The Future of All-IP Broadband Wireless Mobile Networks ASWN 2004 - - PowerPoint PPT Presentation

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The Future of All-IP Broadband Wireless Mobile Networks ASWN 2004 - - PowerPoint PPT Presentation

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The Future of All-IP Broadband Wireless Mobile Networks ASWN 2004 Presentation August 11, 2004 Airvana Proprietary & Confidential ASWN 2004 Presentation Page 1 Outline Market Trends Technology Evolution Emerging Services and

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The Future of All-IP Broadband Wireless Mobile Networks

ASWN 2004 Presentation August 11, 2004

ASWN 2004 Presentation

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Outline

Market Trends Technology Evolution Emerging Services and Applications

ASWN 2004 Presentation

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Market Trends

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The Growth of Data Traffic

ASWN 2004 Presentation

Source: KDDI Q2’03 Investor Presentation A KDDI Packet = 128 bytes

  • Data Traffic is Growing. Voice Traffic is Stabilizing.
  • It is not all about voice !!
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The Growth of Data Traffic (Cont’d)

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The Growth of the ARPU

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Average Revenue Per User (ARPU) is Growing. But: ARPU/MByte is declining. While: Data Traffic Per User is Growing. Wireless Network Cost-Effectiveness is Key.

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The Growth of the ARPU (Cont’d)

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Source: Company websites and Q4’03 Investor presentations. ARPU converted to USD.

  • High-Speed (1xEV-DO) ARPU of SKT, KTF and KDDI compared to each company’s Low-Speed (1xRTT) data service.

20 3.7 5.07 40 12.5 15.5

20 40 60 KDDI KTF SKT High-Speed Low-Speed

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High-Speed Delivers 4-5X ARPU of Low-Speed Subscribers

Source: 2003 SKT Company Presentation

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High-Speed Delivers 4-5X ARPU of Low-Speed Subscribers

Source: KTF Q4’03 Earnings Release

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The Effect of High-Speed on Subscriber Growth

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48% of subs come from competitors!

*Source: KDDI Financial Results of the Fiscal Year ended March 2004, presented on Apr 28,2004

High-Speed data is attracting subscribers. High-Speed data is a major competitive advantage.

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The Effect of High-Speed on Subscriber Growth (Cont’d)

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Highlights

  • Almost 7 million by March 31, 2004.
  • KDDI added 350,000 subscribers within 4 months of launch.

Global 1xEV-DO Subscribers

1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04

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50,000 100,000 150,000 200,000 250,000 300,000

  • May. 2003 Jun. 2003
  • Jul. 2003 Aug. 2003 Sep. 2003 Oct. 2003 Nov. 2003 Dec. 2003 Jan. 2004 Feb. 2004

Net Adds

KDDI

DoCoMo Total Subscribers 16,483,100 45,514,000

EV-DO Launch

ASWN 2004 Presentation

The Effect of High-Speed on Subscriber Growth (Cont’d)

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Technology Evolution

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3G Technology Summary

5MHz CS, No VoIP 384 Kbps 2 Mbps WCDMA (Rel-99) VoIP CS, VoIP VoIP No VoIP Voice Support 1.25 MHz 1 Mbps 5 Mbps CDMA (1xEV-DV) 1.25 MHz 300 Kbps 2.4 Mbps CDMA (1xEV-DO Rel-0) 1.25 MHz 1.8 Mbps 3.0 Mbps CDMA (1xEV-DO Rel-A) 5 MHz Spectrum Used 384 Kbps Uplink Speed 14.4 Mbps Downlink Speed HSDPA (Rel-5) Description CS: Circuit Switched

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ASWN 2004 Presentation

The All-IP Architecture

The traffic on broadband wireless networks is increasingly IP. A huge number of companies develop IP software. Standardization yields cost effectiveness. No single company can or needs to develop all the software needed for a broadband wireless network.

The All-IP Architecture.

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All-IP Architecture Benefits

IP reduces the cost of the Data Backhaul Network

RN RN RN RN RN RN RN RN RN RN RN RN RN RN

IP Transport

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IP Routing Increases Network Reliability/Availability

Dynamically connect to an alternate Radio Network Controller (RNC) if an RNC fails

RN RNRN

IP Network

RNC 2

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RNC 1 RNC 1

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All-IP Architecture Benefits (Cont’d)

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An All-IP Architecture enables network operators to leverage existing IP-based QoS technologies.

All-IP Architecture Benefits (Cont’d)

RNC EMS AN-AAA

DiffServ Router

IP Backhaul Network Public Internet

RN

QoS Config

PDSN ASWN 2004 Presentation

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An All-IP Architecture enables network operators to leverage existing IP-Multicast technologies to provide Multimedia Services.

All-IP Architecture Benefits (Cont’d)

IP Network

RNC-1 RNC-n RN RN RN RN Content Server

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Technology Summary

  • Allow the system to apply different treatment (e.g., retransmission
  • verload control and scheduling) strategies to different flows.
  • Control latency during heavy load by prioritizing delay-sensitive traffic
  • ver other traffic.
  • A single subscriber can simultaneously use different applications with

different QoS rating.

Value Proposition

  • Enables operators to launch delay-sensitive services such as Push-to-talk

(PTT) and Push to Media.

  • Enables operators to launch carrier-grade VoIP.
  • Subscribers can simultaneously use PTT (or VoIP), access the web, and email.
  • Enables operators to offer preferential network performance to customers who

pay more (e.g. enterprise laptops over handsets).

QoS

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QoS Benefits

Customer Segmentation

  • Deliver different services and network performance to different

customer segments.

  • Gain flexibility in creating data pricing plans.

ASWN 2004 Presentation

$50/month: Enterprise Plan

  • Unlimited data access
  • No Rate Limit
  • Priority in scheduler
  • Priority in overload

conditions

  • Not delay sensitive

$15/month: Handset Plan

  • Unlimited data access
  • Max Rate = 300 kbps
  • Not delay sensitive
  • Low priority in scheduler
  • Low priority in overload

conditions $20/month: PTT and Multimedia Plan

  • Unlimited data access
  • Max Rate = 300 kbps
  • Support for PTT

traffic

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QoS Benefits (Cont’d)

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Enables operators to introduce New Applications:

  • Industry-leading Push-to-talk
  • Voice over IP (VoIP):

– With performance comparable to that of circuit-switched voice – With capacity exceeding that of circuit-switched voice.

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Emerging Services and Applications

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Evolution of Personal Communications

Telephony Text Messaging Push-To-Talk Picture Messaging On-Line Gaming Broadband PC Connectivity Broadcast TV

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Outlook: CDMA Applications & Services

Telephony Telephony Web Content Notebook PC Access Camera Phone Telephony Web Content Notebook PC Access Camera Phone Push-To- Talk Push-To- Talk Fixed Broadband Video On Demand Telephony Web Content Notebook PC Access Camera Phone Push-To- Talk Fixed Broadband Video On Demand Multimedia Messaging Broadcast Video On-Line Gaming IS-95 1xRTT 1xEV-DO

Legend

Telephony Web Content Notebook PC Access Camera Phone Push-To- Talk Fixed Broadband Video On Demand Multimedia Messaging Broadcast Video On-Line Gaming

ASWN 2004 Presentation

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Why Push to Talk on 3G Wireless Networks?

  • Push-to-talk (P2T) is a differentiated service
  • Nextel, the only operator to have P2T for over 10 years, leads US Wireless

Industry in ARPU and churn.

  • P2T is being launched by operators worldwide as a packet data application on

2.5G (1x and GPRS) networks.

  • Push-to-talk over 2.5G Packet Data Networks
  • 2.5G networks have limited data capacity – insufficient if application takes off.
  • Consumers expect P2T calls to cost less than regular voice calls but 2.5G

networks deliver packet data at the expense of voice capacity.

  • Push-to-talk over 3G Wireless Networks
  • Offers a high-bandwidth, spectrally efficient, data channel to deliver P2T.
  • Enables operators to offer enhanced P2T services – like Push-to-Media – that

leverage the high-bandwidth and the proliferation of multimedia devices.

ASWN 2004 Presentation

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Voice over IP (VoIP)

  • QoS with Flexible Priority Scheduling
  • Fast Physical Layer Retransmission for Reliability with QoS
  • Fast Sector Switching for Mobility
  • Efficient Multiplexing & Header Compression for high capacity

IP Core

SIP SERVER MEDIA GATEWAY

QoS-Aware Radio Access Network

SIP Handset

PSTN

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Why VoIP on Future Wireless Networks?

Carrier VoIP has very strong momentum on wire-line networks.

  • Enhanced Voice Services.
  • Common services platform across all markets.
  • Lower Operating Expenses.
  • Competition from Cable and Startups.

Operators want VoIP to work over Wireless

  • Operators with both wired and wireless networks want to offer unified

suite of enhanced voice features.

  • Operators with both wired and wireless networks reduce operating

expenses.

  • Wireless-only operators need VoIP, if their competitors launch it.

ASWN 2004 Presentation

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VoIP Delivers Feature-Rich Voice

Phone number independent of location. Number for Life Network-assisted speed dial. Speed Dial Conference call for up to 9 people (9-way calling). Personal Conferencing Home phone will ring up to five phones in sequence to find subscriber. Locate Me No incoming calls. Do not Disturb Online personal call manager. Remembers phone numbers, for organization. Call Logs Retrieve voicemail as email. Group voicemails and “talking emails”. Enhanced Voicemail

Exemplary features enabled by VoIP

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Broadcast Services

Broadcast Enabled Wireless Network

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Content Server

Clients

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Broadcast Services Deployment

IP Transport

Radio Node

Internet

Radio Node Controller

PDSN

Turn on IP Multicast

  • n Backhaul Routers

Content Server

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Why Broadcast on Future Wireless Networks?

Multimedia Traffic over High-Speed Networks increases the Average Revenue Per User.

  • SK Telecom: In 2003, Premium Multimedia increased 1xEV-DO

ARPU from $13.9 to $19.45.

  • KTF: In 2003, Video on Demand (VoD) increased 1xEV-DO ARPU

from $10.50 to $17.3

Multimedia brings Differentiation.

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But Multimedia Downloads are Bandwidth intensive

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33.7% 22.6% 22.5% 12.9% 3.0% 2.3% 1.3% 0.2% 1.5% 30.0% 5.0% 8.0% 51.0% 1.3% 1.0% 1.2% 0.3% 2.2%

Music TV Adult Content Phone Decoration Movie - Animation June Special Game Traffic Info Others

Montly Packet Occupation Rate Monthly Hit Rate

Source: SKT

In South Korea, Music, TV and Adult Content account for 43% of hits but 78.8% of network usage

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Broadcast Transforms Economics of Multimedia Business Model

Operators can push multimedia to mass audiences or large groups

  • Makes multimedia-content delivery over wireless links scalable,

provides Cable TV-like business model.

More efficient compared to unicast on-demand access

  • Efficient over the air.
  • Efficient in network nodes.
  • Efficient in backhaul.
  • Efficient in servers.

Broadcast increases the profitability of the wireless multimedia delivery business model.

Instant delivery of event-triggered content (breaking news, sports, emergencies, weather advisories). Store and Playback Content models in which time-insensitive content (Soap operas, music videos) is broadcast at off-peak hours.

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The Future

ARPU: ARPU/Mbyte: Circuit-Switched Voice Traffic: IP Traffic: Services and Applications will become All-IP. Wireless Networks will become less Air-Interface- Specific and more IP-based.

ASWN 2004 Presentation

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Thank you!

ASWN 2004 Presentation