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Reducing Network Costs with Reducing Network Costs with CDMA2007CDMA2007--CDMA2010CDMA2010
David Readman Director, Global Business Development
5/15/2007 – Cancun – CDG LARC
CDMA2000 TTM Economic Advantage
User Experience RoadmapEmerging Markets
• Low cost voice• Affordable Internet
Developed markets• Mobile Social Networking (uplink TTM)• Mobile TV (broadcast/multi-cast TTM)• Mobile Gaming (latency TTM)
BREW Glue• Mobile commerce• Developer ecosystem
IP friendly networks• VOIP• IMS/combinational services• Heterogeneous networks
E2E All-IP Solutions: The Easier Way to IMS
Legacy MSC
TDM
MSC
PSTN CDMA BSS
MISUPMSC
Split Architecture reduces CAPEX/OPEXTDM to IP, common IP bearer networkConverged network in IMS/MMD
CDMA LMSD CDMA MMD
Software upgrade
MGW Reuse
IP
MRF
PSTN CDMA BSS
H.248 H.248
MGCF
CSCF
MGW AGW
HSSApplication Server
MGW/SGWTDM/IP
PSTN CDMA BSS
H.248 AAA
MSCe
PDSN
HLRe
Save Core Network Transmission with TrFO, RTO
ZXC10 BSCZXC10 BSC
ZXC10 MSCeZXC10 ZXC10 MSCeMSCe
IP Network
ZXC10 BSCZXC10 BSC
ZXC10 MSCeZXC10 ZXC10 MSCeMSCe
SIP-TSIPSIP--TT
BTSPSTN
TrFO
RTO
ZXC10 MGWZXC10 MGWZXC10 MGW ZXC10 MGWZXC10 MGWZXC10 MGW
H.248H.248H.248 H.248H.248H.248A1pA1pA1p A1pA1pA1p
A2pA2pA2p A2pA2pA2p
TrFO (Transcoder Free Operation) is a mechanism for configuring a call so that no transcoders are needed in the networkRTO(Remote Transcoder Operation) is a mechanism for configuring a call so that only one transcoder resource is needed in the network
MSCeMSCe MGWMGW PDSNPDSN HLReHLRe BSCBSC
Cost Advantages of All-IP Hardware Architecture
All-IP Architecture (Internal IP Platform of NE) A Common Platform is uses across the portfolioBoard reusability amounts to over 60%!IMS / NGN ready
Lower OPEX, Easy to learn, Fewer spare parts
Integrated 1x and DO Solution Saves
Transmission savings > $1M/year!
Common Abis for 1X and DO• $1.2 M/year (1 T1/cell
reduction x 100 sites x $1000/month per T1 x 12 months)
Abis over Ethernet vs. T1• >50% savings over T1
projected
Density Urban
ZXC10-BTSB ZXC10-CBTS
ZXC10-BTSZXC10-CBTS O1 ZXC10-BTS M-Series
ZXC10-BTS R-Series
Suburb or Country
ZXC10-BTS M-Series
Series of full-band products, such as large-/medium-/small-capacity macro base stations, micro base stations and RF remote stations with indoor coverage and super-long-range coverage. The Abis interface supports starnetworking, chain networking and ring networking. It also supports E1/T1 transmission, satellite transmission, microwave transmission, Ethernet transmission, and SDH transmission
Full-Series and Full-Band Wireless Coverage Solution
Super BTSDigital shelf
120 Sector/Frequency in onedigital shelf
24 sectors in one Fiber
Channel Pool Between 24Sector/Frequency
.... .... .... ....
Fiber
MasterBaseband
unit
SlaveBaseband unit
E1s or STM-1IP Transfer to BSC IP
SlaveBaseband unit
.... .... ....
.... .... ....
Chain StarRing
Local RFS
Remote RFS
24 Sector/Frequency in oneRFS shelf
All IP architecture
Fiber optic network can be used for expanded/flexible coverageSave Baseband Resources, improve channel utilizationAdapt to traffic migrationSave Comprehensive cost of Equipment room
Fiber optic network can be used for expanded/flexible coverageSave Baseband Resources, improve channel utilizationAdapt to traffic migrationSave Comprehensive cost of Equipment room
Lower costs with “Super BTS”
Up to 120 carrier sectors
Lowering cost trunking (PTT) with GoTa
HighLowLowData Speed
LowVery HighHighNetwork Cost
HighAverageAverageVoice Quality
SupportNot SupportNot SupportLBS SupportRichAverageAverageService ProvisionLowVery HighHighTerminal Price
MatureMatureMatureMaturityOpenPartial OpenNot OpenOpennessCDMATDMSTDMATechnology
HighMediumMediumSpectrum Efficiency
GoTaTETRAiDENItem
Low
Cost-Effective trunking (PTT) – GoTa
GoTa Serving overseas
GoTa in MalaysiaElectcoms is the bigest public trunking service operator in MalaysiaZTE provide the professional trunking
system (GoTa) to Electcoms.50,000 lines, National Wide
GoTa in NorwayFirst CDMA based Trunking system in EuropeProfessional GoTa Handset, Trunking,
CDMA20001x EV-DO high speed data service 125k lines, 450MHz, 175 BTSs
Cost = “Greenfield” Network Operations Expenses + Depreciation on Capital
Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdfAssumptions: On demand Traffic: a) 15% of traffic demand occurs at the busy hour, b) 7,600 kbps / sq km at busy hour, c) 5MHz
Multicast Traffic: a) 2,000 subscribers / cell, b) 30 live streaming minutes / day at 128kbps data rate, c) 1.25MHz
Spectral efficiency affects cost Spectral efficiency affects cost
GPRS$0.42
EDGE0.11
1X$0.06
1xEV-DO$0.02
WCDMA$0.07
Operators Prefer Mobile Broadband Technologies that areOperators Prefer Mobile Broadband Technologies that areAffordable & EvolutionaryAffordable & Evolutionary
EV-DO(Platinum)$0.005
Cost per Megabyte Comparison
Cost-effective Last mile2 for broadband1X-RTT and 1X-EVDO (Hybrid mode)Dual Band
CDMA 850MHz CellularCDMA 1900MHz PCS
Freely Handover between different modes and bandsReceiver Diversity Design
2 high gain Antennas (For Both Band, and one is internal)2 separate receivers correspond to 2 antennas and the received signals combined in MSM6500
E1/T1 architecture won’t cut it long term
Recurring leasing costs Capacity and scalability limitation (E1/T1) TDM, not Ethernet based Line availability (or time to deploy if unavailable) Building entrance consideration Potential construction delays
All-IP will necessary for scalability and bandwidth (besides the flat architecture)
Affordable devices with CDMA2000
ZTE C150 - < $50 USD
SMS Poly Ringer PIM Functions Built-in Games
Industry initiatives further reduce time-to-market and cost of CDMA2000
devices, such as GHRC, CCF
Even more affordable devices with CDMA2000
ZTE Classic 201 (<$30USD)
SMS Java enabled PIM Functions Built-in Games
Site Count Comparison By TechnologySite Count Comparison By TechnologyCDMA2000 requires the least number of cell sites for rural markeCDMA2000 requires the least number of cell sites for rural marketsts
Assumptions:1. Coverage area = 1,000 sq. km.2. Subscriber density = 31 Subs/sq. km3. Available spectrum = 5 MHz4. Average voice traffic per sub = 200 MoU/month5. Average data traffic per sub = 5 Mb/month6. Wireless penetration = 50%, Carrier market share = 25%7. Voice usage = 100%, Voice BH = 10%8. Data usage = 100%, Data BH = 12%9. Simultaneous Calls/Sector/Carrier: EV-DO = 44, 1X = 35, GSM/EDGE = 6, WCDMA/HSDPA = 60, WiMAX = 2510. Physical Layer FL data throughput (kbps): EV-DO = 1280, 1X = 350, GSM/EDGE = 86, WCDMA/HSDPA = 3600, WiMAX = 2300
133133
2222
EV-DO Rev. A(VoIP)
@ 800 MHz
6666
WCDMA/HSDPA@2100 MHz
WiMAX@2500 MHz
7575
GSM/EDGE@900 MHz
Source: QUALCOMM, March 2007
2727
1X@ 450 & 800 MHz
(Capacity Limited)
1515
EV-DO Rev. A(VoIP)
@ 450 MHz
UMB Value Proposition
High spectral efficiency in all environments
Lower Total Cost Lower Total Cost of Ownershipof Ownership
CapacityCapacity
Robust mobility support with
seamless handoffs inherent in all
aspects of UMB design
Better user Better user experienceexperience
MobilityMobility
SpeedSpeedUltra-high data
speeds in downlink and uplink across
entire coverage areaBetter user Better user experienceexperience
Large non-contiguous or
ubiquitous coverage.
Lower Total Cost Lower Total Cost of Ownershipof Ownership
CoverageCoverage
DevicesDevicesMultimode UMB
devices will leverage existing 3G CDMA device selection
Economies of ScaleEconomies of Scale
EcosystemEcosystemLarge client base and experienced global suppliers.
Economies of Economies of ScopeScope
Lower end-to-end latency to support
delay sensitive applicationsBetter user Better user experienceexperience
LatencyLatency
TimeTime--toto--MarketMarketRevenue-generating
services become commercially
available in early 20092009
VoIPVoIPLarge numbers of VoIP calls coexist with high capacity
data services.Improved EarningsImproved Earnings
IPIP--basedbasedFlat IP-based core network
interconnectivityImproved Improved
Performance &Performance &ConvergenceConvergence
UMB: Cost Reduction Value Proposition
High spectral efficiency in all environments
Lower Total Cost Lower Total Cost of Ownershipof Ownership
CapacityCapacityLarge non-
contiguous or ubiquitous coverage.
Lower Total Cost Lower Total Cost of Ownershipof Ownership
CoverageCoverage
DevicesDevicesMultimode UMB
devices will leverage existing 3G CDMA device selection
Economies of ScaleEconomies of Scale
EcosystemEcosystemLarge client base and experienced global suppliers.
Economies of Economies of ScopeScope
VoIPVoIPLarge numbers of VoIP calls coexist with high capacity
data services.Improved EarningsImproved Earnings
IPIP--basedbasedFlat IP-based core network
interconnectivityImproved Improved
Performance &Performance &ConvergenceConvergence
Summary
CDMA2000 Evolution provides flexible technology solutions that help minimize costs for a wide variety of voice and data requirements
CDMA2000 implementations can offer significant savings in CAPEX and OPEX over the long term
Emergency System Solutions of ZTE
Mobile MSC vehicle
PLMN
BTS
AbisAbis
A
A
Abis
Abis
Mobile BSC vehicle(BSS)
Mobile BTS vehicle
Mobile BTS vehicle
Mobile BTS vehicle
BSC
MSC
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