WLAN, WIMAX and CDMA 450
versus
UMTS
Replacement or complementary ?
Petri Noponen
22.3.2005
AGENDA
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WLAN
WIMAX
CDMA 450
COMPARISON
CONCLUSIONS
WLAN – IEEE 802.11
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Synonyms: WiFi, WLAN, 802.11x
802.11
802.11b (11 Mbit/s)
802.11a (54 Mbit/s)
WLAN – UMTS
WiMAX - IEEE 802.16
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MAN, Metropolitan Area Network
IEEE 802.16
Point-to-point, point-to-multipoint
Cable replacement, ”last mile wireless”
Mobility – coming near future ?
WiMAX - IEEE 802.16
WiMAX - IEEE 802.16
WiMAX - IEEE 802.16
CDMA 450
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CDMA 2000 1xRTT
CDMA 2000 1xEV (evolution)
CDMA 2000 1x EV-DO (evolution data only)
BTS’s frequency adjusted to 450 MHz
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CDMA 450 networks
Eurotel in the Czech Republic
TRIATEL (formely Telecom Baltjia) in Latvia
UralWestcom in Russia
CDMA 450
CDMA2000 1x EV (IS-856 TIA/EIA )
Forward link
Reverse link
CDMA 450
CDMA2000 1x EV (IS-856 TIA/EIA )
CDMA 450
CDMA2000 1x EV-DO (IS-856)
CDMA 450
Nortel 1x EV-DO
450/800/1900 MHz
Base Station
CDMA 450
Nortel 1x EV-DO
CDMA 450
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Nortel alliance : Curitel, Synertek, and
AnyData (terminal, modems)
QTP-5500 1xEV-DO Test Phone
(Qualcomm)
450 MhZ
Data call over 1xRTT
Analysis - Porter 5 forces
Threat of
New Entrants
POTENTIAL
ENTRANTS
Bargaining Power
of Suppliers
SUPPLIERS
Bargaining Power
of Buyers
INDUSTRY
COMPETITORS
Intensity of Rivalry
SUBSTITUTES
Threat of
Substitutes
BUYERS
Analysis - Porter 5 forces
• Portel’s model in practice
• Portel’s model is for industry producing goods. Thus it does not fit
well to industry, which product is connectivity service. How ever the
connectivity is sell as good for user and the service provided over the
connectivity is creating more value user.
• UMTS provides users wide range of cellular services. UMTS is
available in biggest cities. The UMTS operator are also GSM
operators. The GSM network provides service outside UMTS
networks.
• UMTS operators have large GSM customer basis and established
organization to serve users. Operators have also working profitable
business model and longer term experience about cellular business.
Analysis - Porter 5 forces
• Bargaining power of Suppliers
• The financially hard times for operators
have also cause vendor difficulties. For that
reason vendor are willing to make good deal
to grow the UTMS market worldwide.
Analysis - Porter 5 forces
• Bargaining power of buyers
• Ordinary users are not very interested to trying
complicated thinks on their own. If the UTMS
operator can provide everything from support to
connectivity to users, then users are not even
willing to bargain. Also the users does not yet
have understanding how to measure the price of
the UMTS services against the value added to
users.
Analysis - Porter 5 forces
• Threat of new entrants
• The CDMA 450 will be real competitor for
UMTS. Mobility, services and plans to establish
wide rural area network are going challenge the
UMTS. CDMA 450 has also lower infrastructure
cost than UMTS because of the bigger cell size.
However the CDMA 450 is not compete with
UMTS in cities.
Analysis - Porter 5 forces
• Threat of substitutes
• There is not direct substitutes for UMTS in
density traffic areas, the WLAN might
compete in hotspots providing internet and
VOIP calls.
Analysis - Porter 5 forces
• Industry Competitors
• UMTS operators are trying to attract more
new UMTS users, so the competition
between UMTS operators is in healthy
level.
Analysis –
Porter Generic Business-Level Stategies
Competitive advantage
Competitive
Scope
Lower Cost
Differentiation
Broad
target
CDMA 450
UMTS
Narrow
Target
WLAN
WiMAX
Analysis –
Porter Generic Business-Level Stategies
• UMTS and CDMA 450 are real
competitors. They have similar
infrastructure, customer needs and services.
The UMTS has competitive advantage in
cities by established infrastructure and
customer basis. The CDMA 450 is going to
grow win users in rural areas, where UTMS
infrastructure will be expensive to deploy.
Analysis –
Porter Generic Business-Level Stategies
• WLAN is technology with very limited
coverage, but high bandwidth in unlicensed
spectrum. WLAN could provide mobility
for users. WLAN could provide internet and
VOIP calls, but not wide coverage on its
own.
Analysis –
Porter Generic Business-Level Stategies
• WiMAX is not competing other, it is
wireless cable replacement technology,
which competes with wired operators.
CONCLUSIONS
• WiMAX is more like cable replacement technology, than
real competitor of UMTS. AlsoWiMAX does not support
at the moment mobility of terminal.
• WLAN is hotspot technology providing more capacity to
small area than UMTS. WLAN is more complementary
technology for UMTS in hotspots.
• CDMA 450 is real competitor for UMTS. CDMA 450
provides similar voice and data services as UMTS.