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

PDF

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

Internet Penetration

Source: Internet Worldstats

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

Other Latin American Handsets from ZTE

ZTE C133

ZTE C100

ZTE C180

CDMA 450 – Cost-Effective WLL

WP520BD WP560WF520WF520F

VoiceDataFaxSMSDTMFPay-phone support

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

RASSBTS, BSC, PDC, PCF, AN-AAA

LDSSALL-IP CN

PDSSPDS,PHR,

PDSN,AAA

PWSUPS,

Battery, …

OMSSOMM,…

Conf client

MCIS

MCIS Solutions of ZTE

MCIS : MINI CDMA Integrated System