mea operations review 15jan07 pertti johansson

QUALCOMM PROPRIETARYWinning with 3G

Africa - Winning with 3G

May 07, 2007

Pertti Johansson


QUALCOMM Incorporated

• Global leader in developing and delivering innovative digital wireless communications solutions based on CDMA and other advanced technologies.

• Partners with wireless operators, device manufacturers, independent software vendors, distribution suppliers and Fortune 1,000-class corporations to drive adoption of mobility solutions based on 3G CDMA and other digital technologies.

• Founded in 1985• FORTUNE 500 Company• Revenue of $7.53B in fiscal 2006• NASDAQ Symbol: QCOM• ~5,700 U.S. patents and patent applications of

CDMA and related technologies including WCDMA• Member of the S&P 500 Index• “100 Best Managed Companies” — Industry Week• “100 Best Companies to Work for in America” — FORTUNE

INNOVATION – EXECUTION – PARTNERSHIP

QUALCOMM PROPRIETARYWinning with 3GQUALCOMM Employing 11000+ professionals in 50+ countries

Standards

Optimisation Accelerated Services

Engineering Services

R&D Testing

ENGINEERING R&D OPTIMISATION STANDARDS SUPPORT PARTNERSHIPS

7200


Aggressive Investment in a Complete Technology RoadmapCumulative R&D Expenditures More than $6.3B to Date

QUALCOMM Yearly R&D Expenditures

Standard royalty rate has not changed during this time

$0.3$0.4 $0.5

$0.5

$0.7

$1.0

$1.5

$0.0

$0.4

$0.8

$1.2

$1.6

2000 2001 2002 2003 2004 2005 20060%

5%

10%

15%

20%

25%Yearly R&D Expenditure

R&D as a Percentage of Revenue

(Billions)


Source: Signals Research Group, LLC, May 22, 2006

CDMA2000 1X/EV-DO devices will remain more affordable than WCDMA

WCDMA Handset ASP ForecastWCDMA Handset ASP Forecast CDMA2000 1X/EVCDMA2000 1X/EV--DO Handset ASP ForecastDO Handset ASP Forecast

US$50US$50 US$33US$33

Affordable telephonyand broadband data

devices

Affordable telephonyand broadband data

devices

US$100 by year end


FEATURES

QSC Solution = 1 Chip

QSC6010 • Voice, SMS centric

• Integrated 1.3 MP camera

• 153 kbps data

• Dual band and SGPS

• Up to 3.0 MP Camera

Dual-Band

• 14.4 kbps, BREW support

• 2X Improvement in Talk Time

Multi-Band

• Improved capacity• Lower cost• Enhanced battery

life

Single-Band

QUALCOMM CDMA2000 Single-Chip Solutions Continue to Evolve

QSC6030

QSC6020

QSC6055

QSC6065

QSC1100

Boa

rd A

rea

• 15 customers to date with 35 designs in development• First commercial product available in mid-December

• 15 customers to date with 35 designs in development• First commercial product available in mid-December


QUALCOMM Operator

Vendor

Technology RequirementsServices, Applications

Phones RequirementsTechnical Specifications

Business Terms & Conditions

Chipsets and SoftwareTechnical Specifications

Engineering Support

Qualcomm works closely with Operators to integrate

their requirements in its products


Commercial 3G Operators Worldwide341 Commercial 3G CDMA Operators and Growing

Source: CDG, Wireless Intelligence & 3G Americas, 30April07

More than 470 Million 3G SubscribersCDMA2000 / EV-DO: 190 Commercial Operators

350 Million SubscribersWCDMA / HSDPA: 151 Commercial Operators

120 Million Subscribers


Sub-Saharan Africa 3G Subscriber Base Growth

MEA 3G CDMA Subscribers (K)

3G CDMA Subs in Sub-Sahara Africa (K)

0

40,000

80,000

120,000

160,000

YE06 YE07 YE08 YE09 YE10 YE11

C2KWCDMAAll CDMA

0

20,000

40,000

60,000

YE06 YE07 YE08 YE09 YE10 YE11

CDMA 2000

WCDMA

All CDMA


CDMA2000 in Africa

EthiopiaCDMA 450/800Launch 4Q04

Kenya (~4 operators)CDMA 450/800/1900Launch 2Q’05

Uganda (2 operators)CDMA 450/800Launch 2Q04

MauritiusCDMA 800Launch 4Q99

Nigeria (~ 8 operators)CDMA 450/800/1900 Launch Q1’98 (earliest)

AngolaCDMA 800Launch 4Q00

Planned

Current

GhanaCDMA 800Launch3Q05

BotswanaCDMA 800Launch 1Q07?

NamibiaCDMA 450/800Launch 4Q06

S. AfricaCDMA 800Planned 2Q 07

Tanzania (3 operators)CDMA 800Launch Apr 06 (earliest)

MozambiqueCDMA 450/800Launch 4Q06?

RwandaCDMA 800 1x;EV-DOLaunch 4Q05

CameroonCDMA 450/800Launch 4Q05

MadagascarCDMA 450Launch 3Q05

Cote D’IvoireCDMA 800Launch4Q05

MaliCDMA 800

Guinea-KonakryCDMA 800 Sudan

CDMA 800

DRCCDMA 800Planned 1Q07

ZambiaCDMA 450/800Planned 1Q07?

ComorosCDMA 800Launch 2Q’05?

MoroccoCDMA 800

AlgeriaCDMA 1900

EgyptCDMA 1900


Mauritius –EmtelWCDMA 2.1 GHz

Planned

Current S. Africa - MTNWCDMA 2.1GHz

S. Africa - VodacomWCDMA -2.1GHz

SudanWCDMA 2.1 GHz

Tanzania – VodacomWCDMA 2.1 GHz

NigeriaWCDMA 2.1 GHz

WCDMA in Africa

Namibia - MTCWCDMA -2.1GHz

Kenya - SafaricomWCDMA 2.1 GHz

MoroccoWCDMA 2.1 GHz

BotswanaWCDMA 2.1 GHz


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) 5 MHz

Multicast Traffic: a) 2,000 subscribers / cell, b) 30 live streaming minutes / day at 128 kbps data rate, c) 1.25 MHz

Spectral efficiency affects cost Spectral efficiency affects cost

GPRS$0.42

EDGE0.11

1X$0.06

1xEV-DO$0.02

WCDMA$0.07

CDMA2000 Cost per Megabyte ComparisonCDMA2000 Cost per Megabyte ComparisonCDMA2000 networks support the affordable delivery of bitsCDMA2000 networks support the affordable delivery of bits

Affordable and evolutionary mobile broadband technologies areenabling the mass market adoption of mobile multimedia servicesAffordable and evolutionary mobile broadband technologies are

enabling the mass market adoption of mobile multimedia services


Site Count Comparison By TechnologySite Count Comparison By Technology

CDMA2000 requires the least number of cell sites for rural markeCDMA2000 requires the least number of cell sites for rural marketstsAssumptions: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

27272424

7575

5353

175175

EV-DO/VoIP@ 800 MHz

1X@ 800 MHz

GSM/EDGE@900 MHz

WCDMA/HSDPA@2100 MHz

WiMAX@2500 MHz

Source: QUALCOMM, September 2006


EVEV--DOrA*DOrA*

EVEV--DOr0DOr0

WCDMAWCDMA

Data Rate (Mbps)

CDMA is delivering broadband data CDMA is delivering broadband data –– future enhancements are ongoingfuture enhancements are ongoing

1X1X

GPRSGPRS

EDGEEDGE

WWAN Data Rate ComparisonWWAN Data Rate Comparison3G CDMA networks support the highest data throughput to an end3G CDMA networks support the highest data throughput to an end--useruser

50-90 kbps (1.25 MHz of BW)

20-40 kbps

70-100 kbps

0 0.25 0.5 0.75 1.0 1.5 1.75 2.0 2.51.25 2.25 2.75 3.0 3.25 3.5

64-250 kbps (5 MHz of BW)

600- 1,300 kbps (1.25 MHz of BW)

300- 700 kbps (1.25 MHz of BW)

400- 1,500 kbps (5 MHz of BW)HSDPA**HSDPA**

Peak Downlink Rate

Typical End-User Downlink Rate (commercial)

Typical End-User Downlink Rate (estimated)

Average Data Throughput per UserAverage Data Throughput per User

Notes: Peak and average (typical) end-user forward link data rates are shown. CDMA2000 1X, 1xEV-DO and 1xEV-DOrA data rates are achieved in a 1.25 MHz carrier bandwidth, WCDMA (Rel99), and HSDPA (Rel 5, Category 12) data rates are achieved in a 5 MHz carrier bandwidth. * 1xEV-DOrA data rates are achieved with an equalizer and dual-receive antennas.** HSDPA and data rates are device-dependant, with devices supporting up 7.2 Mbps. Peak data rates could increase to 10.2 Mbps and the standard supports 14.4 Mbps.


CDMA2000 EV-DO Revision BAn IP-based IMT-2000 Standard

A multi-carrier wireless broadband convergence solution• Dynamic allocation of up to 15 1.25MHz carriers in 20 MHz of bandwidth• Simultaneous delivery of services, including: VoIP, broadband data, multimedia, etc.

Increases data throughput capacity by 20% over Revision A

Offers greater peak data rates in both directions:• Forward Link: Between 4.9 Mbps/carrier (1.25 MHz) and 73.5 Mbps/15 carriers (20 MHz)• Reverse Link: Between 1.8 Mbps/carrier (1.25 MHz) and 27 Mbps/15 carriers (20 MHz)

Complimentary to all CDMA2000 based technologies

Improved Battery Life


Wireless is Changing Emerging Markets

• Voice Services Expect Low-Price Entry Level Phones– 2G Handsets, Primarily GSM, Dominate Emerging Markets,

But 2G Cannot Support Meaningful Data Services.– CDMA2000 VLE Handsets Now Below $40 in Africa, Below $30 in India.– CDMA2000 Handset Price Reductions Continuing Through 2011 and Beyond.

• Wireless Data Connectivity Available with CDMA2000 – 1B+ mobile data user by 2007 with Anytime, Anywhere Connectivity– Vast portions of the World will only have access to Wireless Internet

Many CDMA2000 Deployments Initially Aim for Voice Subscribers, But Have Their Capacity Overwhelming Used for Data!!

– Laptops getting embedded with mobile broadband modules– Portable Entertainment will be wirelessly connected, Including MP3.

• Wireless Data on Top of Voice Service Drives 3G Evolution.

QUALCOMM PROPRIETARYWinning with 3G 3G Offers a Wide Range of Services

All trademarks, names of other companies, logos, products and services are the property of their respective owners


Source: Wireless Intelligence; Verizon Wireless; Sprint Nextel

8.4%

14.1%

Q3'05 Q3'06

14.3%

22.0%

Q2'05 Q2'06

CDMA ARPU

over $10, iDEN <$5

0%

5%

10%

15%

Q3'05 Q3'06

7.7%

10.9%

Q105 Q106

42% inc.

Data Increasing Operators RevenuesData as a Percent of Service Revenues

(Italy)


Welcome & Have a Great Conference!

(ask lots of questions!!)

mea operations review 15jan07 pertti johansson

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