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Analysis of Refurbished and Brand-NEW FWT Product

Analysis of Refurbished and Brand-NEW FWT Product. Table of Contents. 1. Comparison and Analysis of FWT 2. LCC Analysis 3. Attachment - Replacement Cycle of FWT - Reliability Prediction Standard 4. Example of Design 5. Conclusion. LG 전자 VoEx.

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Analysis of Refurbished and Brand-NEW FWT Product

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  1. Analysis of Refurbished and Brand-NEW FWT Product Table of Contents 1. Comparison and Analysis of FWT 2. LCC Analysis 3. Attachment- Replacement Cycle of FWT- Reliability Prediction Standard 4. Example of Design 5. Conclusion LG 전자 VoEx

  2. The comparison of Refurbished Chipset versus New FWT

  3. LCC Analysis Cost The optimum economic life M & A Cost of Republished FWT Total cost of Refurbished FWT Cost Total cost of new FWT Total Cost M & A Cost of new FWT M & A Cost Initial Investment Cost Initial Investment Cost 18 months 25 months 32 months Year • The optimum life cycle of new FWT is presumed about • 18 months. The maintenance and administration cost • gradually goes up after 18 months and dramatically increase • after 36 months. ▷The optimum life cycle is drawn up according to field defect • rate. • ▷Maintenance and Administration Costs are calculated by 12%-24% • increase rate year ▷Depreciation of FWT is calculated by 12% - 36% decrease rate per • year • Refurbished FWT are the one which has been normally used over 25 months, which is 7 months more than the optimum economic life. Therefore, it needs more M&A cost than the new FWT. And after 1 year, its’ M&A cost is three-fold compared to the new FWT • ▷The above M&A cost are calculated on the base of 25 • months after use. If A/S is impossible, the M & A cost grows in • an arithmetical progression

  4. Attachment 1 The FWT replacement cycle Possession rate The FWT replacement cycle of Korea • Source : Green Consumers Network • Source : Dec, 2003 through Dec, 2007 • Conclusion : Over 60% of customers use • FWT more than 2 years • Main reason of replacement ▷Over 80% is loss and Break-down of FWT The FWT replacement cycle of each country Month • Source : • Domestic  LG economic research institute • Overseas  Data Quest • Date : March, 2006 • Conclusion : The FWT average replacement • cycle of each country is over 25 months

  5. Trend of reliability evaluation technology Bellcore, Telcodia PRISM MIL-HDBK 217 Wear In Period Steady-State Period hour 9 4 6 10 hours 10 hours 10 hours Attachment 2 Developing Speed of Electronic Industry Reliability Evaluation Technology * Reliability Evaluation Technology of Military section has been used as a standard of Reliability Prediction since early 1980’s. However, since Evaluation technology of Military section couldn’t keep up with developing speed of electronic industry, that of Private Section has been used more commonly after 1990’s up to now. * Typical standard for Reliability Evaluation Technology in the private section is Telcodia, PRISM, HRD5,CNET93 Reliability Evaluation Technology in Private Section PRISM HRD5 CNET93 Reliability Evaluation Technology in Military Section Bellcore appearance MIL-HDBK-217 hour 1980’s 1990’s Defect rate • Telcodia • Telcodia • Established by AT&T Bell research institute • Defined by the number of defect per 1 billion hours • Special Management for initial defect rate • PRISM • Made by the dept of Defense of US together with RAC(Reliability Analysis Center) on the basis of MIL standard • Defined by the number of defect per one million hours • Defined by the defect rate in the normal status • UK : HRD5 enactment • France : CNET93 enactment

  6. Refurbished FWT (Made in China or Korea) Inside of Refurbished FWT (Key PCB) Inside of Refurbished FWT (Main PCB)

  7. Brand-new FWT Inside of Brand-new FWT (Top side) Inside of Brand-new FWT (Main & Key PCB)

  8. Conclusion ● Weak point of using Refurbished FWT 1) Hard to repair or A/S owing to using glue to connect parts ( Refer to the pictures in Page 6) 2) Hard to believe the quality owing to using second-handed CDMA MODEM or old PCB from second handed handset. Failure rate average of 35%. 3) Poor RSSI owing to using SMA type Antenna. 4) Potential problem on drop test calls. 5) After a year of use, Brand image of operator might be ruined because of incessant complaints about inferiority of Refurbished FWTs and A/S from end-users (Example : Indonesia, South America, etc) ● Strong point of using Brand-new FWT 1) Easy to repair by using Connector to connect parts and components. (Refer to the pictures in Page 7) 2) Easy to guarantee the quality by using brand-new single type board. 3) Full RSSI by using TNC type Antenna or external patch Antenna. 4) Passed drop test. ● Therefore, it is strongly suggested that every single operator to use brand-new FWTs instead of refurbished FWTs in the long-term business regard.

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