CDMA2000: Delivering on 3G

Ewa Gawora, CDMA Development Group

ITU-BDT Seminar on Network Evolution

January 23, 2003
Sofia
CDMA Development Group

CDMA Worldwide

CDMA2000: Delivering on 3G
CDMA Development Group

CDMA Worldwide

CDMA2000: Delivering on 3G
Charter

To lead the rapid evolution and deployment of

CDMA-based systems, based on open standards
and encompassing all core architectures, to meet
the needs of markets around the world in an
emerging, information-intensive environment

Information Technical Service Deployment

Distribution Development Assistance
Conferences System Testing Time-to-Market
Emails Advanced Systems Int’l Roaming
Website Evolution Interoperability
Etc. Etc. Etc.
Membership

The CDG is a consortium of over 110 member companies

from around the world. Members are involved in many
aspects of CDMA system deployment and support.

Subscriber Value-Added
Operators Equipment Services

Network Network Network

Infrastructure Enhancement/ Interface &
Optimization Access
 CDG Membership
•Agilent Technologies, Inc. •Fujitsu Network Communications, Inc. •Motorola, Inc. •SmartServ Online, Inc.
•Aicent, Inc. •Gemplus Corporation •NEWS IQ Inc. •SmartTrust
•Airbiquity, Inc. •Giga Telecom Inc. •Nextel Communications •Sony Electronics
•Airvana Inc. •Grayson Wireless •Nokia Corporation •Spirent Communications
•ALACEL Corp. •GTRAN, Inc. •Nortel Networks •Sprint
•ALLTEL Communications, Inc. •Himachal Futuristic Communications Ltd.•Novatel Wireless, Inc. •Starent Networks Corporation
•Alpine Electronics, Inc. •Hitachi Telecom (USA), Inc. •Openwave •Tata Teleservices Limited
•Anritsu •Huawei Tech. Co., Ltd. •Pacific Bangladesh Telecom •Telecom Mobile Limited
•AnyDATA Corporation •Hutchison CAT Wireless Limited •Telefonica Moviles
•ArrayComm, Inc. •Multimedia Limited •Pele-Phone Communications Ltd. •Telespree Communications
•Asia Pacific Broadband Wireless •Hutchison Telecom (HK) Ltd. •PT Wireless Indonesia •Telstra Corporation Ltd.
•Audiovox Communications Corp. •Hyundai CURITEL, Inc. •QUALCOMM, Inc. •Telus Mobility Cellular, Inc.
•Bell Mobility •InnovICs Corporation •QuickSilver Technology •Texas Instruments
•BellSouth International •ISCO •Qwest •TSI
•Berkana Wireless, Inc. •IUSACELL •Racal Instruments •UNEFON
• Bitfone Corp. •KDDI •Reliance Infocom Limited •U.S. Cellular
•Celerica, Inc. •Komunikasi Selular Indonesia •Research In Motion •Verizon Wireless
•Celletra Ltd. • (Komselindo) •RITT •Via Telecom, Inc.
•China Unicom •Korea Telecom Freetel, Inc. (KTF) •Rohde & Schwarz •WaterCove Networks
•CIBERNET Corporation •Kyocera Corporation •Samsung Electronics Co. Ltd. •Wavecom, Inc.
• CommWorks Corporation •Leap •Sanyo Fisher Company •WAVS, Inc.
•Comverse •LG Electronics, Inc. •Schema Ltd. •Western Wireless
•Conductus, Inc. •LG Telecom, Ltd. •SchlumbergerSema •Wherify Wireless, Inc.
•CTIA •Lightbridge, Inc. •Sharp Laboratories of America •Willtech, Inc.
•CURITEL Communications, Inc. •Logica •Sierra Wireless, Inc. •Willtek Communications, Inc.
• Ericsson, Inc. •Lucent Technologies, Inc. •SK Telecom •Winphoria Networks, Inc.
•Metawave Communications •SmartCom PCS •Wireless Test Systems
•ZTE Corporation
CDMA Development Group

CDMA Worldwide

CDMA2000: Delivering on 3G
 CDMA is the present and future of advanced
wireless services
Code Division Multiple Access (CDMA) is a spread spectrum
technology used in second and third generation wireless networks

cdmaOne™ identifies 2G and 2.5G cellular,
PCS and wireless local loop (WLL) services
based on the IS-95A and IS-95B CDMA air
interface standards. IS-95A supports data
delivery up to 14.4 kbps while IS-95B offers up
to 115 kbps.
CDMA2000 is an ITU-approved, IMT-2000 (3G) standard
CDMA2000 1X can double voice capacity and delivers data
rates up to 307 kbps
CDMA2000 1xEV is optimized for high-speed data:
CDMA2000 1xEV-DO uses a designated channel for
data at speeds of up to 2.4 Mbps in a single carrier
CDMA2000 1xEV-DV integrates voice and data on a
single channel with speeds of up to 4.8 Mbps
CDMA Benefits

As the most advanced digital technology, CDMA offers significant benefits to

operators and their subscribers

Operators Subscribers

• Greater voice capacity • Better voice quality

• Simplified system planning • Longer talk time
through the use of the same • Improved privacy and security
frequency in every sector
• Advanced data services
• Improved coverage characteristics
resulting in fewer cell sites
• Data ready; uses standard IP
commands and protocols
• The platform for 3G
 CDMA technologies deliver superior capacity for
voice and data
105-120
Number of users per 5MHz of spectrum

62-95

51-66

34 - 53

21- 23 24

AMPS GSM TDMA GSM FFR cdmaOne CDMA2000 1X WCDMA

w/AMR IS-95A

CDMA is the most spectrally efficient technology

• cdmaOne delivers 14x increase in voice capacity over analog and more than 2x more
than GSM and TDMA
• CDMA2000 doubles voice capacity of cdmaOne systems making it the most spectrally
efficient technology available today

*Source: Deutsche Bank, May 2002

CDMA is the fastest growing technology, serving
more than 135 million subscribers worldwide...
140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

-
Jun-98

Jun-99

Jun-00

Jun-01

Jun-02
Mar-98

Mar-99

Mar-00

Mar-01

Mar-02
Sep-97

Sep-98

Sep-99

Sep-00

Sep-01

Sep-02
Dec-97

Dec-98

Dec-99

Dec-00

Dec-01
Asia Pacific North America Caribbean & Latin America Europe, Middle East & Africa

Source: CDMA Development Group

 …and it will continue to be the fastest growing
technology platform

Technology Share 2001 Technology Share 2005E

TDMA Analog Analog
iDEN CDMA/CDMA2000 CDMA/CDMA2000
10% 4% 1%
4% 12% 20%

TDMA
10%
GSMWCDMA iDEN
GSM 68% 1%
70%

Source: EMC, Morgan Stanley, 2002

 CDMA is one of the leading technologies with
presence across all continents

Europe, Middle East and Africa

2 million subscribers

The first 3G technology launched

in Europe

North America Asia Pacific

58 million subscribers 49 million subscribers

Dominant technology Birthplace of 3G

Now deployed in China

Caribbean and Latin America

26 million subscribers

20% market share

Subscriber base growing at 40%
As of September, 2002 per year
The dominant 3G standards are based on CDMA

IMT-2000 Terrestrial Radio Interfaces

IMT-2000 IMT-2000 IMT-2000 IMT-2000 IMT-2000

CDMA CDMA CDMA TDMA FDMA/
Direct Spread Multi-Carrier TDD Single Carrier TDMA
WCDMA CDMA2000 1X UTRA TDD & UWC-136/ DECT
(UMTS) & 1xEV TD-SCDMA EDGE
3G CDMA

Although there are five terrestrial standards, most of the attention

and energy in the industry has been directed toward the CDMA standards
CDMA Development Group

CDMA Worldwide

CDMA2000: Delivering on 3G
Dominates the 3G market

Offers
Offers significant
significant lead
lead time
time and
and service
service differentiation
differentiation

Delivers services to consumers and revenues to operators

Key success factors

 CDMA2000 Deployments

33 CDMA2000 1X commercial
networks (first deployed Oct
2000)
19 CDMA2000 1X networks
scheduled to be deployed
4 CDMA2000 1X trial networks
3 CDMA2000 1x-EV-DO
commercial networks (first 1X Commercial
deployed Jan 2002) 1X Deployment
1X Trial
4 CDMA2000 1xEV-DO networks
1xEV-DO Commercial
scheduled to be deployed 1xEV-DO Deployment
4 CDMA2000 1xEV-DO trial 1xEV-DO Trial
networks
 CDMA2000 dominates the 3G market today...

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

-
Nov-01
Jan-01

Jun-01

Jan-02

Jun-02
Jul-01

Jul-02
Feb-01

Feb-02
Mar-01

Mar-02
Apr-01

Apr-02
Aug-01

Sep-01

Dec-01

Aug-02

Sep-02
May-01

May-02
Oct-01

Oct-02
• Over 25 million CDMA2000 subscribers as of October 2002
• More than 2 million are being added every month

Source: CDMA Development Group

… and will continue to lead throughout the decade
CDMA2000 delivers greater value to the end
users…

Applications Data Rates

• MMS
CDMA2000
CDMA2000 1X
• Streaming Video 1xEV-DO

• Broadcasts Peak 144-153 kbps 2.4 Mbps

• GPS/Telematics
Throughput
60-100 kbps 490-600 kbps
(mobile)

Throughput
N/A 980-1200 kbps
(fixed)

Source: Asia and North America operators

… and incremental revenue for operators

$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
CDMA2000 1X CDMA2000 1X
2G
Grayscale Color Display
Data 1.19 3.29 5.75
Voice 20.69 26.76 28.06

CDMA2000 delivers a nearly five-fold increase in data revenue and more than
50% higher total revenue per subscriber

Source: Morgan Stanley, June 2002

More than 250 CDMA2000 terminals are available in
the market
 …at competitive prices

Wholesale Prices, World Market 2000-2005

$500

$450 $450
$438

$400

$350
$338
$320 $328
$300
$310
$250 $253 $246
$227
$200 $228 $190 $185
$150 $137
$142
$114
$96 $134 $94
$100 $86
$72 $75 $58
$95 $88
$50 $77
$63 $57
$51
$0
2000 2001e 2002f 2003f 2004f 2005f

cdmaOne CDMA2000 1X GSM GSM/GPRS WCDMA Single Mode WCDMA Dual Mode

• cdmaOne phone prices will continue to decline and will reach $53 by 2005
• CDMA2000 1X phone prices will decline at a faster rate to reach $58 by 2005
• UMTS phones, especially dual mode, will remain at least 3 times more expensive
than CDMA2000
Source: Shosteck, 2002
CDMA2000’s spectrum flexibility
CDMA2000 can be deployed in any existing cellular, PCS and IMT-2000
spectrum

CDMA2000 can be deployed in a small amount of spectrum

CDMA2000 Current Spectrum Or New Spectrum

CDMA2000isisnot not
constrained
constrained toonly
to only
the
the IMT-2000 band. ItIt
IMT-2000 band.
isisdefined
definedto
tooperate
operate Analog
Analog 1X 1X 1X 1X
ininexisting
existingand
andIMT-
IMT- ANSI-41
2000 spectrum:
2000 spectrum: Based cdmaOne
cdmaOne 1X 1X 1X 1X
Systems
• • 450
450MHz
MHz
• • 700 MHz
700 MHz
• • 800 TDMA
TDMA 1X 1X 1X 1X
800MHz
MHz
• • 900
900MHz
MHz
• • 1700 GSM-MAP
1700MHz
MHz
• • 1800
1800MHz
MHz
Based GSM/GPRS
GSM 1X
or GSM/GPRS 1X 1X 1X
• • 1900 MHz Systems
1900 MHz
• • 2100
2100MHz
MHz 1.25 MHz 5 MHz
 Offers a direct migration path to 3G

Source: CDMA Development Group

 Requires only minor enhancements to the existing
cdmaOne network…

NIU
New 1X Channel Card
BTS New Software

New
Terminals
(backward
compatible) Software
Upgrade BSC

PDSN
Software
Upgrade

MSC IWF
The network architecture is designed to
deliver Internet and advanced services
seamlessly, and without the need to build- IP
out a new packet network
Backbone
PSTN
WWW VPN
Enterprise Network
…and relatively small capital investment

Total CapEx
(US$ billion)

Korea SKT (CDMA2000 1X and 1xEV-DO) 2.4

KTF (CDMA2000 1X and 1xEV-DO) 1.2

LGT (CDMA2000 1X) 0.4

Japan KDDI (CDMA2000 1xEV-DO) 2.5

DoCoMo (W-CDMA) 10.9

U.S. Sprint PCS (CDMA2000 1X and 1xEV-DO) 2.4

AT&T Wireless (GSM/GPRS/EDGE/WCDMA) 4.4

Sprint PCS will spend $8 per POP to migrate to CDMA2000

Recently, Moody’s estimated that cdmaOne carriers could upgrade to
CDMA2000 1X for $3 to $5 per POP

Source: Morgan Stanley, June 2002

 TDMA to CDMA2000: One step evolution to 3G

New off-the-shelf
TDMA to CDMA2000
TDMA Network 1X CDMA2000
Terminals
BTS CDMA2000
BTS* New Equipment with
1X Channel Card

As with AMPS, benefits of

BSC this path include:
New Equipment • Re-use of the core network
• Ability to deploy 3G in-band,
without the cost of buying
new spectrum
• Ability to deploy 3G in only
Software PDSN a small amount of spectrum
Update
MSC

Modem
Pool

IP * Usually co-located with TDMA equipment,

requires separate interface protocols
PSTN Backbone

WWW VPN
Enterprise Network
 A number TDMA operators around the world have
deployed or are in the process of upgrading their
networks to CDMA2000

Bell Mobility
TDMA/cdmaOne/CDMA2000

Bermuda Digital Communications

TDMA/CDMA2000

US Cellular
TDMA/CDMA2000 BellSouth International Panama CSL Ltd.
Western Wireless TDMA/CDMA2000 TDMA/CDMA2000
TDMA/CDMA2000

Verizon Wireless Puerto Rico Hutchison CAT

TDMA/CDMA2000 TDMA/CDMA2000

BellSouth Ecuador
TDMA/CDMA2000
Movilnet
TDMA/CDMA2000

Telecom Mobile Limited

TDMA/cdmaOne/CDMA2000
 AMPS to CDMA2000: One step evolution to 3G

New off-the-shelf
AMPS to CDMA2000
AMPS Network 1X CDMA2000/AMPS
Terminals
BTS CDMA2000
BTS* New Equipment with
1X Channel Card

This path is particularly

BSC compelling due to:
New Equipment
• Re-use of the core network
• Ability to deploy 3G in-band,
without the cost of buying
new spectrum
• Ability to deploy 3G in only
Software PDSN a small amount of spectrum
Update
MSC

Modem
Pool

IP * Usually co-located with AMPS equipment,

requires separate interface protocols
PSTN Backbone

WWW VPN
Enterprise Network
GSM to CDMA2000: One step evolution to 3G
through GSM 1X
 CDMA2000 - Operators Perspective

“CDMA2000 is designed to build a simple and cost-effective network evolution…the first

phase of CDMA2000, known as 1X, is already in commercial operation, offering double the
voice capacity of second- generation (2G) networks.”

SEC Filing S1-A 11/28/01 – “Our CDMA network positions us to meet the growing voice and
data needs of our customers… Upon full deployment of our 1XRTT network and 1XRTT
handsets we expect that this technology will effectively double our network's voice
capacity compared to the current version of CDMA.”

William Esrey, Chairman – "Essentially, we're spending zero additional dollars to

convert our network to 3G."
CDMA2000 – analysts perspective

“The power of the platform is unlike anything the wireless industry has ever
seen. The handset is no longer a simple device for voice communications as
it is throughout most of the world, but is a multimedia platform in the truest
sense of the word.” - ABN AMRO

“...only CDMA 1x comes with affordable and attractive handsets and

applications, matched with half the capex per pop of W-CDMA.” -
Morgan Stanley