. Cellular Providers – Quarterly Revenues 2. Market Overview Source: Data from carriers, Sep. 2005 2.1 Major Service Providers
  • Top U.S. Mobile Internet Web Sites, June 2005 Source: Telephia, 2005 4. Services 2.2 Major Service Providers 3.1 1.0 Yahoo! Directions 2.8 1.0 AOL Mail 8.0 1.1 CNN 4.8 1.1 MapQuest 5.4 1.4 Yahoo! Search 7.3 1.8 ESPN 7.4 2.1 Google Search 6.0 2.1 MSN Hotmail 6.3 2.4 Yahoo! Mail 6.2 2.5 The Weather Channel Average Session per User per Month Subscriber Reach (%) Web Site
    • Cingular
      • Operates a nationwide GSM/GPRS/EDGE system
    • T-Mobile USA
      • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network
    • Verizon Wireless
      • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems
    • Sprint Nextel
      • Operates CDMA (Sprint PCS) and iDEN (after Sprint-Nextel Merger), 1xRTT, EV-DO systems
    • Alltel
      • Operates networks with CDMA, AMPS, EV-DO
    Service Provider Technologies: 2.5G and 3G 2. Market Overview 2.2 Major Service Providers
    • Largest wireless company in the U.S., with total customers: 51.6 million
    • Acquired AT&T Wireless in 2004
    • Operates a nationwide GSM/GPRS/EDGE system
    • Upgrading its six UMTS (W-CDMA, 1900 MHz) networks to HSDPA by year end 2005
      • HSDPA trials on UMTS ongoing in Atlanta
      • First HSDPA launches in 15 to 20 markets, expanding to other U.S. markets during 2006
    • Equipment from L.M. Ericsson, Lucent Technologies Inc, and Siemens AG, Novatel, Sierra, Nokia, Sony Ericsson
    Cingular Wireless L.L.C. 2. Market Overview 2.2 Major Service Providers
  • Cingular Wireless Revenue Structure Second Quarter 2005
    • Source: Cingular Wireless, 2005
    2. Market Overview 2.2 Major Service Providers 100 $8,609 Total Revenues 10 $ 890 Equipment Sales 90 $7,719 Service Ratio to total revenue (%) Revenue (USD in Millions) Revenue Source
  • Verizon Wireless
    • The 2 nd largest mobile carrier in the USA
      • 47.4 million subscribers
    • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems
    • Entered EV-DO market in 2003
      • 500,000 to 1 million customers connect by laptops (1xRTT & EV-DO)
      • 140 million potential customers, 61 markets
    • Verizon’s BroadBand Access EV-DO service is offered in major airports and business districts in 34 markets.
    • Plans to cover more than 50% of the country’s population by the EOY 2006
    • Leader in the U.S. EV-DO market
    • Faces strong competition from Sprint-Nextel and Cingular Wireless
      • Verizon Wireless reduced EV-DO prices by $20, to $60/month for unlimited services
    • Launched VCast service for video viewing from handset, $15 a month
    • Achieved the first VoIP and Video call in August with Lucent’s technology
      • Real testing will be done in 2006
    • Verizon Wireless reports having 19.1 million data users (contributing 7% of the operator’s total revenue, compared to 4.2% one year ago)
    2. Market Overview 2.2 Major Service Providers
  • Verizon Wireless Revenue Structure Second Quarter 2005
    • Source: Verizon Communications, 2005
    2. Market Overview 2.2 Major Service Providers 100 $7,846 Total Revenues 12 $ 972 Equipment and other 88 $6,874 Service revenues Ratio to total revenue (%) Revenue (USD in Millions) Revenue Source
  • Sprint Nextel
    • The 3rd largest mobile carrier after merger
      • 45.6 million subscribers (post merger, 3Q2005)
    • Operates CDMA based networks (Sprint PCS)
    • Launched EV-DO services in 2005 in 34 markets
    • Plans to become the second major U.S. operator with EV-DO by the year 2006
      • Plans to roll out service in 60 metro areas across the USA in 2006.
      • EV-DO is being used as an extension of their 1xRTT data deployment
    • Offering Sprint PCS Connection Cards for EV-DO, and is evaluating handsets, and planning business and consumer applications
      • Connection card can also be used for Sprint’s CDMA-2000 service
      • Pricing starts from $40/mo for 40MB of data and go up to a cap of $90/month, when the customer accesses more data. Unlimited data for $80/month
    • Offers high-speed mobile data service to notebook PCs
    • Sprint had 8.1 million data users (30% of total base), 7 million (26%) on PCS Vision, in 2Q 2005, data contributing more than 10% of total revenue
    2. Market Overview 2.2 Major Service Providers
    • Source: Sprint Nextel, 2005
    Sprint Nextel Revenue Structure (Wireless) Third Quarter 2005 2. Market Overview 2.2 Major Service Providers 100 $6,190 Total Revenues 6 $ 227 Wholesale, affiliate and other 9 $ 601 Equipment 85 $5,362 Service Revenue Ratio to total revenue (%) Revenue (USD in Millions) Revenue Source (Wireless)
    • Customer base is about 19.2 million
    • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network
    • Likely to skip commercial UMTS deployment and directly offer HSDPA services in 2007 (plans tied to spectrum availability)
    • Launched EDGE services across 90% of its GPRS-enabled network, with the average speed of 100-130 kbps
    • Offers a pair of EDGE/enabled handsets from Motorola Inc. and Nokia
    • Customers access EDGE services for the same price as their current GPRS rate plans. The carrier will have a EDGE-specific pricing in the future
    • Offers Wi-Fi Wireless Broadband Internet access at 6,000 locations in the U.S. Customers can access the network on a pay-as-you-go basis, with monthly or prepaid subscriptions
    T-Mobile USA, Inc 2. Market Overview 2.2 Major Service Providers
  • T-Mobile USA Revenue Structure Second Quarter 2005 2. Market Overview 2.2 Major Service Providers 100 $3,614 Total Revenue Source: T-Mobile, 2005 7.5 $ 269 Affiliate and other 8.5 $ 305 Equipment sales 4 $ 136 Roaming and other services 5 $ 179 Prepaid 75 $2,725 Postpay Ratio to total revenue (%) Revenue (USD in Millions) Revenue Source
    • Total number of subscribers is 10.5 million
      • Acquired Western Wireless in Jan 2005, becoming the fifth largest U.S. wireless operator, with customers in 33 states
    • Operates networks with CDMA, AMPS technologies
    • Launched 1x EV-DO in March 2005 in three markets, targeting primarily enterprises, in Ohio, Cleveland and Florida. Planning to expand the service so it covers 6 to 10 markets by year-end
    • EV-DO available for about $70/mo
    • Roaming agreement primarily with Verizon Wireless
    AllTel Corp.
  • Alltel Revenue Structure Second Quarter 2005
    • Source: Alltel Corp, 2005
    2. Market Overview 2.2 Major Service Providers 100 $2,311,613 Total Revenues 11 $ 261,230 Communications Support Services 26 $ 595,071 Wireline 63 $1,455,312 Wireless Ratio to total revenue (%) Revenue (USD in Thousands) Revenue Source
  • 3. Technology 3.2 3G 3.3 Beyond 3G 3.4 Wi-Fi and WiMAX 3.5 UWB and Bluetooth 3.6 MediaFLO, DVB-H 3.7 MIMO 3.1 From 2G to 3G 3.8 WiBRO, WiMAX, Flash-OFDM 3.9 Seamless Interoperability, Handover
    • The mainstream U.S. cellular technologies can be categorized in two groups
    • CDMA (CDMA2000) technologies
      • 2G: CDMA (IS-95A, IS-95B)
      • 2.5G: 1xRTT
      • 3G: EV-DO
      • Enhanced 3G: EV-DO Rev A -Planned
    • GSM based technologies
      • 2G: GSM
      • 2.5G/”2.5G+”: GSM/GPRS/EDGE
      • 3G: W-CDMA (UMTS)
      • Enhanced 3G (3.5G): HSDPA -Planned
    Cellular Technologies by Generation 3. Technology 3.1 From 2G to 3G
  • 3G Today – W-CDMA
    • Cingular deploying
      • W-CDMA (UMTS)
        • Target of 6 markets: Dallas, Detroit, Phoenix, San Diego, San Francisco, Seattle
        • Speed 200 – 320 kbps
      • Also planning to roll out HSDPA
        • Trials in Atlanta ongoing
        • Speed will be 400 – 700 kbps
        • Lucent press release indicates 3.6 Mbps, but according to some sources the speed is up to 2 Mbps
    • T-Mobile plans to deploy HSDPA directly
        • Plans to upgrade the current GPRS/EDGE networks
        • HSDPA speeds planned to be 384 kbps – 1.8 Mbps
    3. Technology 3.2 3G
    • Nearly 80 million people access CDMA2000 (Source: CDG)
      • CDMA2000 1xEV-DO broadband penetration is growing
        • EV-DO coverage increases
        • More handsets and services become available
    • Verizon Wireless EV-DO (61 markets)
      • Speeds 400 – 700 kbps, bursts 2Mbps
    • Sprint-Nextel EV-DO (34 markets)
      • Speeds 400 – 700 kbps, bursts 2Mbps
    • Alltel EV-DO (3 markets)
      • Speeds 300 – 500 kbps, bursts 2.4Mbps
    • EV-DO price range: $59.99 – $79.99 a month
    3G Today – EV-DO 3. Technology 3.2 3G
  • 3G Vendors
    • Examples of U.S. UMTS and CDMA2000 vendors:
      • Lucent
        • HSDPA solutions
        • UMTS&W-CDMA core network solutions
      • Motorola
        • Products for UMTS/W-CDMA/HSDPA, CDMA/EV-DO
        • End-to-end mobile data solutions (handsets, infrastructure, middleware and applications)
      • Cisco
        • Infrastructure solutions (IP technology for GPRS & 1xRTT and 3G)
      • Nortel
        • GSM, UMTS/HSDPA infrastructure solutions
      • Qualcomm
        • Chipsets for CDMA2000 based 3G (EV-DO)
        • Chipsets for W-CDMA (UMTS) & HSDPA
        • MediaFLO content delivery platform for operators
        • BREW application platform (integrate applications with chip systems)
    3. Technology 3.2 3G
  • Future Trends – towards 4G
    • 4G research is going on, and standardization is still in progress
    • Two main viewpoints to 4G
      • Convergence of wireless mobile communications and high speed wireless access systems
      • Higher data rates than existing wireless / mobile networks
    • Potential evolution from 3G/3.5G to 4G
      • HSDPA and EV-DO Rev A, and eventually Rev B provide higher bandwidth than basic 3G, suitable for applications such as VoIP
      • Mobile WiMAX or Flarion OFDMA might become potential gap-fillers between 3G and 4G
      • MIMO and adaptive antenna technologies are in key position for achieving high bandwidth
    • 4G deployment is expected after 5-7 years
    3. Technology 3.3 Beyond 3G
  • HSDPA and EV-DO Rev A
    • HSDPA
      • Cingular & T-Mobile are planning for HSDPA
      • HSDPA will be first supported by PC Cards, then handsets
      • Device unavailability has been a problem with UMTS, and it is unclear how well demand of handsets and PC cards will be satified for HSDPA
      • PC Cards are predicted to become available during 2005, and handsets during 2006, for example, from Ericsson/Sony-Ericsson, as well as Sierra Wireless
      • Cingular is cooperating with Nokia among others
    • 1xEV-DO Rev A
      • Some operators plan to deploy directly 1X EV-DO Rev A
        • This will mean waiting for availability
      • Verizon Wireless achieved the first VoIP call with Lucent technology
        • Plans to perform real testing in 2006
        • Speeds up to 3.8 Mbps (receive) and up to 1.8 Mbps (send) (Source: 3GNewsroom.com)
    3. Technology 3.3 Beyond 3G
  • Wi-Fi and WiMAX
    • The number of hot spots in the United States expected to grow from 32,800 in 2005 to 64,200 in 2008 (TIA, 2005)
    • TIA: Wi-Fi and WiMAX markets are key drivers of wireless equipment spending:
      • Spending on wireless CAPEX/Wi-Fi/WiMAX expected to reach $22.3 billion in 2005, and $29.3 billion by 2008 (7.1 percent compound annual gain)
      • Wi-Fi infrastructure revenue expected to reach $5.2 bln in 2005
      • WiMAX infrastructure revenue expected to reach $115 million in 2005 (TIA, 2005)
    • Wi-Fi Spending
      • Services spending reached $21 million in 2004. Expected to be $45 mln in 2005, and 335 mln by 2008 (99.9% CAGR) (TIA, 2005)
      • Equipment spending reached $4.35 bln in 2004. Infrastructure spending expected to total $7 bln in 2008 (12.6 compound annual increase) (TIA, 2005)
    • WiMAX Spending
      • Infrastructure spending will be $115 million in 2005 and rise to $290 million by 2008 (109.7 percent CAGR) (TIA, 2005)
    • North America WLAN equipment revenue in 2Q05 was 359.17 mln, accounting for 49% of worldwide revenue (PR Newswire/Infonetics, 2005)
    • Wi-Fi and WiMAX markets are increasing
      • Wi-Fi hotspots exist already. Fixed Wireless WiMAX business cases are being experimented with
      • Mobile WiMAX is a promising technology on the way towards 4G
    3. Technology 3.4 Wi-Fi and WiMax
  • Wi-Fi
    • Wi-Fi starts to be prevalent at home, coffee places (Starbucks/T-Mobile, SBC), airports, hotels, office
    • Many municipalities are launching Municipal Wi-Fi
      • Example: The City of Philadelphia wireless network
      • Some cities offer free service, some consider it would not be fair to telecom providers business
      • Free service could stimulate increased business among the community’s shops, coffee houses, banks and other businesses
      • Google has placed a bid to provide free Wi-Fi coverage for the City of San Francisco
    • Wireless VoIP is an emerging trend
      • Mobile Phones with Wi-Fi capability give new opportunities for users
    • Vonage launched the first VoIP/Wi-Fi handset
      • Marketing campaigns are aggressive, including a free upgrade of router when signing up to VoIP service
      • Vonage and Linksys partner with providing VoIP in wireless routers
    3. Technology 3.4 Wi-Fi and WiMax
  • Activities in WiMAX Area
    • AT&T trials: corporate solutions and urban setting
      • Atlanta (IEEE 802.16-2004)
      • New Jersey (Pre-WiMAX/Fixed)
    • Fixed WiMAX gaining increased attention by service providers and vendors
    • Mobile WiMAX (802.16e) standard ratification still ahead
      • Intel and Nokia teamed up to accelerate Mobile WiMAX adoption
    • Reducing prices and enabled handheld prices is a key issue for adoption
    3. Technology 3.4 Wi-Fi and WiMax
  • WiMAX Infrastructure Revenue in the U.S. Source: TIA, 2005 3. Technology 3.4 Wi-Fi and WiMax
  • WiMAX & Wi-FI Vendors
    • Examples of WiMAX vendors
      • Motorola
      • Lucent
      • Nortel
      • Sierra Monolithics
      • Intel
    • Examples of Wi-Fi vendors
      • Cisco (Linksys)
      • DLink
      • Netgear
      • Intel
    3. Technology 3.4 Wi-FI & WiMAX
  • UWB and Bluetooth
    • United States has approved spectrum use for UWB (3.1-10.6 GHz)
    • In August 2005, Kansas based Bluetooth SIG teamed up with UWB developers to increase device possibilities
    • Attractive for transferring streaming media between appliances like TVs, stereos and PCs.
      • Cable replacement possibilities at home environments
    • USB/UWB solutions being discussed for mobile devices
    • Standardization (IEEE) situation causes concern
      • Competing views: MBOA and UWB Forum, difficult to predict who wins
      • UWB Forum may have slight advantage (FCC- approved)
    3. Technology 3.5 UWB and Bluetooth
  • MediaFLO, DVB-H
    • Qualcomm recently demonstrated MediaFLO solution for mobile content
      • MediaFLO USA, subsidiary of Qualcomm, works together with content and technology partners to provide mobile entertainment/information access, incuding TV/Video broadcasting and other content
      • Targeted carriers, offered through MediaFlo’s multicast networks
      • Based on OFDM
    • CrownCastle trials DVB-H
      • CrownCastle trials DVB-H through its network
      • CrownCastle and Nokia have announced joint piloting of DVB-H based broadcast in the United States
    3. Technology 3.6 MediaFLO, DVB-H
  • MIMO (Multiple Input, Multiple Output)
    • Products have already been released, while standardization continues
      • For example, Airgo Networks released first MIMO enhanced chipsets in 2003, and recently announced new products boasting better performance than that of wired 100BaseT Ethernet.
      • Nortel Networks recently demonstrated MIMO capabilities and has strong programs going on
    • Academic research is going on, for example, in Stanford University, University of California San Diego, and others
    • Many companies are active with MIMO, working in groups to make proposals for IEEE 802.11n standards
      • TGnSync: Agere, Atheros, Cisco, Intel, Qualcomm, MetaLink and others
      • WWiSE: Airgo Networks, Broadcom, HP, Motorola, Texas Instruments, Buffalo, Nokia, and others
      • EWC: Atheros, Broadcom, Intel, Buffalo, and others
    • MIMO is seen as an essential technology for future 4G networks
      • Technologies enable high bandwidth solutions
    3. Technology 3.7 MIMO
  • WiBRO, Mobile WiMAX, Flash-OFDM
    • Fixed WiMAX (IEEE 802.16-2004) is expected to use 3.5GHz and 5.8GHz bands of spectrum, with 1 Mbps data rates
    • Mobile WiMAX (IEEE 802.16e) will initially operate in the 2.5GHz band, providing higher speed and anytime, anywhere' access
      • Motorola has indicated plans to enter Mobile WiMAX area
      • Nortel plans to offer fixed and mobile WiMAX products (WiBro), together with Intel
        • Nortel wants to be involved with WiMAX to augment their UMTS/HSDPA, CDMA, VoIP and Wireless Mesh activities
        • Mobile WiMAX initiative is targeted at consumer and enterprise market to complement and extend the reach of existing 3G cellular networks, leveraging last mile wireless links and existing networks
        • Fixed WiMax is an attractive choice to when compared to cable/T1/DSL in the USA
        • Nortel’s fixed WiMAX solutions are expected to be commercially available in 2006
        • LG-Nortel Joint Venture’s mobile WiMAX to be trialed during 2006 in North America
    • WiBRO : Sprint Nextel will test WiBRO in the USA, a South Korean implementation of IEEE 802.16e – this may have interesting implications to WiBRO adoption
    • Flash-OFDM : Acquisition of Flarion by Qualcomm poses competition to the current Mobile WiMax effort
      • Qualcomm/Flarion deal helps Qualcomm to better support OFDMA and hybrid OFDMA/CDMA customers
    3. Technology 3.8 WiBRO, WiMAX, Flash-OFDM
  • Seamless Interoperability, Handover, Convergence
    • Service providers have identified the need to leverage various fixed and wireless technologies to complement each other
      • Conceptually “Extending the Edge” of the 3G/2.5G network by Wi-Fi, WiMAX service
        • Convenience to end-users, reduced customer churn
          • Seamless roaming, robust infrastructure, more coverage area
          • Potential for “one bill for all services”
          • Future: customers may pay less for voice calls (VoWi-Fi)
    • Service providers are offering users more opportunities to connect
      • Road Warrior VPN: Cingular Wireless Data jointly with SBC Freedomlink enables user to switch between networks
      • T-Mobile has been offering hot spot connectivity in addition to other plans
    • Vendors are teaming up to provide capabilities for convergence and seamless handover of voice/data between cellular and WLAN networks
      • Kineto Wireless (UMA innovator) and Nokia recently announced a joint agreement for convergence
    • In the converged environment, there are new challenges in Handover, Billing Management, Service Management and Element Management
      • Scalability and interoperability are of essence.
      • Convergence issues to be addressed
        • Roaming within the same carrier, different technologies/networks
        • Roaming between different carriers, different technologies/networks
        • Who owns the customer? What are the revenue sharing agreements?
    3. Technology 3.9 Seamless Interoperability, Handover
  • 4. Services 4.2 Services - Wi-Fi 4.1 Services – 2G/2.5G/3G 4.3 Consumer Applications 4.4 Business Applications 4.5 Trends
    • Cellular service providers offer typically the following voice services with package based pricing
      • Individual plans, Family plans, Business plans
    • Wireless Internet plans are provided either as
      • Add-on to the voice plan or stand-alone services
    • Value-add services are charged separately
      • Audio and video clips (can also be free)
      • Ringtones, ringback tones, games
    • Service providers are launching advanced high bandwidth services by 3G technologies
      • For example, Verizon Wireless launched VCAST on their EV-DO network, to deliver high quality video, music and other entertainment
      • Some advanced applications are already being offered by 2.5G technologies – but higher-quality services will be realized by additional capacity of 3G and enhanced 3G
    Services and Pricing 4. Services 4.1 Services – 2G/2.5G/3G
  • Example: Comparison of Individual Voice Services 4. Services 4.1 Services 2G/2.5G/3G Unlimited nights and weekend minutes Unlimited nights and weekend minutes With $59.99 plan, unlimited nights and weekend minutes Unlimited Mobile to Mobile Other matters $129.99 for 5000 whenever minutes and unlimited weekend minutes $115.99 for 2500 minutes $199.99/month for 6000 minutes $199.99/month for 6000 minutes Highest price for plan $19.99/month for 60 whenever minutes and 500 weekend minutes $29.99/month for 200 minutes $39.99/month for 450 minutes $39.99/month for 450 minutes $59.99/month for 900 minutes Lowest price for plan T-Mobile USA Sprint-Nextel Verizon Wireless Cingular Operator
  • Unlimited Wireless Internet Services 4. Services 4.1 Services - 2G/2.5G/3G Plans require one year agreements $19.99/month Add on plan $29.99/month Unlimited data transfer (HotSpot Service) $19.99/month Add on plan $29.99/month Internet plan $19.99/month - Add on plan $29.99/month Internet plan T-Mobile $40/month Unlimited Wi-Fi Hotspot $79.00/month Sprint PCS Connection Card First month usage unlimited and after that, rate determined by MBs in plan* $44.99/month Add on plan $10.00/month Nextel Data Access Pack $20.00/month Nextel Data Access Sprint Nextel $59.99/month 400 to 700 Kbps per second $49.99/month $44.99/month Wireless Sync Verizon Wireless $79.99/month 100 to 135 Kbps per second $44.99/month Add on plan* $19.99/month MEdiaNet Cingular Wireless Laptop Card/ PC Card BlackBerry Mobile Internet for Mobile Phone Service Operator
  • Cingular Wireless 4. Services 4.1 Services - 2G/2.5G/3G $ 44.99/mo, add on plan BlackBerry Unlimited $79.99/mo Laptop Connect Unlimited $49.99/mo Laptop Connect 50MB $39.99/mo Laptop Connect 20MB $29.99/mo Laptop Connect 10MB $19.99/mo Laptop Connect 5MB $34.99/mo, add on plan BlackBerry 4MB Mobile E-mail Source: Cingular Wireless, 2005 Cingular Data Card for Laptops EDGE, GPRS $19.99/mo unlimited $14.99/mo 10 MB $9.99/mo 5 MB $4.99/mo 1 MB 1¢/kilobyte pay per use   Prices Mobile Internet MEdiaNET
  • Verizon Wireless 4. Services 4.1 Services – 2G/2.5G/3G V CAST $15/mo (unlimited basic video clips, monthly access mobile web 2.0, unlimited airtime and e-mail) new multimedia serice that allows you to get mobile content on your phone Verizon VCast: Downloadable “Mobisodes” $3.99 each Source: Verizon Wireless, 2005
    • NationalAccess and BroadbandAccess
    • Web access and corporate network, e-mail, download files within the NA or BA coverage areas
    • No wires, phone jacks, or long distance charges, no separate ISP. Connecting to NA and BA happens with PC Card
    • Unlimited BroadbandAccess Plan $59.99/mo (monthly allowance is unlimited with voice, other data services are 25¢/min, included features are txt msging and new every two. Broadband/Access-capable PC card is required)
    • Unlimited NationalAccess Plan $ 59.99/mo (monthly allowance is unlimited with voice, other data services are 25¢/min, included features are txt msging and new every two. Broadband/Access or NationalAccess capable PC card is required)
  • Sprint Nextel Connection Card Phone Used as a Modem
    • Data Access: Unlimited WIFI Hotspot Plan $40/month, Unlimited PC Access with WIFI Hotspot Package $55/month, Unlimited Wireless PC Access Plan (with using a wireless PC card) $45/month
    • Web Plan:
    • Nextel Data Access Pack $10.00/mo (unlimited web access, unlimited data access, mobile e-mail, instant messaging and pay-as-you-go txt/image/audio msging
    • Nextel Data Ultimate $20.00/mo (unlimited web access, unlimited data access, unlimited image/audio msgs, mobile e-mail, instant messaging, and pay-as-you-go txt messaging)
    • Prices exclude taxes and Sprint fees
    • (Source: Sprint, 2005)
    4. Services 4.1 Services – 2G/2.5G/3G $39.00 $79.00 40MB Unlimited Monthly Rate Sprint PCS Connection Card Usage $25.00 (capped at $70.00) Monthy Access Monthly Allowance Monthly Rate Data Usage
  • T-Mobile 4. Services 4.1 Services – 2G/2.5G/3G
    • BlackBerry unlimited add-on plan $19.99/mo (unlimited BlackBerry Internet e-mail, unlimited browsing, calling plan features)
    • BlackBerry unlimited plan $29.99/mo (unlimited BlackBerry Internet e-mail, unlimited web browsing, 24¢/min for domestic calls, 300 txt msgs, 5¢/additional TXT msg)
    • T-Mobile Internet add-on plan $19.99/mo (unlimited Internet and My E-mail access, calling plan features)
    • T-Mobile Internet plan $29.99/mo (unlimited Internet and My E-mail access, 300 txt msgs, 5¢/additional txt msg)
    • Corporate My Email $9.99/mo
    T-Mobile Internet for Phone BlackBerry
    • T-Mobile Internet and T-Mobile HotSpot Combination Plan wi/1yr service $49.98/mo (unlimited T-Mobile Internet and T-Mobile hotspot service, 300 txt msgs, 5¢/additional txt msg, 20¢/min calling)
    • T-Mobile Web $5.99/mo (unlimited mobile web usage, access to customized news and info, unlimited e-mail)
    • (Source: T-Mobile, 2005)
    Others
    • T-Mobile Hotspot add-on plan $19.99/mo (unlimited minutes and data transfer, calling plan features)
    • T-Mobile hotspot stand-alone plan $29.99/mo (unlimited minutes and data transfer)
    T-mobile Hotspot
    • Add to any calling plan $20/mo
    • E-mail, IM and Web browsing $29.99/mo
    • Pay as you go $1.00/day
    T-Mobile Sidekick II
  • Wi-Fi Services
    • Some Top Wi-Fi operators in the USA are
      • Infonet Services Company
      • T-Mobile USA
      • Airpath
      • Wayport
      • Boingo Wireless
      • SBC Freedom Link
    • Deployments in coffee places, hotels, book stores, airports
    • Seem to be constantly seeking roaming agreements worldwide to increase market share
    4. Services 4.2 Services – Wi-Fi
  • Sample Wi-Fi Plans
    • Boingo
    • Per Month, Unlimited: $21.95. No contract required.
    • Two or more days: $9.95 for the first two days, and $9.95 each subsequent day
    • Note: International locations may cost more
    • Boingo also offers group plans (Source: Boingo, 2005)
    • T-Mobile Hotspot
    • Per Month, unlimited time & data. Add-on to voice plan: $19.99
    • Per Month, unlimited time & data. Stand-alone: $29.99
    • One day, unlimited data: $9.99 per month
    • One hour and over. Unlimited data: $6 for the first hour, 10 cents for each additional minute
    • T-Mobile also has additional combination plans .(Source: T-Mobile)
    • SBC Freedomlink
    • Per Month. For DSL/Dial-up members
    • Basic: unlimited access to all FreedomLink Hot Spots — $1.99 per month for DSL members and $9.99 per month for Dial-up members.
    • Premier subscription service provides unlimited access to all FreedomLink Hot Spots plus all roaming partner locations — $21.99 per month for DSL members and $29.99 per month for Dial-up members.
    • Per Month. For non-SBC Internet access members.
    • Basic memberships provide unlimited Internet access at all FreedomLink Hot Spots for just $19.95 per month with a one year term commitment.
    • Premier memberships provide unlimited Internet access at all FreedomLink Hot Spots, plus all roaming partner locations for just $39.95 per month with a one year term commitment.
    • Prepaid Connection — Provides a day of unlimited access at any FreedomLink Hot Spot. Prepaid Connections are available in increments of 3, 8 and 20.
    • 3 sessions - $25
    • 8 sessions - $50
    • 20 sessions - $100 (Source: SBC)
    4. Services 4.2 Services - Wi-Fi
  • Top U.S. Mobile Internet Categories, June 2005 (%) – 191 Million Users Source: Telephia: The Mobile Internet Report 4. Services 4.3 Consumer Applications
  • Internet Use by Activity Content That Mobile Phone Users Expect to be Accessing in 12 Months’ Time (North-America) 4. Services 4.3 Consumer Applications Source: Logica CMG
  • 2010 – North America Consumer Spending ($Mln)
    • Source: Strategy Analytics, 2005
    4. Services 4.3 Consumer Applications
    • Revenues from mobile gaming expected to explode in a few years
      • Expected to grow to $1.8 billion by 2009 (vs. $100 in 2003)
      • Customers spending on wireless games will increase around $2.8 billion annually by 2008
    • Coordination among the various network technologies in the U.S. market is still lacking, no clear service provider or technology is dominant, making user experience less successful. (OECD, 2005).
    • The Economist projects that 1/3 of all game software sold next year will be on mobile phones (JETRO SF, 2005)
    • There are signs that Venture Capitalists are interested in wireless gaming industry the same way they were about e-commerce in the late 1990s, since the audience is not just teenagers. (Koprowski, 2005)
    Example: Games 4. Services 4.3 Consumer Applications
  • Example: Wireless Games Source: Jamdat Mobile White Paper, 2004 4. Services 4.3 Consumer Applications
    • Mobile video has an increasing market share. For example, last year, San Diego based Qualcomm, announced plans to build an $800 million nationwide mobile media network. It will consist of approx. 50 to 100 distinct national and local channels, with up to 15 live streaming channels. Qualcomm plans to broadcast optimized content from major TV providers, and unique mobile content. (Qualcomm, 2005)
    • Strategy Analytics, Inc. predicts that Mobile Video Infotainment will fall into three major categories on consumer spending in 2010
      • Subscribers will use $1,213 million on Media and Music,
      • $320 million on Sports and
      • $118 on Adult entertainment (Strategy Analytics, Inc., 2005)
    • Video infotainment revenues are $76 Million this year, but are predicted to rise to almost $1.7 billion in 2010. (Strategy Analytics, Inc., 2005)
    Example: Rich Media – Mobile Video 4. Services 4.3 Consumer Applications
    • Mobile music services are popular in the U.S., but the markets are not yet mature for widespread music applications. One third of wireless customers are interested in music services
      • Key challenges: The lack of available handsets, protection of IP rights, digital rights management (DRM), management complexity, competition from incumbent services and business pricing models and practices (Frost and Sullivan, 2005; Wired, 2005)
    • Opportunities
      • Wireless full-track downloads, (example of one component of the overall wireless music market). IDC expects the U.S. wireless full-track music market to be $ 1.2 billion USD in revenue and over 50 million full-track customers and subscribers by 2009 (Wired, 2005)
    • Biggest players: Cingular, Verizon Wireless and Sprint Nextel.
      • Wireless music is a way to differentiate, generate revenue and gain image through association with the latest stars in the music industry.
      • Also geared to sell phones that can play songs, some plan to deliver music to phones over the air, in a bid to boost revenue as voice call prices drop. (Reed, 2005; Carew, 2005)
    Example: Rich Media – Mobile Music 4. Services 4.3 Consumer Applications
    • Mobile Television
      • By 2009, 22.3 million Americans will be using mobile video content, and 31.1 million will use video messaging services (The Register, 2004)
      • Prices are still high, but the U.S. consumers are excited about the idea of Mobile TV, and companies see its potential.
    • Verizon Wireless launched VCAST for video delivery
    • Industry is gaining momentum, shown by the interest of the following players
      • Wireless equipment suppliers
      • Components suppliers
      • Device makers
    • Example: MobiTV
      • Idetic, Inc. has launched a MobiTV service, that enables customers to watch live TV. MobiTV is an example of one-way video using streaming technology to deliver commercial television programming live to users (Poe, 2004)
      • Partnered with Sprint, Cingular and Midwest Wireless. Sprint is also working on a ecommerce solution that will allow viewers tuned in to the music video to buy the video and the ring tones of the music. (OECD, 2005; Idetic, Inc., 2005)
      • 500,000 subscribers in September 2005 (Verizon’s VCAST hast approximately the same amount) (Idetic, Inc., 2005)
    Example: Rich Media – Mobile Television 4. Services 4.3 Consumer Applications
    • Service Providers are finding good sources of revenue from ringtones and ringback tones
    • Ringtones are an attractive service for consumers in the USA
      • Cingular charges $2.49 for a ringtone
      • Cingular also offers a monthly subscription service for tones
    • Ringback tones are also gaining attention in the U.S. markets
      • Verizon Wireless charges $0.99 per month for a ringback tone
      • Verizon Wireless also offers $1.99 price for a year
    Example: Ringtones and Ringback Tones 4. Services 4.3 Consumer Applications
  • Wireless Enterprise
    • There are around 50 million mobile workers in the U.S., potentially needing remote access to business applications such as e-mail, intranet, CRM and field service applications, and legacy systems ( The Yankee Group, 2004)
    • The Yankee Group 2004 Corporate Wireless Survey: 55% of large U.S. businesses will deploy a wireless wide area data solution by mid-2006 (The Yankee Group, 2004)
      • Research showed that E-mail was seen as the key application in the enterprise market. Other areas that were found important:
        • Web browsing/Intranet
        • Salesforce automation
        • Corporate databases and applications
        • Instant Messaging (The Yankee Group, 2004)
    4. Services 4.4 Business Applications
  • Wireless Enterprise
    • The biggest single factors that enterprises see as issues when it comes to the deployment of wireless solutions are security, cost, and the lack of geographical coverage (The Yankee Group, 2004)
    • Currently only 20% of wireless data accounts are paid by employers, even though they are changing to be a crucial tool for workers
    • Companies see the forthcoming value: Oracle, for example, rewrote its software licenses to include licensing for mobile applications. Its also rewriting its software to accommodate wireless applications
    4. Services 4.4 Business Applications
    • There is a significant market opportunity for consumer mobile email, with a potential market size of more than 40 million U.S. consumers (Critical Path, 2005)
    • Blackberry by Research In Motion is mentioned typically when mobile email is referred to – it is “the email device” in North America
    • Nokia launched a new solution, Mobile Business Center, also in the U.S. markets
      • Solution enables collaborative solutions, including push email
      • It is available, for example, with Nokia 9300 and some other phones
    • In CTIA Wireless, Sept 2005, Microsoft and Palm published a new Treo with Windows Mobile
    Example: Mobile E-Mail 4. Services 4.4 Business Applications
  • Services for Business and Consumer
    • Entertainment/Infotainment
      • Video Programming, Short Clips
      • Music
      • Games
      • Internet access from handheld/laptop
    • Voice over IP over Wireless
    • Business
      • Email to handheld
      • Remote work through laptop & card
      • Sales force management, mobile CRM
      • Logistics applications
    4. Services 4.5 Trends
  • Trends: IMS, PTT, PTC, VoIP over Wireless
    • Nextel was the first to offer Push to Talk (PTT) for U.S. consumers
      • Other telecom providers follow the suit
      • Push to Talk over Cellular (PTC) is gaining increasing attention
    • Growth of PTT and PoC subscriber base to grow in the USA to 33.6 million by the end of 2009 (from 16.8 million in 2004) (Source: www.mobiletechnews.com )
    • IP Multimedia Subsystem (IMS) can provide delivery of IP based services, such as PoC, VoIP, Video and messaging
      • IMS brings convergence of wired and wireless networks closer
      • Sprint Nextel is implementing IMS solution with Lucent (Sprint, 2005)
    • The opportunities of VoIP over Wireless are being recognized in the USA
      • Vonage brings Wireless mobile VoIP handset to market
      • Co-operation going on, such as with Skype & Boingo
    4. Services 4.5 Trends
  • Trends: Mobile Virtual Network Operators – Leveraging Brand Value
    • In the U.S. Markets, MVNOs are beginning to emerge, stimulating growth of wireless data
      • Targeting selected market segment, or multiple segments
      • Extending their brand to the wireless industry
        • Resell wireless services through their brand
        • Increase sales of their data offerings by wireless channel
    • Examples
      • Virgin Mobile USA
        • Young Americans under 30 ; Easy-to-Use
      • ESPN Mobile
        • Sports Enthusiasts
      • Firefly Mobile
        • Children
    • This means growing opportunities for Mobile Virtual Network Enablers (MVNE)
      • Turnkey solutions for MVNOs (infrastructure, billing, back-office support)
      • Individual service/product components to support specific needs
    4. Services 4.5 Trends
  • 5. Private Sector R&D Activities 5.2 Funding 5.1 Research Activities 5.3 Components: Terminals
  • Private Sector R&D Activities
    • U.S. equipment and software vendors, as well as large service providers are investing strongly on wireless technologies, in the following areas
    • Below, examples of investments of service providers
      • Cingular Wireless: UMTS, HSDPA
      • Verizon Wireless: EV-DO
      • Sprint-Nextel: EV-DO
      • AllTel: EV-DO rollouts
      • T-Mobile: EDGE rollout nationwide, HSDPA
    • Vendors like Cisco, Lucent, Motorola, Nortel and others continuously invest in R&D
    5. Private Sector R&D Activities 5.1 Research Activities
  • Private Sector R&D Activities
    • Examples of company research
      • AT&T
        • 4G Wireless technologies
        • Applications such as Location Based Services for mobile workforce management
      • Lucent: Bell Labs – The Wireless Research Laboratory
        • Wireless Systems and Technology Research: 3G and 4G Technologies
        • High-Speed Circuits and Systems Research
        • Wireless Communication Research: Adaptive Antennas
        • Global Wireless Systems Research: Air interface and packet access layers for UMTS, GSM/GPRS/EDGE and 4G
      • Cisco
        • Wireless networking, applications, routing protocols
      • Qualcomm
        • Single chip solutions, EVDO, and W-CDMA solutions
    5. Private Sector R&D Activities 5.1 Research Activities
    • Intel has business alliances with other companies in order to help develop and deploy wireless broadband capabilities using WiMax
      • For example Clearwire, Nokia and Alcatel have all had some sort of a collaboration with Intel in the past or currently (Intel, 2004)
      • Planning to build WiMax into its Centrino chip platforms, which will power 80% of all PCs, by the year 2006 (NTIA, 2005)
    • Sprint and Samsung Telecommunications collaborating to test IEEE 802.16e standard and to drive the development of wireless broadband services
      • Involves prototype terminal testing and also supporting core network equipment to help meet the needs of next-generation wireless network infrastructure requirements (Brown, 2005)
    R&D Collaboration (1) 5 . Private Sector R&D Activities 5.1 Research Activities
    • Motorola is planning to offer integrated radio access networks that will handle 3G, Wi-Fi, WiMax, and wireless innovations (NTIA, 2005)
    • AT&T, Siemens, and Alcatel have also started taking action in backing WiMax technologies (NTIA, 2005)
    • Yahoo! Research Berkeley Yahoo! was established recently as research partnership. Topics of Interest: social media and mobile media technology and applications that enabling people “to create, describe, find, share, and remix media on the web.” Source: Yahoo! Research
    R&D Collaboration (2) 5 . Private Sector R&D Activities 5.1 Research Activities
  • R&D Collaboration (3) 5 . Private Sector R&D Activities 5.1 Research activities
    • HP Labs – Mobile and Media Systems Lab research
      • Focuses on mobile, network-centric appliances and the systems to deliver user-specific rich media service
      • Research: 3D graphics, advanced systems, appliance technologies, BiReality, DJammer, information theory, networking, polynomial texture mapping, streaming media, technology and lifestyle integration, UltraVis volume rending system, vision and graphics
    • IBM Research
      • Research activities focus on wide-ranging issues in signal processing, optical networking, wireless networking, high-speed switching fabrics, routing, QoS and policy networking, network control and management, and network security.
      • Projects: EDGE server software, online games intra, voice application middleware, smart networks, sensor networks, reliable multicast messaging, policy technologies, policy enabled networking and management
  • On Software Defined Radio 5 . Private Sector R&D Activities 5.1 Research activities
    • FCC approved the use of software defined radio device in the United States in November, 2004, to his allow users to better share airspace. Source: FCC
      • The first certificate was given to Vanu, Inc, for a cellular base station transmitter.
      • Software defined radios can be programmed to change modulation type, output power or the frequency range without hardware changes.
    • Software Defined Radio is an active research topic in many universities, such as Virginia Tech
    • Companies such as Motorola Communications Research are studying SDR technologies, to ease resolution of spectrum issues. Motorola is focusing on the following issues in this research:
      • Physical RF layer
      • Frequency generation
      • Modulation and demodulation
      • Data conversion and signal processing
      • Means to ensure secure over-the air software downloads
      • Source: Motorola
    • Industry forums such as Software Defined Radio Forum are seeking to advance development of Software Defined Radio technology
  • Venture Capital (1)
    • Venture Capital funding increasing: Wireless companies are receiving more capital, yet investment size has not reached the level of 2000 and 2001 (Marek, 2005)
    • Hot investment areas; Mobile Television, mobile entertainment, handset client software and any technology that will improve wireless coverage (Marek, 2005)
    • Although far from ubiquitous and regardless of the hype, Gardner predicts VoIP will be the next big thing for funding. VoIP company Vonage*, for example, has received multiple funding rounds. (Canaan Partners, 2005)
    5. Private Sector R&D Activities 5.2 Funding
  • Venture Capital (2)
    • Source: MoneyTree Survey, 2005
    5. Private Sector R&D Activities 5.2 Funding
  • Venture Capital (3)
    • Source: MoneyTree Survey, 2004 & 2005
    5. Private Sector R&D Activities 5.2 Funding
  • Examples of the Most Recent VC Funded Telecom Companies
    • The telecommunication companies receiving most funding in the first quarter, have a focus in wireless or VoIP
      • General Bandwidth (VoIP) with $18 million invested
      • Trapeze Networks (WLAN) with $17.5 million invested
      • Colubris Networkd (WLAN) with $15 million invested
      • Source*: Networkworld, 2005
    • MetroPCS Communications, Inc.
      • A regional wireless operator, building three CDMA-based networks in the U.S.
      • Attracted venture capital funding from Madison Dearborn Partners L.L.C. and TA Associations, investing altogether a $739 milllion minority equity investment in the carrier (MetroPCS Communications, Inc., 2005)
    5. Private Sector R&D Activities 5.2 Funding
    • The four largest mobile phone vendors in the USA are Motorola, Nokia, Samsung and LG, contributing to about ¾ of market share
    • Terminal cost is a key driver of mass market deployment
      • Service providers provide free or low-cost phones to acquire and retain customers when they sign up for 1 to 2 year contracts
    • Strong competition among handset manufacturers, between companies like Samsung, LG, Nokia and U.S. mobile manufacturer, Motorola
    • Service providers give rebates and discounts for smart phones and PDAs
    • The most popular email devices are the following:
        • BlackBerry
        • Treo
        • MPx220
    • Others
        • Sproqit Technologies
        • Intellisync
        • Extended Systems
        • Infowave
        • JP Mobile
    Handhelds / Mobile Terminals 5. Private Sector R&D Activities 5.3 Components: Terminals
  • 6. Policy Making and the Role of the Public Sector 6.2 Municipal Action 6.1 The Government Role
  • Government & FCC
    • U.S. Government does not have a clearly defined broadband policy, but the Bush administration has set a goal of universal, affordable access to broadband by 2007 (Gross 2005, White House 2004)
    • FCC: New policies needed to keep up with advancement in wireless technologies
      • FCC has started pursuing new policy approaches and has issued its first wireless broadband access task force report this year (Rockwell, 2005).
    6 . Policy Making and the Role of the Public Sector 6.1 The Government Role
  • Optimizing and Allocating Frequency Spectrum 3. Policy Making and the Role of the Public Sector 6.1 The Government Role
    • Federal Communications Commission promotes of broadband access services, facilitating wireless broadband deployment, launching many initiatives, some examples below
      • Increased the available spectrum by re-allocating resources and establishing mandates like “Use-or-Lose dates”
      • Allowed market to innovate better, for example, to permit more flexibility for parties to better gain access to spectrum by creating secondary markets in spectrum to enable licensees to lease access to some third parties in need
      • Decreased regulatory constraints for deployment of unlicensed wireless networking, for example, allowing smart antenna technologies to be used for increased spectrum efficiency
    • Source: FCC
  • Congress
    • U.S. Congress has made moves to recast Telecommunications Act from 1996 and is expected to pass some sort of telecommunications reform by late this year
      • Also looking to update how wireless will be regulated for the next 20 years (Rockwell, 2005.).
    • The 109th Congress is considering federal broadband financial assistance programs, and the effect of telecom regulations, and new technologies on broadband deployment (CRS Report, 2005)
    6.1 The Government Role 6 . Policy Making and the Role of the Public Sector
  • Bush Administration
    • Bush administration aims to make broadband access tax-free, working to enable the rollout of new broadband technologies, and to remove hurdles slowing the deployment of broadband. (The White House, 2004).
    • Bush administration: Working to free radio spectrum for commercial and unlicensed uses.
      • An auction of spectrum is scheduled for summer 2006 to increase wireless spectrum by 45 % (Gross, 2005)
    6.1 The Government Role 6 . Policy Making and the Role of the Public Sector
  • Policy Making and Public Sector’s Role
    • Spectrum allocation
      • FCC arranges auctions to allocate spectrum
      • Unlicensed and Licensed spectrum are in use, also experimental licenses are available
    • Some Government initiatives
      • Wireless Broadband Access: policies to promote growth of wireless technologies to extend reach of broadband access
      • Homeland Security Public Safety Wireless Interoperability Initiative
      • Joint Federal Rural Wireless Outreach Initiative
        • Economic development in rural areas
      • Rural Community Vision
        • Telemedicine
        • Ecommerce
      • (Source: FCC)
    6.1 The Government Role 6 . Policy Making and the Role of the Public Sector
  • Public Sector Activities
    • Recently a coalition, representing more than 40 organizations, such as local governments, the high tech industry, and consumers, was formed to promote community broadband choices and communities to provide broadband internet services to their citizens (Baller, 2005)
    • U.S. Supreme Court Ruling in 2004: States can bar cities from offering high-speed Internet services
      • Now telecommunications industry’s lobbyists are trying to extend the ban on municipal broadband services to every city as well
      • Anti-municipal Internet bills failed in Iowa, Texas and Florida
    6.1 The Government Role 6 . Policy Making and the Role of the Public Sector
  • Public Sector’s Role in Broadband
    • City-wide hot spots:
      • Athens, GA
      • Cerritos, CA
      • Chaska, MN
      • Oklahoma City, OK
      • Philadelphia, PA
      • Spokane, WA
      • Walla Walla, WA
    • Free hot spots being built:
      • Austin, TX
      • Las Vegas, NV
      • Long Beach, CA
      • New York, NY
      • San Jose, CA (this may turn out to be partly fee-based)
      • Washington, DC (NTIA, 2005)
    6.1 The Government Role 6 . Policy Making and the Role of the Public Sector
    • U.S. cities, towns and counties are going to use approximately $700 million in the next three years to build municipal-owned wireless broadband networks U.S. cities: Almost 300 cities are planning or moving ahead already with municipal broadband projects (Gross, 2005; Muniwireless, 2005)
    • In 2005 over 60% of municipal network spending will be done by large cities (Muniwireless, 2005)
    • Most urgent needs for municipal wireless networks in public safety. From the U.S. municipalities that have launched municipal wireless, only 50% have done it the public safety (police, fire, emergency services) (Muniwireless, 2005)
    • 14 U.S. states have passed laws to limit municipal broadband services, with Verizon and SBC Communications, Inc., lobbying against city-offered services – while Intel is lobbying for the service. (Gross, 2005)
      • The Community Broadband Act of 2005, is aiming to prevent states from outlawing municipal broadband service
    Municipal Broadband 6.2 Municipal Activities 6 . Policy Making and the Role of the Public Sector
  • 7. Public Sector R&D Activities 7.1 Research Activities 7.2 Funding 7.3 Organizations
  • Some R&D Activities – Universities
    • Some examples of relevant university research
      • UC Los Angeles - Wireless Adaptive Mobility Laboratory
      • UC San Diego - Center for Wireless Communications
      • Stanford University - Wireless Communications Research Group
      • University of California Berkeley - Wireless Research Center
      • Massachusetts Institute of Technology
      • Virginia Tech
      • Georgia Tech
    7 . Public Sector’s R&D 7.1 Research Activities
  • Some R&D Activities – Universities
    • UC Los Angeles - Wireless Adaptive Mobility Laboratory – Main research areas are:
      • Performance evaluation of wireless, mobile, multimedia network protocols with focus on ad hoc, multihop, self configuring networks
      • Wireless network protocols and applications
    • UC San Diego - Center for Wireless Communications - Wireless research projects from 2003 to 2005:
      • Mobile OFDM Communications
      • MIMO wireless communication systems
      • Low-power mixed-signal circuits for wireless transceivers
      • Application and network-aware multi-layer adaptation of wireless protocols and architectures
      • ” Smart” sensor networks for visual context capture and interactivity
      • High-bandwidth wireless spaces
      • Digitally controlled transmitters for next generation communications systems
      • Network-on-silicon architectures for mesh-based radios
    7 . Public sector’s R&D 7.1 Research Activities
  • Some R&D Activities – Universities
    • UC Berkeley - Wireless Research Center BWRC:
      • Research focus is to determine relationship between theoretical and algorithmic advances for radio SoC implementation
      • UWB
      • Ad Hoc Networking
    • University of Stanford - Wireless Communications Research Group – Current Research:
      • Channel modeling
        • Channel models for indoor MIMO wideband data systems
      • Systems
        • Algorithims for MIMO mobile system
    7 . Public sector’s R&D 7.1 Research Activities
  • Some R&D Activities – Universities
    • MIT – Laboratory for information and decision making
      • Satellite communications, wireless communications
      • Ubiquitous mobile systems
    • Virginia Tech – Wireless communications is the largest research activity:
      • Propagation and antenna studies
      • Modulation and detection techniques to improve performance in interference environments, and devise communications techniques and applications for new spectral bands
      • Ultra wideband techniques and cognitive radio systems.
    • Georgia Tech – Ongoing research projects:
      • Wireless sensor networks
      • Wireless mesh networks
      • Actor and sensor networks
      • Underwater sensor networks
      • Substation automation
      • xG wireless systems
      • Next generation wireless internet
    7 . Public sector’s R&D 7.1 Research Activities
  • Federal Funding
    • Federal research and development funding has slightly increased in the past years
      • FY 2006 budget requests a total of $132 billion for all federally funded R&D activities
      • In September TIA formed a new division: Communications Research Division (CRD). Its mission is to ensure that the U.S. communications sector continues to be a world leader in advanced research (TIA, 2005)
      • The National Science Foundation has a budget of $5.7 for 2005 (White House, 2005)
      • 18-month extension of the research and experimentation tax credit; support on making it permanent and also an extension on the Internet tax moratorium until Oct 2007. (Greenemeier, 2005. NTIA, 2005).
    7 . Public Sector’s R&D 7.2 Funding
  • Selected Organizations
    • Active co-operation between industry players, universities and government bodies is needed to ensure interoperability
    • Selected organizations are listed below
      • U.S. Federal Communications Commission FCC www.fcc.gov
      • U.S. Department of Commerce DOC -> National Telecommunications and Information Administration NTIA www.ntia.doc.gov
      • Cellular Telecommunications and Internet Association CTIA www.ctia.org
      • Center for Digital Government www.centerdigitalgov.com
      • WiMAX Forum www.wimaxforum.org
      • WiMAX Global Roaming Association WGRA www.wimaxgra.org
      • Broadband Wireless Association www.broadband-wireless.org
      • International Packet Communications Consortium www.ipccforum.org
      • The Telecommunications Industry Association www.tiaonline.org
      • Enterprise Wireless Alliance www.ita-relay.com
      • Wireless Communications Association International WCA www.wcai.com
    7. Public Sector’s R&D 7.3 Organizations
  • 8. Possibilities for Finnish Companies 8.1 Services and Applications 8.2 Leveraging Expertise
  • Answering to Market Needs
    • Wireless broadband is gaining popularity
      • Cellular penetration and coverage are reasonably high
      • Operators are offering attractive services over 2.5G/3G
      • Number of Wi-Fi hot spots is increasing
    • Strong competition among large players requires differentiation by services instead of price
    • Service providers need to address complexities of wireless broadband
      • Interoperability of wireless broadband technologies poses opportunities and challenges for service providers and technology vendors
      • New products, solutions and services are needed
    8. Possibilities of Finnish Companies 8.1 Services and Applications
  • New Applications and Platforms for Wireless Broadband Services and Infrastructure
    • Personal broadband
      • ” Content is King” - Voice, Video clips, Ringback Tones, Games
      • Personalized application environment
      • Making Wireless Broadband as easy as Fixed Broadband
    • Productivity / Cost savings tools
      • Bringing mobility to enhance enterprise productivity
      • Enhancing personal productivity at home and work
      • Enabling cost savings in the enterprise
    • Network and service management solutions
      • The number and variety of intelligent devices in the network increases, and networks become more complex
    • Security solutions
      • As networks and services become more complex, end-to-end solutions are needed to protect user activity while roaming across Cellular, Wi-Fi/WiMAX and other networks
    8 . Possibilities for Finnish Companies 8.1 Services and Applications
  • Interesting Application Areas
    • Voice over IP over Wireless
    • Entertainment
    • Video clips
    • Games
    • Digital communities
    • Email, messaging
    • Personal Information Management
    • Data Sharing, Content Sharing, Photo Sharing, Collaboration
    • Digital Rights Management
    • Location Based Applications
    • Mobile Advertising
    • Enterprise Applications
    • Billing Systems
    • Network and Service Management
    • Security
    8 . Possibilities for Finnish Companies 8.1 Services and Applications
  • Leveraging Finnish Wireless Expertise
    • As wireless penetration grows, Finnish wireless expertise can be leveraged
      • Partner to provide technology, content and services to
        • Infrastructure providers
        • Handset manufacturers
        • Application and Solutions providers
      • Collaborate with service providers in trials and deployments
      • Provide technology, solutions, services and content
      • Be active in industry organizations, R&D and Marketing collaboration
    • Focusing on niche areas
    • Solutions are needed to
      • Enable incumbents maintain positions
      • Make it easier for new entrants to address new market areas
    8 . Possibilities for Finnish Companies 8.2 Leveraging Expertise
  • 9. Foreseeable Radical Changes 9.1 3G networks and services 9.2 Wi-Fi and WiMAX 9.3 Voice over IP 9.4 Wireless Enterprise, Home and Community
  • 3G Rollouts Taking Place
    • Operators are rolling out EV-DO, W-CDMA and HSDPA
      • Need to get planned ROI for infrastructure investment with new services
      • Need to find unique offering in order to win competition
      • Have an opportunity to offer new value-add to increasing amount of users in more regions
    • Users will get used to new services
      • From music downloads and ringtones to streaming video
      • Best personalized user experience will win when users choose their service providers
      • Price, Quality of Service and Ease of Use are ingredients of a winning offering
    9 . Foreseeable Radical Changes 9.1 3G Networks and Services
  • Wi-FI and WiMAX Changing Landscape
    • Cellular operators need to pay attention to the opportunities provided by other technologies
      • If service providers do not act it will become a threat – others will take the customers
      • If service providers become players in Wi-Fi and Wi-MAX space, they have a chance to
        • Increase customer base by attracting or acquiring new users
        • Retain existing customers by giving them access everywhere, by increased coverage
        • Enable their customers have bandwidth they require
      • Cellular providers are going to partner-up, build themselves or acquire other players with Wi-Fi / WiMAX experience and customers
    • As the USA approaches 4G, the ecosystem will change to accommodate many different wireless technologies and business models
    • Wi-Fi is reality today at homes, office, public places (coffee houses, airports)
    • WiMAX will eliminate the problem of last mile access, saving costs to operators
      • Fixed Wireless WiMAX seems to be here sooner
      • Mobile WiMAX will still have to be waited for a couple of years
    9. Foreseeable Radical Changes 9.2 Wi-FI and WiMAX
  • Voice over IP
    • Voice over IP is considered a killer-application by many
      • Some say Wireless Broadband is the killer-application in itself
    • Customers get more value and better experience
      • Price advantage
      • Increased coverage
      • Convenience
    • Examples of problems to be addressed
      • Call security
      • Handset cost
    9. Foreseeable Radical Changes 9.3 Voice over IP
  • Changing Ecosystems
    • Wireless enterprise
      • Mobility drives business process change
      • Instant information availability, collaboration
      • Remote work, decision making processes
    • Wireless home
      • Wireless brings entertainment where you are
      • Streaming media to your Laptop, Entertainment Center and Mobile Phone, Content Sharing
    • Wireless-enabled community
      • Free wireless access in cities changes business models in dynamic service environments
      • Consumer behavior changes with enabling technologies
      • Mobile search powered with Location Based Services enable businesses to be found easier
    9. Foreseeable Radical Changes 9.4 Wireless Enterprise, Home, Community