3G Technology Benefits to the Nigerian Economy

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1 3G Technology Benefits to the Nigerian NCC Consultative Forum April 24 th 2006 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

2 Agenda Why 3G Economic Impact Deployment options Solution Overview Mobile broadband Conclusion 2

3 Why 3G MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

4 What is 3G? 3G, or third generation, is the generic term used for the next generation of mobile communications systems. The systems will enhance the services available today and offer multimedia and internet access and the ability to view video footage. These services operate at 2100 MHz. (2.1GHz). 4

5 The drivers for 3G Deployment EDGE HSPDA UMTS Voice for Capacity Relief Video for Mass Market MARIA SHARAPOVA WINS See Video GPRS Video Calling Video Messaging GSM Video Streaming 5

6 3G Unlocks Mobile Living 3G Gaining Market Traction Rapid Cost Controlled Network Deployment Move To Mobile Broadband 6

7 7

8 Premium Services Offering from 3 in the UK 8

9 Enhanced 3G Services: Vodafone Live! Downloads News & weather Finance Sports news Lifestyle Entertainment Listings Location services Travel plus open internet access Video calling Now that Vodafone live! with 3G has arrived you can make face-to-face video calls. So why just talk when you can actually see who you're talking to! Video calling is the next best thing to being there. 9

10 Economic Impact MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

11 Technology Impact on Economy 1. Business High Speed Data Growth in Business and Services 2. Rural Areas Remote Learning Telemedicine Micro Finance 3. Consumers Healthy Competition among operators Cheaper Voice services Efficient and Effective Data services 11

12 Rural Areas example: 1. Micro Finance Ability to sell more products and services from the rural zones Economic empowerment 1. E-learning Improve educational capabilities in Nigeria Develop sharing culture and knowledge transfer 1. Telemedicine Eradicate major child killers such as Cholera and Malaria in children future leaders Promote discovery of new methods and techniques 12

13 Deployment Options MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

14 How Are Operators Deploying 3G? Things that make sense: Reuse existing 2G sites (Co-Siting). Concentrate initial deployment in Major Urban Areas. Highways on later phases. Obviously take advantage of 3G-2G HO to avoid voice calls dropping. Do not necessarily target contiguous coverage at 384Kbps, requires too many sites. Offer contiguous coverage at 128Kbps where possible. Address: Business users (PCMCIA UMTS cards/pdas). Address private users with clamshell phones and services like PPV and Live TV. Addressing both business users and mass market 14

15 Some Examples of UMTS Coverage Europe * 3G Austria Vodafone Germany T-Mobile Germany * * * Vodafone Portugal * * 3G Italy Maps obtained in February 2005 from several operators Websites in the Internet. * 3G UK 15

16 Possible 3G Rollout Strategy: Nationwide 2G (+EDGE?) + 3G/HSDPA in key urban locations 3G/HSDPA Benefits Offers nationwide data coverage on 2G layer 3G + mobile broadband in key urban areas HSDPA offers key differentiator to business customers 2G (EDGE?) 16

17 Possible Future 3G Expansion Strategy Nationwide 2G (EDGE?) + Expanded 3G/HSPA + WiMax? WiMax 3G/HSPA/ 2G (EDGE?) Benefits Offers nationwide data coverage on 2G layer 3G + mobile broadband in key urban areas HSDPA offers key differentiator to business customers Expand 3G coverage area SW upgrade to support HSUPA Penetrate broadband fixed wireless access market where no DSL (+b/haul) 17

18 Solution Overview MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

19 MOTOROLA S E2E STRATEGIC VISION HANDSETS RADIO ACCESS NETWORK CORE NETWORK APPLICATIONS SERVERS GSM / GPRS / EDGE GSM / EDGE Lead in transition Best in class HSDPA BS from circuit switch to capable Node B C IP Next generation soft switch for UMTS PoC Maintain RF Mobile leadership Rich portfolio of UMTS handsets Launch innovative & desirable handsets Horizon II Portfolio 2G / 3G Co-location PCMOTOROLA S U STRATEGIC AIMS RNC500 0 GGSN SGSN Softswitch Common 2G / 3G Packet Core Focus on application enablers GAMA (Middleware Platform) App delivery IMS & app management GAMA Launch revenue generating applications Portfolio of lifecycle services for UMTS UMTS Horizon 3G Portfolio Grow services business Softswitch UMTS Lifecycle Services Push-to-talk over Cellular (PoC) IP Multimedia SubSystem 19

20 UTRAN Deployment, some facts. 3G RAN Physical deployment is not much different from 2G: Installation (Space/Power/Telecoms/Antennas requirements) very similar, very simple. 2G deployment contractors can be easily converted to support 3G deployments. Node Bs come calibrated from the factory, C&I tools are available and are simple to use. Processes are well known from 2G, learning curves for 3G deployments are much shorter. The market offers excellent tools for 3G. System reliability in 3G much higher compared with the introduction of 2G. 20

21 UTRAN Deployment, some facts Like in 2G some critical areas are: Clarifying/Getting permissions to expand sites is Key. Getting transmission ready may take time 8-12 weeks. Shipping and getting equipment through customs can still be a painful process. 21

22 The Move To Mobile Broadband MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

23 Rapid Growth already in Broadband Markets Broadband markets growing Fixed broadband market soars Central & Eastern Europe Western Europe Global 0% 10% 20% 30% 40% 50% Broadband Lines Compound Annual Growth (%) usage soars Average time spent online (per week ) hours on dial-up hours on broadband Source: Pyramid Research Beyond Broadband Access (2004) Source: Ofcom The Communications Market

24 HSDPA opens the door to Mobile Broadband HSDPA delivers the broadband experience at 1/3 cost of UMTS Mobility Peak Network Speed Relative Cost Broadband Performance HSDPA Full 14 Mbps 1 1x EV-DO Full 2.5 Mbps 1 HSDPA WCDMA 1x RTT Full Full 2.0 Mbps 307 Kbps 3 3 Mobility Competitive Cost Structure EDGE Full 473 Kbps 7 GPRS(CS 1-2) Full 115 Kbps 20 Sources: Qualcomm, Motorola, RCN and other press

25 What is Mobile Broadband and HSDPA? High Speed Downlink Packet Access (HSDPA) Æ Compliant to Release 5 of UMTS 3GPP standard specifications Æ Reuse existing UMTS infrastructure Æ Peak network rate of up to 14 Mbps Æ Peak user rate of 3.6 Mbps with initial devices Æ HSDPA and UMTS R99 can coexist on the same carrier 25

26 Bringing an Enhanced User Experience Peak Data Downloaded (MegaBytes) GPRS EDGE W-CDMA DSL EV-DO Cable HSDPA 80 Kbps 238 Kbps 384 Kbps 1.5 Mbps 2.4 Mbps 3.0 Mbps 3.6 Mbps SMS Internet Java Game Browsing Music File AttachmentDownloads Video File Downloads 26

27 Mobile Broadband on the Uplink High Speed Uplink Packet Access (HSUPA) Æ Compliant to Release 6 of UMTS 3GPP standard specifications Æ Reuse existing UMTS infrastructure Æ Peak network rate of up to 5.76 Mbps Æ Sustained sector throughput between 1.5 and 1.8 Mbps Æ HSUPA, HSDPA & UMTS R99 can coexist on the same carrier 27

28 Leading Migration Path to Mobile Broadband GSM Family OFDM Based Air Interface GSM GPRS EDGE UMTS HSDPA HSUPA 3GPP Evolved UMTS OFDM 4G e Proprietary Higher 2004/05Data Rate / Lower Cost per Bit 2007/8 28

29 Motorola AXPT Taking the best of WiFi and putting into cellular Cost effective mobile broadband coverage and increased usage in corporate and consumer markets 29

30 3G Devices Continue To Multiply There are now over 300 devices that support UMTS 25 devices (data cards) support HSDPA Around 50 devices support UMTS and EDGE cards 3 UK now offers 25 separate handsets plus additional PCMCIA cards 6 from Motorola (illustrated) Motorola RAZR V3x Motorola V975 Motorola A835 Motorola A1000 However, wholesale price of UMTS devices is still greater than that of comparable GSM device Motorola E1000 Motorola C975 30

31 Delivering Differentiated Services for Your Market ENTERTAINMENT Home Broadband Replacement. Supplementation. Broadband on the go Interactive Games Video Download Web TV Video Streaming Push to X Music Internet Access (+attachments) File Transfer Corporate Intranet PRODUCTIVITY Replacement of WiFi Hotspots. VPN Dial-up. Hotel and Airport Broadband. Narrowband Handheld Devices 31

32 Who Will Lead the Uptake of Mobile Data? MOTOTECH Mobile Professionals Executives and sales representatives Mobile field workers Key verticals such as insurance and real-estate Replacement of WiFi Hotspots, VPN Dial-up, Hotel and Airport broadband, narrowband handhelds MOTOMEDIA Mobile Consumers Students Single adults and young married couples High-end consumers and technophiles Home Broadband Replacement or supplementation Broadband on the go (WiFi Hotspots, Hotel, Airport) AND + / OR + AND / OR + 32

33 Key Lessons Already Learned Support for streaming service is essential User experience demands that latency is continually reduced Broadband service demands capacity at RNC and Packet Core Handsets must support equalizers 1:1 Cell mapping is possible with UMTS 33

34 Motorola Strategies Focused on Delivering Leadership in LTE Leadership in 3G Devices eg: RAZR V3x Leadership in OFDM eg: MOTOWi4 Leadership in IMS eg: PoC, Cable Leadership in UMTS Collapsed Architecture eg: AXPT 34

35 Thank You Adebayo Onigbanjo Motorola Nigeria MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc

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