Use Current Success to Develop Future Business
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1 >THIS IS THE WAY Use Current Success to Develop Future Business Malur Narayan / Nitin Khanna February 2005 >THIS IS
2 Wireless Broadband Opportunities & Segments Mobile Broadband Access Enterprise Broadband High Mobility Nomadic Fixed Mobile Multimedia Residential Broadband
3 Mobile Multimedia > Korean/Japanese business model Handsets to enable applications Content to drive traffic Segmentation and branding > Pelephone EV-DO success Handsets with video camera and MP3 player ZOOM TV video streaming service Separate ESC brand targeting youth segment >3,000 Subs with Soft Launch ONLY
4 Residential Broadband Access > Fixed broadband business model Competing against DSL and cable High ARPU / high traffic > Eurotel EV-DO success Passes 3.5X as many homes as cable 30,000 subs (@~$33 ARPU) in 5 months Eurotel Captured ~20% Share of Country s Broadband Subs in 5 Months!
5 Mobile Broadband Access > Targeting high-need exec s and mobile workers > PC access is easy to implement > Verizon EV-DO success No more looking for hot spot it is a hot city hot nation! Business users targeted Enterprise channels Working with select middleware vendors (Nortel optimized network) Verizon Launched EV-DO across 14 Markets on Sept 27 th and Now has 75,000 subs (@ $80 ARPU!)
6 Broadband Access Technology Landscape Enterprise Professionals e Mobility 3GPP/2 4G? HSDPA HSUPA EV-DO Rev A 1xEV- DO Consumers Broadband 1X, EDGE High Mobility UMTS F-OFDM e Nomadic Telecommuters n Nomadic Distance Learners a/b/g Fixed Enterprise Broadband d NG DSL / DLC FTTx / PONS GPRS, Mobile Circuit Switch Residential Broadband Cable Modem ADSL Existing Rollout 2007/8
7 Wireless Data Access Landscape Wide Area Mobility GPRS, Mobile Circuit Switch 1X, EDGE CDMA 1xEV- DO UMTS HSDPA 1xEV-DO Rev A F-OFDM OFDM / MIMO e 3GPP/2 4G? Fixed Local Area Nomadic ADSL 100 kbps 1 Mbps a/b/g Cable Modem d n NG DSL / DLC FTTx / PONS 10 Mbps 100 Mbps Speed 10x scale Existing Rollout 2007/8 Nortel Networks Proprietary & Confidential
8 CDMA Broadband Evolution - EV-DO Rev A Video Multimedia Faster Browsing & Downloads Higher Uplink Data Rate DL 3.1 Mbps UL 1.8 Mbps Hybrid ARQ FL & RL QoS Radio Link Protocol Enhancements Higher Order Modulation Enhanced Data Rate Control Multi-User Packets Short RL Frames VoIP, PTx, Multimedia Video Telephony Lower Latency End to End QoS Improved Session Configuration Higher Access Channel Rate Integrated 1X DO Operation Faster Sector Switching Multi-Flow Application Protocol Multi-Flow Radio Link Protocol Enhanced Security RAN Authentication A12 E2E IP Network, IPSec Enhancing Wireless Broadband Experience
9 HSDPA Higher Data Rates Peak Data Rates up to Mbps per user Richer Applications Lower down link packet delay improvement for streaming, background and Interactive applications Higher Capacity 2x more subscribers and 5x throughput (10 Mbps vs. 2 Mbps) HSDPA Further Reduces the Cost per Megabyte
10 A China Broadband Standard - TD-SCDMA Time Division Synchronous CDMA > Chinese Market Momentum & Government Support > Technology Highlights Voice & Data Coverage areas up to 40Km with high mobility Flexible Up and Down link up to 2Mbps High Spectral Efficiency > Nortel Participation Founding member of TD-SCDMA Forum Partnership with domestic vendors MII trial in Beijing complete; Wider trial in 1H05
11 Enhancing Wireless Broadband with OFDM 5 MHz Bandwidth FFT Sub-carriers Symbols Guard Intervals MIMO multiple antennas Frequency Time Advantages of OFDM compared with TDMA & CDMA technologies Higher spectral efficiency => higher capacity, higher bandwidth when combined with Multiple Input Multiple Output (MIMO) More robust less multipath interference Simpler receiver => lower cost OFDM modulation as building block of many new technologies WiMAX, Flash OFDM, 3GPP ( standardisation after UMTS/HSDPA ) OFDM A Future Enabler for Faster More Efficient Wireless Broadband Standards
12 Flash OFDM Flarion Integrating OFDM into Nortel Wireless Product > Only viable OFDM alternative for next several years > Challenges > No clear home in the standards today > Ecosystem to be developed > Critical Mass - terminals beyond aircards > Technology / Product Maturity > Early Availability Advantage when compared to HSDPA Uplink Speeds > Developed momentum through trials > Nextel, TMO Netherlands, Vodafone Japan, Aloha Partners > Considerations > Early DO Rev A or HSUPA performance parity, less developed terminals, services, Long term spectral efficiency Nortel Early Leader with F-OFDM Prototype Integrated into CDMA BTS Technology Deployment Will be Driven by a Large Opportunity
13 802.16x Market Applications Cellular Backhaul (802.16d) Significant cost reduction for E1 replacement Hotspot Backhaul (802.16d) WLAN/WMN increase appetite for broadband access Residential Broadband (802.16d) Making the broadband home revolution happen Unwired regions China Unicom rolling out something similar to a/d base stations from Wi-Lan for pt-pt backhaul Future Mobile Data (802.16e) Goal to deliver high capacity & throughput to mobile users d Access Points Hotspots Backhaul Cellular Backhaul Residential/SME
14 WiMAX Market Applications Cellular Network Cellular Backhaul (802.16d late 2005) Mobile Services (802.16e ) d e Hot Zone Backhaul (802.16d late 2005) Metro Area DSL Extension (802.16d 2006) (802.16e Portable 2007) WiMax d Trial Opportunity to Understand potential WiMax e Opportunity to Deliver Integrated Product
15 Technology Summary CDMA 1xEV-DO Rev d WiMAX FLASH-OFDM CDMA 1xEV-DO Rev A e WiMAX Spectrum Licensed 1.25MHz channel Unlicensed & licensed 2-11 GHz Licensed 1.25MHz channel Licensed 1.25MHz channel Unlicensed & licensed < 6 GHz Peak Data Rate (DL/UL) 2.4 Mbps (DL) kbps (UL) (1.25 MHz Ch) Mbps (5MHz) (1.25, 1.75, 3,5, 6,7,10,14,20 MHz) 3 Mbps (DL) 750 Kbps (UL) (1.25 MHz Ch) 3 Mbps (DL) 1.8 Mbps (UL) (1.25MHz Ch) Mbps (5MHz) (1.25,1.75, 3,5, 6,7,10,14,20 MHz) Sector DL Throughput 900 kbps (DL full queue) TBD TBD 900 kbps (DL full queue) TBD Range* * Freq & Terrain dependent Up to 59 Km Typical 3-5 Km Up to 50 Km Typical 8-10 Km Typical 3-5 Km Up to 155 Km with Nortel high power MFRM Typical 3-5 Km Up to 50 Km Typical 3-5 Km Mobility Full Fixed Full Full Portability (Phase 1) Full Mobility (Phase 2) < 60 km/hr Voice CS Voice on 1X TDM or VoIP VoIP VoIP CS Voice on 1X TDM or VoIP Commercial Availability NOW 1H Nortel Networks Proprietary & Confidential
16 Wireless Broadband Summary > Wireless operator s continue to Experience Broadband Success > EV-DO Rel A & HSDPA are the right evolution paths for existing CDMA & GSM operators >EV-DO Release 0 is deployed & proven today!! >EV-DO Release A is standardized and clear evolution to Release 0 >Evolution options are still wide open, Lots of attention towards OFDM >MIMO provides the opportunity to achieve in excess of 4 folds capacity improvements using practical antennas over OFDM >Device & chipset adoption is an important factor to the future of WiMax Nortel Will Enable Operator s Continued Broadband Success by Bringing New Technologies to Market! Nortel Networks Proprietary & Confidential
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