Mobile WiMAX - Uncovered
Rob Inshaw GM Carrier Solutions, ANZ April, 2007
1 Nortel Confidential Information Agenda
> Introduction > WiMAX Market Adoption & Drivers > Hyper connectivity and WiMAX > WiMAX reality > Devices and Network Status > Nortel Momentum > Summary
2 Nortel Confidential Information Strong WiMAX Ecosystem
> Broad based Ecosystem > Global representation > Cost effective personal broadband for everyone > Eliminate CPE cost with embedded chipsets Source: WiMAX Forum > Standardised & Ubiquitous
WiMAX is Key to Nortel’s Future Growth
3 Nortel Confidential Information WiMAX Technology WiMAX is the First 4G Mobile Broadband Access
OFDM Freq • Next Generation of Air Interface IF • Spectrally Efficient SS SS S S S S IF FT • Immune to Interference S S S1 2S3 4 5 6 7 S N IF FT Guard Time Time N N N N 2N FT + + + + 1 2 3 4 Bandwidth
BTS MIMO
• Better Performance at cell edge MIMO Device • Doubles Capacity (2x2 MIMO) propagation channel • Reduced $/Mbyte • Small Antennas N N Tx and M Rx M Multiple Parallel Channels
All IP, Flat, Architecture
• All IP BTS ASN • Flat, Low cost, Architecture CSN GW • No Legacy Circuit BTS
4 Nortel Confidential Information 4G Technologies
20072008 2009 2010 2011
3GPP UMTS R8 LTE OFDM-MIMO
3GPP2 UMB OFDM-MIMO CDMA
WiMAX Mobile WiMAX OFDM-MIMO
OFDM + MIMO is basis of all 4G technologies
5 Nortel Confidential Information Affordable Mobile Broadband for Everyone
> 2.5G 1xRTT / GPRS / EDGE • Introduced wireless data to the world > 3G EV-DO / HSDPA • Mobile broadband viable but with limited capacity > 4G WiMAX • The right cost structure Æ mobile broadband affordable for the masses
120% 4 3.5 Mbps 100% 3.5 100% 3 y s t 80% li 1/10th the costs of 3G es l ea 2.5 e r i R 9 3-4X Spectral efficiency a 60% W 2 d g n 9 Flat architecture - Less in a 1.5 40% 36% b 1 Mbps ak d Nodes to manage M a o 1 r 20% B $/ Mbps as % of GSM $/ Mbps as % 9% 0.5 <1%
0% 0 Throughput (Mbps) Typical GPRS UMTS HSDPA WiMAX Data source: Nortel <2003 2004 2006 2007+ $/Mbps Typical Throughput (DL)
6 Nortel Confidential Information WiMAX Global Market Adoption & Drivers
7 Nortel Confidential Information Market Segmentation and Sequencing WiMAX is the first 4G network – disruptive technology
2007 2008 2009 2010
Underserved Broadband 2G Leapfrog / 3G Migration • Fixed / Nomadic • Traditional operators compelled by 4G ecosystem • DSL Alternative, VOIP (↓ cost) • Real-time applications with seamless mobility and Attackers QoS • Aggressive market-makers; Quad-play services • Cable / Satellite / Alternative operators 4G • Domino effect unfolds with Rev C & LTE along with WiMAX • WiMAX will have ecosystem lead within 4G
WiMAX Trials Rollout UMB Demos Trials Rollout LTE Standards Demos Trials Rollout
8 Nortel Confidential Information WiMAX Global Market Estimates
WiMAX Spend Forecasts ($M)
$18,000 +49% $16,000 $14,000 $12,000 +33% $10,000 1Q06 +86% $8,000 1Q07 $USM $6,000 $4,000 $2,000 $- Infonetics 2006-2009 Gartner 2005-2010 Nortel 2005-2010
WiMAX Market Opportunity continues to Grow 9 Nortel Confidential Information Broadband Penetration
OECD broadband penetration and GDP per capita Broadband penetration (subscribers per 100 inhabitants, June 2006) Broadband penetration
30 Broadband penetration (subscribers per 100 inhabitants, June 2006) 25
20
15
10 15% OECD Avg.
5
0
k d s y y l c d ic r d d a m e g ia e ia in a li y l o e a rea n n ay en om u t ur r tal b n and key b ic c m nds an o a a w d ad d gi a pan o nc ral an pa I tug and la u la rl inl e l t a b ust ra m S e ol ur ex ree cel K e or an ing e S J or al Ir P T ep en I z F N w C B m A F ust er P e epu ungar M G D her it S K ed A G Z R H R et it h k w ed n uxe c a N S t L ew e v ni U N z lo U Source : OECD C S
• Many OECD countries > 60% Penetration of Broadband per household • 60% of High speed lines subscribed in 2H 2006 in USA were mobile
Huge Opportunity for Personal Broadband
10 Nortel Confidential Information WiMAX Mega Trend Hyper connectivity
11 Nortel Confidential Information My New 3G Phone
Jack of all trades Æ Master of None
12 Nortel Confidential Information Hyper-Connectivity
> Change the Paradigm • One mobile does everything Æ All devices are always connected • Multitude of portable consumer electronic devices > Current Barriers to Hyper connectivity • Experience WiMAX will enable hyper •Cost connectivity • Billing & Provisioning
13 Nortel Confidential Information Mobile WiMAX Status Are we there yet?
14 Nortel Confidential Information WiMAX CPE & Device Acceleration
2007 2008 2009
Time to Market Market accelerant Market maturity • CPE • NBPC/UMPC embedded • CE/HH embedded
PCMICA Card Wireless Router iPhone BlackBerry
WiMAX/WiFi Embedded NB PC CF/SD/USB dongle PMP PSP PDA
Indoor SS Outdoor SS WiMAX/WiFi Embedded UMPC iPod Mobile Phone
Deliver Early MIMO Hyper-connectivity CE: CPE solutions LGE, Microsoft, HP, Apple, …
15 Nortel Confidential Information WiMAX Enabled Enterprise Solutions
> Target Digital Home/SOHO/SMB • SIP for cost savings and internet access bundling • “landline” look and feel device
> Enterprise (WiMAX) • Centrex services • Unified Communications
> Home (WiMAX) WiFi Router W/ VoIP Outdoors • SIP and internet access • SIP + home internet gateway • SIP + WiFi Router IP PBX > WiMAX-enabled key system (WiMAX) Key System • IP enterprise communication solution • Digital hybrid key system
16 Nortel Confidential Information Network Status – Trials Underway
Commercially Deployable 2H 2007
17 Nortel Confidential Information Nortel WiMAX Momentum
M-Taiwan NTU
Announced trial / Win
• 1st WiMAX Networks in Canada, Greece, Netherlands and Taiwan • 1st End to End multi-vendor MIMO “over the air” call st 18 • World’s 1 demonstration of Collaborative MIMO Nortel Confidential Information Summary
> Mobile WiMAX is the start of 4G > WiMAX continues to build strong momentum Globally > Hyper connectivity is a key inflection point in personal broadband. > It is not just about mobility but Consumer Electronics > Trials are underway with deployment in 2H 2007 > Nortel is building global momentum with WiMAX
19 Nortel Confidential Information Thank you
20 Nortel Confidential Information Communication Enabled Applications
> 1.3M text and voice messages are sent via Xbox Live every day totaling half a billion messages per year > 100M Mobile VoIP users by 2011 > Wireless enabled mobile entertainment devices will make up 36% of VoIP devices sold in 2011
+
Business Consumer
21 Packet Voice from Non Traditional Sources Nortel Confidential Information