LTE/WIMAX Overview

LTE/WIMAX Overview

Agenda

Why Broadband

LTE/WIMAX Technology

What is the market Potential

Network and Devices

Operators strategy

Progress So far

What is driving BROADBAND adoption

The explosive acceptance of the Internet

1

Time taken to reach the 10 million customer mark after being introduced to the mass market

Pager

Telephone

Cable TV

Fax Machine

VCR

Cell Phone

Personal Computer

CD-ROM Drive

Wireless Data Services

Internet (WWW)

41 Years

38 Years

25 Years

22 Years

9 Years

9 Years

7 Years

6 Years

6 Years

<2 Years

2

Internet users want & demand speed

BROADBAND DRIVING CONVERGENCE

New Internet applications for businesses and consumers

3

4

Minimum

1.5 Mbps

Teleworking

E-Commerce

Video

WW Households With Internet Access: Narrowband vs. Broadband

(in millions)

Suitable

241274

311

100129

158

59%53% 49%

51%

41%47%

0

100

200

300

400

2004 2005 20060%

20%

40%

60%

80%

100%

YO

Y %

Gro

wth

WW Online Households BB Households

% BB Households % Dial-Up Households

Broadband subscriptions accelerating

WIRELESS DRIVERS – FASTER, FILLS GAPS & COSTS TO FALL

WiBB fills broadband’s gaps

8

WiFi Wimax

1990s 2000 2010

Ado

ptio

n C

urv

e

The Path to Volume Economics

Ethernet

7

Standards & user acceptance lowers cost.

OTHER DRIVERS – PUBLIC SECTOR, REAL-LAST-MILE ALTERNATIVES

Public Sector – Economic, Social, Educational Development and Public Safety

9

10

Finally, a low cost last-mile competitor

LTE/WIMAX Technology

Two Key technologies are evolving to meet the Wireless Broadband Requirements

802.11n(smart antennas)802.11Mesh extns.

Lo

cal A

rea

Fix

ed

Wid

e A

rea

Mo

bile

Co

vera

ge/

Mo

bili

ty

Met

ro A

rea

No

mad

ic

802.16(Fixed LOS)

802.16a/d(Fixed NLOS)

802.11b/a/g

Mobile Industry

Fixed Wireless Industry

4G Air Interfaces

Data Rates (kbps)100,000 +

3GPP2CDMA

2000-1X

HRPDA1x

EVDO

1x EVDV Rel. C

1x EVDVRel. D

GSM UMTS HSPAGPRS EDGE LTE 3GPP

MOBILE BROADBAND

DSL ExperienceDial Up

Higher Data Rate / Lower Cost per Bit

802.16e(Mobile WIMAX)

Radio Access Network

+ OFDMA Technology+ Downlink 100Mbps+ + Uplink 20-50Mbps++ User <10msec latency

+ Flexible spectrum – 1.25-20MHz

+ FDD and TDD

+ VoIP ~3x time UMTS capacity

+ MIMO/Beamforming+ E2E QOS

Packet Core

+ New all IP collapsed architecture

+ Centralized mobility and application layer (IMS based)

+ E2E QOS

+ Access technology agnostic

+ Connect to legacy GSM/UMTS core (LTE)

WMAX/LTE Specifications

Motorola Confidential Proprietary, LTE CxO Overview, Rev 1 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

HSDPA vs. WiMAX Air Interface Performance

Attribute HSDPA

Spectrum Occupancy10 MHz

(5 DL+ 5 UL) 10 MHz 5 MHz

Duplexing FDDTDD, 70% DL (data)TDD, 50% DL (voice)

TDD, 70% DL (data)TDD, 50% DL (voice)

Frequency Reuse1 site, 1 sector reuse

3 sectors per site1 site, 1 sector reuse

3 sectors per site1 site, 1 sector reuse

3 sectors per site

BS Configuration"Macro" BTS/Node B

20W output"BS2.2" w/o TxAA

2W output"BS2.2" w/o TxAA

2W output

System Configuration2.8km Intersite distance

30 km per hour1.2km Intersite distance

30 km per hour1.2km Intersite distance

30 km per hour

Sector Throughput (F/L)Web Browsing with TCP/IP (kbps)

1400 3200 1376

Sector Throughput (F/L)Full buffer Traffic (kbps)

3000 6000 2580

Sector Throughput (R/L)Full buffer Traffic (kbps)

1100 1500 645

Voice Capacity (F/L) (Erlangs) 120 150 75 (est.)

Voice Capacity (R/L) (Erlangs) 80 120 60 (est.)

F/L Data Spectral Efficiencyweb browsing

(bps/Hz)0.28 0.46 0.40

F/L Data Spectral Efficiencyfull buffer (bps/Hz)

0.60 0.86 0.74

R/L Data Spectral Efficiency (bps/Hz) 0.22 0.50 0.43Voice Spectral Efficiency (E/MHz)

Per Site24 36 36 (est.)

802.16e

+ True high-speed mobile data

+ Full-motion HD video anywhere

+ Stream any content

+ Mobile peer2peer & Web 2.0

+ Quadruple play

+ Faster email access

+ Instantaneous web pages

EDGE

EVDO-AHSDPA

LTE/WimaxFiber

ADSL-2+

ADSL

Mbps

40-100MbpsFiber like speed on mobile

Faster

30-10msec latencyHighly Responsive Multimedia

+ Improved user experience

+ Fast VoIP call set-up

+ Instantaneous web pages

+ Streaming fast buffering

+ Online mobile gamingEDGE

EVDO-AHSDPA

LTE/WIMAXFiber

ADSL-2+

ADSL

msec

More Responsive

+ Spectral efficiencyBetter utilization of spectrum available

+ Low frequency, Advanced Receivers and Smart AntennaFor improved coverage and reduced cost of ownership

+ Increased CapacityMuch higher user and sector throughput for lower individual cost service delivery

+ Simpler RAN, IP Core & Centralized service deliveryFewer nodes & interfaces (Node-B/RNC/Gateway) One Network & IMS for all access technologies

+ Connect to legacy coresExisting network asset investment protection

+ 3GPP/2 Market tractionEconomy of scale

LTE/WIMAX VoIP cost*

UMTS rel.99 voice call cost$

10%

3GPP subscribers 85% market share

Predicted LTE VoIP voice call cost* - Sound Partners Limited Research

Lower Cost

+ 40-100Mbps Sector ThroughputMore capacity per user

+ Spectrum Bandwidth Up to 20MHz

+ Spectrum EfficiencyMuch higher bits/sec/Hz

+ Spectrum FlexibilityFlexible Bandwidth (1.25 MHz to 20 MHz)Expand spectrum as demand grows

+ Centralized IMS services Easy to upgrade application capacity

+ Voice CapacityUp to 105 VoIP calls per sector per MHz*

105 Simultaneous Calls per sector / 1MHz

1-8Mbps expectedUser bandwidth

Added Capacity

Simulated Maximum VoIP capacity based on 8Kbps CODEC

+ Access network agnosticCommon core for all access technology

+ Centralized IMS servicesCommon applications across access technology

+ IP Based coreAdapted to data service delivery

+ Spectrum flexibility1.25 to 20MHz for re-use in existing spectrum

+ End-2-End QoSAllow prioritization of different class of service

+ Connect to legacy networksOffer smooth subscriber LTE migration

Flexible

IMSLayer

Application services

Mobility, Policy and Administration Services

EPC

Core network

Access technologiesconnection gateways

Access Technologies

WiMAXLTEDSLAM WiFi

Devices

3G/HSDPA vs. WIMAX/LTE Network Architecture

Traditional Cellular Architecture

Base Stations

Carrier Access Point (CAP) Architecture

=

Operator’sIP Network

MSSSGSN

GGSN MediaGateway

CAPController

VoIP Gatewayor IMS

DataGatewayor IMS

Internet PSTN Internet PSTN

Base StationControllers

Access Points

Lower Cost!Any off-the-shelf IP network with

Mobile IP support=

+ Frequency spectrum choice& flexibilityDeploy in GSM, CDMA, UMTS band

+ Global roaming3GPP evolution & spectrum heritage2G & 3G networks sub-layers

+ Connect to legacy networksOffer smooth subscriber LTE migration

3GPP technologies~85% of mobile market

450, 700, 850, 900, 1700, 1800, 1900, 2100, 2500MHz

Connect to existing 3GPP & 3GPP2 networks

Global /LTE

2.5GHz spectrum is critical to LTE /WiMAX success in EMEA

FDD DownlinkFDD UplinkTDD or FDD Downlink

{FDD pairing undefined}

Proposed Paired Blocks @ constant 120MHz separation

2500 269026202570

Note: Frequencies in MHz

Auction Bands in the UK

TDD Extra

TDD Extra

RASESS

Fixed P-P

PMSEMSS s-e

Proposed TDD 60MHz

2.5GHz auction in Europe will be in 2008/9 will enable new Entrant and Services

Global License Award

More than 1000 WiMAX license holders globally Operators of diverse profiles from all regions Commercial trials extending to commercial deployments

Motorola GlobalWiMAX Engagements

Over 1000 WiMAX license holders globallyDiverse profile of operators across all provider types

» Introduction of a global standard with new spectrum has introduced a variety of potential players

» Global regulators issuing new spectrum all the time

WiMAX Spectrum Holders

Operator Type % of Total Licensees*

Wireless 28%

Wireline Telco 21%

ISP 19%

Mixed Asset 12%

Media 11%

Cable MSO 3%

New Entrant 3%

Satellite 3%

* Calculated from identifiable spectrum holders

Spectrum Available For WiMAX Deployment

Canada2.3/2.5 GHz3.5/5 GHz

USA1.5/2.3 GHz2.5/5 GHz

LAC2.5/3.5 GHz

5 GHz

Europe3.5 GHz5 GHz

Russia2.3/2.5/3.5 GHz

5 GHz

Asia Pacific2.3/3.3/3.5 GHz

5 GHz

MEA3.5 GHz5 GHz

Source: Nortel, October 2006

Spectrally agile systems may be required as new spectrum becomes available in regions around the world (e.g. 700 MHz, 1700 MHz)

WiMAX Frequency Allocations

WiMAX is a new, global standard employing new frequency allocations

This opens the door to the new players seeking to build new networks

3.5 2.5 2.3 3.6 3.3 5.8

47% 26% 21% 3% 2% 2%

Global WiMAX Licensed Frequency Allocations

Significant spectrum licensed within WiMAX allocated frequencies

On average, operators have access to over 50 MHz of spectrum

LTE/WIMAX Market Potential

2005-2015

Wireless Industry Forecast

16.5

10.1

7.4

2.0

38.539.7

37.3

34.7

31.8

29.1

25.8 22.2

19.0

15.211.9

14.2

18.8

22.2

24.926.6

27.1

11.6

26.4

24.0

20.4

15.5

1.53.2

5.9

20.6

3.8

5.6

12.5

11.5 11.1 10.9 10.5 9.9

9.4

2.54.1

6.77.9

5.41.21.4 0.8 1.12.4

3.75.7

8.1

10.8 14.0

17.5

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GSM/GPRS/EDGE

WCDMA/HSDPA

LTE (3GPP)

CDMA (IS95-A / 1X RTT / EV-DO)

UMB/LTE (3GPP2)

iDEN

WiMAX Mobile (802.16e)

Source: H&N, Strategy & Technology , September 2007

Declining growth expected for traditional cellular infrastructure (2006-2010)

2009-10 growth driven by WiMAX 802.16e + LTE

W-CDMA spending continues in Western Europe, North America and Japan

GSM remains strong in LAC, MEA, China and India

WW TAM by Technology $ (in billions)

World Total

76.475.775.0

64.066.6

68.2 69.4 70.672.2

74.0 74.3

60

70

80

• 1.0%

• 0.9%

• 0.9%

• 0.4%

• 2.5%• 2.3

%• 1.8%• 1.7

%• 2.4

%• 4.1%

World by Technology 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GSM/GPRS/EDGE 38.5 39.7 37.3 34.7 31.8 29.1 25.8 22.2 19.0 15.2 11.9

WCDMA/HSDPA 11.6 14.2 18.8 22.2 24.9 26.6 27.1 26.4 24.0 20.4 16.5

LTE (3GPP) 0 0 0 0 0.4 1.5 3.2 5.9 10.1 15.5 20.6

CDMA (IS95-A / 1X RTT / EV-DO) 12.5 11.5 11.1 10.9 10.5 9.9 9.4 7.4 5.6 3.8 2.0

UMB/LTE (3GPP2) 0 0 0 0 0.2 1 2.5 4.1 5.4 6.7 7.9

iDEN 1.4 1.2 0.8 0.5 0.5 0.4 0.3 0.2 0.1 0.05 0

WiMAX Mobile (802.16e) 0.0 0.0 0.2 1.1 2.4 3.7 5.7 8.1 10.8 14.0 17.5

WW Total Mobility Public 64.0 66.6 68.2 69.4 70.6 72.2 74.0 74.3 75.0 75.7 76.4

YOY Change 4.1% 2.4% 1.7% 1.8% 2.3% 2.5% 0.4% 0.9% 0.9% 1.0%

Wireless Industry Breakdown by Region and Technology for 2006

LAC6%

NA20%

AP31%

EMEA43%

Total $66.6B

Region

iDEN1.8%

CDMA17%

WCDMA/HSDPA

21.3%

GSM / GPRS / EDGE59.6%

Technology

Source: Strategy & Technology , September 2007

Europe : Top Five Markets When will wireless broadband deliver?

GPRS/EDGE/UMTS not good enough for wireless broadband

mobile Broadband will move mainstream in next 5 years

0

100,000,000

200,000,000

300,000,000

400,000,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

WCDMA-BB

WCDMA

GSM

Source: Informa, “Future Mobile Broadband, 2nd Edition”

In 2007 Mobile Broadband Subs = 2%

Rear view mirror perspective

By 2012 Mobile Broadband devices = 86%

Mobile Broadband subs = 55%

Forward looking perspective

outdoor CPE

“By 2008, 14 million laptops will have WIMAX

built-in” - Intel

digital cameras

set top boxes

WIMAX technology will in most consumer devices

CHANGING THE WAY WE:

laptops

Gaming consoles

pdas

televisions

MP3 player

vehicles

Videocameras

indoor CPE

handsets

Network & Devices

Deployed

Current WiMAX TRX PortfolioDAP TRX

(Diversity Access Point)

DAP TRX

SAAP TRX(Smart Antenna Access

Point)

SAAP TRX

•Single Carrier Macro AP TRX

•Tower Top Type

•Hardware combination:–BCU (or small BCU)

•2.3/ 2.5/ 3.5GHz–2.5GHz: 1x10MHz or 5MHz

•Diversity Rx, Tx

•1W x 2 Transmit Power

•MIMO (Matrix A /B)

•Size: –177.8mmW x 228.6D x 711.2T

•Weight: 14.0kg*excluding Solar-cover and mounting bracket

•Location: Outdoor


•Tower Top Type

•Hardware combination:

–BCU (or small BCU)

•3.5GHz–1x10MHz or 5MHz

•Beam Forming 8Rx, 4Tx

•1W x 4 Transmit Power

•Size: –584.2mmW x 254D x 1041.4T

•Weight: 47.7kg*excluding Solar-cover and mounting bracket


SC-GAP TRX(Single Carrier GAP)

SC-GAP TRX

MC-DAP TRX(Multi Carrier DAP)

MC-DAP TRX

Under Development


•Tower Bottom Type



•2.5GHz

–1x10MHz or 5MHz

•Diversity Rx, Tx

•10W x2 Transmit Power

•MIMO (Matrix A/ B)


•Multi Carrier Macro AP TRX

•Tower Top Type



•2.5/ 3.5GHz

•2.5GHz 20MHz Multi Carrier capable:

•1x20MHz, 2x10MHz, 4x5MHz

•Diversity Rx, Tx

•1W x2 Transmit Power



MC-GAP TRX

•Multi Carrier Macro AP TRX

•Tower Bottom Type



•2.5GHz20MHz Multi Carrier capable:

•1x20MHz, 2x10MHz, 4x5MHz

•Diversity Rx, Tx

•10W x2Transmit Power



Planned

MC-GAP TRX(Multi Carrier GAP)

Highly Leverage into LTE (FDD) Products

Physical Configurations

Digital / Modem

Subsystem

RF Modules and Antennas

Traditional Base Site Configuration

Remote RF Configuration

Smart Antenna Configuration

Fixed/Nomadic WiMAX Devices

First-rate Consumer and Industrial Design and Manufacturing

Best-in-Class RF Performance

IPR and TDD Cost Advantages

Alliance with Intel By 2008,

14 Million Laptops

will have 802.16e

built-in!

Mobile Devices

MultimediaProductivityExperience

EntertainmentExperience

SimpleData/VoIPBrowsing

WiMAX / GSM / WiFi

WiMAX / GSM / WiFi

WiMAX / GSM / WiFi

2.5 GHZ

2.5 GHZ

2.5 GHZ

WiMAX only test device

2.5 GHZ

Final form factors to be determined

“Broadband on the go”

Key Features• Seamless Mobility [email protected] GHz, GSM, and WiFi

• Vibrant 2.8’ QVGA Display

• 3.1 Megapixel Digital Auto Focus Camera with Flash

• Windows Mobile Operating System 6.0

• Innovative Form Factor—Full QWERTY Access

• Broadcast TV and Video on Demand

• Suite of Productivity Applications

• Full Portal Browsing; Adobe Flash, YouTube, My Space

• Video Conferencing with Dedicated VGA Camera

• Bluetooth 2.0

• High Speed USB

• Voice Over IP Enabled

• TV Out Capability

An innovative device offering multiple simultaneous sessions for greater business productivity and enhanced multimedia experiences

“Entertainment at your fingertips”

Key Features• [email protected] GHz, GSM and WiFi

• Vibrant 2.4” QVGA Display

• 2 Megapixel Camera

• Windows Mobile Operating System 6.0

• Convenient Slider Form Factor

• Easy to Access Music and Video Experiences

• Video Conferencing


• Stereo Bluetooth

• High Speed USB

• Application Morphing

• External Data Storage

• Create and Share Experiences

• Broadband Multimedia

Enjoy Interactive Music and Video Images On the Go While Leveraging WiMAX Upload Speed

Key Features• [email protected] GHz, GSM and WiFi

• Large 176x220 TFT Display

• High Speed Internet Browsing Capability


• Simple Email Everywhere

• Broadband to Your Home

• Simple to Use and Access Features

• Streaming Radio

Differentiated Voice plus Super Fast Internet Access

“Simple, Fast Internet on the go”

Operator Strategy/Proposition

New market segments for fixed and mobile operators

Entertainment• Music• Video• Gaming

Information• Web services• VPN access• LBS

Multimedia Communications

• Email/IM/SMS• MMS• Video-conf.

Voice Communications

• Local/LD• VAS• Push-to-Talk

Home Office MobileHot Spots

Ap

pli

cati

on

s

Convergence or FMS for Convergence or FMS for Mobile OperatorMobile Operator

Environments

Mobile Mobile OperatorOperator

Entertainment• Music• Video• Gaming

Information• Web services• VPN access• LBS

Multimedia Communications

• Email/IM/SMS• MMS• Video-conf.

Voice Communications

• Local/LD• VAS• Push-to-Talk


Ap

pli

cati

on

s

Convergence for Convergence for FixedFixed OperatorOperator

Environments

Fixed Fixed Operator/Operator/

New New EntrantEntrant

Wholesale is important

End user Market

Residential SME Corporates

ISPsMobile

Operators

DistributionChannels

Mass Markets(Indirect Sales Channel)

Niche Markets(Direct Sales Channel)

Partner/ChannelManager

Accountmanager

MVNOsCableCompanies

14

Case Study :WIMAX value proposition

39

Services Potential

Monthly

ARPU

Broadband

DSL 256k-2M

$30-$180

Data

256K-2M

$50-$100

Leased Lines $300-$3000

Wholesale $10-$15

Start with Dual Play package in October 2007

Mobile Broadband

Broadband• Web services• VPN access• Data services• LBS• Email/IM

Entertainment on Demand

• Music • Movie• Gaming• Video streaming• Media servers photo

Fixed Voice Communications

• Local/LD• VAS• PBX


Ap

pli

cati

on

s

Triple Play 2007/08Triple Play 2007/08

Environments

MENAMENATelecomTelecom

Services Potential

Monthly

ARPU

Fixed Voice $3-$10

Broadband

DSL 256k-2M

$30-$180


Wholesale $10-$15

Data/VPN

256K-2M

$50-$100


Triple Play package in 2007/8

Mobile Broadband

Broadband• Web services• VPN access• Data services• LBS• Email/IM

Entertainment on Demand

• Music • Movie• Gaming• Video streaming• Media servers photo


• Local/LD• VAS• PBX


Ap

pli

cati

on

s

Triple Play 2007/08Triple Play 2007/08

Environments


Mobile Broadband

Broadband• Web services• VPN access• Email/IM• Video

•Multimedia/• Entertainment• Music • Video• Gaming


• Local/LD• VAS


Ap

pli

cati

on

s

Quad Play in 2008/9Quad Play in 2008/9

Environments


Quad Play package in 2008/9 by adding Mobility

Services Potential

Monthly

ARPU

Mobility and

Roaming

$10-$20

Fixed Voice $3-$10

Broadband

DSL 256k-2M

$30-$180


Wholesale $10-$15

Data/VPN

256K-2M

$50-$100


Progress So far

Sprint

Value Proposition

Target Segments

Differentiators

Services Offered

Major Competitors

Complement existing servicesExpand mobile broadband marketLow Cost nationwide serviceFull MobilityCE devices, Portable Multimedia Users

ResidentialEnterpriseSoHoCE Devices Users

First-to-MarketNationwide CoverageAnywhere broadband for CE devicesDual Mode (WiMAX/CDMA) handsets

Home/SoHo BroadbandVisual centric Portable MultimediaInteractive ApplicationsCE Devices support

Incumbent Wireless OperatorsIncumbent Cable Operators

First-to-MarketNationwide

WiMAX 16e Mobile Network

In the USA

Sprint makes $3B bet on WiMax

Clearwire Corp. Takes Aim at Mobile WiMax Business

Clearwire currently offers service in more than 200 cities and towns in the United States, Ireland, Belgium, Denmark

Clearwire provides a simple, “off-the-shelf” wireless broadband Internet solution.

Clearwire has struck alliances with Intel, Motorola and Bell Canada to give it a rapidly growing stake in the broadband wireless market and to be a major player in the mobile-capable WiMax technology

Intend to migrate the Next net network to WIMAX in 2007/8.

Motorola is the 100% vendor to the WIMAX network

Wateen

Background

Value Proposition

Target Segments

Differentiators

Services Offered

Major Competitors

Division of Warid Telecom (Abu Dhabi)Nationwide WiMAX license (3.5 GHz) in Pakistan

Speedy InstallationLow Cost replacement to DSLE2E network (IP NGN Core, IMS)Nationwide service footprintOne Stop Triple Play

ResidentialEnterpriseSMESoHo

Nationwide CoverageUntethered (Wireless)Fixed with evolution to Mobility

Internet AccessVoIPVPN

Incumbent Fixed Operators

Wateen : First nationwide WiMAX 16e Fixed deployment in the world First Nationwide

Flat Fee is starting to drive Data Take-up in the Europe

How many Subs and Bytes ?

Penetration depends on price

$60 - $80 = Early Adopter

$30 = Mass Market

UK market similar to NA From MOT NA Market Research 0%

10%

20%

30%

$0 $20 $40 $60 $80

InitialEV-DO

Sprint/VzWEV-DO

Unlimited

T-MobileV.FoneHSDPA3Gbyte

S

ub

scri

ber

Pen

etra

tio

n

0

2

4

6

8

10

2006 2008 2010 2012 2014 2016

G

Byt

es /

Mo

nth Wireless Broadband profile

~5 GBytes / month in 2011

From MOT NA Market Research

H3G @ $507 Gbyte

02 @ $15Unlimited

H3G @ $201 Gbyte

Source: PriceWaterhouseCoopers commissioned report

Source: Parks Associates, “Mobile Broadband Wireless”

However mobile broadband data is still expensive : Example of UK Flat Rate Tariffs

Thank you