Considerations for a successful CDMA 450 Deployment September 2004 Stephane Le Dreau EMEA CDMA Business development VP
The challenges CDMA 450 operators face today • Minimize Costs • Future Proof Solution, Vendor Experience & Viability • Operational Efficiency, Deployment Flexibility • High Density Solutions • Maximize Revenues • Compelling Services Offering • Easy Feature and Applications Deployments • Leverage Investment for different business models • Feature Differentiation & Early Time to Market • Ensure High Network Performances and Reliability • Quality: Network Performance & Reliability • Personalized User Experience • Specific CDMA challenges in Europe • Marketing CDMA in Europe • Terminal availability
Operator Buying Criteria Minimize Costs Maximize Revenues • Investment Protection • Vendor Experience & Viability • Operational Efficiency • Deployment Flexibility • High Density Solutions • Compelling Services Offering • Easy Feature and Applications Deployments • Leverage Investment for different business models • Feature differentiation Network Performance & Terminal Availability • Quality: Network Performance & Reliability • 450 MHz Terminals
Investment Protection • One solution for diverse business applications: Mobility, FWA, Wireless DSL • Multi band support 450/800/1900/2100 • Support of CDMA2000 1X and 1XEV-DO • Migration from 1X to 1xEVDO, 1xEVDO Rel A and 1XEV-DV by simple plug-ins • Plug-in Capacity Increase • Common Digital & Radio equipment in all BTS models • Scalable BSC and MSC
Deployment Flexibility • Extended coverage option for rural sites - BOOMER CELL • Cost effective solution to address low capacity markets • Reduced BTS count • Cell coverage up to 200km • Reduced CapEx for larger coverage • Remote Radio deployment • Hot spot and highway coverage • Capture untapped revenues due to coverage difficulties • Flexible BTS portfolio • Macro BTS for high capacity requirement • Micro BTS for low capacity requirements • Stand alone 1xEV-DO solution 40 km
Operational Efficiency • Native Radio modules • Designed as dedicated/standalone radios • Eliminates the need to add frequency shifter hardware resulting in reduced site deployment costs. • Software controlled carrier & capacity growth • Eliminates site visit when subscriber grow • Maximize backhaul capacity • Unchanellized E1 • ATM backhaul • Reduced Power Consumption
Operator Buying Criteria Minimize Costs Maximize Revenues • Future Proof Solution • Vendor Experience & Viability • Operational Efficiency • Deployment Flexibility • High Density Solutions • Compelling Services Offering • Easy Feature and Applications Deployments • Leverage Investment for different business models • Feature differentiation Network Performance & Terminal Availability • Quality: Network Performance & Reliability • 450 MHz Terminals
Understanding the Economics of Wireless Revenue = ( ARPU, Penetration, Subscriber Mix) ARPU, Penetration = ( Handsets, Content, Applications) Handsets Enable Content Content /Applications Drives Traffic Traffic Drives ARPU Wireless Operators looking for: • Compelling Services Offering • Easy data application Deployment • How to introduce wide range of applications in short time frame and still insure good end-user experience?
CDMA 450 Marketing opportunities Premium Voice Quality • State of the art noise cancellation High speed data offering • Up to 156 kbps available, faster than dialup • Average 70 kbps when network is loaded • VPN services to the corporate network from any covered area Data applications & services • PTT, LBS –gpsOne, Brew • 1000’s of applications targeting all consumers • Flexible data billing models 3G Ready!
ARPU & Penetration= (Applications) Traffic Information (Updated every 5 min.) Music Video & Movie Clips Powered byNATE Media Player(Supports H.26L technology) Online Game (e.g. Tetris Competition) NATE Access Game Category Select Tetris Select Level Select Partner Compete Content drives traffic
Global 1X Data Subscribers (3Q03) • Approx 27.5M 1X data subs (GPRS ~26.8M) • Majority of 1X data subs in Korea & Japan • Data is becoming a significant % of ARPU Asia Pac87% CALA 5% North America 8% Source: EMC, 3GToday Broadband Wireless is the Future
Customer Service RECORD REPLAY Two Generations of Data ApplicationsInnovation (Devices +Content +Applications) = Enhanced User Experience 1xEV-DO 1X • Video messaging • Video [News/TV] on Demand • Record & send Video Clips • Email Video Clips • Multi-media messaging • DSL-like Corporate access • Interactive Gaming • Music Video Downloads • Interactive Map & Location Services • Voice/Text messaging • Text [news/browsing] • Take Picture (still image) • Email Pictures • Single Media • Dial-up Speed Corporate access • Gaming • Music Downloads • Text based directions Enhanced interactive, multi-media and video applications to deliver superior end-user experience
1xEV-DO Delivers A Superior Data User Experience High Speed Thrills and Delivers • Broadband mobility • Up to 2.4 Mbps peak data • Dedicated data-optimized carrier • complimentary to 1X Data and voice resources don’t compete • 1.25 MHz spectrum 1X and 1xEV-DO functionality Comparable to UMTS with much less spectrum Multimedia Services Email with Large Attachments Video/Audio Streaming Interactive Color Gaming Mobile Office Infotainment On Demand • Web Browsing • Screen Savers • Bookings/ • Transactions 2.4 Mbps 3x – 6x CapacityIncrease over 1X Stock Quotes 154 kbps 9.6 kbps
1xEV-DO Wireless Residential BroadbandExpand subscriber base and usage Always On Broadband2.4 Mbps peak downlink One device – home and on the road One bill, one account Easy to installNo truck roll Profitable Up Sell Reliable Wireless Wide Area Network Leverage existing installed mobility network investment Secured Access
+ + Application Service Delivery Platform CDMA Infrastructure PTT Application for CDMA 450 in Europe • PMR/PAMR is key requirement for CDMA 450 in Europe • PTT (Push To Talk) provides for PAMR like functionality • One way broadcast of voice (Half-duplex) • Packetized voice over wireless data network • Supports person to person (i.e. 1 to 1 walkie-talkie) as well as person to group messaging (1 to many broadcast) • Instantaneous connection • Simple user interface (select called party via buddy list or short code, push a button and talk) Speak Release Push Release Push Respond = PTT Solution
E-Mail Mobile Device Manager VPN’s Middleware Content Management Acceleration MMS Packet Streaming Video Telephony Push-to-Talk Brew Enabling Applications via Solution Partners
Operator Buying Criteria Minimize Costs Maximize Revenues • Future Proof Solution • Vendor Experience & Viability • Operational Efficiency • Deployment Flexibility • High Density Solutions • Compelling Services Offering • Easy Feature and Applications Deployments • Leverage Investment for different business models Network Performance & Terminal Availability • Quality: Network Performance & Reliability • 450 MHz Terminals
Network Performance Nortel Optimization Performance Robustness COVERAGE & CAPACITY % Pops Covered # Basestations BHCA DEPENDABLE Outages Accessibility ACCEPTABLE Price Mobility Simplicity Good Subscriber Experience Maintainability Coverage + Dependability + Acceptability = Adoption & Usage
Factors Impacting Network Quality • Spectrum Clearance • Interference Must be Controlled • Use of Filters Increases Link Budget Losses and Affects Overall Performance • Network Design • Must be Adequate to Provide Coverage/Capacity • Based on Customer Provided Call Model/Traffic Distribution/Services Offered • Provisioning is Key Element in Ensuring GOS is Maintained • Optimization • Key Parameters Must be Optimized for Maximum Efficiency (data and Voice) • Maintenance • Ensure All Network Resources are Available to all Subscribers • Latest Software Releases provide New Features/Capacity and Performance enhancements • Growth • Carrier Additions and Site Sectorization Ensures Resources are Available to Subscribers
Terminal Availability • Required to purchase of large number of handsets • Required long-term and exact forecasting of volumes of purchases • Extensive testing to insure • Voice Quality • Data Applications • Local Market Customization • How to attract wide range of terminals? • How to avoid the need to purchase of large number of handsets ?
Nortel’s 450 Terminal Alliance Program Terminal Interoperability Leadership • Compatibility with commercially deployed terminals • Nortel infrastructure + Multivendor Terminal portfolio solution • Establish process for ongoing interoperability assurance Alliance with various terminal vendors • Best solution pricing (incl. terminal pricing) • Interoperability assurance program/process • Bi-Annual Roadmap Planning meeting Establish ‘Turn Key’ solution • Business alliance with key terminal vendors
Why Nortel Networks CDMA?The Solution for all challenges presented previously! Expertise & Innovation Investment Protection Performance & Reliability