Wireless Wide Area Networks: Past, Present and Future
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1 Wireless Wide Area Networks: Past, Present and Future Presentation to CA Expo Hong Kong 2002 Presentor: Leon Perera Group MD, Spire Research and Consulting 9 Aug 2002
2 Presentation Structure Spire provides Market Environment Research in ICT and other sectors across the Asia-Pacific Spire s remarks on W-WAN will be from the standpoint of market research Our presentation will address the following, with a special focus on Asia and Hong Kong: Definitions and brief history of W-WAN Trends in penetration of W-WAN technologies Vertical and horizontal segments outlook Case studies in W-WAN applications Issues in distribution Issues in regulation Outlook for the future role of W-WAN in Asia and what it means for business
3 WAN Defined A physical or logical network that provides capabilities for a number of independent devices to communicate with each other over a common transmission-interconnected topology in geographic areas larger than those served by local area networks. (techdictionary.com)
4 The Wireless Network - PAN 30 ft max PAN (Bluetooth Low level device recognition and communication E.g Bluetooth
5 The Wireless Network - LAN WLAN 1000 ft max Ethernet based infrastructure E.g a and b
6 The Wireless Network - WAN 1000s of miles WWAN Many standards apply Eg. GSM, CDMA
7 Wireless Wide Area Network A wireless link that employs specified parts of radio spectrum to transmit and receive data, where line-of-sight positioning of fixed equipments needed: RF IEEE a, b, GSM, GPRS and Fixed WWAN WIRELESS WIDE AREA NEYWORK Mobile WWAN A wireless link that employs terminals or receiving units that are not fixed in position, such as a cellular phone. Two key mobile solutions are satellite system and mobile phone technology : GSM, CDMA.
8 +VE Factors Affecting WWANS Adoption An Affordable Alternative Communication Link(F) To Satisfy Intensive Bandwidth Applications (F) Deployment Ease (F&M) Widening Corporate Network and Clients Support (F&M) Wireless Bridges Not Restrain By Terrains and Geographical Boundaries (F&M)
9 VE Factors Affecting WWANS Adoption Low Awareness of Wireless Technologies (F &M) Government Regulations (F & M) Line of Sight Limitations (F&M) Performance Reliant on Service Provider (M) Slow Transfer Rate (M)
10 WWAN Technology Trends Direct Sequence Spread Spectrum (DSSS) Point To Point CODING TECHNIQUES Point to Multipoint Frequency Hopping Spread Spectrum (FHSS)
11 WWAN Technology Trends Direct Sequence Spread Advanced Spectrum Modulation (DSSS) solutions such as Orthogonal Frequency Division Multiplexing (OFDM) INTEREFERENCE Point To Point CODING TECHNIQUES Packet Switching: IP Networks Circuit Switching: PSTN Products with better spectral efficiency to Frequency cater for foreign Hopping Spread Spectrum (FHSS markets Point to Multipoint
12 WWAN Technology Trends In 2001, Chowking Food Corporation installed wireless connection between its head office in Pasig City and its plant in Muntinlupa. Wireless connection for mainly , Internet access in the b 5.7 GHz band at a speed of 1.2 Mps. Point To Point Local Multipoint Distribution Systems Broadband Wireless that transmits bidirectional high speed signals at competitive cost Point to Multipoint
13 WWAN Technology Trends Less Costly 3G Licenses In Asia Pacific, countries issuing 3G licenses High Broadband Connectivity Competing Information Transmitting Technologies Direct Cable Connections Telephone and Leased Lines Broadband Satellite Stations High PC Penetration
14 WWAN Technology Trends Hong Kong: In June 2001, 60.6 % of Households have PCs at home In June 2001, 1,009,800 or 48.7% of all households connected to Internet 65.9% connected with narrowband and 39.4% to Broadband High Urban Density Point To Point Competing Technologies Direct Cable Connections Telephone and Leased Lines Broadband Satellite Stations Point to Multipoint
15 Hong Kong Broadband Connections* * For Households, Schools and Offices Source: OFTA
16 Asian Countries Total 3G License Costs Country No. of 3G Licenses issued Companies names Total Cost of licenses (US$) UK 5 BT Cellnet, Hutchison 3G Limited, One2One Personal Communications, Orange 3G Limited and Vodafone 35,390,000,000 Singapore 3 MobileOne (Asia) Pte Ltd, Singapore Telecom Mobile Pte Ltd and StarHub Mobile Pte Ltd 165,840,000 Taiwan 5 Asia Pacific Broadband Wireless Comm., Chunghwa Telecom, Far EasTone, Taiwan Cellular and Taiwan PCS 1,398,000,000 Japan 3 Japan Telecom, KDDI Corp and NA NTT DoCoMo Hong Kong 4 Hong Kong CSL Limited, Hutchison 3G HK Limited, SmarTone 3G Limited and SUNDAY 3G (Hong Kong) Limited 523,981 Source: 3G Newsroom
17 WWAN Asia Pacific Growth Drivers Less Costly 3G Licenses In Asia Pacific, countries has been issuing 3G licenses Wireless WANS GSM CDMA GRPS 3G High Broadband Connectivity High PC Penetration
18 WWAN Current Technology Limiting Factors Packet Loss and quality distortion Mobile WWANS GSM CDMA GRPS Slow transfer speed 2G: 10Kbps 2.5G: Kbps
19 3G s Capability 3G System Capabilities Capability to support circuit and packet data at high bit rates: kilobits/second or higher in high mobility (vehicular) traffic kilobits/second for pedestrian traffic - 2 Megabits/second or higher for indoor traffic Interoperability and roaming Common billing/user profiles: - Sharing of usage/rate information between service providers - Standardized call detail recording - Standardized user profiles Capability to determine geographic position of mobiles and report it to both the network and the mobile terminal Support of multimedia services/capabilities: - Fixed and variable rate bit traffic Bandwidth on demand - Asymmetric data rates in the forward and reverse links - Multimedia mail store and forward - Broadband access up to 2 Megabits/second Source: 3G Newsroom
20 3G WWANs Industry Overview Less Costly 3G Licenses In Asia Pacific, countries issuing 3G licenses Packet XLoss and quality distortion 3G X Slow transfer speed 2G: 10Kbs 2.5G: Kbs High Broadband Connectivity High PC Penetration
21 3G WWAN Industry Key Challenges $$$$ Infrastructure Costs 3G Handsets availability 3G Alternative standards 2.5G
22 Wireless WAN Application Vertical Applications Transportation Utilities Retail Trade/Point of Sale (POS) Wholesale Trade Financial/Insurance/Real Estate Health Care Communications Professional Business Durable Manufacturing Horizontal Applications , Database Query Field Service and Sales Automation Information-Based Systems Location-Based Systems Messaging Transactions Vehicle Location and Positioning Accessing Web Portals
23 Horizontal Application Issues Bandwidth Support Multiple Device Transaction Recovery Security Support for Modern Payment
24 United Parcel Service-UPS Allow same-day package-tracking information for air and ground packages Utilize cellular technology Broad alliance with more than 70 cellular carriers Transmit package delivery information from company s 50,000 vehicles to UPS mainframe repository in Mahway, NJ Hong Kong was the first country in Asia Pacific to implement this technology
25 United Parcel Service-UPS (cont) UPS Delivery Information Acquisition Device (DIAD) Hand-held electronic data collector Capture customer signature and package information Custom built for UPS by Motorola, Southwestern Bell, GTE and Pac Tell Comes in native languages (including Chinese, simplified Chinese, Japanese, and English) Source: UPS
26 UPS (cont) UPScan has started investigating Bluetooth and wireless LAN technologies within warehouse and customer drop off centers Implementation cost over US$100 million over the next five years Expects quick payback in 16 months Source: UPS
27 Wireless WAN for Indian Farmers Simple Inexpensive Mobile Computer Linux Operating System Feature picture-based touch sensitive screen Allows Indian farmer to access crop prices etc
28 Wireless WAN in the Wine Industry Southern Wines and Spirits of California Utilize Advanced BusinessLink s Pocket StrategiT Allows sales reps to : Browse clients and products data in the server Automatically send orders and updates data Total cost : S$3,000 per sales rep Increase sales calls Increase customers satisfaction
29 Distribution Channels For WWANs Lower Profit Margins Market with other Company s items as a total solution Manufacturers/Vendors Better Client Management and highest profit margins: better future sales from continuing relationships and real-time knowledge on the products performance. Valued Added Resellers System Integrators END USERS such as ISPs, schools, Corporate and others
30 Regulations and Standards WWANS Spectrum Allocation Granted to service provider or to a government body Auctioned off the spectrum licenses: Singapore and Taiwan Granting of licenses with conditions applied. In Hong Kong, the telecom regulator awarded its four 3G licenses without an auction. However conditions applied include: Winners will pay 50 million Hong Kong dollars ($6.5 million) per year for the first 5 years. Furthermore 5 percent of their 3G revenues each year thereafter for the 15-year license period. Among other requirements is a license condition that will force 3G operators to reserve at least 30 percent of their network capacity for "mobile virtual network operators.
31 Regulation and Standards WWANS Time Consuming approval process may impede speed of growth Government Controls to limit the availability of spectrum Inhibit the growth of telecommunication networks Manufacturers find it difficult to develop equipment supporting various spectra
32
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