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LAS SOLUCIONES TECNOLOGICAS DE 3G WCDMA

OSIPTEL, LIMA

18 de octubre de 2005, 10:00-12:00

Petri Reijonen

Sales Director, 3G WCDMA & General Manager, MESO

Latin America, Nokia Networks

(2)

Agenda

1. Global 3G WCDMA Market Situation (El mercado global 3G WCDMA)

• Commercial networks, terminals, subscribers

• Standards situation

• Service evolution

2. 3G WCDMA Technology Update (Actualizacion tecnológica 3G WCDMA)

• WCDMA call capacity, voice capacity and quality

• HSPA peak rates, capacity and latency

• Internet-HSPA

• 850 vs 1900 MHz

• Minimum bandwidth requirement

3. 3G WCDMA in Latin America (La situación de 3G WCDMA en América Latina)

• Market characteristics

• Terminal situation

• Spectrum situation

(3)
(4)

3G WCDMA Basics Reviewed

3G WCDMA/HSPA

GSM/EDGE

Carrier

5 MHz

200 kHz + frequency hopping

Frequency bands

New and existing bands

Existing bands

Access

Wide-Band Code Division

Time Division

Network optimization

Antenna and site planning

Frequency planning

HW capacity

700 simultaneous calls/cabinet

120 simultaneous calls/cabinet

New services

Simultaneous voice and data

Low delay IP services (VoIP)

Dual Transfer Mode in 2006

Long delay IP services (PTT)

Max downlink speed

14.4 Mbps HSDPA specs

3.6-7.2 Mbps HSDPA terminals

480 kbps specs

240 kbps terminals

Max uplink speed

5.76 Mbps HSUPA specs

1.46-2.0 Mbps HSUPA terminals

480 kbps specs

120 kbps terminals

Radio network

RAN = UTRAN = Node-B + RNC

BSS = GERAN = BTS + BSC

(5)

WCDMA Commercial Networks, Terminals, Subscribers

(6)

3G WCDMA Standards Situation

4G

3.9 G

HSPA

3G

WCDMA

HSDPA

HSUPA

I-HSPA

GSM

GPRS

EDGE

EDGE Evolution

2G

1991 2001 2003 2005 2007 2009 2011

WiMAX (802.16e)

WiMAX (802.16-2004)

WCDMA is mature technology with significant downlink (HSDPA)

and uplink (HSUPA) improvements steps emerging

(7)

WCDMA Service Evolution

HSPA

HSPA

1

1

-

-

10

10

Mbps

Mbps

WCDMA

WCDMA

128

128

-

-

384

384

kbps

kbps

EDGE

EDGE

80

80

-

-

160

160

kbps

kbps

GPRS

GPRS

30

30

-

-

40

40

kbps

kbps

GSM

GSM

10

10

-

-

40

40

kbps

kbps

Video sharing

Video sharing

Video

Video

telephony

telephony

Real time IP

Real time IP

Real time

Real time

games

games

High speed

High speed

mobile

mobile

intranet

intranet

Faster

Faster

business

business

connectivity

connectivity

Faster

Faster

streaming

streaming

Faster content

Faster content

download

download

Web browsing

Web browsing

Mobile intranet

Mobile intranet

access

access

Video streaming

Video streaming

Voice

Voice

SMS

SMS

MMS

MMS

WAP

WAP

Download

Download

Presence

Presence

Audio streaming

Audio streaming

WCDMA enables real time connections, efficient business

connectivity, close to WLAN bit rates and high efficiency

(8)

3G Services Uptake

E-mail

Content

Play music

Play videos/

movies

Video mail

Video calling

Read books/

comics

97

68

16

12

10

7

3

Content

E-mail

Video mail

Live TV

High speed data

cards

Home watch

26

8

4

2

2

1

48

16

10

9

6

5

58

42

13

9

7

1

Video calling

Content

E-mail

Video mail

Live TV

High speed data

cards

Content

Video calling

E-mail

Video mail

Live TV

High speed data

cards

%

%

%

%

Japan

South Korea

Italy

Hong Kong

Source: Nokia study June 2005, based on

regular usage of several times a week. Note: Korea CDMA

(9)

3G Operators ARPU

36

50

56

52

30

34

19

27

42

30

Country average ARPU

70

Hutchison ARPU

60

50

40

30

20

10

0

Italy

UK

Austria

Sweden &

Denmark

Australia

Source: Hutchison, EMC database, Jun 05

(10)
(11)

High WCDMA Call Capacity

0

20

40

60

80

100

120

140

AMR 12.2

kbps

AMR 10.2

kbps

AMR 7.95

kbps

AMR 7.4 kbps AMR 5.9 kbps

AMR 4.75

kbps

U

ser

s p

e

r sect

o

r p

e

r 5 MH

z

(12)

High WCDMA Voice Capacity

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000

Subscribers per site

Minutes/sub/month

WCDMA 2+2+2 assumed

(13)

High Voice Quality with Wideband AMR

Quality [MOS]

3.0

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4.0

AMR 5.9

kbps

AMR 12.2

kbps

WB-AMR

8.85 kbps

WB-AMR

12.65

kbps

Capacity [users/sector]

0

20

40

60

80

100

120

140

AMR 5.9

kbps

AMR 12.2

kbps

WB-AMR

8.85 kbps

WB-AMR

12.65 kbps

= Current AMR with audio bandwidth 300-3400 Hz

= Wideband-AMR with audio bandwidth 50-7000 Hz

WB-AMR provides 20% better voice quality

without much sacrificing voice capacity

(14)

High HSPA Peak Data Rates

Uplink HSUPA

• Theoretical up to 5.76 Mbps

• Initial capability 1.46 Mbps

Downlink HSDPA

• Theoretical up to 14.4 Mbps

• Initial capability 1.8 – 3.6 Mbps

# of codes Modulation

data rate

Max

# of codes

TTI

data rate

Max

5 codes

QPSK

1.8 Mbps

2 x SF4

10 ms

2 ms

1.46 Mbps

5 codes

16-QAM

3.6 Mbps

2 x SF2

10 ms

2.0 Mbps

10 codes

16-QAM

7.2 Mbps

2 x SF2

2 ms

2.9 Mbps

15 codes

16-QAM

10.1 Mbps

2 x SF2 +

2 x SF4

2 ms

5.76 Mbps

15 codes

16-QAM

14.4 Mbps

(15)

High HSDPA Data Capacity

Even smallest HSDPA site enables 300 broadband wireless users,

each downloading 1 GB data per month

HSDPA Data Capacity with 1+1+1 Configuration

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

100

200

300

400

Broadband data subscribers per site

G

B

/s

ub/

m

ont

h

(16)

Low HSPA Latency

0

20

40

60

80

100

120

140

160

180

200

WCDMA 2004

WCDMA 2005

HSDPA 2005

HSUPA

ms

(17)

Internet-HSPA

RNC SGSN

GGSN/ISN

Internet

Standard

Nokia BTS

ISN

with HA

I-HSPA module

RNC = Radio Network Controller

SGSN = Serving GPRS Support Node

ISN = Intelligent Service Node

HA = Home Agent

Standard

terminals

(18)

WiMAX vs HSPA Cell Range

4.34

2.53

1.31

0.98

0.17

0.00

1.00

2.00

3.00

4.00

5.00

HSPA 850 MHz

HSPA 1900 MHz

WiMAX 2500 MHz

WiMAX 3400 MHz

WiMAX 5400 MHz

Cell range [km]

(19)

Internet- HSPA for Mass Data Traffic

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

100

200

300

400

500

600

700

800

900

1000

Served MB per user per month [MB/User/Month]

Eur

GPRS

EDGE

WCDMA

HSPA

I-HSPA

(20)

3G Impact to Base Station Backhaul

BEFORE

HSPA

AFTER

HSPA

63E1/

STM-1

32E1

4E1

8E1

16E1

1E1

2E1

2 x STM-1

Capacity

(21)

WCDMA Frequencies

Operating

Band

UL Frequencies

UE transmit, Node B receive

DL frequencies

UE receive, Node B transmit

I

1920 – 1980 MHz

2110 –2170 MHz

II

1850 –1910 MHz

1930 –1990 MHz

III

1710-1785 MHz

1805-1880 MHz

IV 1710-1770MHz 2110-2170MHz

V 824

849MHz 869-894MHz

VI 830-840

MHz 875-885

MHz

UMTS850

USA

1.7/2.1 GHz

USA

2100 MHz

Global

1900 MHz

USA

1800 MHz

Europe

Next:

UMTS 900 Europe

UMTS 1700 Japan

UMTS 2600 Europe

CEPT FDD UL 2500-2570

CEPT FDD DL or TDD 2570-2620

CEPT FDD DL 2620-2690

UMTS800

Japan

(22)

850 vs 1900 MHz Band

0.0

0.5

1.0

1.5

2.0

GSM850 Voice

WCDMA850 Voice

WCDMA850 Data

GSM1900 Voice

WCDMA1900 Voice

WCDMA1900 Data

Cell range [km]

(23)

Minimum Bandwidth Requirement for WCDMA

WCDMA (= 20 x GSM)

4.0 MHz

Min 2.1 MHz

Min 2.3 MHz

GSM

GSM

= WCDMA

= BCCH or non-BCCH GSM

= Non-BCCH GSM

(24)

Nokia WCDMA Technology Milestones

• WCDMA

• Commercial WCDMA network deliveries since September 2001

• More than 50 WCDMA trials conducted 2001-2002

• First dual mode GSM/WCDMA and triple mode GSM/EDGE/WCDMA terminals

• Supplier for approximately half of the 86 commercially opened WCDMA networks

• 51 WCDMA network deals

• WCDMA-GSM Intersystem handovers available first in the market

• First commercial end-to-end 3GPP IP Multimedia Subsystem used in 3G

• Market leader in R4 core networks globally and in Latin America

• HSPA

• Six public and 15 non-public HSDPA network deals

• Nokia will deliver approximately 10 HSDPA trials during 2005

• First to demonstrate HSUPA, in 3GSM Cannes February 2005

• Launched Internet-HSPA, an HSPA innovation, in March 2005

(25)
(26)

Latin America Market Characteristics re 3G WCDMA

Consolidated market

High growth potential

Operators seek differentiation

Urbanized population

Mainly US frequencies 850 & 1900

(27)

Latin America Service Revenues

0

5

10

15

20

25

30

35

40

2003

2004

2005

2006

2007

2008

2009

Other

SMS

Voice

2G enabled services (voice & SMS) dominate operator revenue streams.

Other services largely possibly with EDGE

Billion EUR

(28)

Latin America Post vs Prepaid Subscribers

Postpaid segment is natural for WCDMA. Postpaid is >15% of total customer

base with >35 USD ARPU compared with prepaid <10 USD ARPU

Million

0

50

100

150

200

250

300

2003

2004

2005

2006

2007

2008

2009

Postpaid

Prepaid

(29)

WCDMA Capability in New Phones

0%

25%

50%

75%

100%

Dec-06

Jun-07 Dec-07

Jun-08 Dec-08

Jun-09

Post-paid

Pre-paid

WCDMA will be built-in functionality in most mid to high end phones

(30)

WCDMA for Urban Latin America

Million

0

5

10

15

20

25

Me

xi

co

Ci

ty

S

ao

Pa

u

lo

B

ue

n

os

A

ire

s

R

io

de Ja

n

ei

ro

Li

m

a

B

ogo

ta

Be

lo

H

or

iz

o

nt

e

S

an

tia

g

o

Ca

ra

ca

s

Gu

ad

al

aja

ra

Po

rto

A

le

g

re

Mo

nt

er

re

y

R

ec

ife

Sa

lv

ad

or

B

ra

síli

a

Latin America is 75% urbanized, therefore an ideal WCDMA environment

(31)

Latin America Spectrum Situation

MHz

0

10

20

30

40

50

60

70

80

90

TF A

rge

n

ti

n

a

T

F

C

hi

le

TI

M

B

raz

il

E

n

te

l C

h

ile

T

IM

A

rg

en

tin

a

A

M

X

B

raz

il (

C

la

ro)

T

F

P

er

u

A

M

X

M

ex

ico

(

Tel

ce

l)

A

M

X

A

rge

nt

in

a (C

TI)

A

M

X

C

o

lo

m

b

ia

TF C

ol

o

m

bi

a

Te

le

m

ar

Br

az

il

B

raz

il T

eleco

m

D

ig

it

el V

en

ez

ue

la

TF

M

ex

ico

TI

M

P

er

u

T

F

B

ra

zil

(V

iv

o

)

A

M

X

E

cu

ad

or

TF

E

cu

ad

o

r

O

la

C

o

lo

m

b

ia

1900

1800

900

850

Current 2G spectrum is sufficient for 3G in most countries

(32)
(33)

Summary

• Global 3G WCDMA Market Situation

• 87 commercial networks, 186 terminals, 32 million subscribers

• 3G WCDMA is welcomed evolution to 2G and has established itself globally

• HSDPA and HSUPA are key enhancements to WCDMA available shortly

• Dramatic expansion of new services to end-users (video call, fast downloads)

• 3G WCDMA Technology Update

• WCDMA is lowest cost cellular network technology for voice and data

• WCDMA enables >1000 minute voice packages

• WCDMA enables 20% better voice quality

• Nokia’s I-HSPA enables broadband wireless access business

• 2 x 4.0 MHz is sufficient for WCDMA if close to friendly GSM

• 3G WCDMA in Latin America

• Postpaid segment is natural for WCDMA

• Most mid to high end phones will have build-in WCDMA/HSPA functionality in 2007

• Notebooks will have integrated HSDPA capability starting 2006

• Huge urban agglomerations are ideal environment for WCDMA

• Current 2G spectrum sufficient for 3G in most countries initially

(34)

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