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EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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Page 1: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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Keith ShankVP Strategy Development

Ericsson Inc.

The Mobile Internet Revolution Has Begun.

How 3G will Chan ge our Lifest yles

Page 2: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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Beginings

•Invented by AT&T and BellCore*estimates of 1 M. Subs Globally by 2000!

Early Deployment

• 1st System -Chicago•Top 60 Markets•MaBell Breakup•Analog but few users•1G is born.*estimates of 40 M. Subs Globally by 2000!

Wireless Evolution from Cellular to PCS

• Quick deployment•Status Symbol•Early signs of congestion•Roaming•Larger coverages•Digital begins!

Fast Growth

• 2G Standardized•Nationwide roaming•Decreasing per-minute chages•Exploding subscriber rates•Change to digital is rough•Many more features than used•PCS is launched•Early data capabilities are launched

Power of Mobility

>100 M subs. Globally

85/86 92/93

Time

75/76 78/81

Page 3: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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98/99 00/01 01/02+

Wirelessvoice

• Good Voice• Coverage

~10 kb/s

Differentiationusage

• Ubiquitouscoverage

• Wireline quality• Capacity• Cost• VAS• Tariffing/Prepaid

~64 kb/s

Time

The growth to 3G

• Convergence• Mobile office(mobile e-mail)

• Mobile “WWW”• Bluetooth• Mobile image• Mobile E-com.

WirelessInternet

~115/384 kb/s

+

Personalmobilemultimediaservices

• 3G/IMT-2000• Real-time Internet(Internet 3)• Mobile “video”

Wirelessmultimedia

~384 (512) wide area(2 Mb/s) locally

+

What is 3G?The primary focus of third generation (3G) architectures is to seamlessly evolvesecond generation systems to provide high-speed data services in support of IP-basemultimedia applications.Indoor - 2 Mbps; Outdoor - 384 kbps

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Page 5: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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Next Generation Wireless Myths

• You will want to surf the web from your mobile phone

• You will have 384 KBPS to 2 MBPS access from your mobile

• There is such a thing as a ‘killer application’

• There will be just one device that does it all

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What is real now?• 9.6 to 19.2 KBPS packet data access in large areas

– CDPD, Verizon, Blackberry

• 64 KBPS circuit switched data access in small areas– Sprint, Verizon - cdmaOne rev. B

• 50 KBPS packet data begins roll-out– Sprint, Verizon (cdma2000)

– AWS, Cingular, VoiceStream (GSM/GPRS)

• Combined devices that “do-it-all”– Ericsson R380, Kylocera PDA, Nokia 7000

• Basic Bluetooth devices with few mobile products– Ericsson & Plantronics headset, CF cards (multiple vendors)

• Voice control capability on calls

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5 ,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000S

ubsc

ribe

rs

V er iz on Cingu lar A T&TW ireles s

Spr in t PCS Nex te l A LLTEL V oic eStream US Cellu lar Rogers A T&T Bell Mobility

Top 10 N.A. Subscribers

Page 8: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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Evolutionary logic-Mobile Value Added

Services

Revolutionary logic-Mobile Internet

Positionin g of Mobile Internet Services

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Where is an operators money spent?

InfrastructureCustomer CareO&MSales Support

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Evolution of Mobile SystemsEvolution of Mobile Systems

cdmaOnePacket Data

cdmaOnePacket Data

GSMGSM

TDMA CDPD

TDMA CDPD

cdma2000 1Xcdma2000 1X

EDGEEDGE

WCDMAWCDMA

cdma2000 1XDVcdma2000 1XDV

2G First Step into 3G 3G phase 1

GPRSGPRS

PDCPDC-P

PDCPDC-P

64 - 144 Kb/s

Evolved 3G

384 Kb/s - 2 Mb/s 384 Kb/s - 8 Mb/s

Time2000/2001 2001/2002 2003+

≤ 64 kb/s

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What do the different packettechnologies provide?

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Device Types for 3G

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Data Rates for 3G Applications(Total Capacity vs End-User Rates)

TotalData-Rate

MobileDevice

PortableDevice

CDPD 19.2k 11.2k 11.2k

GPRS 144k 20-40k 40-50k

EDGE 384k 30-50k 50-60k

WCDMA 2,000k 144k 384k

1xRTT 153k 50k 100k

1xEV DV 2,400k 144k 384k

End-User Rates

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The Path to 3G - What it Takes!

-New software-Packet network

-New software-Minor hardware

-New software-New RBS hardware-Packet network enhancements

-New software-New RBS hardware-New switching hardware

-New software-Packet network-GPRS/CDMA overlay network

-Not specified

GSM

TDMA

(iDen)

CDMA

GPRSEDGE WCDMA

CDMA 1X CDMA 1X DO CDMA 1X DV (?)

9.6-14.4 kb/s < 144-155 kb/s < 384 kb/s 2 mb/s+

-New software-Packet network

-Handsets for data

-Handsets for data & capacity

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Transition to the Layered ArchitectureM

obile

Fix

ed

Dat

a/IP

Net

wor

ks

Cab

le T

V

Services

Access, Transport & Switching Networks

Today’s Solutions

Services / Applications

Connectivity

The Layered Architecture

ControlPLMN PSTNISDN

DataIP Net

CableTV

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Conversational Multimedia Services• Call State Control Function (CSCF)• Home Subscriber Server (HSS)• Media Gateway Control Function (MGCF)

GGSN

PSTNISDN

InternetIntranet

Packet Backbone Network

MGw MgwSGSN Server

CSCF

GMSCServer

MSCServer

MSCServer

HSSHLR AuC FNRMAP

MAP

BICCGCP, H.248RANAP

MGCFSIP

RNC

BSC

BICC

A

Iu

Control and Connectivity Layer

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WLAN hot spot

LEADSL

ISPCorporatePLMNPSTN

BG

CorporateGGSN

GGSN

MGW

MGWSGWMGW

All Access Network Architecture for IP/MultiMedia

Application Servers

Call & Session Control, Multimedia Servers

Multi-Services Packet Backbone

HSS CSCF MGCF

WCDMAGSM

SGSN

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Control

Connectivity

Services / Applications

• Positioning• Terminal Capabilities

OSA(Open Service Architecture)• Roaming• Real Time Charging

• QoS• Charging• Security & Integrity

...

PaymentTransaction

Handler

InformationBroker

E-tailers

LogisticsProviders

AdvertisingBrokers

Advertisers

ASPs

Portals

ServiceProviders

ContentBrokers

ContentProviders

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The networks…

The handsets…

The content…

The users…

…are here

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Rightservices

Richexperience

Easyinvisible network

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�������������� ���� �

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��������������

���������������

Rightservices

Page 22: The Mobile Internet Revolution Has Begun.EN/FAD 109 0015 Keith Shank VP Strategy Development Ericsson Inc. The Mobile Internet Revolution Has Begun. How 3G will Change our Lifestyles

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� ���� !� ���� !

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$!$!

%��������%������������������������ ��������� �����

$!$!

���& ���& '���'���(!(! ) �) �������

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+!+!

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� ������������� +! +!

Type of useType of use(i(i--mode handset owners)mode handset owners)

Usage situationsUsage situations(i(i--mode handset owners)mode handset owners)

Rightservices

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March 7, 2001 - NTT DoCoMo, SEGA Corporation to

Jointly Develop Network Service Combining i-mode,

SEGA's Arcade Game Technologies

Rightservices

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Text/SMSText/e-mail

Image

VideoDownload

� Plain text

� Packet Data

� Advanced textmessages

� Photographs

� Picturemessages

� Movie preview

� Video messages

Richexperience

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Push commercials with

Text & Image & Audio

Multimedia Messaging

When In Roma do as theRomans do…….Eat at Luigi’s

123 Via Venuti 88 -12345

T68 GPRS handset

Richexperience

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Pervasive Connectivity• Use it all!

– Use the Web, TV, PC games etc to build the game atmosphere

– Provide interactivity and mobility through mobile terminals

• The device becomes “invisible”– The “Real World” merges

• Combines multiple technologies– Location information – Messaging– Multimedia activities

• Merges the Desk and Mobility

The User

SMSWAP

PDA

The Web

PC/Console

TV

Richexperience

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Early Wireless Data has not taken off!

• Wrong expectations• Launched as a technology• Pricing (expensive)• Performance (speed)• QoS• Difficult to get started & use the service

WHY?

Easyinvisible network

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Mobile Internet user expectations

• Few number of clicks • Quick response time• Easy Activation of Services

• Screen and graphics

• Messaging

• Downloading

Easyinvisible network

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• One button click out of the box

• Fast connection time

• High speed loading of pages

• Keep in contact through messaging (sms,email, chat…)

• Send and Receive pictures, sound and animated images (EMS&MMS)

• Automatic downloads of interesting subjects (push) as well as pictures, ring tones and sound

Easyinvisible network

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• 0 Manuals

• Ease of use

0-1-2-3 concept

Easyinvisible network

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Easy to get started - “Out of the box experience”

Ease of use - 0 Manuals

Portal

Over the Airactivation

Parameter Setting

Over The Air - Parameter SettingUser configures own Mobile Phone

with Over The Air (OTA) functionality, i.e. sending WAP configuration data

via SMS to the terminal

Easyinvisible network

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• 0 Manuals

• Ease of use

• 1 Personalization & 1 button access

0-1-2-3 concept

Easyinvisible network

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My PortalMy Portal

My BookmarksInboxInfotainmentGames

My BookmarksInboxInfotainmentGames

• One Button Auto logon

Easy to access - 1 Button

Ease of use - 1 button access

Easyinvisible network

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• 0 Manuals

• Ease of use

• 1 Button access• 2 Seconds (maximum)

0-1-2-3 concept

Easyinvisible network

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End-to-end performance – 2 seconds

Applications Applications

SMSGW

WAS/OTA

Applications

Service Network

Services:

Integration

E2E Optimization

etc

E2E Verification

Ease of use - 2 seconds

WAPGW

Core Network

Radio Network

Easyinvisible network

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• 0 Manuals

• Ease of use

• 1 Button access• 2 Seconds• 3 Clicks (maximum)

0-1-2-3 concept

Easyinvisible network

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SCMP

CNN

Apple Daily

Reuters

Bloomberg

Easy access to personalized services

Ease of use - 3 Clicks

Portals

Entertainment

Finance

News

Weather

My Portal

My Links

Inbox

ICQ

Search

Three Clicks

Two ClicksOne Click

Easyinvisible network

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What will be real in 1 to 2 years?

• Location aware applications become market drivers

• 50 KBPS packet access in most metropolitan areas

• WLAN and WWAN integrated devices and networks

• Voice activation expands to internet applications

• Bluetooth devices become common place

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What will be real in 3 to 5 years?

• Wireless Routers replace mobile phones

• Voice control becomes common for mobility activities

• Bluetooth integrates home, office, mobility and commerce

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• Access Technology is not a limiting factor

• Core Networks must support multiple access types

• Keys to success are

•Right targeted market

•Rich applications

•Easy as 0-1-2-3!

Key Messages