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CDMA2000: An Overview of Trends, Drivers, and

the State of 3G Technology

Orange County IEEE ComSig

February 12, 2002

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Contents

Introducing the CDGOverview of cdmaOne™Drivers and Considerations in Deploying 3GCurrent State of 3G DeploymentConcluding Remarks

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Introducing the CDG

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Information Information DistributionDistribution

ConferencesNewsletterWebsiteEtc.

Technical Service Technical Service DevelopmentDevelopment

Wireless Local LoopAdvanced SystemsEvolutionEtc.

Deployment Deployment AssistanceAssistance

Time-to-MarketInt’l RoamingInteroperabilityEtc.

To lead the rapid evolution and deployment of To lead the rapid evolution and deployment of CDMA-based systems, based on open standards CDMA-based systems, based on open standards and encompassing all core architectures, to meet and encompassing all core architectures, to meet

the needs of markets around the world in an the needs of markets around the world in an emerging, information-intensive environmentemerging, information-intensive environment

Charter

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Interactions with Other Organizations

Market Representation Partner (MRP) of Third Generation Partnership Project - 2 (3GPP2)

Member of the International Telecommunications Union (ITU)Member of the Operator Harmonization Group (OHG)Strategic alliance with the Association of Telecommunications

Enterprises of the Andean Community (ASETA) (Latin America)Member of the Cellular Telecommunications and Internet

Association (CTIA)Member of CITEL (Latin America)Active with government entities (e.g., China, Korea, Japan, Latin

America, U.S., etc.)Liaison to WAP Forum

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Membership

OperatorsOperatorsSubscriberSubscriberEquipmentEquipment

Network Network InfrastructureInfrastructure

Network Network Enhancement/ Enhancement/ OptimizationOptimization

Network Network Interface & Interface &

AccessAccess

The CDG is a consortium of 115 member companies from The CDG is a consortium of 115 member companies from around the world. Members are involved in many aspects around the world. Members are involved in many aspects

of CDMA system deployment and support. of CDMA system deployment and support.

ComponentsComponentsand and

SubsystemsSubsystems

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CDG Membership

Bell MobilityBellSouth InternationalCelletra Ltd.China UnicomCIBERNET Corp.COM DEV WirelessCommWorks Corp.Compaq Computer CorporationComverseConductus, Inc.CTIADenso InternationalDitrans CorporationEricsson, Inc.

3G Cellular, Inc.AAPT CommunicationsAccess Systems AmericaAcer CommunicationsActernaAirbiquity, Inc.AirPrime Inc.Airvana Inc.ALLTELAlpine ElectronicsAngola TelecomAnritsuAnyData Corp.ArrayComAudiovox Communications

ETRI Fujitsu NetworkGemplus Corp.Giga Telecom Inc.Glenayre ElectronicsGrayson WirelessGTRAN, Inc.Himachal Futuristic Communications Ltd.Hitachi Telecom (USA)Hutchison Telecom (HK)Hyundai CURITEL, Inc.InnovICsISCOIUSACELL

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CDG Membership (continued)

KDDIKomunikasi Selular IndonesiaKorea Telecom Freetel, Inc.Kyocera CorporationLeapLG Electronics, Inc.LG Telecom, Ltd.LinkAir Communications, Inc.LogicaLSI LogicLucent Technologies, Inc.MTNLMetapath Software Int’l Metawave Communications

Motorola Nextel CommunicationsNokia CorporationNortel NetworksNovatel WirelessOpenwaveOperadora UnefonPacific Bangladesh Telecom Ltd.ParkerVision, Inc.Pegaso PCSPele-Phone CommunicationsPixoQUALCOMM, Inc.

QuickSilver Technology QwestRacal InstrumentsReliance Infocom LimitedRepeater TechnologiesResearch In MotionRhode & SchwarzRITTSamsung Electronics Co. Ltd.Sanyo Fisher CompanySchema Ltd.SchlumbergerSemaScoreBoard, Inc.Sharp Labs of America

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CDG Membership (continued)

Shinsegi Telecom, Inc. Shyam Telelink LimitedSierra Wireless, Inc.SignalSoft Corp. SK TelecomSmartServ Online, Inc.SmartTrustSony ElectronicsSpirent CommunicationsSprint PCSStarent Networks CorporationSynertek, Inc.Tahoe NetworksTantivy Communications, Inc.Tata Teleservices Ltd.

TDK Corporation Telecom Mobile LimitedTelespree CommunicationsTellus Technology, Inc.Telstra Corporation Ltd. Telus Mobility Cellular, Inc. Texas InstrumentsU.S. CellularVerizon WirelessWaterCove NetworksWestern WirelessWherify WirelessWilltech, Inc.Winphoria Networks, Inc.Wireless Test SystemsZTE Corporation

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Fundamental principles of the CDG

Activities and requirements driven by the operators• Ensures standards and systems meet market need

Operators and manufacturers work closely togetherMaintain flexibility to quickly respond to operator needsKeep close relationships with standards organizations and other industry associations

• Facilitates standards development and implementation

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• Over-the-Air Activation (OTA) Handset Management

• International Roaming• Interoperability Specification (IOS)

• Evolution/3G• System Test• Wireless Local Loop (WLL)• Mobile Station Certification

Technical initiatives

Teams formed by Executive Board

Active technical teams:

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Technology

Address technical aspects of deploying applications on CDMA, including:• Interoperability• New capabilities• Etc.

Membership

Grow and evolve the membership to ensure the organization has the composition to address what needs to be done (technically, business, etc.). • Applications providers• Platform providers• Content providers

Marketing andPromotion

Promote capabilities and other information relevant to developers. Promote what is being deployed on CDMA and impact on use.

Applications initiative

Purpose is to ensure CDMA and the industry address the evolution toward an applications-focused wireless market

• Complement existing industry and company initiatives

Program has three main components:

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Marketing, promotions, and education

Includes the following:• Website (for public promotion and members’ Intranet)• Public relations/press/media • Publications (contributed articles, member newsletter)• E-mail blasts on CDMA worldwide status• Conferences and forums• Platform presentations• Webcasts• Brochures, position papers, advertorials, advertisements

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Overview of cdmaOne

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Public WiredPhone Network

(PSTN)

Wireline Telephone

Other CellularSwitches

Intelligent Add-OnFunctions and

Databases

IS-95

Mobile StationsIS-98

Base StationsIS-97

SwitchIS-41IS-124

WIN

Base StationsController

“A”

IS-634

cdmaOne is: A global technology designator for

IS-95 based CDMA systems A term representing the entire wireless system and

specifications (e.g., air interface, network interfaces) The CDMA technology deployed in mobile wireless

systems today

What is cdmaOne?

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Location-based

Local EventsWeather

Restaurants

PersonalPIM

PersonalHome Page

News & FinancePhotos

M-CommerceShopping

Stock TradingBankingNews &

Publications

EntertainmentMovie Listings

TicketsSports

GamingMusic

EnterpriseEmail

CalendarEnterprise

Apps

How is cdmaOne being used today?

Like other technologies, voice remains a key driver for CDMA use• Operators are expanding on voice with new capabilities, e.g.:

– Voice command– Voice portal– Integrated offers

• In addition, there continues to be innovation in vocoder technology (I.e., selectable mode vocoder)

Today CDMA operators are also providing wireless Internet and data, and will build on this with CDMA2000

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-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

120,000,000

Sep

-97

Dec

-97

Mar

-98

Jun-

98

Sep

-98

Dec

-98

Mar

-99

Jun-

99

Sep

-99

Dec

-99

Mar

-00

Jun-

00

Sep

-00

Dec

-00

Mar

-01

Jun-

01

Sep

-01

Dec

-01

Asia Pacific North America Caribbean & Latin America Europe, Middle East & Africa

Note: prior to March 1998 the Caribbean and Mexico are included in North America; after March 1998 they are included in Caribbean & Latin America

What is cdmaOne presence in the market?Approximately 112 million subscribers at the end of 2001

• North America represents the largest base of subscribers• Asia Pacific is second highest region; China expected to contribute significantly in the next

couple of years• Latin America continues to be a strong growth region

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Drivers and Considerations in Deploying 3G

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A number of factors are driving the wireless Internet and wireless information...Societal trends

• Emerging computer literate society• Increasing travel and mobility• Desire for entertainment• Need for enhanced productivity

Technology enablers• High speed, cost effective mobile

systems• Integrated multimedia applications• Small, powerful, application-rich user

devices

Market trends• Rapid growth in mobile• Rapid Internet adoption • Accelerating pace of electronic

commerce (aka M-commerce)• Rapid growth of portable and palmtop

computers

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Email, Intranet Access, Legacy ApplicationsEmail, Intranet Access, Legacy ApplicationsAccess, Vertical ApplicationsAccess, Vertical Applications

Weather, Travel, News, Gaming, Stock Weather, Travel, News, Gaming, Stock QuotesQuotes

Enterprise Workgroup

• Specific IT Applications• Business Verticals• Group Chat, Email, Instant

Messaging• Wide Area Intranet• Mobile Workforce

Management (dispatch), Telematics

Mobile Professional

• Business General• Horizontal Business• Internet / Intranet• Email, Chat, Instant

Messaging• Personal Information

Management

Consumer

• Personal Interest• Horizontal Consumer• Internet• Entertainment, Infotainment,

Lottery, Sports• Navigation, Map Search• Electronic Cash (M-

Commerce)

…enabling exciting vertical and horizontal applications

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0

200

400

600

800

1,000

1,200Millions

1999 2000 2001 2002 2003 2004 2005

Data indicates that this convergence is creating enormous opportunity for the wireless industry

Worldwide Wireless SubscribersWorldwide Wireless Subscribers

Source: EMC Database, 2001Source: The ARC Group, Wireless Internet Report, 2000

Wireless Data Users Wireless Data Users

Millions

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1999 2000 2001 2002 2003 2004 2005

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Certain factors are important in a 3G solution

This section addresses each ofThis section addresses each ofthese success factorsthese success factors

Solutions that are globally recognized and meet adopted, international standardsSolutions that work, enable quick time-to-market and meet industry expectations

Spectrum flexibility, efficiency and cost

Broad range of competitively priced devices for end users (consumers, enterprises)

Broad range of applications for end users

Seamless and cost effective migration from today’s systems

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IMT-2000IMT-2000CDMACDMA

Direct SpreadDirect Spread

IMT-2000IMT-2000CDMACDMA

Multi-CarrierMulti-Carrier

IMT-2000IMT-2000CDMACDMATDDTDD

IMT-2000IMT-2000TDMATDMA

Single CarrierSingle Carrier

IMT-2000IMT-2000FDMA/FDMA/TDMATDMA

WCDMA(UMTS)

CDMA2000 UTRA TDD &TD-SCDMA

UWC-136/EDGE

DECT

IMT-2000 Terrestrial Radio Interfaces

Although there are five terrestrial standards, most of the attentionAlthough there are five terrestrial standards, most of the attentionand energy in the industry has been toward the CDMA standardsand energy in the industry has been toward the CDMA standards

3G CDMA

The ITU formed the IMT-2000 program to coordinate standards to meet 3G needs

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WCDMA and CDMA2000

What are some of the similarities and differences?CDMA2000 WCDMA

Minimum channelbandwidth

1.25 MHz 5 MHz

Spectrum Deployment Existing bands, IMT band IMT bandSpeeds 144 kbps (mobile) – Per ITU standard

60 kbps-100 kbps – Per experience(1X)

144 kbps (mobile) – Per ITU standard64 kbps – Per experience (in Japan)

Technical parameters Similar, with exception of a few (e.g.,chip rate, type of synchronization)

Similar, with exception of a few (e.g.,chip rate, type of synchronization)

Overall capacity Comparable ComparableTechnology starting point Most current commercial networks are

from cdmaOne. One network fromNMT. Two TDMA operators haveannounced CDMA2000 plans.

Most, if not all, GSM operators willdeploy. Some TDMA operators haveannounced (e.g., AT&T Wireless).

Migration considerations Uses ANSI-41 network with packetdata node, as with cdmaOne. Can bedeployed by GSM operator via IS-833.Next step defined by CDMA20001xEV

Requires evolution to GPRS (withseparate packet data network).TDMA operators also need GSMnetwork for voice. Japan is exception– Uses PDC network standard.Next step being defined by HSDPA.

Suppliers Many ManyCommercial status Commercial (Eleven networks) Commercial (One network)

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ANSI-41 Based

Systems

GSM-MAP Based

Systems

AnalogAnalog 1x

cdmaOnecdmaOne 1x

TDMATDMA 1x

Current Spectrum

GSM or GSM/GPRSGSM/GPRS 1x

1x 1x 1x

Or New Spectrum

1x 1x 1x

1x 1x 1x

1x 1x 1x

5 MHz

CDMA2000 is defined to operate in existing and IMT spectrum:

• 450 MHz • 700 MHz• 800 MHz• 900 MHz• 1700 MHz• 1800 MHz• 1900 MHz• 2100 MHz

Spectrum flexibility is a key consideration for any technology

CDMA2000 3G services operate in a small amount of spectrum• Effective use of spectrum, significant to all operators• Effective both in overlay or greenfield deployments

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What is the CDMA2000 evolution path?

• Voice

• Data up to 14.4 kbps

• Voice

• Data up to 115 kbps

• 2x increases in voice capacity

• Up to 307 kbps* packet data on a single (1.25 MHz) carrier

• First 3G system for any technology worldwide

• Optimized, very high-speed data, aka DO

• Up to 2.4 Mbps* packet data on a single (1.25 MHz) carrier

• Integrated voice and data, up to 4.8 Mbps, aka DV

CDMA2000 is a solution for all operators, regardless of technology starting point

*downlink

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What is the CDMA2000 network architecture?Is quite clean, and does not require a parallel network. Uses the same core network standard as TDMA and AMPS.

R-P

IS634

PSDN

MSC

HLR/AUCHLR/AUC

Laptops withCell Phones

CellPhones

Smartphonesand PDAs

BSCAAAAAAServerServer

PSTN

Internet

IWF

IP Router

CoreElements

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CDMA2000 for GSM:• CDMA2000 1X-MAP (IS-833)

– CDMA2000 1X lower layers using GSM signaling

Developed by 3GPP2 with support from 3GPP

GSM operators can also migrate to CDMA2000

GSM carriers can use CDMA2000 1X-MAP (IS-833) • 1X-MAP (IS-833) applies the CDMA2000 radio interface to GSM-MAP

networks– Allows GSM operators to retain international roaming capability

• 1X-MAP is an ITU standard, developed by 3GPP2 with support from 3GPP• 3GPP also included changes in Release 99 for 1X-MAP support

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A look at expected pricing for handsets

Notes: 1. Average Q4 wholesale pricing for

CDMA2000 is based on 300,000 unit shipments.

2. WCDMA pricing is based on smaller volume shipments since Gartner does not expect volume order for WCDMA until after 2003.

3. WCDMA pricing represents single mode 2.1 GHz and multimode dual band terminals for W. Europe and Asia.

4. GSM/GPRS pricing represents 900 MHz and 900/800 MHz terminals for W. Europe and Asia, plus GSM 1900 MHz terminals for N. America.

5. CDMA2000 1X pricing represents 800 MHz and 1.9 GHz, single mode, dual mode and tri-mode handsets for Asia and N. America.

Source: Gartner Group, April 2001Q4 ‘00 Q4 ‘01 Q4 ‘02 Q4 ‘03

$0

$200

$400

$600

$800

$1000WCDMA handsets capable of peak data rates of 2 Mbps (stationary)

1X handsets capable of peak data rates of 144 kbps to 2.4 Mbps (mobile)

$1200

* Mid Tier and Entry Level WCDMA handsets are not expected to be commercially available in volume until 2004

WCDMA*GPRS

High Tier

Mid TierEntry Level

GPRS handsets capable of peak data rates of 19.2 kbps to 38.4 kbps

CDMA2000 1X

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CDMA enables the kind of capabilities needed to realize significant advancements in services

0

32

64

9.6

128

144

384

2,000

Dat

a Tr

ansm

issi

on S

peed

- kb

ps

1G Analog 2G CDMA 3G CDMA

Telephone (Voice)

VoiceVoice

DataWeather, Traffic, News,Sports, Stock updates

Fax

Voice Mail

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Telephone (Voice)

ElectronicNewspaper

E-Mail

ElectronicPublishing

VoiceVoice

Text MessagingText MessagingAudio StreamingAudio Streaming

0

32

64

9.6

128

144

384

2,000

Dat

a Tr

ansm

issi

on S

peed

- kb

ps

1G Analog 2G CDMA 3G CDMA

DataWeather, Traffic, News,Sports, Stock updates

Mobile Radio

Fax

Voice Mail

CDMA enables the kind of capabilities needed to realize significant advancements in services (cont.)

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Telephone (Voice)

ElectronicNewspaper

E-Mail

ElectronicPublishing

VoiceVoice

Text MessagingText MessagingAudio StreamingAudio Streaming

Video StreamingVideo StreamingHigh-speed InternetHigh-speed Internet

0

32

64

9.6

128

144

384

2,000

Dat

a Tr

ansm

issi

on S

peed

- kb

ps Remote Medical Service

(Medical image)

Video Surveillance,Video Mail, TravelMobile TV

M-Commerce

1G Analog 2G CDMA 3G CDMA

DataWeather, Traffic, News,Sports, Stock updates

Video Conference(High quality)

Mobile Radio

Fax

Voice Mail

CDMA enables the kind of capabilities needed to realize significant advancements in services (cont.)

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Current State of 3G Deployment

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(thou

sand

s)

3G subscribers3.5 million CDMA2000 users at the end of 2001

Approximately 27 thousand subscribers on WCDMA (Japan)*

Source: Gartner Group, as of 12/31/01

0

500

1000

1500

2000

2500

3000

3500

4000

Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01

CDMA2000 WCDMA

thou

sand

s

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CDMA2000 productsApproximately 40 CDMA2000 products in the market

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Country OperatorCDMA2000Trial/Launch Date

Australia Telstra Trial 3Q 2000Brazil Telesp Celular CommercialBrazil Vesper Launch 2H 2002Canada Bell Mobility CommercialCanada Telus Mobility Launch 1Q 2002Chile SmartCom PCS Launch 1Q 2002Dominican Republic Centennial Dominicana Launch 1Q 2002Jamaica Centennial Digital Jamaica Launch 3Q 2002Japan KDDI Launch 1H 2002Korea KT Freetel CommercialKorea LG Telecom CommercialKorea SK Telecom CommercialMexico Pegaso PCS Trial 2Q 2002New Zealand Telecom Mobile Limited Launch 1H 2002Romania Telemobil CommercialThailand Hutchison-CAT Launch 3Q 2002Ukraine CST Invest Limited Launch 1Q 2002United States AirGate PCS Launch Mid 2002United States Alamosa PCS Launch Mid 2002United States ALLTEL Communications Launch 1Q 2002United States Enterprise Communications Launch Mid 2002United States Georgia PCS Launch Mid 2002United States GulfCoast Wireless Launch Mid 2002United States Horizon PCS Launch Mid 2002United States Independent Wireless One Launch Mid 2002United States Leap CommercialUnited States MetroPCS CommercialUnited States Monet Mobile Networks CommercialUnited States Northern PCS Launch Mid 2002United States Shentel Launch Mid 2002United States Sprint PCS Launch Mid 2002United States Swiftel Communications Launch Mid 2002United States UbiquiTel Launch Mid 2002United States US Cellular Launch 1Q 2002United States US Unwired Launch Mid 2002United States Verizon Wireless CommercialUnited States Western Wireless Limited CommercialVenezuela Movilnet Launch 1H 2002Venezuela Telcel Trial 1H 2001Vietnam Saigon Postel Launch 2H 2002

3G deployments

CDMA2000 deployments

• 11 commercial networks deployed

• 26 more commercial launches planned for 2002

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Concluding Remarks

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Summary

The wireless industry is on the verge of enabling applications and services never before imaginedSeveral factors are critical to the rapid adoption of 3G, including:

• Current economic pressures and cost-effective solutions• Compelling and useful applications• Well-understood value proposition for the marketplace• Comparable experience with the wired network (as applicable)

Operators are faced with different alternatives for enabling capabilities and addressing these factorsCDMA2000 is making early successes in this new world