CDMACDMA andand LTELTE

Technical & Commercial Implications of Interoperability

James Person COO CDMA Development Group

Dallas, TX November 2009 CDGCDG CharterCharter

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

Subscriber Value-Added Operators Equipment Services

Network Network Enhancement/ Network Interface & Infrastructure Optimization 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

Technical Service Information Distribution Deployment Assistance Development

2 www.cdg.org CDMA:CDMA: 502502 MillionMillion GlobalGlobal SubscribersSubscribers More than 315 operators in more than 109 countries/territories have deployed or are planning to deploy CDMA2000

CDMA2000 will continue to be an LTE interoperability option for 2 hundreds of operators well into the next decade www.cdg.org CDMACDMA GlobalGlobal OperatorOperator GrowthGrowth Number of CDMA2000 operators increased by nearly 30% in the past 3 years New CDMA2000 Operators per Year (Cumulative)

Most CDMA2000 operators have not yet 2 planned for their 4G networks www.cdg.org GlobalGlobal CDMA2000CDMA2000 DeviceDevice ShipmentsShipments CDMA2000 device shipments are shifting to “broadband”

(Millions) Annual CDMA2000 Device Shipments As of December 2008 Annual Device Shipments Annual Device

Sources: Average of ABI (Q4’08), Yankee (Q4’08), Gartner (Dec’08), IDC (Dec’08), IMS (Dec’08), iSuppli (Oct’08)

More than 2,300 CDMA200 devices have been 2 commercialized by 120 suppliers www.cdg.org GlobalGlobal CDMA2000CDMA2000 SubscriberSubscriber ForecastForecast CDMA2000 migration from 2G (cdmaOne) complete

Subscribers CDMA2000 Subscribers Worldwide (Millions) (Cumulative)

EV-DO

1X

cdmaOne

*Source: Actual CDMA Development Group 2**Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008), iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008 www.cdg.org CDMA2000CDMA2000 RoadmapRoadmap 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

2 www.cdg.org CDMA2000CDMA2000 RoadmapRoadmap CDMA2000 offers a strong long-term path forward

CDMA2000 1X 1X CDMA2000CDMA2000 RoadmapRoadmap1X Enhancements Advanced

EVRC-B + QLIC + QOF New Channel Card

33-40 Erlangs 1.5X increase 4X increase 1 2 DL & UL: 153 kbps in voice capacity in voice capacity (1.25 MHz, FDD) DL & UL: 153 kbps DL & UL: 307 kbps

Multi- H/W 1xEV-DO 1xEV-DO Carrier Upgrade DO Rel. 0 Rev. A EV-DO Rev B Advanced

3 DL: 2.4 Mbps DL: 3.1 Mbps DL: 9.3 Mbps DL: 14.7 Mbps4 DL: 32 Mbps5 UL: 153 kbps UL: 1.8 Mbps UL: 5.4 Mbps UL: 5.4 Mbps UL: 12.4 Mbps (1.25 MHz, FDD) (1.25 MHz, FDD) (5 MHz, FDD) (5 MHz, FDD) (4x1.25 MHz, FDD)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

1 Capacity increase is primarily due to new EVRC-B codec, handset interference cancellation (QLIC) and Quasi-Orthogonal Functions (QOF) 2 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 1.25 MHz carriers 5 2DO Advanced includes smart network techniques, new device enhancements, 2x2 MIMO support, 64 QAM in the DL and 16 QAM in the UL 6 Operators have the option to only implement software upgrades www.cdg.org Quadruples the voice capacity of today’s industry-leading CDMA2000 1X networks 1X Advanced New handset & channel card

4x Voice users Achievable Today 3x Voice users 1.5x x Voice users Voice users

Without Mobile With Mobile Rx Diversity Rx Diversity 1X Today • EVRC-B vocoder Interference Radio link • EVRC • QLIC (device IC) Cancellation Enhancements • Single RX New handset • BTS Interference Cancellation+ • Efficient power control Network upgrades • Advanced Device IC (QLIC) • Early termination • Smart blanking Relative capacity/sector (1.25 MHz)

CDMA2000 1X Advanced is a natural step for operators looking to lower2 their cost per call and provide voice service while LTE focuses on data www.cdg.org EVEV--DODO isis DrivingDriving DataData RevenueRevenue GrowthGrowth Demand for broadband services is driving substantial data revenue per user Verizon Wireless

Retail Retail Data ARPU and Percent of Data ARPU Service (USD) Data Revenue as a Percent of Service Revenue Revenue 1 Average Revenue Per User (ARPU)

Annual data revenues grew 33 percent over the prior year to $3.9 billion. 45.5 million of Verizon’s subscribers have 3G broadband EV-DO devices.

2 1 Commercial EV-DO market information based on Verizon press releases and other publicly available information, July 24, 2009 www.cdg.org InteroperabilityInteroperability withwith LTELTE CDMACDMA andand OFDMAOFDMA CDMA and OFDMA are different technologies with different capabilities

CDMA2000 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

2 www.cdg.org CDMA2000CDMA2000 andand OFDMOFDM--BasedBased SolutionsSolutions CDMA2000 is complemented with several OFDM-based solutions

CDMA2000 Evolution Path

CDMA2000 1X 1X Advanced

H/\W 1xEV-DO 1xEV-DO Multicarrier Upgrade DO Advanced Rel. 0 Rev. A EV-DO Rev. B

OFDMA-based Technologies LTE

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

LTE is part of the CDMA2000 technology roadmap

2 www.cdg.org CDGCDG’’ss RoleRole inin thethe StandardsStandards ProcessProcess

CDGCDG isis aa MarketMarket RepresentationRepresentation PartnerPartner (MRP)(MRP) toto bothboth 3GPP3GPP andand 3GPP23GPP2

2 Source: IDC www.cdg.org CDMACDMA OperatorsOperators withwith AnnouncedAnnounced LTELTE plansplans

The following CDMA2000 operators have announced their plans to deploy LTE

Most other CDMA2000 operators do not yet have the requisite 2 demand, spectrum or capital to deploy LTE www.cdg.org LTELTE Interoperability:Interoperability: CDGCDG AreasAreas ofof FocusFocus Current CDG initiatives

Seamless Mobility: y To ensure service continuity, inter-standard hand-offs between LTE and CDMA2000 networks is essential

System Determination: y To maximize revenue, the appropriate system determination algorithms must exist in every CDMA2000/LTE device

Device Availability and Certification: y 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: y To enable global roaming, inter-standard roaming between LTE and CDMA2000 networks is essential

2 www.cdg.org CDMA2000CDMA2000 ManufacturersManufacturers WorkingWorking onon LTELTE The following CDG members are developing LTE devices and equipment

Infrastructure Vendors

Chipset and Device Vendors

Test Vendors

2 www.cdg.org OFDMAOFDMA BroadbandBroadband OverlayOverlay forfor DevelopedDeveloped MarketMarket OFDM-based solutions will be built-out over time as demand grows and spectrum becomes available

Today 3G CDMA WAN Coverage

Next 10 years OFDM OFDM OFDM (Coexistence) Urban-zone 3G CDMA Urban-zone 3G CDMA Urban-zone

Beyond 10 years? OFDMA (Migration) 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 2) Carrier-grade VoIP 3) Low-cost devices * 4) Global roaming * 2 * Harmonization of spectrum for OFDM-based solutions will be necessary to build economies of scale and enable global roaming www.cdg.org EVEV--DODO EvolutionEvolution PeriodsPeriods

Ubiquitous Additional Capacity Mature VoIP; Seamless EV-DO Service Femtocells Concurrent VoIP/Data; LTE Handoff VoIP High-Definition Multimedia; Integration w/LTE Mature DO EV-DO EV-DO Advanced Rev. B EV-DO Rev. A

LTE

% of Addressable Market Addressable of % LTE First Volume LTE LTE First Small Devices Regional First Full Scale Volumes Deployments Deployments

Today 2010-2011 2012 2015 2017

2 Source: Airvana` www.cdg.org CDMA2000 WorldModeTM Devices More than 200 WorldMode devices from more than 57 vendors

CDMA2000 1X CDMA2000 1X EV-DO Rev. A + + + GSM EV-DO Rev. A HSPA + + GPRS GSM + Nokia RIM BlackBerry GPRS 8830 2865 Dell Precision Series

What CDMA2000 1X Comes CDMA2000 1X + Next? + EV-DO Rev. A EV-DO Rev. A/B + + Coming! HSPA LTE

LG SH-100

2 Samples shown, LTE WorldMode is concept only www.cdg.org InitialInitial WorldModeWorldMode LTELTE DeviceDevice AvailabilityAvailability CDMA industry is developing CDMA2000 / LTE multimode/multiband devices

Multimode LTE Commercial Device Availability

Modes: •LTE LTE Peak Data Rates (20 MHz): • CDMA2000 1X DL: 50 Mbps • EV-DO Rev. A UL: 25 Mbps • EV-DO Rev. B •UMTS • HSPA+ PC Card Handset

Q4 Q2 2009 2010 2011

2 www.cdg.org WhatWhat aboutabout LTELTE voicevoice communicationscommunications Most CDMA2000 operators will rely on their CDMA2000 1X network to deliver voice

LTE only for voice and data? Or, LTE for data and 1X for traditional voice?

Factors to consider: How important is simultaneous voice & data? How important is an all-IP service model? Should voice capacity be maximized? CAPEX spending priorities? Traditional LTE VoIP? C/S 1X Voice? Handset complexity? Roaming Partners? Timing? 1X Advanced? EV-DO VoIP?

2 www.cdg.org MigrationMigration TimelineTimeline With an increasing number of subscribers, the migration process is lengthening 4G Migration of Subscribers

3G Growth of 2G peaks

2G

2G subs exceed 1G subs – Roughly 15 years after inception of industry.

1G

1985 1990 1995 2000 2005 2010 2013 Putting things into perspective. The generational migration process will take many years. Voice will remain a key application. Source:2 Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008), iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008 www.cdg.org LessonsLessons Learned:Learned: MigrationMigration fromfrom 1G1G toto 2G2G toto 3G3G

• 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

2 Source: IDC www.cdg.org For more information…

www.CDG.org

2 www.cdg.org