The Mobile Connection:
Wireless Broadband
CTIA-The Wireless Association®
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Two Central Points
•Wireless is a Competitor in the Broadband
Marketplace
– Wireless, cable, telephone all go into the Internet cloud
The
Internet
•Consumers are served by product
differentiation
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The Basics of the Mobile Ecosystem
• Underlying network providers – FCC licensees.
• Handset and Infrastructure providers – e.g., Sony Ericsson,
Motorola, Nokia, Samsung, Lucent, Nortel, etc.
• Third-party content / applications developers and providers,
which may include both content generators, and content
aggregators.
• Aggregators combine content, such as news, sports, and other
information for provision to end-user customers through
carriers and MVNOs.
• Mobile Virtual Network Operators (“MVNOs”), operating on
licensees’ networks but offering consumers their own branded
applications and content.
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The U.S. Wireless Story
• At mid-year 2006, 180 wireless licensees served 219 million
customers nationwide – 71% of all Americans. That’s an
increase of 110 million customers from year-end 2000.
• The FCC has found that 98% of Americans live in counties in
which three or more licensed wireless service providers offer
services, and 94% in counties where four or more licensed
wireless providers offer service.
• Multiple MVNOs also compete in the wireless marketplace,
serving approximately 10% of wireless customers.
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Multiple Wireless Licensees Compete Nationwide
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Source: FCC 11th CMRS Competition Report
Competition Between Providers and Technologies
Analog & Digital Standards
1G - Analog Technology Standard
• AMPS (Advanced Mobile Phone Service)
2G - Digital Technology Standards
• TDMA (Time Division Multiple Access) – most being upgraded to GSM
• Cingular
• CDMA (Code Division Multiple Access)
• Verizon Wireless
• Sprint-Nextel
• GSM (Group Standard for Mobile)
• Cingular
• T-Mobile
• iDEN (Integrated Digital Enhanced Network) – most being upgraded to
CDMA
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Evolving Wireless Technologies –
Where We Are and Where We’re Going
Digital Standards
2.5 to 3G – Next Generation Networks
• CDMA – CDMA 1X, 1XEVDO (Evolution Data Only)
– CDMA 1X – up to 144 kbps
– CDMA EVDO – 400 kbps to 2 Mbps Max (400-700 kbps)
• GSM – GPRS, EDGE, UMTS, WCDMA, HSDPA
– GPRS – 144 kbps Max (50-70 kbps) (Global Packet Radio System)
– EDGE – 384 kbps Max (144 kbps) (Enhanced Data for GSM Evolution)
– HSDPA – up to 3.6 Mbps – 550 kbps to 1.1 Mbps (High Speed Downlink
Packet Access)
– UMTS / WCDMA – 384 Kbps to 2 Mbps
4G – The Next Step in High Speed Networks
– Evolving options, e.g., WiMAX, and further extensions of existing
standards
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4G: The Next Phase of Wireless Evolution
• Sprint Nextel’s 4G WiMAX strategy:
– Sprint Nextel plans to develop and deploy the first 4G nationwide
broadband network beginning in 2007 using mobile WiMAX IEEE 802.16e2005 technology as the standard.
• “The company's deployment plans target a launch of the advanced
wireless broadband services in trial markets by the end of 2007 with
plans to deploy a network that reaches as many as 100 million people in
2008. Sprint Nextel plans to expand mobile WiMAX network coverage
thereafter.” (Initial markets include Chicago and Washington, DC)
• “Sprint Nextel is expecting to invest $1 billion in 2007 and between $1.5
billion and $2 billion in 2008 relating to the 4G mobile broadband
network.”
• Aiming to deliver data rates of 2 to 4 Mbps.
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Source: Sprint Nextel
High-Speed Wireless Technology Snapshot
According to the FCC, by the start of 2006:
• CDMA 1xRTT and/or 1xEV-DO has been launched in at least
some portion of counties containing 283 million people, or
roughly 99 percent of the U.S. population.
• GPRS, EDGE, and/or WCDMA/HSDPA has been launched in
at least some portion of counties containing 269 million people,
or about 94 percent of the U.S. population.
• Higher speed technologies, EV-DO and WCDMA/HSDPA, are
available in counties containing 63 percent and 20 percent of
the U.S. population.
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Source: FCC
11th
CMRS Competition Report
Next Generation Network Rollout in the United States –
Estimated by County
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Source: FCC 11th CMRS Competition Report
Wireless licensees are deploying advanced networks
across America – including carriers of all sizes…
• Verizon Wireless has launched an EVDO-based broadband service that is
available in 242 major metro areas in 41 states that are home to more than
200 million people, with average speeds of 400-700 kbps, bursting to 2.0
Mbps. Verizon is now upgrading to EVDO Rev. A in six states, boosting
average download speeds to 450-800 kbps, and upload speeds to 300-400
kbps
• Sprint Nextel’s mobile broadband network reaches more than 200 million
people nationwide, in 9,473 communities, offering average download
speeds of 400-800 kbps. Its EVDO Rev A network now covers more than
95 million people, boosting upload speeds to 350-500 kbps, and download
speeds to 600 kbps-1.4 Mbps. Sprint’s entire mobile broadband network is
expected to be upgraded to Rev A by 3Q07
• Cingular Wireless’ HSDPA-based BroadbandConnect service has been
deployed in 33 states, Puerto Rico, and the District of Columbia, with
average speeds of 400-700 kbps. Customers are able to use 3G in 165
cities, including 73 of the top 100 markets
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Wireless licensees are deploying advanced networks
across America – including carriers of all sizes…
• Alltel’s AxcessSM Broadband service is available in more than
100 markets in 19 states, offering speeds of 400-700 kbps with
bursts up to 2.4 Mbps. Alltel’s AxcessSM Mobilink service is
available in markets in at least 34 states, offering speeds up to
114 kbps.
• T-Mobile USA has announced it will spend $2.7 billion by 2008
in building a 3G UMTS/HSDPA network. T-Mobile currently
offers mobile Internet access through its GSM/GPRS network,
and operates a network of more than 8,000 wireless hotspots
in the U.S.
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…making available a wide variety of advanced
applications…
• Alaska Communications offers its ACS Mobile Broadband in
Alaska.
• Alaska DigiTel offers wireless data service in Alaska.
• Cellular South offers CDMA-based wireless data service in the
Southeastern U.S.
• Dobson Cellular, operating in 16 states, introduced its
Signalink™ data service in September 2005.
• GCI offers GSM-EDGE-based broadband service in Alaska.
• Midwest Wireless, now owned by Alltel, offers Mobile Wireless
Internet service in the Upper Midwest.
• U.S. Cellular offers its Brew™–based easyedge™ Enhanced
Wireless Service in all of its markets.
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…including Mobile Video and Data Services
• Competing mobile television networks / services now include:
– MobiTV (offered by Alltel, Cellular South, Cingular, Midwest
Wireless, and Sprint Nextel in the U.S., and by Centennial
Wireless and Verizon Wireless in Puerto Rico).
– Modeo (formerly Crown Castle Mobile Media, launching in
30 cities beginning in 2006).
– V CAST (Verizon Wireless’ continental U.S. offering).
– Qualcomm / MediaFlo USA’s MediaFloTM System (intended
to deliver multimedia content to wireless consumers via
existing CDMA1X and UMTS systems, and over
Qualcomm’s 700 MHz spectrum).
• Aloha Partners’ HiwireTM subsidiary also plans to offer Mobile
TV using 700 MHz spectrum.
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Wireless is a Competitor in the Broadband
Marketplace
• In the first of 2006, total high-speed lines grew 26%, from 51.2
million to 64.6 million lines, and 59% of all adds were mobile
wireless subscriptions (FCC “High-Speed Services for Internet
Access,” January, 2007)
• From June 2005 to June 2006, mobile wireless’ share of total
broadband lines rose from 1% to 17% of total broadband
lines.(FCC “High-Speed Services for Internet Access” report)
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Wireline
30 Mbps
15 Mbps
5 Mbps
30 Mbps
20 Mbps
2 Mbps
3.6 Mbps
3 Mbps
2 Mbps
2.5 G Wireless
Multiple Sources: Webopedia, bandwidthplace.com, PC Magazine, carriers, ISPs
3G Wireless
WiMAX
4G Wireless
Cable
Modem
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FiOS
HSDPA UMTS /
WCDMA
FiOS
EVDO EVDO
Rev. A
FiOS
144 kbps
GPRS
EDGE
144 kbps
ADSL
IX RTT
384 kbps
1.5 Mbps
ADSL
Dial-Up
ADSL
56 kbps
768 kbps
Not to Scale
3 Mbps
Broadband Speedometer – Maximum
Download Speeds
Dial-Up
Wireline
EVDO EVDO
Rev. A
2.5 G Wireless
Multiple Sources: Webopedia, bandwidthplace.com, PC Magazine, carriers, ISPs
3G Wireless
HSDPA UMTS /
WCDMA
WiMAX
4G Wireless
Cable
Modem
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FiOS
FiOS
FiOS
Up to 15
Mbps
Up to 30
Mbps
Up to 5 Mbps
1-6 Mbps
2-4 Mbps
800k to 1.1Mbps
450-800 kbps
400-700 kbps
220-384 kbps
384 kbps
50-70 kbps
GPRS
EDGE
144 kbps
Up to 3 Mbps
Up to 1.5 Mbps
Up to 768 kbps
IX RTT
ADSL
ADSL
ADSL
28-45 kbps
Not to Scale
Broadband Speedometer – Ranges
Consumers Benefit From Product
Differentiation
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Wireless Licensees and MVNOs Compete
Across Many Dimensions
• Wireless service providers compete on the basis of price,
features and innovative handsets, including branded and
exclusive product and service offerings, such as:
– Content targeted to specific demographic groups, such as Helio’s mobile
MySpace, or
– Combinations of content and handsets such as Virgin Mobile’s “Txt Tones”
which is based on an exclusive deal with a major record label and is
available only on Virgin’s Kyocera Cyclops phone, or
– Other exclusive features, such as the pre-loaded “Virgin Mobile Audio
Messaging” service available on the Cyclops phone, and
– T-Mobile’s converged “HotSpot@Home” offering – combining T-Mobile’s
WiFi hotspot access and licensed wireless network service for seamless
coverage using a single multimode device.
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Wireless “Phones” Have Become Multifunction
Devices
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Source: QUALCOMM
How Cell Phones Access the Web
Wireless Access Protocol (WAP)
•
The primary way in which wireless phones and devices initially
accessed the Internet and Web is through a protocol called the
Wireless Access Protocol (WAP) and its associated markup
language, the Wireless Markup Language (WML).
•
WAP is an open technology based on Internet technologies
– WML is based on XML (extensible markup language) - HTML
•
The three main reason why wireless Internet uses WAP:
– Transfer speed
– Size and readability
– Navigation
•
Smaller screens, more limited colors, slower connection speeds
•
Advanced cell phones and Aircard-enabled laptops now handle
HTML
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Globally, More than 200 Mobile Broadband
Devices have been Introduced
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Source: QUALCOMM
A Complex Environment Requiring Close
Collaboration to Create a Positive Experience
• There are literally hundreds of handsets and wireless-enabled
devices available in the U.S. (www.PhoneScoop.com lists 818
handsets and wireless-enabled devices such as PDAs,
Blackberries and SmartPhones).
• Number and variety of devices and players requires carriers
and their partners to deal with hundreds of combinations of
networks, handsets, messaging platforms, billing systems, and
user interfaces to ensure consistent delivery of content to
consumers (including games, music and video programming,
messages, etc.).
• Carriers and aggregators need to work together and with thirdparty content providers to ensure interoperability, quality user
experiences, and to block objectionable content (e.g., spam).
• Carriers are extending CPNI protections to these services
through contracts with third-party content providers.
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Carriers and Content Providers Must Work
Together to Create Seamless Access for Consumers
• “Web Video Needs a Middleman to Go Mobile,”
– “Producers of entertainment content are interested in reaching millions of cellphone
users in the U.S. but mostly need to work with wireless-service providers, due to the
complex technologies required to deliver video and downloadable songs to handsets.
Cellphone operators can reformat and distribute content to millions of subscribers.”
(Wall Street Journal, Nov. 8, 2006, p.B-2)
• “Verizon, YouTube Aim to Bring Web Videos to Cellphones, TV”
"Though many cellphones provide Internet access, it is difficult for cellphone users to watch
video on the Web, in part because it typically isn't formatted for cellphone screens. But
cellular operators such as Verizon Wireless have the technology to bring video, music, and
other entertainment options to those screens." (Wall Street Journal, Nov. 7, 2006, p.A-1)
• The Mobile Word allows wireless consumers “to watch and listen
to your favorite minister's sermons, special events, and Christian
related content wherever you are.”
– How does it work? “Depending on your type of phone and carrier, The Mobile Word
service consists of either a BREW, Java, or WAP application that runs on your mobile
phone. The Unity In Values network and carrier networks work together to broadcast
the video content.” (http://themobileword.com/register/FAQ.aspx)
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Policies to Further Broadband Adoption
• Wireless Should Not be Subject to Any Net Neutrality Rules
• Allow the Market to Continue to Work – Regulate Only in the
Event of Market Failure
• Regulation, If Necessary, Should Occur at the National Level
• Ensure that Wireless Carriers Have Access to Spectrum
• Eliminate Regulations that Favor Certain Technologies or
Classes of Providers (e.g., Universal Service and Intercarrier
Compensation)
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