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Wireless Broadband in the USA for GIGA Technology Program Miika Nevalainen, Veijo Iivonen Finpro USA, Silicon Valley November 14, 2005 Table of Contents 1. Introduction 2. Market Overview 2.1 Business Volume 2.2 Major Service Providers 3. Technology 3.1 From 2G to 3G

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wireless broadband in the usa

Wireless Broadband in the USA

for GIGA Technology Program

Miika Nevalainen, Veijo Iivonen

Finpro USA, Silicon Valley

November 14, 2005

table of contents
Table of Contents

1. Introduction

2. Market Overview

2.1 Business Volume

2.2 Major Service Providers

3. Technology

3.1 From 2G to 3G

3.2 3G

3.3 Beyond 3G

3.4 Wi-Fi and WiMax

3.5 UWB and Bluetooth

3.6 MediaFLO, DVB-H

3.7 MIMO

3.8 WiBRO, WiMAX, Flash-OFDM

3.9 Seamless Interoperability, Handover

4. Services

4.1 Services – 2G/2.5G/3G

4.2 Services - Wi-Fi

4.3 Consumer Applications

4.4 Business Applications

4.5 Trends

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table of contents3
Table of Contents

5. Private Sector R&D Activities

5.1 Research Activities

5.2 Funding

5.3 Components: Terminals

6. Policymaking and the Role of the Public Sector

6.1 The Government Role

6.2 Municipal Action

7. Public Sector R&D Activities

7.1 Research Activities

7.2 Funding

7.3 Organizations

8. Possibilities for Finnish Companies

8.1 Services and Applications

8.2 Leveraging Expertise

9. Foreseeable Radical Changes

9.1 3G Networks and Services

9.2 Wi-Fi and WiMAX

9.3 Voice over IP

9.4 Wireless Enterprise, Home and Community

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1 introduction
1. Introduction

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introduction

1. Introduction

Introduction
  • This report has been written for the GIGA program of Tekes, focusing on converging networks. The report provides information on the U.S. wireless broadband markets.
  • This report discusses the following issues
    • Overview of the U.S. wireless broadband market
    • Competitive environment
    • Technology adoption and outlook
    • Available services
    • Government’s role in the development of the wireless broadband

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united states in a nutshell

1. Introduction

United States in a Nutshell

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2 market overview
2. Market Overview

2.1 Business Volume

2.2 Major Service Providers

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wireless market

2. Market Overview

2.1 Business Volume

Wireless Market
  • Emerging wireless internet and content services stimulate market growth
      • Wireless Internet and applications for cellular & Wi-Fi (and WiMAX in the future) attract new users
      • 2008, wireless market reaches $212.5 billion
        • 10 percent CAGR from 2005 to 2008
      • Revenues in 2004 totaled $145.1 billion
        • up 11.6 percent from 2003
      • 12.4 million smartphones will be sold in 2005, 98.5 million by 2009
    • Source: TIA, 2005

Source: TIA, 2005

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wireless internet users in the u s

2. Market Overview

2.1 Business Volume

Wireless Internet Users in the U.S.

Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan)

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u s mobile data revenue

2. Market Overview

2.1 Business Volume

U.S. Mobile Data Revenue

Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan)

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top u s cellular providers subscribers

2. Market Overview

2.1 Major Service Providers

Top U.S. Cellular Providers - Subscribers

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Source: Data from carriers, Sep. 2005

top u s cellular providers quarterly revenues

2. Market Overview

2.1 Major Service Providers

Top U.S. Cellular Providers – Quarterly Revenues

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Source: Data from carriers, Sep. 2005

top u s mobile internet web sites june 2005

4. Services

2.2 Major Service Providers

Top U.S. Mobile Internet Web Sites, June 2005

Source: Telephia, 2005

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service provider technologies 2 5g and 3g

2. Market Overview

2.2 Major Service Providers

Service Provider Technologies:2.5G and 3G
  • Cingular
    • Operates a nationwide GSM/GPRS/EDGE system
  • T-Mobile USA
    • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network
  • Verizon Wireless
    • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems
  • Sprint Nextel
    • Operates CDMA (Sprint PCS) and iDEN (after Sprint-Nextel Merger), 1xRTT, EV-DO systems
  • Alltel
    • Operates networks with CDMA, AMPS, EV-DO

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cingular wireless l l c

2. Market Overview

2.2 Major Service Providers

Cingular Wireless L.L.C.
  • Largest wireless company in the U.S., with total customers: 51.6 million
  • Acquired AT&T Wireless in 2004
  • Operates a nationwide GSM/GPRS/EDGE system
  • Upgrading its six UMTS (W-CDMA, 1900 MHz) networks to HSDPA by year end 2005
    • HSDPA trials on UMTS ongoing in Atlanta
    • First HSDPA launches in 15 to 20 markets, expanding to other U.S. markets during 2006
  • Equipment from L.M. Ericsson, Lucent Technologies Inc, and Siemens AG, Novatel, Sierra, Nokia, Sony Ericsson

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cingular wireless revenue structure second quarter 2005

2. Market Overview

2.2 Major Service Providers

Cingular Wireless Revenue Structure Second Quarter 2005

Source: Cingular Wireless, 2005

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verizon wireless

2. Market Overview

2.2 Major Service Providers

Verizon Wireless
  • The 2nd largest mobile carrier in the USA
    • 47.4 million subscribers
  • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems
  • Entered EV-DO market in 2003
    • 500,000 to 1 million customers connect by laptops (1xRTT & EV-DO)
    • 140 million potential customers, 61 markets
  • Verizon’s BroadBand Access EV-DO service is offered in major airports and business districts in 34 markets.
  • Plans to cover more than 50% of the country’s population by the EOY 2006
  • Leader in the U.S. EV-DO market
  • Faces strong competition from Sprint-Nextel and Cingular Wireless
    • Verizon Wireless reduced EV-DO prices by $20, to $60/month for unlimited services
  • Launched VCast service for video viewing from handset, $15 a month
  • Achieved the first VoIP and Video call in August with Lucent’s technology
    • Real testing will be done in 2006
  • Verizon Wireless reports having 19.1 million data users (contributing 7% of the operator’s total revenue, compared to 4.2% one year ago)

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verizon wireless revenue structure second quarter 2005

2. Market Overview

2.2 Major Service Providers

Verizon Wireless Revenue Structure Second Quarter 2005

Source: Verizon Communications, 2005

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sprint nextel

2. Market Overview

2.2 Major Service Providers

Sprint Nextel
  • The 3rd largest mobile carrier after merger
    • 45.6 million subscribers (post merger, 3Q2005)
  • Operates CDMA based networks (Sprint PCS)
  • Launched EV-DO services in 2005 in 34 markets
  • Plans to become the second major U.S. operator with EV-DO by the year 2006
    • Plans to roll out service in 60 metro areas across the USA in 2006.
    • EV-DO is being used as an extension of their 1xRTT data deployment
  • Offering Sprint PCS Connection Cards for EV-DO, and is evaluating handsets, and planning business and consumer applications
    • Connection card can also be used for Sprint’s CDMA-2000 service
    • Pricing starts from $40/mo for 40MB of data and go up to a cap of $90/month, when the customer accesses more data. Unlimited data for $80/month
  • Offers high-speed mobile data service to notebook PCs
  • Sprint had 8.1 million data users (30% of total base), 7 million (26%) on PCS Vision, in 2Q 2005, data contributing more than 10% of total revenue

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slide20

2. Market Overview

2.2 Major Service Providers

Sprint Nextel Revenue Structure (Wireless)Third Quarter 2005

Source: Sprint Nextel, 2005

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t mobile usa inc

2. Market Overview

2.2 Major Service Providers

T-Mobile USA, Inc
  • Customer base is about 19.2 million
  • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network
  • Likely to skip commercial UMTS deployment and directly offer HSDPA services in 2007 (plans tied to spectrum availability)
  • Launched EDGE services across 90% of its GPRS-enabled network, with the average speed of 100-130 kbps
  • Offers a pair of EDGE/enabled handsets from Motorola Inc. and Nokia
  • Customers access EDGE services for the same price as their current GPRS rate plans. The carrier will have a EDGE-specific pricing in the future
  • Offers Wi-Fi Wireless Broadband Internet access at 6,000 locations in the U.S. Customers can access the network on a pay-as-you-go basis, with monthly or prepaid subscriptions

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t mobile usa revenue structure second quarter 2005

2. Market Overview

2.2 Major Service Providers

T-Mobile USA Revenue StructureSecond Quarter 2005

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alltel corp
AllTel Corp.
  • Total number of subscribers is 10.5 million
    • Acquired Western Wireless in Jan 2005, becoming the fifth largest U.S. wireless operator, with customers in 33 states
  • Operates networks with CDMA, AMPS technologies
  • Launched 1x EV-DO in March 2005 in three markets, targeting primarily enterprises, in Ohio, Cleveland and Florida. Planning to expand the service so it covers 6 to 10 markets by year-end
  • EV-DO available for about $70/mo
  • Roaming agreement primarily with Verizon Wireless

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alltel revenue structure second quarter 2005

2. Market Overview

2.2 Major Service Providers

Alltel Revenue StructureSecond Quarter 2005

Source: Alltel Corp, 2005

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3 technology
3. Technology

3.1 From 2G to 3G

3.2 3G

3.3 Beyond 3G

3.4 Wi-Fi and WiMAX

3.5 UWB and Bluetooth

3.6 MediaFLO, DVB-H

3.7 MIMO

3.8 WiBRO, WiMAX, Flash-OFDM

3.9 Seamless Interoperability, Handover

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cellular technologies by generation

3. Technology

3.1 From 2G to 3G

Cellular Technologies by Generation
  • The mainstream U.S. cellular technologies can be categorized in two groups
  • CDMA (CDMA2000) technologies
    • 2G: CDMA (IS-95A, IS-95B)
    • 2.5G: 1xRTT
    • 3G: EV-DO
    • Enhanced 3G: EV-DO Rev A -Planned
  • GSM based technologies
    • 2G: GSM
    • 2.5G/”2.5G+”: GSM/GPRS/EDGE
    • 3G: W-CDMA (UMTS)
    • Enhanced 3G (3.5G): HSDPA -Planned

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3g today w cdma

3. Technology

3.2 3G

3G Today – W-CDMA
  • Cingular deploying
    • W-CDMA (UMTS)
      • Target of 6 markets: Dallas, Detroit, Phoenix, San Diego, San Francisco, Seattle
      • Speed 200 – 320 kbps
    • Also planning to roll out HSDPA
      • Trials in Atlanta ongoing
      • Speed will be 400 – 700 kbps
      • Lucent press release indicates 3.6 Mbps, but according to some sources the speed is up to 2 Mbps
  • T-Mobile plans to deploy HSDPA directly
      • Plans to upgrade the current GPRS/EDGE networks
      • HSDPA speeds planned to be 384 kbps – 1.8 Mbps

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3g today ev do

3. Technology

3.2 3G

3G Today – EV-DO
  • Nearly 80 million people access CDMA2000 (Source: CDG)
    • CDMA2000 1xEV-DO broadband penetration is growing
      • EV-DO coverage increases
      • More handsets and services become available
  • Verizon Wireless EV-DO (61 markets)
    • Speeds 400 – 700 kbps, bursts 2Mbps
  • Sprint-Nextel EV-DO (34 markets)
    • Speeds 400 – 700 kbps, bursts 2Mbps
  • Alltel EV-DO (3 markets)
    • Speeds 300 – 500 kbps, bursts 2.4Mbps
  • EV-DO price range: $59.99 – $79.99 a month

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3g vendors

3. Technology

3.2 3G

3G Vendors
  • Examples of U.S. UMTS and CDMA2000 vendors:
    • Lucent
      • HSDPA solutions
      • UMTS&W-CDMA core network solutions
    • Motorola
      • Products for UMTS/W-CDMA/HSDPA, CDMA/EV-DO
      • End-to-end mobile data solutions (handsets, infrastructure, middleware and applications)
    • Cisco
      • Infrastructure solutions (IP technology for GPRS & 1xRTT and 3G)
    • Nortel
      • GSM, UMTS/HSDPA infrastructure solutions
    • Qualcomm
      • Chipsets for CDMA2000 based 3G (EV-DO)
      • Chipsets for W-CDMA (UMTS) & HSDPA
      • MediaFLO content delivery platform for operators
      • BREW application platform (integrate applications with chip systems)

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future trends towards 4g

3. Technology

3.3 Beyond 3G

Future Trends – towards 4G
  • 4G research is going on, and standardization is still in progress
  • Two main viewpoints to 4G
    • Convergence of wireless mobile communications and high speed wireless access systems
    • Higher data rates than existing wireless / mobile networks
  • Potential evolution from 3G/3.5G to 4G
    • HSDPA and EV-DO Rev A, and eventually Rev B provide higher bandwidth than basic 3G, suitable for applications such as VoIP
    • Mobile WiMAX or Flarion OFDMA might become potential gap-fillers between 3G and 4G
    • MIMO and adaptive antenna technologies are in key position for achieving high bandwidth
  • 4G deployment is expected after 5-7 years

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hsdpa and ev do rev a

3. Technology

3.3 Beyond 3G

HSDPA and EV-DO Rev A
  • HSDPA
    • Cingular & T-Mobile are planning for HSDPA
    • HSDPA will be first supported by PC Cards, then handsets
    • Device unavailability has been a problem with UMTS, and it is unclear how well demand of handsets and PC cards will be satified for HSDPA
    • PC Cards are predicted to become available during 2005, and handsets during 2006, for example, from Ericsson/Sony-Ericsson, as well as Sierra Wireless
    • Cingular is cooperating with Nokia among others
  • 1xEV-DO Rev A
    • Some operators plan to deploy directly 1X EV-DO Rev A
      • This will mean waiting for availability
    • Verizon Wireless achieved the first VoIP call with Lucent technology
      • Plans to perform real testing in 2006
      • Speeds up to 3.8 Mbps (receive) and up to 1.8 Mbps (send) (Source: 3GNewsroom.com)

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wi fi and wimax

3. Technology

3.4 Wi-Fi and WiMax

Wi-Fi and WiMAX
  • The number of hot spots in the United States expected to grow from 32,800 in 2005 to 64,200 in 2008 (TIA, 2005)
  • TIA: Wi-Fi and WiMAX markets are key drivers of wireless equipment spending:
    • Spending on wireless CAPEX/Wi-Fi/WiMAX expected to reach $22.3 billion in 2005, and $29.3 billion by 2008 (7.1 percent compound annual gain)
    • Wi-Fi infrastructure revenue expected to reach $5.2 bln in 2005
    • WiMAX infrastructure revenue expected to reach $115 million in 2005 (TIA, 2005)
  • Wi-Fi Spending
    • Services spending reached $21 million in 2004. Expected to be $45 mln in 2005, and 335 mln by 2008 (99.9% CAGR) (TIA, 2005)
    • Equipment spending reached $4.35 bln in 2004. Infrastructure spending expected to total $7 bln in 2008 (12.6 compound annual increase) (TIA, 2005)
  • WiMAX Spending
    • Infrastructure spending will be $115 million in 2005 and rise to $290 million by 2008 (109.7 percent CAGR) (TIA, 2005)
  • North America WLAN equipment revenue in 2Q05 was 359.17 mln, accounting for 49% of worldwide revenue (PR Newswire/Infonetics, 2005)
  • Wi-Fi and WiMAX markets are increasing
    • Wi-Fi hotspots exist already. Fixed Wireless WiMAX business cases are being experimented with
    • Mobile WiMAX is a promising technology on the way towards 4G

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wi fi

3. Technology

3.4 Wi-Fi and WiMax

Wi-Fi
  • Wi-Fi starts to be prevalent at home, coffee places (Starbucks/T-Mobile, SBC), airports, hotels, office
  • Many municipalities are launching Municipal Wi-Fi
    • Example: The City of Philadelphia wireless network
    • Some cities offer free service, some consider it would not be fair to telecom providers business
    • Free service could stimulate increased business among the community’s shops, coffee houses, banks and other businesses
    • Google has placed a bid to provide free Wi-Fi coverage for the City of San Francisco
  • Wireless VoIP is an emerging trend
    • Mobile Phones with Wi-Fi capability give new opportunities for users
  • Vonage launched the first VoIP/Wi-Fi handset
    • Marketing campaigns are aggressive, including a free upgrade of router when signing up to VoIP service
    • Vonage and Linksys partner with providing VoIP in wireless routers

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activities in wimax area

3. Technology

3.4 Wi-Fi and WiMax

Activities in WiMAX Area
  • AT&T trials: corporate solutions and urban setting
    • Atlanta (IEEE 802.16-2004)
    • New Jersey (Pre-WiMAX/Fixed)
  • Fixed WiMAX gaining increased attention by service providers and vendors
  • Mobile WiMAX (802.16e) standard ratification still ahead
    • Intel and Nokia teamed up to accelerate Mobile WiMAX adoption
  • Reducing prices and enabled handheld prices is a key issue for adoption

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wimax infrastructure revenue in the u s

3. Technology

3.4 Wi-Fi and WiMax

WiMAX Infrastructure Revenue in the U.S.

Source: TIA, 2005

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wimax wi fi vendors

3. Technology

3.4 Wi-FI & WiMAX

WiMAX & Wi-FI Vendors
  • Examples of WiMAX vendors
    • Motorola
    • Lucent
    • Nortel
    • Sierra Monolithics
    • Intel
  • Examples of Wi-Fi vendors
    • Cisco (Linksys)
    • DLink
    • Netgear
    • Intel

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uwb and bluetooth

3. Technology

3.5 UWB and Bluetooth

UWB and Bluetooth
  • United States has approved spectrum use for UWB (3.1-10.6 GHz)
  • In August 2005, Kansas based Bluetooth SIG teamed up with UWB developers to increase device possibilities
  • Attractive for transferring streaming media between appliances like TVs, stereos and PCs.
    • Cable replacement possibilities at home environments
  • USB/UWB solutions being discussed for mobile devices
  • Standardization (IEEE) situation causes concern
    • Competing views: MBOA and UWB Forum, difficult to predict who wins
    • UWB Forum may have slight advantage (FCC- approved)

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mediaflo dvb h

3. Technology

3.6 MediaFLO, DVB-H

MediaFLO, DVB-H
  • Qualcomm recently demonstrated MediaFLO solution for mobile content
    • MediaFLO USA, subsidiary of Qualcomm, works together with content and technology partners to provide mobile entertainment/information access, incuding TV/Video broadcasting and other content
    • Targeted carriers, offered through MediaFlo’s multicast networks
    • Based on OFDM
  • CrownCastle trials DVB-H
    • CrownCastle trials DVB-H through its network
    • CrownCastle and Nokia have announced joint piloting of DVB-H based broadcast in the United States

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mimo multiple input multiple output

3. Technology

3.7 MIMO

MIMO (Multiple Input, Multiple Output)
  • Products have already been released, while standardization continues
    • For example, Airgo Networks released first MIMO enhanced chipsets in 2003, and recently announced new products boasting better performance than that of wired 100BaseT Ethernet.
    • Nortel Networks recently demonstrated MIMO capabilities and has strong programs going on
  • Academic research is going on, for example, in Stanford University, University of California San Diego, and others
  • Many companies are active with MIMO, working in groups to make proposals for IEEE 802.11n standards
    • TGnSync: Agere, Atheros, Cisco, Intel, Qualcomm, MetaLink and others
    • WWiSE: Airgo Networks, Broadcom, HP, Motorola, Texas Instruments, Buffalo, Nokia, and others
    • EWC: Atheros, Broadcom, Intel, Buffalo, and others
  • MIMO is seen as an essential technology for future 4G networks
    • Technologies enable high bandwidth solutions

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wibro mobile wimax flash ofdm

3. Technology

3.8 WiBRO, WiMAX, Flash-OFDM

WiBRO, Mobile WiMAX, Flash-OFDM
  • Fixed WiMAX (IEEE 802.16-2004) is expected to use 3.5GHz and 5.8GHz bands of spectrum, with 1 Mbps data rates
  • Mobile WiMAX (IEEE 802.16e) will initially operate in the 2.5GHz band, providing higher speed and anytime, anywhere' access
    • Motorola has indicated plans to enter Mobile WiMAX area
    • Nortel plans to offer fixed and mobile WiMAX products (WiBro), together with Intel
      • Nortel wants to be involved with WiMAX to augment their UMTS/HSDPA, CDMA, VoIP and Wireless Mesh activities
      • Mobile WiMAX initiative is targeted at consumer and enterprise market to complement and extend the reach of existing 3G cellular networks, leveraging last mile wireless links and existing networks
      • Fixed WiMax is an attractive choice to when compared to cable/T1/DSL in the USA
      • Nortel’s fixed WiMAX solutions are expected to be commercially available in 2006
      • LG-Nortel Joint Venture’s mobile WiMAX to be trialed during 2006 in North America
  • WiBRO: Sprint Nextel will test WiBRO in the USA, a South Korean implementation of IEEE 802.16e – this may have interesting implications to WiBRO adoption
  • Flash-OFDM: Acquisition of Flarion by Qualcomm poses competition to the current Mobile WiMax effort
    • Qualcomm/Flarion deal helps Qualcomm to better support OFDMA and hybrid OFDMA/CDMA customers

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seamless interoperability handover convergence

3. Technology

3.9 Seamless Interoperability, Handover

Seamless Interoperability, Handover, Convergence
  • Service providers have identified the need to leverage various fixed and wireless technologies to complement each other
    • Conceptually “Extending the Edge” of the 3G/2.5G network by Wi-Fi, WiMAX service
      • Convenience to end-users, reduced customer churn
        • Seamless roaming, robust infrastructure, more coverage area
        • Potential for “one bill for all services”
        • Future: customers may pay less for voice calls (VoWi-Fi)
  • Service providers are offering users more opportunities to connect
    • Road Warrior VPN: Cingular Wireless Data jointly with SBC Freedomlink enables user to switch between networks
    • T-Mobile has been offering hot spot connectivity in addition to other plans
  • Vendors are teaming up to provide capabilities for convergence and seamless handover of voice/data between cellular and WLAN networks
    • Kineto Wireless (UMA innovator) and Nokia recently announced a joint agreement for convergence
  • In the converged environment, there are new challenges in Handover, Billing Management, Service Management and Element Management
    • Scalability and interoperability are of essence.
    • Convergence issues to be addressed
      • Roaming within the same carrier, different technologies/networks
      • Roaming between different carriers, different technologies/networks
      • Who owns the customer? What are the revenue sharing agreements?

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4 services
4. Services

4.1 Services – 2G/2.5G/3G

4.2 Services - Wi-Fi

4.3 Consumer Applications

4.4 Business Applications

4.5 Trends

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services and pricing

4. Services

4.1 Services – 2G/2.5G/3G

Services and Pricing
  • Cellular service providers offer typically the following voice services with package based pricing
    • Individual plans, Family plans, Business plans
  • Wireless Internet plans are provided either as
    • Add-on to the voice plan or stand-alone services
  • Value-add services are charged separately
    • Audio and video clips (can also be free)
    • Ringtones, ringback tones, games
  • Service providers are launching advanced high bandwidth services by 3G technologies
    • For example, Verizon Wireless launched VCAST on their EV-DO network, to deliver high quality video, music and other entertainment
    • Some advanced applications are already being offered by 2.5G technologies – but higher-quality services will be realized by additional capacity of 3G and enhanced 3G

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example comparison of individual voice services

4. Services

4.1 Services 2G/2.5G/3G

Example: Comparison of Individual Voice Services

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unlimited wireless internet services

4. Services

4.1 Services - 2G/2.5G/3G

Unlimited Wireless Internet Services

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Plans require one year agreements

cingular wireless

4. Services

4.1 Services - 2G/2.5G/3G

Cingular Wireless

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verizon wireless47

4. Services

4.1 Services – 2G/2.5G/3G

Verizon Wireless

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sprint nextel48

4. Services

4.1 Services – 2G/2.5G/3G

Sprint Nextel

Connection Card

Phone Used as a Modem

  • Data Access: Unlimited WIFI Hotspot Plan $40/month, Unlimited PC Access with WIFI Hotspot Package $55/month, Unlimited Wireless PC Access Plan (with using a wireless PC card) $45/month
  • Web Plan:
  • Nextel Data Access Pack $10.00/mo (unlimited web access, unlimited data access, mobile e-mail, instant messaging and pay-as-you-go txt/image/audio msging
  • Nextel Data Ultimate $20.00/mo (unlimited web access, unlimited data access, unlimited image/audio msgs, mobile e-mail, instant messaging, and pay-as-you-go txt messaging)
  • Prices exclude taxes and Sprint fees
  • (Source: Sprint, 2005)

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t mobile

4. Services

4.1 Services – 2G/2.5G/3G

T-Mobile

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wi fi services

4. Services

4.2 Services – Wi-Fi

Wi-Fi Services
  • Some Top Wi-Fi operators in the USA are
    • Infonet Services Company
    • T-Mobile USA
    • Airpath
    • Wayport
    • Boingo Wireless
    • SBC Freedom Link
  • Deployments in coffee places, hotels, book stores, airports
  • Seem to be constantly seeking roaming agreements worldwide to increase market share

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sample wi fi plans

4. Services

4.2 Services - Wi-Fi

  • Boingo
  • Per Month, Unlimited: $21.95. No contract required.
  • Two or more days: $9.95 for the first two days, and $9.95 each subsequent day
  • Note: International locations may cost more
  • Boingo also offers group plans (Source: Boingo, 2005)
  • T-Mobile Hotspot
  • Per Month, unlimited time & data. Add-on to voice plan: $19.99
  • Per Month, unlimited time & data. Stand-alone: $29.99
  • One day, unlimited data: $9.99 per month
  • One hour and over. Unlimited data: $6 for the first hour, 10 cents for each additional minute
  • T-Mobile also has additional combination plans.(Source: T-Mobile)
  • SBC Freedomlink
  • Per Month. For DSL/Dial-up members
  • Basic: unlimited access to all FreedomLink Hot Spots — $1.99 per month for DSL members and $9.99 per month for Dial-up members.
  • Premier subscription service provides unlimited access to all FreedomLink Hot Spots plus all roaming partner locations — $21.99 per month for DSL members and $29.99 per month for Dial-up members.
  • Per Month. For non-SBC Internet access members.
  • Basic memberships provide unlimited Internet access at all FreedomLink Hot Spots for just $19.95 per month with a one year term commitment.
  • Premier memberships provide unlimited Internet access at all FreedomLink Hot Spots, plus all roaming partner locations for just $39.95 per month with a one year term commitment.
  • Prepaid Connection — Provides a day of unlimited access at any FreedomLink Hot Spot. Prepaid Connections are available in increments of 3, 8 and 20.
  • 3 sessions - $25
  • 8 sessions - $50
  • 20 sessions - $100 (Source: SBC)
Sample Wi-Fi Plans

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top u s mobile internet categories june 2005 191 million users

4. Services

4.3 Consumer Applications

Top U.S. Mobile Internet Categories, June 2005 (%) – 191 Million Users

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Source: Telephia: The Mobile Internet Report

slide53

4. Services

4.3 Consumer Applications

Internet Use by ActivityContent That Mobile Phone Users Expect to be Accessing in 12 Months’ Time (North-America)

Source: Logica CMG

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2010 north america consumer spending mln

4. Services

4.3 Consumer Applications

2010 – North America Consumer Spending ($Mln)

Source: Strategy Analytics, 2005

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example games

4. Services

4.3 Consumer Applications

Example: Games
  • Revenues from mobile gaming expected to explode in a few years
    • Expected to grow to $1.8 billion by 2009 (vs. $100 in 2003)
    • Customers spending on wireless games will increase around $2.8 billion annually by 2008
  • Coordination among the various network technologies in the U.S. market is still lacking, no clear service provider or technology is dominant, making user experience less successful. (OECD, 2005).
  • The Economist projects that 1/3 of all game software sold next year will be on mobile phones (JETRO SF, 2005)
  • There are signs that Venture Capitalists are interested in wireless gaming industry the same way they were about e-commerce in the late 1990s, since the audience is not just teenagers. (Koprowski, 2005)

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example wireless games

4. Services

4.3 Consumer Applications

Example: Wireless Games

Source: Jamdat Mobile White Paper, 2004

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example rich media mobile video

4. Services

4.3 Consumer Applications

Example: Rich Media – Mobile Video
  • Mobile video has an increasing market share. For example, last year, San Diego based Qualcomm, announced plans to build an $800 million nationwide mobile media network. It will consist of approx. 50 to 100 distinct national and local channels, with up to 15 live streaming channels. Qualcomm plans to broadcast optimized content from major TV providers, and unique mobile content. (Qualcomm, 2005)
  • Strategy Analytics, Inc. predicts that Mobile Video Infotainment will fall into three major categories on consumer spending in 2010
    • Subscribers will use $1,213 million on Media and Music,
    • $320 million on Sports and
    • $118 on Adult entertainment (Strategy Analytics, Inc., 2005)
  • Video infotainment revenues are $76 Million this year, but are predicted to rise to almost $1.7 billion in 2010. (Strategy Analytics, Inc., 2005)

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example rich media mobile music

4. Services

4.3 Consumer Applications

Example: Rich Media – Mobile Music
  • Mobile music services are popular in the U.S., but the markets are not yet mature for widespread music applications. One third of wireless customers are interested in music services
    • Key challenges: The lack of available handsets, protection of IP rights, digital rights management (DRM), management complexity, competition from incumbent services and business pricing models and practices (Frost and Sullivan, 2005; Wired, 2005)
  • Opportunities
    • Wireless full-track downloads, (example of one component of the overall wireless music market). IDC expects the U.S. wireless full-track music market to be $ 1.2 billion USD in revenue and over 50 million full-track customers and subscribers by 2009 (Wired, 2005)
  • Biggest players: Cingular, Verizon Wireless and Sprint Nextel.
    • Wireless music is a way to differentiate, generate revenue and gain image through association with the latest stars in the music industry.
    • Also geared to sell phones that can play songs, some plan to deliver music to phones over the air, in a bid to boost revenue as voice call prices drop. (Reed, 2005; Carew, 2005)

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example rich media mobile television

4. Services

4.3 Consumer Applications

Example: Rich Media – Mobile Television

Mobile Television

    • By 2009, 22.3 million Americans will be using mobile video content, and 31.1 million will use video messaging services (The Register, 2004)
    • Prices are still high, but the U.S. consumers are excited about the idea of Mobile TV, and companies see its potential.
  • Verizon Wireless launched VCAST for video delivery
  • Industry is gaining momentum, shown by the interest of the following players
    • Wireless equipment suppliers
    • Components suppliers
    • Device makers
  • Example: MobiTV
    • Idetic, Inc. has launched a MobiTV service, that enables customers to watch live TV. MobiTV is an example of one-way video using streaming technology to deliver commercial television programming live to users (Poe, 2004)
    • Partnered with Sprint, Cingular and Midwest Wireless. Sprint is also working on a ecommerce solution that will allow viewers tuned in to the music video to buy the video and the ring tones of the music. (OECD, 2005; Idetic, Inc., 2005)
    • 500,000 subscribers in September 2005 (Verizon’s VCAST hast approximately the same amount) (Idetic, Inc., 2005)

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example ringtones and ringback tones

4. Services

4.3 Consumer Applications

Example: Ringtones and Ringback Tones
  • Service Providers are finding good sources of revenue from ringtones and ringback tones
  • Ringtones are an attractive service for consumers in the USA
    • Cingular charges $2.49 for a ringtone
    • Cingular also offers a monthly subscription service for tones
  • Ringback tones are also gaining attention in the U.S. markets
    • Verizon Wireless charges $0.99 per month for a ringback tone
    • Verizon Wireless also offers $1.99 price for a year

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wireless enterprise

4. Services

4.4 Business Applications

Wireless Enterprise
  • There are around 50 million mobile workers in the U.S., potentially needing remote access to business applications such as e-mail, intranet, CRM and field service applications, and legacy systems ( The Yankee Group, 2004)
  • The Yankee Group 2004 Corporate Wireless Survey: 55% of large U.S. businesses will deploy a wireless wide area data solution by mid-2006 (The Yankee Group, 2004)
    • Research showed that E-mail was seen as the key application in the enterprise market. Other areas that were found important:
      • Web browsing/Intranet
      • Salesforce automation
      • Corporate databases and applications
      • Instant Messaging (The Yankee Group, 2004)

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wireless enterprise62

4. Services

4.4 Business Applications

Wireless Enterprise
  • The biggest single factors that enterprises see as issues when it comes to the deployment of wireless solutions are security, cost, and the lack of geographical coverage (The Yankee Group, 2004)
  • Currently only 20% of wireless data accounts are paid by employers, even though they are changing to be a crucial tool for workers
  • Companies see the forthcoming value: Oracle, for example, rewrote its software licenses to include licensing for mobile applications. Its also rewriting its software to accommodate wireless applications

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example mobile e mail

4. Services

4.4 Business Applications

Example: Mobile E-Mail
  • There is a significant market opportunity for consumer mobile email, with a potential market size of more than 40 million U.S. consumers (Critical Path, 2005)
  • Blackberry by Research In Motion is mentioned typically when mobile email is referred to – it is “the email device” in North America
  • Nokia launched a new solution, Mobile Business Center, also in the U.S. markets
    • Solution enables collaborative solutions, including push email
    • It is available, for example, with Nokia 9300 and some other phones
  • In CTIA Wireless, Sept 2005, Microsoft and Palm published a new Treo with Windows Mobile

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services for business and consumer

4. Services

4.5 Trends

Services for Business and Consumer
  • Entertainment/Infotainment
    • Video Programming, Short Clips
    • Music
    • Games
    • Internet access from handheld/laptop
  • Voice over IP over Wireless
  • Business
    • Email to handheld
    • Remote work through laptop & card
    • Sales force management, mobile CRM
    • Logistics applications

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trends ims ptt ptc voip over wireless

4. Services

4.5 Trends

Trends: IMS, PTT, PTC, VoIP over Wireless
  • Nextel was the first to offer Push to Talk (PTT) for U.S. consumers
    • Other telecom providers follow the suit
    • Push to Talk over Cellular (PTC) is gaining increasing attention
  • Growth of PTT and PoC subscriber base to grow in the USA to 33.6 million by the end of 2009 (from 16.8 million in 2004) (Source: www.mobiletechnews.com)
  • IP Multimedia Subsystem (IMS) can provide delivery of IP based services, such as PoC, VoIP, Video and messaging
    • IMS brings convergence of wired and wireless networks closer
    • Sprint Nextel is implementing IMS solution with Lucent (Sprint, 2005)
  • The opportunities of VoIP over Wireless are being recognized in the USA
    • Vonage brings Wireless mobile VoIP handset to market
    • Co-operation going on, such as with Skype & Boingo

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trends mobile virtual network operators leveraging brand value

4. Services

4.5 Trends

Trends: Mobile Virtual Network Operators – Leveraging Brand Value
  • In the U.S. Markets, MVNOs are beginning to emerge, stimulating growth of wireless data
    • Targeting selected market segment, or multiple segments
    • Extending their brand to the wireless industry
      • Resell wireless services through their brand
      • Increase sales of their data offerings by wireless channel
  • Examples
    • Virgin Mobile USA
      • Young Americans under 30 ; Easy-to-Use
    • ESPN Mobile
      • Sports Enthusiasts
    • Firefly Mobile
      • Children
  • This means growing opportunities for Mobile Virtual Network Enablers (MVNE)
    • Turnkey solutions for MVNOs (infrastructure, billing, back-office support)
    • Individual service/product components to support specific needs

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5 private sector r d activities
5. Private Sector R&D Activities

5.1 Research Activities

5.2 Funding

5.3 Components: Terminals

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private sector r d activities

5. Private Sector R&D Activities

5.1 Research Activities

Private Sector R&D Activities
  • U.S. equipment and software vendors, as well as large service providers are investing strongly on wireless technologies, in the following areas
  • Below, examples of investments of service providers
    • Cingular Wireless: UMTS, HSDPA
    • Verizon Wireless: EV-DO
    • Sprint-Nextel: EV-DO
    • AllTel: EV-DO rollouts
    • T-Mobile: EDGE rollout nationwide, HSDPA
  • Vendors like Cisco, Lucent, Motorola, Nortel and others continuously invest in R&D

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private sector r d activities69

5. Private Sector R&D Activities

5.1 Research Activities

Private Sector R&D Activities

Examples of company research

  • AT&T
    • 4G Wireless technologies
    • Applications such as Location Based Services for mobile workforce management
  • Lucent: Bell Labs – The Wireless Research Laboratory
    • Wireless Systems and Technology Research: 3G and 4G Technologies
    • High-Speed Circuits and Systems Research
    • Wireless Communication Research: Adaptive Antennas
    • Global Wireless Systems Research: Air interface and packet access layers for UMTS, GSM/GPRS/EDGE and 4G
  • Cisco
    • Wireless networking, applications, routing protocols
  • Qualcomm
    • Single chip solutions, EVDO, and W-CDMA solutions

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r d collaboration 1

5. Private Sector R&D Activities

5.1 Research Activities

R&D Collaboration (1)
  • Intel has business alliances with other companies in order to help develop and deploy wireless broadband capabilities using WiMax
    • For example Clearwire, Nokia and Alcatel have all had some sort of a collaboration with Intel in the past or currently (Intel, 2004)
    • Planning to build WiMax into its Centrino chip platforms, which will power 80% of all PCs, by the year 2006 (NTIA, 2005)
  • Sprint and Samsung Telecommunications collaborating to test IEEE 802.16e standard and to drive the development of wireless broadband services
    • Involves prototype terminal testing and also supporting core network equipment to help meet the needs of next-generation wireless network infrastructure requirements (Brown, 2005)

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r d collaboration 2

5. Private Sector R&D Activities

5.1 Research Activities

R&D Collaboration (2)
  • Motorola is planning to offer integrated radio access networks that will handle 3G, Wi-Fi, WiMax, and wireless innovations (NTIA, 2005)
  • AT&T, Siemens, and Alcatel have also started taking action in backing WiMax technologies (NTIA, 2005)
  • Yahoo! Research Berkeley Yahoo! was established recently as research partnership. Topics of Interest: social media and mobile media technology and applications that enabling people “to create, describe, find, share, and remix media on the web.” Source: Yahoo! Research

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r d collaboration 3

5. Private Sector R&D Activities

5.1 Research activities

R&D Collaboration (3)
  • HP Labs – Mobile and Media Systems Lab research
    • Focuses on mobile, network-centric appliances and the systems to deliver user-specific rich media service
    • Research: 3D graphics, advanced systems, appliance technologies, BiReality, DJammer, information theory, networking, polynomial texture mapping, streaming media, technology and lifestyle integration, UltraVis volume rending system, vision and graphics
  • IBM Research
    • Research activities focus on wide-ranging issues in signal processing, optical networking, wireless networking, high-speed switching fabrics, routing, QoS and policy networking, network control and management, and network security.
    • Projects: EDGE server software, online games intra, voice application middleware, smart networks, sensor networks, reliable multicast messaging, policy technologies, policy enabled networking and management

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on software defined radio

5. Private Sector R&D Activities

5.1 Research activities

On Software Defined Radio
  • FCC approved the use of software defined radio device in the United States in November, 2004, to his allow users to better share airspace. Source: FCC
    • The first certificate was given to Vanu, Inc, for a cellular base station transmitter.
    • Software defined radios can be programmed to change modulation type, output power or the frequency range without hardware changes.
  • Software Defined Radio is an active research topic in many universities, such as Virginia Tech
  • Companies such as Motorola Communications Research are studying SDR technologies, to ease resolution of spectrum issues. Motorola is focusing on the following issues in this research:
    • Physical RF layer
    • Frequency generation
    • Modulation and demodulation
    • Data conversion and signal processing
    • Means to ensure secure over-the air software downloads
    • Source: Motorola
  • Industry forums such as Software Defined Radio Forum are seeking to advance development of Software Defined Radio technology

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venture capital 1

5. Private Sector R&D Activities

5.2 Funding

Venture Capital (1)
  • Venture Capital funding increasing: Wireless companies are receiving more capital, yet investment size has not reached the level of 2000 and 2001 (Marek, 2005)
  • Hot investment areas; Mobile Television, mobile entertainment, handset client software and any technology that will improve wireless coverage (Marek, 2005)
  • Although far from ubiquitous and regardless of the hype, Gardner predicts VoIP will be the next big thing for funding. VoIP company Vonage*, for example, has received multiple funding rounds. (Canaan Partners, 2005)

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venture capital 2

5. Private Sector R&D Activities

5.2 Funding

Venture Capital (2)

Source: MoneyTree Survey, 2005

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venture capital 3

5. Private Sector R&D Activities

5.2 Funding

Venture Capital (3)

Source: MoneyTree Survey, 2004 & 2005

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examples of the most recent vc funded telecom companies

5. Private Sector R&D Activities

5.2 Funding

Examples of the Most Recent VC Funded Telecom Companies
  • The telecommunication companies receiving most funding in the first quarter, have a focus in wireless or VoIP
    • General Bandwidth (VoIP) with $18 million invested
    • Trapeze Networks (WLAN) with $17.5 million invested
    • Colubris Networkd (WLAN) with $15 million invested
    • Source*: Networkworld, 2005
  • MetroPCS Communications, Inc.
    • A regional wireless operator, building three CDMA-based networks in the U.S.
    • Attracted venture capital funding from Madison Dearborn Partners L.L.C. and TA Associations, investing altogether a $739 milllion minority equity investment in the carrier (MetroPCS Communications, Inc., 2005)

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handhelds mobile terminals

5. Private Sector R&D Activities

5.3 Components: Terminals

Handhelds / Mobile Terminals
  • The four largest mobile phone vendors in the USA are Motorola, Nokia, Samsung and LG, contributing to about ¾ of market share
  • Terminal cost is a key driver of mass market deployment
    • Service providers provide free or low-cost phones to acquire and retain customers when they sign up for 1 to 2 year contracts
  • Strong competition among handset manufacturers, between companies like Samsung, LG, Nokia and U.S. mobile manufacturer, Motorola
  • Service providers give rebates and discounts for smart phones and PDAs
  • The most popular email devices are the following:
      • BlackBerry
      • Treo
      • MPx220
  • Others
      • Sproqit Technologies
      • Intellisync
      • Extended Systems
      • Infowave
      • JP Mobile

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6 policy making and the role of the public sector
6. Policy Making and the Role of the Public Sector

6.1 The Government Role

6.2 Municipal Action

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government fcc

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Government & FCC
  • U.S. Government does not have a clearly defined broadband policy, but the Bush administration has set a goal of universal, affordable access to broadband by 2007 (Gross 2005, White House 2004)
  • FCC: New policies needed to keep up with advancement in wireless technologies
    • FCC has started pursuing new policy approaches and has issued its first wireless broadband access task force report this year (Rockwell, 2005).

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optimizing and allocating frequency spectrum

3. Policy Making and the Role of the Public Sector

6.1 The Government Role

Optimizing and Allocating Frequency Spectrum
  • Federal Communications Commission promotes of broadband access services, facilitating wireless broadband deployment, launching many initiatives, some examples below
    • Increased the available spectrum by re-allocating resources and establishing mandates like “Use-or-Lose dates”
    • Allowed market to innovate better, for example, to permit more flexibility for parties to better gain access to spectrum by creating secondary markets in spectrum to enable licensees to lease access to some third parties in need
    • Decreased regulatory constraints for deployment of unlicensed wireless networking, for example, allowing smart antenna technologies to be used for increased spectrum efficiency
  • Source: FCC

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congress

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Congress
  • U.S. Congress has made moves to recast Telecommunications Act from 1996 and is expected to pass some sort of telecommunications reform by late this year
    • Also looking to update how wireless will be regulated for the next 20 years (Rockwell, 2005.).
  • The 109th Congress is considering federal broadband financial assistance programs, and the effect of telecom regulations, and new technologies on broadband deployment (CRS Report, 2005)

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bush administration

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Bush Administration
  • Bush administration aims to make broadband access tax-free, working to enable the rollout of new broadband technologies, and to remove hurdles slowing the deployment of broadband. (The White House, 2004).
  • Bush administration: Working to free radio spectrum for commercial and unlicensed uses.
    • An auction of spectrum is scheduled for summer 2006 to increase wireless spectrum by 45 % (Gross, 2005)

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policy making and public sector s role

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Policy Making and Public Sector’s Role
  • Spectrum allocation
    • FCC arranges auctions to allocate spectrum
    • Unlicensed and Licensed spectrum are in use, also experimental licenses are available
  • Some Government initiatives
    • Wireless Broadband Access: policies to promote growth of wireless technologies to extend reach of broadband access
    • Homeland Security Public Safety Wireless Interoperability Initiative
    • Joint Federal Rural Wireless Outreach Initiative
      • Economic development in rural areas
    • Rural Community Vision
      • Telemedicine
      • Ecommerce

(Source: FCC)

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public sector activities

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Public Sector Activities
  • Recently a coalition, representing more than 40 organizations, such as local governments, the high tech industry, and consumers, was formed to promote community broadband choices and communities to provide broadband internet services to their citizens (Baller, 2005)
  • U.S. Supreme Court Ruling in 2004: States can bar cities from offering high-speed Internet services
    • Now telecommunications industry’s lobbyists are trying to extend the ban on municipal broadband services to every city as well
    • Anti-municipal Internet bills failed in Iowa, Texas and Florida

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public sector s role in broadband

6. Policy Making and the Role of the Public Sector

6.1 The Government Role

Public Sector’s Role in Broadband
  • City-wide hot spots:
    • Athens, GA
    • Cerritos, CA
    • Chaska, MN
    • Oklahoma City, OK
    • Philadelphia, PA
    • Spokane, WA
    • Walla Walla, WA
  • Free hot spots being built:
    • Austin, TX
    • Las Vegas, NV
    • Long Beach, CA
    • New York, NY
    • San Jose, CA (this may turn out to be partly fee-based)
    • Washington, DC (NTIA, 2005)

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municipal broadband

6. Policy Making and the Role of the Public Sector

6.2 Municipal Activities

Municipal Broadband
  • U.S. cities, towns and counties are going to use approximately $700 million in the next three years to build municipal-owned wireless broadband networks U.S. cities: Almost 300 cities are planning or moving ahead already with municipal broadband projects (Gross, 2005; Muniwireless, 2005)
  • In 2005 over 60% of municipal network spending will be done by large cities (Muniwireless, 2005)
  • Most urgent needs for municipal wireless networks in public safety. From the U.S. municipalities that have launched municipal wireless, only 50% have done it the public safety (police, fire, emergency services) (Muniwireless, 2005)
  • 14 U.S. states have passed laws to limit municipal broadband services, with Verizon and SBC Communications, Inc., lobbying against city-offered services – while Intel is lobbying for the service. (Gross, 2005)
    • The Community Broadband Act of 2005, is aiming to prevent states from outlawing municipal broadband service

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7 public sector r d activities
7. Public Sector R&D Activities

7.1 Research Activities

7.2 Funding

7.3 Organizations

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some r d activities universities

7. Public Sector’s R&D

7.1 Research Activities

Some R&D Activities – Universities
  • Some examples of relevant university research
    • UC Los Angeles - Wireless Adaptive Mobility Laboratory
    • UC San Diego - Center for Wireless Communications
    • Stanford University - Wireless Communications Research Group
    • University of California Berkeley - Wireless Research Center
    • Massachusetts Institute of Technology
    • Virginia Tech
    • Georgia Tech

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some r d activities universities90

7. Public sector’s R&D

7.1 Research Activities

Some R&D Activities – Universities
  • UC Los Angeles - Wireless Adaptive Mobility Laboratory – Main research areas are:
    • Performance evaluation of wireless, mobile, multimedia network protocols with focus on ad hoc, multihop, self configuring networks
    • Wireless network protocols and applications
  • UC San Diego - Center for Wireless Communications - Wireless research projects from 2003 to 2005:
    • Mobile OFDM Communications
    • MIMO wireless communication systems
    • Low-power mixed-signal circuits for wireless transceivers
    • Application and network-aware multi-layer adaptation of wireless protocols and architectures
    • ”Smart” sensor networks for visual context capture and interactivity
    • High-bandwidth wireless spaces
    • Digitally controlled transmitters for next generation communications systems
    • Network-on-silicon architectures for mesh-based radios

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7. Public sector’s R&D

7.1 Research Activities

Some R&D Activities – Universities
  • UC Berkeley - Wireless Research Center BWRC:
    • Research focus is to determine relationship between theoretical and algorithmic advances for radio SoC implementation
    • UWB
    • Ad Hoc Networking
  • University of Stanford - Wireless Communications Research Group – Current Research:
    • Channel modeling
      • Channel models for indoor MIMO wideband data systems
    • Systems
      • Algorithims for MIMO mobile system

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7. Public sector’s R&D

7.1 Research Activities

Some R&D Activities – Universities
  • MIT – Laboratory for information and decision making
    • Satellite communications, wireless communications
    • Ubiquitous mobile systems
  • Virginia Tech – Wireless communications is the largest research activity:
    • Propagation and antenna studies
    • Modulation and detection techniques to improve performance in interference environments, and devise communications techniques and applications for new spectral bands
    • Ultra wideband techniques and cognitive radio systems.
  • Georgia Tech – Ongoing research projects:
    • Wireless sensor networks
    • Wireless mesh networks
    • Actor and sensor networks
    • Underwater sensor networks
    • Substation automation
    • xG wireless systems
    • Next generation wireless internet

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federal funding

7. Public Sector’s R&D

7.2 Funding

Federal Funding
  • Federal research and development funding has slightly increased in the past years
    • FY 2006 budget requests a total of $132 billion for all federally funded R&D activities
    • In September TIA formed a new division: Communications Research Division (CRD). Its mission is to ensure that the U.S. communications sector continues to be a world leader in advanced research (TIA, 2005)
    • The National Science Foundation has a budget of $5.7 for 2005 (White House, 2005)
    • 18-month extension of the research and experimentation tax credit; support on making it permanent and also an extension on the Internet tax moratorium until Oct 2007. (Greenemeier, 2005. NTIA, 2005).

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selected organizations

7. Public Sector’s R&D

7.3 Organizations

Selected Organizations
  • Active co-operation between industry players, universities and government bodies is needed to ensure interoperability
  • Selected organizations are listed below
    • U.S. Federal Communications Commission FCC www.fcc.gov
    • U.S. Department of Commerce DOC -> National Telecommunications and Information Administration NTIA www.ntia.doc.gov
    • Cellular Telecommunications and Internet Association CTIA www.ctia.org
    • Center for Digital Government www.centerdigitalgov.com
    • WiMAX Forum www.wimaxforum.org
    • WiMAX Global Roaming Association WGRA www.wimaxgra.org
    • Broadband Wireless Association www.broadband-wireless.org
    • International Packet Communications Consortium www.ipccforum.org
    • The Telecommunications Industry Association www.tiaonline.org
    • Enterprise Wireless Alliance www.ita-relay.com
    • Wireless Communications Association International WCA www.wcai.com

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8 possibilities for finnish companies
8. Possibilities for Finnish Companies

8.1 Services and Applications

8.2 Leveraging Expertise

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answering to market needs

8. Possibilities of Finnish Companies

8.1 Services and Applications

Answering to Market Needs
  • Wireless broadband is gaining popularity
    • Cellular penetration and coverage are reasonably high
    • Operators are offering attractive services over 2.5G/3G
    • Number of Wi-Fi hot spots is increasing
  • Strong competition among large players requires differentiation by services instead of price
  • Service providers need to address complexities of wireless broadband
    • Interoperability of wireless broadband technologies poses opportunities and challenges for service providers and technology vendors
    • New products, solutions and services are needed

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new applications and platforms for wireless broadband services and infrastructure

8. Possibilities for Finnish Companies

8.1 Services and Applications

New Applications and Platforms for Wireless Broadband Services and Infrastructure
  • Personal broadband
    • ”Content is King” - Voice, Video clips, Ringback Tones, Games
    • Personalized application environment
    • Making Wireless Broadband as easy as Fixed Broadband
  • Productivity / Cost savings tools
    • Bringing mobility to enhance enterprise productivity
    • Enhancing personal productivity at home and work
    • Enabling cost savings in the enterprise
  • Network and service management solutions
    • The number and variety of intelligent devices in the network increases, and networks become more complex
  • Security solutions
    • As networks and services become more complex, end-to-end solutions are needed to protect user activity while roaming across Cellular, Wi-Fi/WiMAX and other networks

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interesting application areas

8. Possibilities for Finnish Companies

8.1 Services and Applications

Interesting Application Areas
  • Voice over IP over Wireless
  • Entertainment
  • Video clips
  • Games
  • Digital communities
  • Email, messaging
  • Personal Information Management
  • Data Sharing, Content Sharing, Photo Sharing, Collaboration
  • Digital Rights Management
  • Location Based Applications
  • Mobile Advertising
  • Enterprise Applications
  • Billing Systems
  • Network and Service Management
  • Security

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leveraging finnish wireless expertise

8. Possibilities for Finnish Companies

8.2 Leveraging Expertise

Leveraging Finnish Wireless Expertise
  • As wireless penetration grows, Finnish wireless expertise can be leveraged
    • Partner to provide technology, content and services to
      • Infrastructure providers
      • Handset manufacturers
      • Application and Solutions providers
    • Collaborate with service providers in trials and deployments
    • Provide technology, solutions, services and content
    • Be active in industry organizations, R&D and Marketing collaboration
  • Focusing on niche areas
  • Solutions are needed to
    • Enable incumbents maintain positions
    • Make it easier for new entrants to address new market areas

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9 foreseeable radical changes
9. Foreseeable Radical Changes

9.1 3G networks and services

9.2 Wi-Fi and WiMAX

9.3 Voice over IP

9.4 Wireless Enterprise, Home and Community

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3g rollouts taking place

9. Foreseeable Radical Changes

9.1 3G Networks and Services

3G Rollouts Taking Place
  • Operators are rolling out EV-DO, W-CDMA and HSDPA
    • Need to get planned ROI for infrastructure investment with new services
    • Need to find unique offering in order to win competition
    • Have an opportunity to offer new value-add to increasing amount of users in more regions
  • Users will get used to new services
    • From music downloads and ringtones to streaming video
    • Best personalized user experience will win when users choose their service providers
    • Price, Quality of Service and Ease of Use are ingredients of a winning offering

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wi fi and wimax changing landscape

9. Foreseeable Radical Changes

9.2 Wi-FI and WiMAX

Wi-FI and WiMAX Changing Landscape
  • Cellular operators need to pay attention to the opportunities provided by other technologies
    • If service providers do not act it will become a threat – others will take the customers
    • If service providers become players in Wi-Fi and Wi-MAX space, they have a chance to
      • Increase customer base by attracting or acquiring new users
      • Retain existing customers by giving them access everywhere, by increased coverage
      • Enable their customers have bandwidth they require
    • Cellular providers are going to partner-up, build themselves or acquire other players with Wi-Fi / WiMAX experience and customers
  • As the USA approaches 4G, the ecosystem will change to accommodate many different wireless technologies and business models
  • Wi-Fi is reality today at homes, office, public places (coffee houses, airports)
  • WiMAX will eliminate the problem of last mile access, saving costs to operators
    • Fixed Wireless WiMAX seems to be here sooner
    • Mobile WiMAX will still have to be waited for a couple of years

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voice over ip

9. Foreseeable Radical Changes

9.3 Voice over IP

Voice over IP
  • Voice over IP is considered a killer-application by many
    • Some say Wireless Broadband is the killer-application in itself
  • Customers get more value and better experience
    • Price advantage
    • Increased coverage
    • Convenience
  • Examples of problems to be addressed
    • Call security
    • Handset cost

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changing ecosystems

9. Foreseeable Radical Changes

9.4 Wireless Enterprise, Home, Community

Changing Ecosystems
  • Wireless enterprise
    • Mobility drives business process change
    • Instant information availability, collaboration
    • Remote work, decision making processes
  • Wireless home
    • Wireless brings entertainment where you are
    • Streaming media to your Laptop, Entertainment Center and Mobile Phone, Content Sharing
  • Wireless-enabled community
    • Free wireless access in cities changes business models in dynamic service environments
    • Consumer behavior changes with enabling technologies
    • Mobile search powered with Location Based Services enable businesses to be found easier

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