EDGE

The Powerful Upgrade of a

GSM / GPRS Network for
High-Speed Mobile Data

Hermann Hartwig, Marketing

ICM N EDGE Team
September 2003
 EDGE at a Glance
EDGE = Enhanced Data rates for the GSM Evolution

EDGE is a high speed mobile data bearer

Built on top of the GSM / GPRS Network
EDGE boosts additional revenue
New multimedia applications
Better multimedia applications
EDGE increases network efficiency
Increases network capacity
Frees up time slots for voice traffic
EDGE is easy to upgrade with low investment
EDGE ready base stations already installed today
Simple and fast upgrade

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 2 Siemens, 2003

 High Speed Data for the End User

Maximum Handset Application Throughput EDGE vs. GPRS*)

Kbits/s

220

75
40

GPRS CS2 GPRS CS4 EDGE MCS9

Generate additional Revenue:
Stimulate growth of mobile data traffic
Launch of new multimedia applications
Improvement of existing multimedia applications
Churn reduction by fast time to market
*) Device data speed 4+1 MS; good radio conditions assumed
Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 3 Siemens, 2003
 End-User Application Evolution

Messaging Content to Person Rich Call Services

Video-Streaming
Multimedia Messaging
Sending pictures Audio-Streaming
and video Instant connectivity,
color screen Video-conferencing

Video-Download
Video clips,
E-Mail movie-trailers
More than 160 Audio-Download Video-telephony
characters, Applications,
with attachments games, MIDI sounds
Voice & data multi tasking
Internet Access
Surfing with
ISDN+ quality
SMS WAP
Basic text Ring-tones, logos,
messaging simple graphics

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 4 Siemens, 2003

 Bandwidth Demand of Applications

W-CDMA Video conferencing

Video Telephony

EDGE
Video Streaming

Audio
Streaming

Video download

GPRS Audio
download

Multimedia
Messaging Service Rich call services
Content to Person
Messaging
E-mail
SMS
40 kbit/s 75 kbit/s 220 kbit/s 2 Mbit/s

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 5 Siemens, 2003

 Exponential Increase of Mobile Data
Traffic

Growing Need for High Capacity

Key mobile traffic drivers: Radio Networks

Driver 3:
Usage*)
(eMail + SMS + MMS)
Messages / user / month B2003: 41
Messages / user / month B2005: 77
Driver 2: Growth factor: 1,9
Bandwidth Needs*) Figures are for Western Europe
(e.g. Messaging)
Volume / MMS B2003: 5 kB
Volume / MMS B2005: 500 kB
Driver 1: Growth factor: 100
Figures are for Western Europe
Data Phones Sales**) *) Source: Siemens Marketing
(enhanced phones + smart phones + PDAs) **) Source: Gartner Dataquest;
Data Phone Sales World 2001: 243 mio. January 2003;
Data Phone Sales World 2005: 456 mio. replacement quote
Growth factor: 1,9 2001 ~26%;
2005 ~28%

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 6 Siemens, 2003

 End User Benefit:
Usability of EDGE

Usability and Quality of Service for the Consumer

Poor
GPRS EDGE UMTS Fair
Kbit/s 40 75 110 220 300 Excellent

Internet Access EDGE !

Video Telephony UMTS !
Rich Download EDGE !
Small Download GPRS !
(ring tones,logos etc.)

Video Clip (480kBytes*)

GPRS CS 2 90 sec
EDGE MCS9 20 sec

Source: Siemens mobile

*) Estimated download time using 4+1 MS for GPRS & EDGE; 4/12 reuse & low load

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 7 Siemens, 2003

 End User Benefits: Affordability
of EDGE

Affordability of Handsets (03)*)

UMTS
Premium
Budget
Users

GPRS /
Factor ~2,5-3
EDGE

Mid
Budget
Users
2003 Years

EDGE ~ GPRS
*) w/o subsidies
EDGE<< UMTS

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 8 Siemens, 2003

 Operators maximise Mobile Data
Business: Parallel Roll-out of EDGE & UMTS

Premium budget Users using

High price UMTS Handsets
UMTS GPRS UMTS Overlay NW GPRS
Premium services
Highest ARPU (>100EUR)

Mid budget Users using GSM / GPRS Network

Medium / low price handsets
Medium / low end services
EDGE GPRS EDGE Upgrade GPRS

Medium ARPU (>25EUR)

Rural Urban Rural

Business Case Levers :
Additional revenue by large number of mid-budget users (EDGE)
Churn reduction by offering a complete service portfolio
Prepare mobile data mass market for UMTS

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 9 Siemens, 2003

 Siemens has already eight EDGE
Contracts All over the Globe!

Siemens was the first vendor who has shown live EDGE calls
worldwide with live data rates up to 400kbps

Confidential
Status
TIM (Italy) 2 Contracts in
Europe / MEA
1 Contract in the
Americas
Cingular (USA)

Colombia
Mvil (COL) Digi (Malaysia)

Telecom Americas (BRA)

Status: August 25, 2003

Hermann Hartwig,Technological Excellence EDGE by Siemens mobile Page 10 Siemens, 2003