3g wcdma for latin america

1 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen

LAS SOLUCIONES TECNOLOGICAS DE 3G WCDMA

OSIPTEL, LIMA18 de octubre de 2005, 10:00-12:00

Petri ReijonenSales Director, 3G WCDMA & General Manager, MESOLatin America, Nokia Networks


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


Global 3G WCDMA Market Situation


3G WCDMA Basics Reviewed

3G WCDMA/HSPA GSM/EDGECarrier 5 MHz 200 kHz + frequency hoppingFrequency bands New and existing bands Existing bandsAccess Wide-Band Code Division Time Division

Network optimization Antenna and site planning Frequency planning

HW capacity 700 simultaneous calls/cabinet 120 simultaneous calls/cabinetNew services Simultaneous voice and data

Low delay IP services (VoIP)Dual Transfer Mode in 2006Long delay IP services (PTT)

Max downlink speed 14.4 Mbps HSDPA specs3.6-7.2 Mbps HSDPA terminals

480 kbps specs240 kbps terminals

Max uplink speed 5.76 Mbps HSUPA specs1.46-2.0 Mbps HSUPA terminals

480 kbps specs120 kbps terminals

Radio network RAN = UTRAN = Node-B + RNC BSS = GERAN = BTS + BSC

Round trip delay <100 ms >200 ms


WCDMA Commercial Networks, Terminals, Subscribers

87 commercial WCDMA networks, 186 WCDMA phones, 32 M WCDMA subscribers


3G WCDMA Standards Situation4G

3.9 G

HSPA3G WCDMA HSDPA I-HSPAHSUPA

GSM GPRS EDGE EDGE Evolution2G

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


WCDMA Service Evolution

HSPAHSPA11--1010MbpsMbps

WCDMAWCDMA128128--384384

kbpskbps

EDGEEDGE8080--160160

kbpskbps

GPRSGPRS3030--4040kbpskbps

GSMGSM1010--4040kbpskbps

Video sharingVideo sharingVideo Video

telephonytelephonyReal time IPReal time IP

Real time Real time gamesgames

High speed High speed mobile mobile

intranetintranet

Faster Faster business business

connectivityconnectivityFaster Faster

streamingstreamingFaster content Faster content

downloaddownloadWeb browsingWeb browsingMobile intranet Mobile intranet

accessaccessVideo streamingVideo streaming

VoiceVoiceSMSSMS

MMSMMSWAPWAP

DownloadDownloadPresencePresence

Audio streamingAudio streaming

WCDMA enables real time connections, efficient business connectivity, close to WLAN bit rates and high efficiency


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


Content

Video calling

E-mail

Video mail

Live TV


% % % %

Japan South Korea Italy Hong Kong

Source: Nokia study June 2005, based on regular usage of several times a week. Note: Korea CDMA

Each market has 1 or 2 popular 3G services

http://www.cia.gov/cia/publications/factbook/flags/ja-flag.html

http://www.cia.gov/cia/publications/factbook/flags/ks-flag.html

http://www.cia.gov/cia/publications/factbook/flags/it-flag.html

http://www.cia.gov/cia/publications/factbook/flags/hk-flag.html


3G Operators ARPU

36

50

56

52

3034

19

27

42

30

Country average ARPU70 Hutchison ARPU60

50

40

30

20

10

€ 0Italy UK Austria Sweden &

DenmarkAustralia

Source: Hutchison, EMC database, Jun 05

3G WCDMA operators generate higher ARPU in voice and data


3G WCDMA Technology Update


High WCDMA Call Capacity

0

20

40

60

80

100

120

140

AMR 12.2kbps

AMR 10.2kbps

AMR 7.95kbps

AMR 7.4 kbps AMR 5.9 kbps AMR 4.75kbps

Use

rs p

er s

ecto

r per

5 M

Hz

Up to 130 simultaneous calls per sector


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 7000Subscribers per site

Min

utes

/sub

/mon

thWCDMA 2+2+2 assumed

WCDMA enables >1000 minutes of usage


High Voice Quality with Wideband AMRQuality [MOS]

3.03.13.23.33.43.53.63.73.83.94.0

AMR 5.9kbps

AMR 12.2kbps

WB-AMR8.85 kbps

WB-AMR12.65kbps

Capacity [users/sector]

0

20

40

60

80

100

120

140

AMR 5.9kbps

AMR 12.2kbps

WB-AMR8.85 kbps

WB-AMR12.65 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


High HSPA Peak Data RatesUplink 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 Maxdata rate # of codes TTI Max

data rate

5 codes QPSK 1.8 Mbps 2 x SF4 2 ms10 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

HSPA brings 10-20 x speed compared to EDGE


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

GB

/sub

/mon

th


Low HSPA Latency

0

20

40

60

80

100

120

140

160

180

200

WCDMA 2004 WCDMA 2005 HSDPA 2005 HSUPA

ms

WCDMA 120 ms, HSDPA 80 ms, HSUPA 50 ms delay


Internet-HSPA

RNC SGSNGGSN/ISN Internet

Standard Nokia BTS

ISNwith HA

I-HSPA module

RNC = Radio Network ControllerSGSN = Serving GPRS Support NodeISN = Intelligent Service Node HA = Home Agent

Standard terminals

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


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]

HSPA has substantially larger cell range than WiMAX


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

Nokia’s I-HSPA innovation lowers capital expenditure significantly


3G Impact to Base Station Backhaul

BEFOREHSPA

AFTERHSPA

63E1/STM-1

32E14E1 8E1 16E11E1 2E1 2 x STM-1Capacity

2-3 x backhaul transmission needs to be planned for high HSPA traffic


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

UMTS850USA

1.7/2.1 GHzUSA

2100 MHzGlobal

1900 MHzUSA

1800 MHzEurope

Next: UMTS 900 EuropeUMTS 1700 JapanUMTS 2600 Europe

CEPT FDD UL 2500-2570CEPT FDD DL or TDD 2570-2620CEPT FDD DL 2620-2690

UMTS800Japan


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]

1900 MHz requires 2-3 x more sites than 850 MHz


Minimum Bandwidth Requirement for WCDMA

WCDMA (= 20 x GSM)

4.0 MHz

Min 2.1 MHzMin 2.3 MHz

GSMGSM

= WCDMA

= BCCH or non-BCCH GSM= Non-BCCH GSM

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


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

Nokia is technology leader in 3G WCDMA & HSPA


3G WCDMA in Latin America


Latin America Market Characteristics re 3G WCDMA

• Consolidated market

• High growth potential

• Operators seek differentiation

• Urbanized population

• Mainly US frequencies 850 & 1900

WCDMA wave after operators start seeking new revenues streams and differentiation


Latin America Service Revenues

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009

OtherSMSVoice

2G enabled services (voice & SMS) dominate operator revenue streams. Other services largely possibly with EDGE

Billion EUR

Source: Nokia Mobile Services Forecast - March 2005


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

PostpaidPrepaid

Source: Pyramid Latin America Mobile Demand 1Q2005


WCDMA Capability in New Phones

0%

25%

50%

75%

100%

Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Post-paidPre-paid

WCDMA will be built-in functionality in most mid to high end phonesSource: Nokia


WCDMA for Urban Latin America Million

0

5

10

15

20

25

Mexico

City

Sao P

aulo

Bueno

s Aire

s

Rio de

Jane

iro

Lima

Bogot

a

Belo H

orizo

nte

Santia

goCar

acas

Guada

lajar

aPor

to A

legre

Monter

rey

Recife

Salvad

orBra

sília

Latin America is 75% urbanized, therefore an ideal WCDMA environmentSource: www.citypopulation.de


Latin America Spectrum SituationMHz

0

10

20

30

40

50

60

70

80

90

TF A

rgen

tina

TF C

hile

TIM B

razil

Ente

l Chi

le

TIM A

rgen

tina

AMX Bra

zil (C

laro)

TF P

eru

AMX Mex

ico (T

elcel)

AMX Arg

entin

a (CTI)

AMX Colo

mbia

TF C

olom

bia

Telem

ar B

razil

Brazil

Tele

com

Digite

l Ven

ezue

laTF

Mex

icoTI

M Per

u

TF B

razil

(Vivo

)

AMX Ec

uado

rTF

Ecu

ador

Ola Colo

mbi

a

19001800900850

Current 2G spectrum is sufficient for 3G in most countriesSource: Nokia


Summary


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• New spectrum1700/2100 or 2100 and 2600 needs to be reserved for future 3G


¡Muchas gracias!

3g wcdma for latin america

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