Catching The Perfect Wave

CDMA2000® 1X Advanced
Realizing the Full Potential of
Mike Hobby, Distinguished Business Professional

Mobility Access Solutions, +1(773) 525-4028

mike.hobby@alcatel-lucent.com
1 Why Managing the
Impact of the
Smartphone is Critical

The Great Wave of Kanagawa, Katsushika Hokusai 1831

2 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

Realities of Today's Wireless Markets - Circuit Switched Voice
Voice is still the "killer" application, But:
 Voice growth is Flat
 Subscriptions are at Saturation Point
 Revenues are falling as pricing drops
 VoIP slow in gaining market acceptance
Voice remains the "killer" application
Revenue by Application
3 | 28) 1XAdvanced| Nov 2010
Insure voice integration with
broadband networks
Implication:
 Focus on capacity / spectrum efficiency
enabling spectrum clearing for broadband data
(LTE / EV-DO )
 1X Advanced triple Erlangs per 1X Carrier
 Increased need for MSC BHCA capacity
 Treat EV-DO VoIP as a service enabler vs.
replacement
 Enable CDMA2000 1X circuit voice operation
with LTE Data
All Rights Reserved © Alcatel-Lucent 2010
Tremendous Growth in High Speed Data Driven by Smartphones

Data traffic is growing Deliver High Quality Broadband Data

 Upsurge in Data driven by adoption of
"Smartphones" (iPhone, Blackberry, Android) and
new devices (Kindle, iPad) which will change usage
patterns
 Revenues are disproportionate to subscriptions,
Operators need to manage traffic more effectively
 New segments (M2M, Millenials) will embrace and
drive demands even higher

Implication:
 Focus on capacity/spectrum efficiency
EVDO
Source Ovum - Global Market Outlook Steven enabling spectrum clearing for broadband
Hartly July 13, 2010
3G Data data
Connections
Dominate • MC EV-DO & DO Advanced

HSPA
• eHRPD (Policy Management & Charging
Rules Functions) Operators can manage
Killer devices causing data traffic flow as data traffic & usage ramps up
to explode
• LTE ready Networks, Operators can choose
appropriate time to migrate, on their
Data Connections By Technology schedule
•* VzW traffic Model

4 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 Data usage/month growth projections on CDMA2000 networks
Average monthly usage per data subscriber

Feature Phones Blackberry-like Smart Phones Tablet and Netbook

Feature Phones Advanced smart Computers
Phones primarily
used to make calls, Phones used for Phone phones including iPad-like devices will
& consume little calls, e-mail, & light iPhone & advanced consume even more
bandwidth Web browsing Android devices bandwidth
20-80 MB
MONTHLY
TOTALS*

50-185 MB
400-800 MB
1.0-3.5 GB
Traffic Mix by
Application (NAR)
14%
Mobile Broadband
8% 80%
69% Messaging

Revenue ($1??)
Voice
Revenue ($189B) 60% (6.1PB 95%
pm)

Traffic
(388PB
pm est)
78% 40%

1 GB (109 Bytes) = 60 mins of SDTV video at 2.2 Mbit/s or 7 mins of HDTV 20%
31% Source - Internal Alcatel-Lucent Study
video at 19.39 Mbit/s or 114 mins of uncompressed CD-quality audio at July, 2010

1.4 Mbit/s 0r the contents of about 10 yards of books on a shelf 5%

2008 0% 2008 2009 2010 2011 2012 2013

5 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

Catching the Perfect Wave - The First Pillar

Optimizing Spectral
Efficiency
Leading Voice, Data,
Capacity Features
• EVRCB Smart Growth
• 1X Advanced
• MC EV-DO (Rev B)
• DO Advanced
Advancing the Full
Potential of 3G3

New Revenues Seamless Path to LTE

6 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 Addressing Operator Challenges with 3G3 - CDMA2000

Cost of Data Underutilized Complex & expensive Congestion in High

Traffic Growth Network Assets network evolution Density Areas
3C MC EV-D0+ 14.7Mbps

3.1 Mbps
1C DOrA

MC EV-DO, DO Advanced & 1X Advanced Free

1X Adv Up to 4x CDMA2000 1X Capacity

1.1 Mbps
1C DOrA
3C MC EV-D0+

Spectrum for Additional 1xEV-DO or LTE

3.6 Mbps

3C MC EV-DO+
1.2 Mbps

0.4 Mbps
1C DOrA

3G/LTE Voice
CDMA2000 1X
~26 to 40E

3G 1X CSV
network
1X Adv

CDMA2000 1X & 1X Advanced Provide Circuit

Switched Voice for LTE
1xEV-DO Pa
BSC /
(HRPD) IP channel
BTS RNC
ck
et
Sw
VPN

3GPP2
itc
he
Legacy
PDSN
d
Co H LTE VoIP network
EV-DO AT re
A
A
A
A
eHRPD IMS Received Power
eHRP
D AT eBTS
eRNC HS
GW
Internet /
Intranet eHRPD Provides Policy Management and Extended Macro
Cell

LTE Coverage with 1xEV-DO

Small
LTE PCR H
AT
MME
F SS Cells
IP channel SGW Evolved Packet Core
PDN
GW
eNod
LTE eB Distance
3GPP

Small Cells Provide Optimized Coverage

(Performance) Over Localized Areas

7 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

3G3 New Technologies - 1X Advanced Capacity/Coverage Improvements

• Improves call quality and reduce call drop rate for those calls that are RL limited
• Reduces required transmit power of the existing and new mobiles
• Reduces cell site power consumption; increased BTS carrier capacity & spectrum utilization
100

90

80
Up to 4x 1X Capacity

70

60

CDMA2000 1X
(2 FL Rx)
50

~92E
CDMA2000 1X
CDMA2000 1X
40

(1 FL Rx)
(2 FL Rx)
CDMA2000 1X

~60E
CDMA2000 1X
30

~56E
(1 FL Rx)
~44E
~40E
20

CDMA2000
~26E
1X
10
CDMA2000 1X
~26 to 40E

Legacy Capacity Baseline Capacity Spot Deploy Uniform Deployment

• EVRC • EVRC-B (mode 6) 1X-Adv 1X-Adv
• QLIC • EVRC-B • EVRC-B
• 6055 • QLIC+ • QLIC+
• RC3+RC4 • RL IC • RL IC
1X Adv

• 1/8th blanking
• Early Termination
• QOF
New CSM ASIC
New CSM ASIC New MSM ASIC
New MSM ASIC New Standard

Notes: Based on Qualcomm simulations, coverage is defined as the maximum area with less than 1% of the users in outage; Assumptions : 3GPP2
simulation frame work, embedded sector, with all the 1X Advanced features considered including MRD, FL and RL Interference Cancellation, new RC

8 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

Improvements with CDMA2000 1X Advanced

3GPP2 standards (3G-1X Revision E) improves CDMA voice capacity and quality dramatically
 Greater Capacity allows operators to consolidate Carriers
 Less 1X carriers to support same voice capacity, gains spectrum for EV-DO or LTE
 Coverage improvement for the existing users
 Improves the reverse link of existing users by 2 dB through Interference Cancellation
 Improves call quality and reduce call drop rate for those calls that are RL limited
 Greener power consumption
 Reduces required transmit power of the existing and new mobiles
 Reduces cell site power consumption; increased BTS carrier capacity & spectrum utilization
 Cost Reduction
 Higher Channel Element (CE) density has potential to reduce per CE cost of the channel boards
 Voice capacity growth

Operators are Expressing Interest in Improving CDMA Voice Capacity

Even as They Consider Implementing LTE for Data *Name to be determined

9 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

Alcatel-Lucent 1X Advanced Customer Value Proposition
Capacity and Spectral Efficiency gains
 Improved Spectral Efficiency to accommodate 3G and 4G growth
 Deploying 1X Advanced is effectively “buying spectrum” enabling operators to deploy LTE
carriers within current spectrum
 Spectrum preservation — allows wider bandwidth LTE carriers or MC EV-DO
Capitalize on the investment in voice network and spectrum
 1X Advanced offers benefits to operators seeking spectrum relief
 1X Advanced makes room where there is limited spectrum
 Re-use valuable spectrum resources to provide high speed data
 Re-use existing valuable infrastructure assets
OPEX Savings
 Enables operators to more fully utilize their existing spectrum
 Enables operators to more fully utilize their existing BTS Assets
 Offers RAN power efficiency due to fewer RF carriers on the air
 Simplifies operators’ RF planning

10 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 Alcatel-Lucent 1X Advanced and Technical Benefits
1X Advanced Offers Improvements in Air Interface Capacity for Voice Traffic and Spectral Efficiency
 Implementation of Standards changes, dual-receive diversity antenna mobile
 Maximum Erlang Capacity 135% capacity gains with Standards change and
 100% penetration of dual antenna mobiles
 Improved Spectral Efficiency to accommodate 3G and 4G /LTE growth
 Maintains end-user satisfaction by sustaining voice call quality and reducing Drop Call Rates
 1X Advanced is backward compatible with CDMA2000 1X
 1X Advanced carrier can support 1X traffic (backwards compatible) legacy mobiles
 1X Advanced Capabilities provide benefit to Legacy devices also
 CircuCDMA2000 1X voice capacity roadmap is best in class:
 New CMU, Cell SW, New Devices & Standards changes enables more voice users in less spectrum
 Maximizes available bandwidth for broadband data
3GPP & 3GPP2 standards enable coexistence and interworking between CDMA2000 1X and LTE on handsets
 Circuit Switch Fallback to 1X Circuit Voice on Used for LTE Voice Hand Off

11 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

ALU Targeted 1X Advanced Roadmap

1X Advanced Standards Published 8/17/09 and introduce:

 Quasi-Orthogonal Functions (QOF) to bypass Walsh code limits
 New version of Quasi Linear Interference Cancellation (QLIC) receiver to deal with all
interference issues with QOFs
 Reverse Link Interference Cancellation for CDMA2000 1X
 Defining a new CDMA2000 1X Radio Configuration (RC) to support
 1/8 rate blanking, Reduced power control commands (400 Hz) & Single re-transmission or
HARQ operation
 Adding mobile receive diversity to all 1X chipsets, in particular low end chipsets

* Assume customer commitment for 1X Advaned

* 1X Advanced customers would have to make a large enough
commitment to vendors to get 1X Advanced devices built by 1Q2011
• Planning Dates Only: Subject to Change

ALU Target Product Availability for 1X Advanced is R36 (2Q 2011*)

12 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

CDMA2000 1X Advanced Technology Improvement Summary
Features available now in MSM & Standard
 FL + RL: EVRC-B
 FL: Quasi Linear Interference Cancellation (QLIC)
terminal feature
 FL: Quasi-orthogonal functions (QOF) for increase in
CDMA Capacity growth in 1.25 MHz
code space
100
 Mobile Receive Diversity
90 94E*

 RL: 1/8 rate gating 80

70
Hardware changes (new chips) 60
60E*

 FL: QLIC+: QOFs + neighbor set 50

40
40E*
 RL: IC 30
32.2E
26.4E
Standard Changes 20

10

 FL & RL: Frame early termination 0

EVRC EVRCB EVRC-B & QLIC EVRC-B , EVRC-B ,
 FL & RL: 1/8th rate blanking (6055) 1XA dvanced,
Dual A nt
1XA dvanced,
Dual A nt, Stds
Chge
 FL & RL: Efficient power control *Engineering Estimates - real numbers to be determined

CDMA2000 1X has the highest voice capacity per Hz of any mobile technology

13 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

ALU 1X Advanced – Key Requirements Early Planning
New Qualcomm MSM Asics with Advanced Interference Cancellation Capability
and Standards Modifications
 New RC Features (RC11 on FL, RC8 on RL)
• Support for QOF (Quasi-Orthogonal Functions)
• Smart blanking of 1/8th rate frames on FL & RL
• More efficient Power Control Rates (400Hz & 200Hz) on FL & RL Basic Phones
• Frame Early Termination (for voice) on FL & RL
• Advanced QLIC (MSM enhancements) – Supported by new dual-antenna
handset
• Neighbor set cancellation
Smart Phones
• Cancellation for QOF
New Qualcomm CSM ASIC
• Reverse link interference cancellation (RLIC)
• CSM 8700 supports 670 voice calls in the FL and RL (1S-6C, 3S-2C, or Data Cards, Modems etc.
6S-1C)
• 1206 CEs in the forward link and 938 CE in the reverse link

Base Station

14 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

1X Advanced – Alcatel-Lucent Product Overview
Hardware
 New CMU-E BTS channel card will be supported on 9218/9228 (Mod4.0/Mod4.0B), 9238 (Mod5) and
equivalent BTS. No support on legacy BTS (Mod1/2/3)
 New CMU-E channel card will support
• Only 1X Advanced carriers can be assigned to the CMU-E.
• 1X Advanced carrier can support 3G-1x traffic (as backward compatible)
• CMU-E will be allowed to be mixed with other CMUs (CMU-IV, CMU-V, etc)
• CMU-E will have new Comcode and related inventory data
 URC-II required as a minimum to support a single 1X Advanced carrier. Support of two fully loaded
1X Advanced carriers may require URC-III.
• Required controller support is based on current 3G1x aggregate capacity (assumed no
subscriber growth).
 No initial impact to Backhaul (BH). BH capacity can grow as subscribers are added
Software
 Cell release software upgrade (new standard feature will be activated if the customer has
purchased the new BTS 1X Advanced CMU-E channel card)
 No activation license will be required for 1X Advanced standard feature
 ECP release software upgrade to integrate 1X Advanced

15 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

ALU 1X Advanced - Product Overview (cont’)

Devices
 EVRC-B is assumed to be implemented on the customer’s network
 New dual-antenna handset (MRD) supports advanced QLIC
• 100% dual antenna handsets penetration required to reach full 1X voice capacity gain
 Single antenna handsets with standard changes will result in less Erlangs 1X voice capacity gain
than dual antenna handsets
 All future Qualcomm mobile MSM ASICs will support 1x Advanced technology
Backhaul considerations
 1X Advanced can be used with the existing Backhaul facilities: IPBH, Frame Relay
• The Backhaul capacities for IPBH and Frame Relay (Packet Pipes) currently designed for 3G-1X
should support the 1X Advanced upgrade
• When upgrading to 1X Advanced, no new subscribers are added initially
• IPBH allows using T1/E1 facilities more efficiently
• IPBH supports up to 140 call legs per T1.
• Frame-Relay (with Packet Pipes) support up to 115 call legs per T1
 1X Advanced with further subscriber growth
• Customer can consider moving to IPBH and/or Ethernet Backhaul (EBH).

16 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

ALU 1X Advanced - CE Licensing
 Up to 670 voice calls per CMU-E on 2C-3S or 6C-1S, 1C-6S, with 1206 FL CEs, and 938 RL CEs. 1X Advanced
software application will “see” 928 full-duplex (FL/RL) CEs.
 License software allocated in 32 CE increments per CMU-E board with a min value of 32 CE and a max
value of 928 CE (32*29)
 CE enabled is the number of licensed CE blocks increments
 RCS to configure and initialize the CMU-E similar to other CMUs, but board level Licensing is not required
 New CE License will be developed for CMU-E channel elements. The count will be an MSC Level CE
purchased count (provisioned at RC/V Level). Capacity purchased is the number of CEs allowed for use
 At MSC level a CE purchased count will be maintained and the number of CEs used per board per Cell
will be determined by RCV provisioning of BTSEQP ‘ce_max’ and ‘ce_enabled’ values prior to Cell
initialization.
 CMU-E will use the legacy CMU-IVB CE Provisioning scheme at RC/V Level.
 RCS will handle CE license provisioning for the new CMU-E without service interruption

17 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

1X Advanced

CDMA 2000 3G-1X Revision E “non-standard” enhancements

 QOFs (Quasi-Orthogonal Functions)
• Available in current standard but not needed and not used
 EVRC-B vocoder (mode 6)
• Available in the field
 QLIC (Quasi-linear interference cancellation)
• QLIC available in the field
• QLIC+ available in new mobiles
 Mobile receive diversity
 RL Interference Cancellation
• Qualcomm proprietary
CDMA 2000 3G-1X Revision E new-standard enhancements
 Smart blanking of 1/8-rate voice frames
 Reduced power control rate
 Frame early termination

18 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

2 www.alcatel-lucent.com
1X Advanced
Capacity and Deployment Aspects

19 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 Erlang Capacity When 1X Advanced Mixed with 3G1x Mobiles & Data

Voice Capacity Under Mixed RC11 and RC4 Scenario Assume all BTS equipped with 1X
100 Advanced capability
 All Voice - Assume 3G1x mobiles
90
mixed with 1X Advanced mobiles no
Data
80
• Impact of QOFs on legacy 3G1X
Primary Voice Erlangs

mobiles included
70
 Capacity increases almost linearly
All Voice with the percentage of new
60
mobiles

50 Voice & Data  Assume mixed Voice & Data traffic

• Voice: 85%
40 • Data: 10%
• SMS: 5%
30  Assume 1X Advanced provides no
gain for SMS traffic
20
0 10 20 30 40 50 60 70 80 90 100
F (Percentage of RC11 Voice Traffic)

20 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 1X Advanced Deployed in Hot Spots

21 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 Handoff Scenarios
 When 1X Advanced technology is deployed in hot spot only, handoff will be needed between the 1X
Advanced BTS and 3G1x BTS
 Scenario A:
 If all sectors in active set of a mobile support 1X Advanced, FL uses RC11 and RL uses RC8
 Scenario B:
 If only a subset of sectors in active set of mobile provide support for 1X Advanced, FL uses RC4 and
RL uses RC3
 Mobile still has benefit from QLIC+ and 2Rx features on the FL and IC on the RL, but not from
other features

Mobile moving from area under Scenario A into area under Scenario B will
be required to perform semi-soft handoff

22 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

1X Advanced Deployed in a Single BTS

1X Advanced deployed in a single hot spot cell

3G1x  All adjacent cells are 3G1x
 Only mobiles in simplex and softer handoff can
operate with RC11 and RC8
1X Adv
 All mobiles in soft handoff will need to operate with
RC3/RC4
 The capacity gains will be limited mainly to that
achievable by RC3/RC4
 ~60 Erlangs

23 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 * Roadmap has Planning Dates: Subject to Change
**Engineering Estimates based on Simulations assume MRD - Numbers are subject to change

1X Advanced Roadmap Customer Specific

2011 2012 +
R36 (2Q2011) R37 (4Q2011) Future Releases
13627.2 1X Advanced Commercial Delivery 13627.5 1X Advanced Smart 13627.6 1X Advanced - CMU-
•Voice Capacity Gain of more than 3X** Blanking Narrowband Mode E Expansion to support 2C
Compared to Current EVRC Capacity NAR 1xA
• Spectrum Efficiency - Frees Up Spectrum for •Significant RF Voice Capacity Expand the current capability
Broadband Data Increase of more than 3.5X** of the CMU-e board to support
• New Channel Modem Card CMU-E and Reverse Compared to EVRC 2C 1xA fully loaded
BTS & 3G-X

Link Interference Cancelation •EVRC-NW between MS, Cell, &

•Support for 2C 1XA partially loaded MSC, and EVRC-B within MSC &
(or 1C 1XA fully loaded). over TrFO/RTO
•Simplifies RF network planning due to fewer 13627.7 1X Advanced -
•Optional feature activated by
carriers in the air. Support for BC10 and dual-
FAF control
•Activated when Customer Purchases CMU-E band BC1/BC10 (R36.1 -
3Q2011)
Additionally will provide
13627.12 CMU-E Deployment w/1X traffic Inter-Frequency Handoff for
Deploy CMU-E only for 1X traffic. dual-band 1xA voice traffic
Allows customer to deploy CMU-E and to between BC1/BC10 and 1X
benefit from RLIC and from MRD devices with Advanced CE pooling.
EVRC-B & QLIC, without customer deploying
1XAdvanced mobiles. The feature validates a
subset of test cases from 13627.2 for 1X traffic 13627.8 1X Advanced -
passing thru CMU-E. Support for 4 branch Rx
Diversity

R36 ECP Software to integrate 1XAdv Circuit Voice

1X Advanced New SM, PCMD, Licensing 13627.15 1X
Calls supported on
for CMU-E PHV6& PHV7 Advanced Smart
Network

1XAdv Packet Voice Blanking for

Core

Calls supported on Narrowband Modes

PHV6 & PHV7 (International)
ECP Intl SW
(New SM, PCMD
R37 ECP Software (New SM, PCMD)
Alcatel-Lucent – Internal
624| |1X28)
Advanced – Value
1XAdvanced| Proposition
Nov 2010 | Oct. 2010 All Rights Reserved © Alcatel-Lucent 2010
Proprietary – Use pursuant to Company instruction.
 Take Aways
CDMA Development And Eco-system are Thriving And Viable For The Next 10
Years
• CDMA Operators Can Remain Competitive And Maximize Their Investment In Their
Existing Networks
• Managing Spectral Efficiency And Offering Compelling New Features With MC-EV-
DO & 1X Advanced
Wireless IP To Manage Data Upsurge, Applications Enablement And Policy
Management
• Managing Optimal Revenue Per Hertz
HLN Provides A Common Platform For Future Growth And Evolution
• Investment Protection - Leveraging Existing Assets Allow Operators To Choose
When They Want To Deploy LTE
Continued Drive To Reduce OPEX

Alcatel-Lucent Remain Committed To CDMA & Will Provide Continued

Voice And Data Capacity Improvements

25 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010

 www.alcatel-lucent.com
www.alcatel-lucent.com

26 | 28) 1XAdvanced| Nov 2010 All Rights Reserved © Alcatel-Lucent 2010