Motorola’s Vision for 3G CDMA Sub-Regional Seminar Warsaw, Poland October 4, 2001 Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Discussion Topics • CDMA Market Overview – Trends – Growth – Evolution • 3G Is Here and CDMA Is Ready – Successful Path – Significant Role in 3G Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Wireless Market Trends Subscribers Operator Revenue Voice + Services Operator Revenue Voice Only Minutes of Voice Use per Subscriber Time Time ! Future Growth Will Be Driven by Non-Voice Services, Increasing Network Complexity and New Revenue Generation Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Benefits and Value Migration Industry Industry Response Response 3G and Beyond 2.5G 2G •• Enhanced Enhanced Services Services •• High High Speed Speed Data Data Analog 95 19 90 19 Customer Customer Expectation Expectation Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. 04 -20 02 20 99 19 •• Voice Voice •• No No Drops Drops •• Services Services •• Voice Voice Quality Quality •• Capacity Capacity •• VoIP VoIP •• Untethered Untethered Ethernet Ethernet •• High High Voice Voice and and Data Data Capacity Capacity CDMA CDMA2000 CDMA2000 1xEV 1xEV Data Data Only Only (DO) (DO) Operator Operator 2.5G IS-95A IS-95A IS-95B IS-95B 3G 2G GSM TDMA 2G CDMA2000 CDMA2000 1xEV 1xEV Data Data & & Voice Voice (DV) (DV) CDMA2000 CDMA2000 1X 1X Operator iDEN TDMA IS-136 GSM 900 GSM 1800 PCS 1900 2.5G 3G EDGE EDGE Handset Convergence Migration Paths to 3G UMTS UMTS GPRS 14.4 14.4 Kbps Kbps –– 64 64 Kbps Kbps –– 153.6 153.6 Kbps Kbps –– 384 384 Kbps Kbps –– 22 Mbps Mbps & & Up Up Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. CDMA vs. Other Technologies CDMA IS-95B (64 Kbps) commercial deployments in Japan and Korea CDMA industry commercializes 1xEV-DV (up to 4.8 Mbps) service CDMA2000 1X service rollout (up to 153.6 Kbps) CDMA industry 1xEV-DO (up to 2.4 Mbps) deployment targeted Korea introduces commercial CDMA2000 1X (up to 153.6 Kbps) Q1 Q2 Q3 Q4 Q1 2000 GSM industry commercializes GPRS (26 Kbps) service Q2 Q3 Q4 Q1 Q2 Q3 Q4 …Q4 2001 2002 GSM industry EDGE deployment targeted GSM industry commercializes WCDMA (2 Mbps) service Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. …2003 The Wireless Internet Begins… • Data penetration still less than 10% but growing rapidly. • 60% Mobile Internet penetration already in Japan. • Sprint, BT Cellnet, DoCoMo, J-Phone, KDDI, Nextel, and Verizon all exceed 1 million data subscribers. • Over 15% of all telecom service revenue will come from Mobile Internet in 2005. Source: Company and Industry Reports, Japan Telecommunications Carriers Association Mobile Internet Subscribers Carrier Subs (M) DoCoMo* 23.0 KDDI* 7.2 J-Phone* 6.7 BT Cellnet 1.3 Shinsegi (Korea) 0.5 Sprint PCS 1.5 Verizon 1.0 AT&T 0.6 Nextel 1.1 Telefonica 0.5 Omnitel 0.1 TIM 0.1 France Telecom 0.7 Others 1.65 Total* 46.0 Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. * As of 4/30/01 3G Concept Devices / Applications Voice & MultiMedia Playback messaging PIM and synchronization live communication Infotainment entertainment Multi-Media Tablet picture messaging chat entertainment location live communication Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Discussion Topics • CDMA Market Overview – Trends – Growth – Evolution • 3G Is Here and CDMA Is Ready – Successful Path – Significant Role in 3G Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Today CDMA2000 1X Provides… • Support of CDMA2000 1X Air Interface – Enables new revenue generating data opportunities – Nearly doubles voice capacities • Orderly Migration Path – Maximizes re-use of existing equipment – Minimizes risk to existing voice services – Simplifies BTS upgrades • Introduction of Packet Components – Packet Data Service Node – Authentication, Accounting, and Authorization Server Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. CDMA2000 1X Enhancements Summary • Technical Improvements – – – – MAC and turbo codes for data Fast forward and reverse link power control Forward link transmit diversity Re-use of IS-95A and IS-95B standards • Benefits – – – – 153.6 Kbps data rate Up to 4-6X capacity increase for data Up to 2X capacity increase for voice Migration strategy from IS-95A/B •New revenue generating apps •Reduces op costs per sub •Cost effective migration Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. The CDMA Cost Effective, Smooth 3G Migration Path 1xEV-DV (Data & Voice) System to Support High-Speed Packet Data and Real-Time Services 1xEV-DO (Data Only) 1xEV-DO Deployments System Optimized for Non-Real-Time, High-Speed Packet Services Study Period 2000 1xEV-DO BL Text Done (Aug. 2000) 1xEV-DO Standard Complete (Oct. 2000) 1X Installation 2001 1xEV-DV Deployments 1X Deployments 2002 1xEV-DV 1xEV-DV BL Text Done TSG Publish (Feb. 2002) (Jan. 2002) Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. 2003 1xEV-DV Overview • Peak data rate of 4.8 Mbps--unmatched data capacity of 1.0 Mbps within 1.25 MHz • Reverse link peak data rate of 614 Kbps – 1.38 Mbps reverse link peak rate under investigation • Backward compatible with IS-95A/B and 1X • Supports voice, mixed voice/data, and real-time, 2way on a single carrier • Flexibility to deploy data only carriers to maximize end-user data rates • Background, interactive, streaming, and real-time/2way services • WCDMA/HSDPA and 1xEV-DV share common CDMA technology Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. 1xEV-DV Mixed Voice and Data Economies Voice Voice and and data data busy busy hours hours are are NOT NOT coincident coincident 120.0 Data Voice Actual Commercial System Data Possible Possible to to support support data data traffic traffic with with unused unused voice voice capacity capacity 80.0 60.0 Data-only Data-only overlays overlays increase increase operators’ operators’ cost cost model model 11:00 PM 10:00 PM 8:30 pm 9:00 PM 8:00 PM 7:00 PM 6:00 PM 5:00 PM 4:00 PM 3:00 PM 2:00 PM 1:00 pm 1:00 PM 12:00 PM 11:00 AM 10:00 AM 8:30 am 9:00 AM 8:00 AM 7:00 AM 6:00 AM 5:00 AM 4:00 AM 3:00 AM 2:00 AM 0.0 1:00 AM 20.0 5:00 pm 40.0 12:00 AM % of Busy Hour Erlangs 100.0 Standards-based Standards-based voice voice and data networks and data networks promote promote economies economies of of scale scale Time of Day Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. 1xEV-DV – 2-Way, Simultaneous Voice and Data – Future Ready See Each Other Talk to Each Other Be Totally Connected Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. 1xEV-DV Proposal Partners • Motorola has over 110 contracts to deploy cdmaOne™ systems in 24 countries worldwide • Nokia is the world’s leading mobile phone company with over 30% market share in 2000 • Texas Instruments is the leading semiconductor provider of 2G & 2.5G wireless terminal solutions • Altera is the leading supplier of programmable logic solutions • Philips is the leading supplier of ICs, discrete components, and systems solutions for wireless communications Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Final Thoughts… Motorola Is Ready for 3G • 3G is really here and it profoundly changes the wireless industry by delivering new and compelling voice, data, and integrated services. • 1xEV-DV is the evolution path for CDMA2000. This technology will continually drive the industry to meet the expectations that customers have for wireless. • Motorola is a leader in CDMA2000 and plans to continually contribute to the 3G efforts together with the CDG and other CDMA industry leaders. Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved. Motorola Leadership • Worldwide Leadership – Deployed world’s first commercial cdmaOne™ system and S RStates, first cdmaOne systems in Japan, China, United P G Latin America, Africa, and Israel d n a , – Over 110 contracts to deploy cdmaOne in 24 S systems . T e M her countries U , – Commercially deployedDIS-95B Kbps HSPD in Japan MA o64 nts i C p pin 3GPP2 – Leading proposal for 1xEV-DV a l i o h r s o r t e o • Product Leadership d M a t e to deploy IOS internationally l s i – Interoperability: first L – Form factor innovation: concept creator of “wearable” phone – Deployment flexibility, increased capacity and coverage: CDMA base transceiver subsystem solutions – Proven reliability: Japan – 7.2 million subscribers on Motorola IS-95B networks Motorola, the Stylized M, and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners. © Motorola, Inc. 2001. All rights reserved.