3GPP Beijing worksho..

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Update on the Global Deployment Update on the Global Deployment of 3GPP Systemsof 3GPP Systems

Alan Hadden

President, GSA

Global mobile Suppliers Association

www.gsacom.comwww.gsacom.com

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About GSAAbout GSA

GSA is the representative body for the GSM/3G supplier industry, bringing together all views on GSM/EDGE/WCDMA

Objectives to strengthen promotion of GSM world-wide in new and existing markets to support operators and promote the evolution of GSM as the platform for

delivery of third-generation (3G) multimedia services

The leading GSM/3G companies are members of GSA:

Aeroflex · Agere Systems · Broadcom · Business Logic Systems Ltd. · Communications Consultants Worldwide Ltd. · Comsys Mobile & Signal Processing Ltd. · Ericsson · EVI Technology · Hewlett Packard - Nokia · Openwave · Panasonic · Philips Semiconductors · RADIXS · Siemens ·

Talking Eye · Tekelec · Telcordia · TTPCom · Wavecom

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Deliver market facts, intelligence & data for the mobile industry

GSA website is the industry reference source (www.gsacom.com)

Facilitate networking/dialogue cross-industry

Advise policy-makers on most favourable conditions for market development

Inform media & analysts about milestones, drivers, developments, trends

Organize high-level interaction with GSM/3G operators for improved information sharing, case study/success sharing, to assist the evolution to 3G

Opinion Papers broaden understanding/acceptance of the key issues

Deliver at global & regional level: Africa, APAC, Europe, India, Latin America

GSA is a Market Representation Partner in 3GPP

ActivitiesActivities

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GSM/3G Fast FactsGSM/3G Fast Facts

670 commercial GSM networks in over 200 countries/territories

Almost 1.8 billion GSM subscribers (31.03.06)

- Asia leads the way with 650 million subscribers

387 million GSM subscribers added in 2005, which is 100 million higher than added in 2004

GSM increased market share by 3% in 2005; accounts for 77.7% of the world’s cellular market

GSM outsold its nearest competitor cdma by 7.7 times globally in 2005

Approaching 1700 GSM phone models from over 100 vendors

Approaching two-thirds of global total of 163 3G/WCDMA license holders launched services

105 commercial 3G/WCDMA networks in 47 countries

315 WCDMA terminal devices launched; 25 also support HSDPA

Over 55 million WCDMA subscribers (31.03.06)

WCDMA was responsible for over 30% of new mobile subscriptions in Western Europe in 2005

79 WCDMA operators evolving to HSDPA in 43 countries; 14 commercial launches

139 commercial GSM/EDGE networks in 78 countries, from total of 192 EDGE deployments in 102 countries

212 GSM/EDGE terminal devices announced

67 operators are deploying combined EDGE-WCDMA networks: 36 in commercial service

48 terminal devices support EDGE & WCDMASubscriber numbers source: Informa Telecoms & Media

The GSM family of technologies embraces GPRS, EDGE, WCDMA & HSPA, all fully open standards

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GSM subscribers in Asia Pacific reached 650 GSM subscribers in Asia Pacific reached 650 million in March 2006million in March 2006

(521 million March 2005 = 24.7% annual growth)(521 million March 2005 = 24.7% annual growth)

The global GSM success storyThe global GSM success story

GSM grew 11 times more than cdma in the year to March 2006GSM grew 11 times more than cdma in the year to March 2006

ChinaChina

GSM grew over 54 mil subs in past GSM grew over 54 mil subs in past 12 months = over 1 million/week12 months = over 1 million/week

Cdma added under 5 mil subs in Cdma added under 5 mil subs in the same periodthe same period

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The The globalglobal GSM success story GSM success story continued …continued …

India reached almost 64 million India reached almost 64 million GSM subscribers at 31.03.06GSM subscribers at 31.03.06

GSM has 77.5% market shareGSM has 77.5% market share

GSM additions = 22.7 million in GSM additions = 22.7 million in 12 months = over 55% growth12 months = over 55% growth

Cdma added 8 million in same Cdma added 8 million in same periodperiod

IndiaIndia

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Europe:Europe:Eastern Europe 289 million (48.9% annual growth)Eastern Europe 289 million (48.9% annual growth)Western Europe 426 million (8.1% annual growth)Western Europe 426 million (8.1% annual growth)

The global GSM success story The global GSM success story continued …continued …

Africa:Africa:146 million (62.6% annual growth)146 million (62.6% annual growth)

Middle East:Middle East:51.4 million (63.5% annual 51.4 million (63.5% annual

growth)growth)

Americas:Americas:Canada and USA 85 million (35% annual growth)Canada and USA 85 million (35% annual growth)

Latin America and the Caribbean 144 million (92.6% annual Latin America and the Caribbean 144 million (92.6% annual growth)growth)

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cdmaOnecdmaOne

GSMGSM

TDMA TDMA

2G

PDC PDC

CDMA2000 1x

CDMA2000 1x

First Step into 3G

GPRSGPRS 90%

10%

Evolution of Mobile Systems to 3GEvolution of Mobile Systems to 3G- Drivers: capacity, data speeds, lower cost of delivery - - Drivers: capacity, data speeds, lower cost of delivery - for revenue growthfor revenue growth

EDGEEDGE

WCDMA

WCDMA

3G phase 1 Evolved 3G

3GPP CoreNetwork

CDMA2000 1x EV/DO

CDMA2000 1x EV/DO

HSDPA/HSUPA

HSDPA/HSUPA

Expected market share

EDGEEvolution

EDGEEvolution

CDMA2000 EV/DO Rev A

CDMA2000 EV/DO Rev A © GSA - 2006

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105 Commercial WCDMA Operators 105 Commercial WCDMA Operators in 47 countriesin 47 countries

40 WCDMA 40 WCDMA networks networks launched launched

commercial commercial services during services during

2005, 2005, confirming confirming

WCDMA as the WCDMA as the leading 3G leading 3G standardstandard

Source: GSA survey published March 24, 2006

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315 WCDMA/HSDPA devices315 WCDMA/HSDPA devices

- launched by 38 suppliers- launched by 38 suppliers

Source: GSA survey published February 28, 2006

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Strong WCDMA subscriber growthStrong WCDMA subscriber growth

Over 55 million WCDMA Over 55 million WCDMA subs at 31 March 06subs at 31 March 06

Approaching 140% Approaching 140% yearly growthyearly growth

Over 3 million adds Over 3 million adds monthly in last 6 monthsmonthly in last 6 months

WCDMA gained over WCDMA gained over 10% share of mobile 10% share of mobile

growth in Asia Q1 06 growth in Asia Q1 06

WCDMA gained 1 in 3 WCDMA gained 1 in 3 new connections in new connections in

Western Europe in Q1 06Western Europe in Q1 06

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WCDMA growth outperforming WCDMA growth outperforming analogue and GSManalogue and GSM

WCDMA growing at WCDMA growing at faster rate than GSM at faster rate than GSM at

equivalent stage of equivalent stage of deployment deployment

WCDMA is matureWCDMA is mature

Wide choice and Wide choice and availability of WCDMA availability of WCDMA

devicesdevices

WCDMA is the leading WCDMA is the leading 3G standard globally3G standard globally

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EDGE – global, mature technologyEDGE – global, mature technology

Two-thirds of the Two-thirds of the global total of GPRS global total of GPRS live networks have live networks have committed to the committed to the EDGE upgradeEDGE upgrade

Source: GSA survey published March 24, 2006

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EDGE commercial networksEDGE commercial networks

139 GSM/EDGE 139 GSM/EDGE commercial commercial

networks in 78 networks in 78 countriescountries

45 in Americas and Caribbean45 in Americas and Caribbean

59 in Europe59 in Europe

21 in Asia21 in Asia

14 in Africa and Middle East14 in Africa and Middle East

Source: GSA survey published March 24, 2006

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GSM/EDGE devicesGSM/EDGE devicesEDGE is standard in most new data-enabled phonesEDGE is standard in most new data-enabled phones

231% increase in number of GSM/EDGE 231% increase in number of GSM/EDGE devices launched in 12 monthsdevices launched in 12 months

33 suppliers in market

Source: GSA survey published January 31, 2006

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Combined WCDMA-EDGE networksCombined WCDMA-EDGE networks

Source: GSA survey published March 24, 2006

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Commercial Networks by Technology

0

50

100

150

200

250

300

350

EDGE/GPRS CDMA 2000 1x WCDMA CDMA 1x EV-DO

© Global mobile Suppliers Association

EDGE

GPRS

Source of data: GSA, CDG

Adoption of mobile standards -Adoption of mobile standards -Commercial networks by technologyCommercial networks by technology

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HSDPA network rolloutHSDPA network rolloutHSDPA has

achieved significant traction amongst

WCDMA operators globally

79 HSDPA deployments in 43 countries globally

14 HSDPA networks launched

commercial services

Download at www.gsacom.com

Source: GSA survey published April 6, 2006

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HSDPA devicesHSDPA devices

25 devices in the 25 devices in the market supporting market supporting

HSDPAHSDPA

Download at Download at www.gsacom.comwww.gsacom.com

Source: GSA survey published February 28, 2006

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EDGE Evolution – drivers and goalsEDGE Evolution – drivers and goals

EDGE Evolution - potential benefits:EDGE Evolution - potential benefits:

2 – 3 times increase in EDGE bit rates2 – 3 times increase in EDGE bit rates

2 – 3 times spectral efficiency gain (for voice & data capacity)2 – 3 times spectral efficiency gain (for voice & data capacity)

Halve the latency (roundtrip time)Halve the latency (roundtrip time)

All achieved with low impact on the GSM/EDGE networkAll achieved with low impact on the GSM/EDGE network

Operators tell us service continuity is very important: Operators tell us service continuity is very important:

WCDMA evolution to HSDPA a key driver for EDGE Evolution WCDMA evolution to HSDPA a key driver for EDGE Evolution Reducing the performance gap is the priorityReducing the performance gap is the priority

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ConclusionsConclusions

• GSM is a huge success in China and throughout the worldGSM is a huge success in China and throughout the world

• Open standards is the key enabler, stimulating market take up, massive Open standards is the key enabler, stimulating market take up, massive economies of scale, competition, innovation, and roamingeconomies of scale, competition, innovation, and roaming

• 3GPP roadmap continues the open standards philosophy with EDGE, 3GPP roadmap continues the open standards philosophy with EDGE, WCDMA, HSDPA, HSUPA and beyond (LTE)WCDMA, HSDPA, HSUPA and beyond (LTE)

• GSM/EDGE is mature, global, and mainstreamGSM/EDGE is mature, global, and mainstream

• WCDMA WCDMA operators who received UMTS licenses in the first wave during operators who received UMTS licenses in the first wave during 1999-2002 have reached the commercial phase1999-2002 have reached the commercial phase

• WCDMA is mainstream and the leading 3G mobile system globallyWCDMA is mainstream and the leading 3G mobile system globally

• Rapidly increasing variety, competitiveness and availability of user devices Rapidly increasing variety, competitiveness and availability of user devices – phones, PC data cards, are key factors in driving market acceptance– phones, PC data cards, are key factors in driving market acceptance

• The importance of combined WCDMA-EDGE deployments for service The importance of combined WCDMA-EDGE deployments for service continuity (the best user experience) is understood and evident globallycontinuity (the best user experience) is understood and evident globally

•3G/WCDMA operators are moving to HSDPA now – the path to mobile 3G/WCDMA operators are moving to HSDPA now – the path to mobile broadbandbroadband

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GSM/3G resources at www.gsacom.comGSM/3G resources at www.gsacom.com

Market/technology updates/surveys on GSM, EDGE, WCDMA, HSPAMarket/technology updates/surveys on GSM, EDGE, WCDMA, HSPAOpinion papers and Information papersOpinion papers and Information papersStatistics – subscriber numbers, charts, trendsStatistics – subscriber numbers, charts, trendsQuarterly GSM/3G Network UpdateQuarterly GSM/3G Network UpdateMonthly GSM/3G Market UpdateMonthly GSM/3G Market UpdateNewsletters, press releases, advisoriesNewsletters, press releases, advisories

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