Considerations for a successful CDMA 450 Deployment

Presentation Name

NORTEL NETWORKS CONFIDENTIAL PG 1

Considerations for a successful CDMA 450 Deployment

September 2004

Stephane Le Dreau

EMEA CDMA Business development VP

Nortel Networks Proprietary & Confidential

The challenges CDMA 450 operators face today

• Minimize Costs– Future Proof Solution, Vendor Experience & Viability

– Operational Efficiency, Deployment Flexibility

– High Density Solutions

• Maximize Revenues– Compelling Services Offering

– Easy Feature and Applications Deployments

– Leverage Investment for different business models

– Feature Differentiation & Early Time to Market

• Ensure High Network Performances and Reliability– Quality: Network Performance & Reliability

– Personalized User Experience

• Specific CDMA challenges in Europe– Marketing CDMA in Europe

– Terminal availability


Minimize CostsMinimize Costs Investment ProtectionInvestment Protection

Vendor Experience & ViabilityVendor Experience & Viability

Operational EfficiencyOperational Efficiency

Deployment FlexibilityDeployment Flexibility

High Density SolutionsHigh Density Solutions

Operator Buying Criteria

Quality: Network Performance & Quality: Network Performance & ReliabilityReliability

450 MHz Terminals450 MHz Terminals

Network PerformanceNetwork Performance& Terminal Availability& Terminal Availability

Maximize RevenuesMaximize Revenues Compelling Services OfferingCompelling Services Offering

Easy Feature and Applications DeploymentsEasy Feature and Applications Deployments

Leverage Investment for different business Leverage Investment for different business modelsmodels

Feature differentiationFeature differentiation


Investment Protection

• One solution for diverse business applications: Mobility, FWA, Wireless DSL

• Multi band support 450/800/1900/2100

• Support of CDMA2000 1X and 1XEV-DO

• Migration from 1X to 1xEVDO, 1xEVDO Rel A and 1XEV-DV by simple plug-ins

• Plug-in Capacity Increase

• Common Digital & Radio equipment in all BTS models

• Scalable BSC and MSC


Deployment Flexibility

• Extended coverage option for rural sites - BOOMER CELL

– Cost effective solution to address low capacity markets

– Reduced BTS count

• Cell coverage up to 200km

– Reduced CapEx for larger coverage

• Remote Radio deployment– Hot spot and highway coverage

– Capture untapped revenues due to coverage difficulties

• Flexible BTS portfolio– Macro BTS for high capacity requirement

– Micro BTS for low capacity requirements

– Stand alone 1xEV-DO solution

40 km


Operational Efficiency

• Native Radio modules– Designed as dedicated/standalone radios

– Eliminates the need to add frequency shifter hardware resulting in reduced site deployment costs.

• Software controlled carrier & capacity growth– Eliminates site visit when subscriber grow

• Maximize backhaul capacity – Unchanellized E1

– ATM backhaul

• Reduced Power Consumption


Minimize CostsMinimize Costs Future Proof SolutionFuture Proof Solution






Maximize RevenuesMaximize Revenues




Compelling Services OfferingCompelling Services Offering

Easy Feature and Applications DeploymentsEasy Feature and Applications Deployments


Feature differentiationFeature differentiation


Understanding the Economics of Wireless

Revenue = ( ARPU, Penetration, Subscriber Mix)

ARPU, Penetration = ( Handsets, Content, Applications)

Handsets Enable Content

Content /Applications Drives Traffic

Traffic Drives ARPU

Wireless Operators looking for:– Compelling Services Offering– Easy data application Deployment – How to introduce wide range of applications in short time

frame and still insure good end-user experience?


CDMA 450 Marketing opportunities

Premium Voice Quality

• State of the art noise cancellation

High speed data offering

• Up to 156 kbps available, faster than dialup

• Average 70 kbps when network is loaded

• VPN services to the corporate network from any covered area

Data applications & services

• PTT, LBS –gpsOne, Brew

• 1000’s of applications targeting all consumers

• Flexible data billing models

3G Ready!


Online Game (e.g. Tetris Competition)

NATE Access Game Category Select Tetris Select Level Select Partner Compete

ARPU & Penetration= (Applications)

Traffic Information (Updated every 5 min.) Music Video & Movie Clips

Powered byNATE Media Player

(Supports H.26L technology)

Content drives traffic


Country Operator

Mobile Data subs

Q3 2003 1X Launch

1X data penetr'n of

CDMA subs

Data % of ARPU

Q3 2003

Japan KDDI 9,200,000 Apr-02 60% 21.8

Korea SK Telecom 8,220,360 Oct-00 46% 14.0

Korea KTF 4,603,100 May-01 44% 13.1

Korea LG Telecom 1,100,000 May-01 23% 7.9

China China Unicom 800,000 Mar-03 5% N/A

USA Verizon 225,000 Jan-02 1% 2.1

Canada Bell Mobility 80,000 Jan-02 3% 2.5

Global 1X Data Subscribers (3Q03)

• Approx 27.5M 1X data subs (GPRS ~26.8M)• Majority of 1X data subs in Korea & Japan• Data is becoming a significant % of ARPU

Source: EMC, 3GToday

North America

8%

CALA5%

Asia Pac 87%

Broadband Wireless is the Future


Two Generations of Data ApplicationsInnovation (Devices +Content +Applications) = Enhanced User Experience

Voice/Text messaging Text [news/browsing] Take Picture (still image) Email Pictures Single Media Dial-up Speed Corporate

access Gaming Music Downloads Text based directions

Video messaging Video [News/TV] on Demand Record & send Video Clips Email Video Clips Multi-media messaging DSL-like Corporate access Interactive Gaming Music Video Downloads Interactive Map & Location

Services

1X 1xEV-DO

Enhanced interactive, multi-media and video applications to deliver superior end-user experience

Customer ServiceCustomer Service

RECORD REPLAYRECORD REPLAY


Multimedia Services

Email with Large Attachments

Video/Audio Streaming

Interactive Color Gaming

Mobile Office

Infotainment On Demand

1xEV-DO Delivers A Superior Data User Experience

2.4 Mbps

3x – 6x CapacityIncrease over 1X

9.6 kbps

154 kbps

Web Browsing

Screen Savers

Bookings/Transactions

Stock Quotes

• Broadband mobility Up to 2.4 Mbps peak data • Dedicated data-optimized carriercomplimentary to 1X Data and voice resources don’t compete• 1.25 MHz spectrum1X and 1xEV-DO functionality Comparable to UMTS with much less spectrum

High Speed Thrills and Delivers


1xEV-DO Wireless Residential BroadbandExpand subscriber base and usage

Leverage existing installed mobility

network investment

One device – home and on the

road

Always On Broadband2.4 Mbps peak downlink

One bill, one account

Secured Access

Easy to installNo truck roll

Reliable Wireless Wide Area Network

Profitable Up Sell


PTT Application for CDMA 450 in Europe– PMR/PAMR is key requirement for CDMA 450 in Europe

– PTT (Push To Talk) provides for PAMR like functionality

• One way broadcast of voice (Half-duplex)

• Packetized voice over wireless data network

• Supports person to person (i.e. 1 to 1 walkie-talkie) as well as person to group messaging (1 to many broadcast)

• Instantaneous connection

• Simple user interface (select called party via buddy list or short code, push a button and talk)

SpeakRelease

Release Push

Respond

Push

Application Service Delivery

Platform

+CDMA Infrastructure

+ = PTT Solution


Enabling Applications via Solution Partners

• E-Mail

• Mobile Device Manager

• VPN’s

• Middleware

• Content Management

• Acceleration

• MMS

• Packet Streaming

• Video Telephony

• Push-to-Talk

• Brew


Minimize CostsMinimize Costs Future Proof SolutionFuture Proof Solution






Maximize RevenuesMaximize Revenues Compelling Services OfferingCompelling Services Offering

Easy Feature and Applications Easy Feature and Applications DeploymentsDeployments






Network Performance

PerformancePerformance RobustnessRobustness

MaintainabilityMaintainability

Coverage + Dependability + Acceptability = Adoption & Usage

COVERAGE & COVERAGE & CAPACITYCAPACITY

% Pops Covered% Pops Covered

# Basestations# Basestations

BHCABHCA

DEPENDABLEDEPENDABLE

OutagesOutages

AccessibilityAccessibility

ACCEPTABLEACCEPTABLE

PricePrice

MobilityMobility

SimplicitySimplicity

Good Good Subscriber Subscriber ExperienceExperience

Good Good Subscriber Subscriber ExperienceExperience

Nortel Optimization


Factors Impacting Network Quality

• Spectrum Clearance– Interference Must be Controlled

– Use of Filters Increases Link Budget Losses and Affects Overall Performance

• Network Design– Must be Adequate to Provide Coverage/Capacity

– Based on Customer Provided Call Model/Traffic Distribution/Services Offered

– Provisioning is Key Element in Ensuring GOS is Maintained

• Optimization– Key Parameters Must be Optimized for Maximum Efficiency (data and Voice)

• Maintenance– Ensure All Network Resources are Available to all Subscribers

– Latest Software Releases provide New Features/Capacity and Performance enhancements

• Growth– Carrier Additions and Site Sectorization Ensures Resources are Available to Subscribers


Terminal Availability

• Required to purchase of large number of handsets

• Required long-term and exact forecasting of volumes of purchases

• Extensive testing to insure– Voice Quality

– Data Applications

– Local Market Customization

• How to attract wide range of terminals?

• How to avoid the need to purchase of large number of handsets ?


Nortel’s 450 Terminal Alliance Program

Terminal Interoperability Leadership

• Compatibility with commercially deployed terminals

• Nortel infrastructure + Multivendor Terminal portfolio solution

• Establish process for ongoing interoperability assurance

Alliance with various terminal vendors

• Best solution pricing (incl. terminal pricing)

• Interoperability assurance program/process

• Bi-Annual Roadmap Planning meeting

Establish ‘Turn Key’ solution

• Business alliance with key terminal vendors


Investment Investment

ProtectionProtection

Why Nortel Networks CDMA?Why Nortel Networks CDMA?The Solution for all challenges presented previously!

Why Nortel Networks CDMA?Why Nortel Networks CDMA?The Solution for all challenges presented previously!

Expertise Expertise

&&

InnovationInnovation

PerformancePerformance

&&

ReliabilityReliability

Considerations for a successful CDMA 450 Deployment

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