CDMA and LTE. Technical & Commercial Implications of Interoperability. James Person COO CDMA Development Group. Dallas, TX November 2009

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1 CDMA and LTE Technical & Commercial Implications of Interoperability James Person COO CDMA Development Group Dallas, TX November 009

2 CDG Charter Formed in 1993, a consortium of operator and vendor companies from around the world, involved in all aspects of CDMA and next generation wireless including advocacy, marketing, regulatory support, device availability and roaming Operators Subscriber Equipment Value-Added Services Network Infrastructure Network Enhancement/ Optimization Network Interface & Access To lead the rapid evolution and deployment of 3G and 4G systems, based on open standards and encompassing all core architectures, to meet the needs of markets around the world Information Distribution Technical Service Development Deployment Assistance

3 CDMA: 50 Million Global Subscribers More than 315 operators in more than 109 countries/territories have deployed or are planning to deploy CDMA000 CDMA000 will continue to be an LTE interoperability option for hundreds of operators well into the next decade

4 CDMA Global Operator Growth Number of CDMA000 operators increased by nearly 30% in the past 3 years New CDMA000 Operators per Year (Cumulative) Most CDMA000 operators have not yet planned for their 4G networks

5 Global CDMA000 Device Shipments CDMA000 device shipments are shifting to broadband (Millions) Annual CDMA000 Device Shipments As of December 008 Annual Device Shipments Sources: Average of ABI (Q4 08), Yankee (Q4 08), Gartner (Dec 08), IDC (Dec 08), IMS (Dec 08), isuppli (Oct 08) More than,300 CDMA00 devices have been commercialized by 10 suppliers

6 Global CDMA000 Subscriber Forecast CDMA000 migration from G (cdmaone) complete Subscribers (Millions) CDMA000 Subscribers Worldwide (Cumulative) EV-DO 1X cdmaone *Source: Actual CDMA Development Group **Source: Net growth average of Strategy Analytics (Jun 008), ABI (Aug 008), Wireless Intelligence (Jul 008), WCIS+ (Jul 008), igr (Mar 008) and Yankee Group (Jun 008) for subscriber forecasts (008 and beyond) summed with CDG actual numbers of 008

7 CDMA000 Roadmap

8 What do operators want? Meet the growing demand for voice and data Offer an unsurpassed user experience Reduce the cost of delivering services Maximize the return on existing investments while preparing for the future

9 CDMA000 Roadmap CDMA000 offers a strong long-term path forward CDMA000 CDMA000 Roadmap 1X 1X Enhancements 1X Advanced Erlangs DL & UL: 153 kbps (1.5 MHz, FDD) EVRC-B + QLIC + QOF 1.5X increase in voice capacity 1 DL & UL: 153 kbps New Channel Card 4X increase in voice capacity DL & UL: 307 kbps 1xEV-DO Rel. 0 1xEV-DO Rev. A Multi- Carrier H/W Upgrade EV-DO Rev B DO Advanced DL:.4 Mbps UL: 153 kbps (1.5 MHz, FDD) DL: 3.1 Mbps UL: 1.8 Mbps (1.5 MHz, FDD) DL: 9.3 Mbps 3 UL: 5.4 Mbps (5 MHz, FDD) DL: 14.7 Mbps 4 UL: 5.4 Mbps (5 MHz, FDD) DL: 3 Mbps 5 UL: 1.4 Mbps (4x1.5 MHz, FDD) Capacity increase is primarily due to new EVRC-B codec, handset interference cancellation (QLIC) and Quasi-Orthogonal Functions (QOF) Capacity increase is primarily due to UL and DL interference cancellation, mobile receive diversity and several radio link enhancements. 3 Peak rate for 3 EV-DO carriers with software upgrade. Doubles network capacity or triples peak data speeds. 4 Peak rate for 3 EV-DO carriers with hardware upgrade supporting 64 QAM in the DL. Standard supports up to 15 aggregated 1.5 MHz carriers 5 DO Advanced includes smart network techniques, new device enhancements, x MIMO support, 64 QAM in the DL and 16 QAM in the UL 6 Operators have the option to only implement software upgrades

10 Quadruples the voice capacity of today s s industry-leading CDMA000 1X networks 1X Advanced New handset & channel card Achievable Today x Voice users 1.5x Voice users 3x Voice users 4x Voice users 1X Today EVRC Single RX EVRC-B vocoder QLIC (device IC) New handset Network upgrades Relative capacity/sector (1.5 MHz) Without Mobile Rx Diversity Interference Cancellation BTS Interference Cancellation Advanced Device IC (QLIC) + With Mobile Rx Diversity Radio link Enhancements Efficient power control Early termination Smart blanking CDMA000 1X Advanced is a natural step for operators looking to lower their cost per call and provide voice service while LTE focuses on data

11 EV-DO is Driving Data Revenue Growth Demand for broadband services is driving substantial data revenue e per user Retail Data ARPU (USD) Verizon Wireless Retail Data ARPU and Data Revenue as a Percent of Service Revenue Percent of Service Revenue Average Revenue Per User (ARPU) 1 Annual data revenues grew 33 percent over the prior year to $3.9 billion million of Verizon s subscribers have 3G broadband EV-DO devices. 1 Commercial EV-DO market information based on Verizon press releases and other publicly available information, July 4, 009

12 Interoperability with LTE

13 CDMA and OFDMA CDMA and OFDMA are different technologies with different capabilities ities CDMA000 1X and EV-DO are more efficient in bandwidths up to 5 MHz OFDMA-based solutions offers a simpler implementation in bandwidths greater than 10 MHz

14 CDMA000 and OFDM-Based Solutions CDMA000 is complemented with several OFDM-based solutions CDMA000 Evolution Path CDMA000 1X 1X Advanced 1xEV-DO Rel. 0 1xEV-DO Rev. A H/\W Multicarrier Upgrade EV-DO Rev. B DO Advanced OFDMA-based Technologies LTE LTE is part of the CDMA000 technology roadmap

15 CDG s s Role in the Standards Process CDG is a Market Representation Partner (MRP) to both 3GPP and 3GPP Source: IDC

16 CDMA Operators with Announced LTE plans The following CDMA000 operators have announced their plans to deploy LTE Most other CDMA000 operators do not yet have the requisite demand, spectrum or capital to deploy LTE

17 LTE Interoperability: CDG Areas of Focus Current CDG initiatives Seamless Mobility: To ensure service continuity, inter-standard hand-offs between LTE and CDMA000 networks is essential System Determination: To maximize revenue, the appropriate system determination algorithms must exist in every CDMA000/LTE device Device Availability and Certification: To ensure full compliance, device requirements by GHRC are defined and device certification from an independent third-party, CCF, is sanctioned Inter-Standard Global Roaming: To enable global roaming, inter-standard roaming between LTE and CDMA000 networks is essential

18 CDMA000 Manufacturers Working on LTE The following CDG members are developing LTE devices and equipment Infrastructure Vendors Chipset and Device Vendors Test Vendors

19 OFDMA Broadband Overlay for Developed Market OFDM-based solutions will be built-out over time as demand grows and spectrum becomes available Today 3G CDMA WAN Coverage Next 10 years (Coexistence) OFDM Urban-zone 3G CDMA OFDM Urban-zone 3G CDMA OFDM Urban-zone Beyond 10 years? (Migration) OFDMA WAN Coverage 3G CDMA WAN networks will coexist with OFDM-based solutions until next generation broadband networks are fully capable of delivering: 1) Ubiquitous coverage ) Carrier-grade VoIP 3) Low-cost devices * 4) Global roaming * * Harmonization of spectrum for OFDM-based solutions will be necessary to build economies of scale and enable global roaming

20 EV-DO Evolution Periods % of Addressable Market Ubiquitous EV-DO Service EV-DO Rev. A Additional Capacity Femtocells VoIP EV-DO Rev. B LTE Regional Deployments Mature VoIP; Concurrent VoIP/Data; High-Definition Multimedia; Integration w/lte DO Advanced LTE First Full Scale Deployments LTE First Small Volumes Seamless LTE Handoff Mature EV-DO LTE First Volume Devices Today Source: Airvana`

21 CDMA000 WorldMode TM Devices More than 00 WorldMode devices from more than 57 vendors CDMA000 1X + GSM + GPRS Nokia 865 CDMA000 1X + EV-DO Rev. A + GSM + GPRS RIM BlackBerry 8830 EV-DO Rev. A + HSPA Dell Precision Series CDMA000 1X + EV-DO Rev. A + HSPA What Comes Next? CDMA000 1X + EV-DO Rev. A/B + LTE Coming! LG SH-100 Samples shown, LTE WorldMode is concept only

22 Initial WorldMode LTE Device Availability CDMA industry is developing CDMA000 / LTE multimode/multiband devicesd Multimode LTE Commercial Device Availability Modes: LTE CDMA000 1X EV-DO Rev. A EV-DO Rev. B UMTS HSPA+ LTE Peak Data Rates (0 MHz): DL: 50 Mbps UL: 5 Mbps PC Card Handset 009 Q4 010 Q 011

23 What about LTE voice communications Most CDMA000 operators will rely on their CDMA000 1X network to deliver voice LTE only for voice and data? Or, LTE for data and 1X for traditional voice? Traditional C/S 1X Voice? Factors to consider: How important is simultaneous voice & data? How important is an all-ip service model? Should voice capacity be maximized? 1X Advanced? CAPEX spending priorities? Handset complexity? Roaming Partners? Timing? EV-DO VoIP? LTE VoIP?

24 Migration Timeline With an increasing number of subscribers, the migration process is lengthening Migration of Subscribers 4G Growth of G peaks 3G G G subs exceed 1G subs Roughly 15 years after inception of industry. 1G Putting things into perspective. The generational migration process will take many years. Voice will remain a key application. Source: Net growth average of Strategy Analytics (Jun 008), ABI (Aug 008), Wireless Intelligence (Jul 008), WCIS+ (Jul 008), igr (Mar 008) and Yankee Group (Jun 008) for subscriber forecasts (008 and beyond) summed with CDG actual numbers of 008

25 Lessons Learned: Migration from 1G to G to 3G Takes longer, and is never as simple as it may seem Coverage is key Multimode devices are essential Economies of scale matters Graceful evolutionary change is preferred A mature ecosystem is desired To sustain its exponential growth, the global mobile industry should continue strengthening and expanding its existing ecosystem, while it embraces and assimilates newer technologies and players within its fold Source: IDC

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