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CTIA-The Wireless Association
The Mobile Connection:Wireless Broadband
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Wireless is a Competitor in the BroadbandMarketplace Wireless, cable, telephone all go into the Internet cloud
Consumers are served by productdifferentiation
TheInternet
Two Central Points
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The Basics of the Mobile Ecosystem
Underlying network providers FCC licensees. Handset and Infrastructure providers e.g., Sony Ericsson,
Motorola, Nokia, Samsung, Lucent, Nortel, etc.
Third-party content / applications developers and providers,
which may include both content generators, and contentaggregators.
Aggregators combine content, such as news, sports, and otherinformation for provision to end-user customers throughcarriers and MVNOs.
Mobile Virtual Network Operators (MVNOs), operating onlicensees networks but offering consumers their own brandedapplications and content.
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The U.S. Wireless Story
At mid-year 2006, 180 wireless licensees served 219 millioncustomers nationwide71% of all Americans. Thats anincrease of 110 million customers from year-end 2000.
The FCC has found that 98% of Americans live in counties in
which three or more licensed wireless service providers offerservices, and 94% in counties where four or more licensedwireless providers offer service.
Multiple MVNOs also compete in the wireless marketplace,serving approximately 10% of wireless customers.
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Multiple Wireless Licensees Compete Nationwide
Source: FCC 1
1th CMRS Competition Report
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1G - Analog Technology Standard
AMPS (Advanced Mobile Phone Service)
2G - Digital Technology Standards
TDMA (Time Division Multiple Access) most being upgraded to GSM Cingular
CDMA (Code Division Multiple Access) Verizon Wireless
Sprint-Nextel
GSM (Group Standard for Mobile) Cingular
T-Mobile
iDEN (Integrated Digital Enhanced Network) most being upgraded to
CDMA
Competition Between Providers and Technologies
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2.5 to 3G Next Generation Networks
CDMA CDMA 1X, 1XEVDO (Evolution Data Only) CDMA 1X up to 144 kbps
CDMA EVDO 400 kbps to 2 Mbps Max (400-700 kbps)
GSMGPRS, EDGE, UMTS, WCDMA, HSDPA GPRS 144 kbps Max (50-70 kbps) (Global Packet Radio System)
EDGE 384 kbps Max (144 kbps) (Enhanced Data for GSM Evolution)
HSDPA up to 3.6 Mbps 550 kbps to 1.1 Mbps (High Speed Downlink
Packet Access) UMTS / WCDMA 384 Kbps to 2 Mbps
4G The Next Step in High Speed Networks Evolving options, e.g., WiMAX, and further extensions of existing
standards
Evolving Wireless TechnologiesWhere We Are and Where Were Going
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4G: The Next Phase of Wireless Evolution
Sprint Nextels 4G WiMAX strategy:
Sprint Nextel plans to develop and deploy the first 4G nationwidebroadband network beginning in 2007using mobile WiMAX IEEE 802.16e-2005 technology as the standard.
The company's deployment plans target a launch of the advancedwireless broadband services in trial markets by the end of 2007 withplans to deploy a network that reaches as many as 100 million people in2008. Sprint Nextel plans to expand mobile WiMAX network coveragethereafter. (Initial markets include Chicago and Washington, DC)
Sprint Nextel is expecting to invest $1 billion in 2007 and between $1.5billion and $2 billion in 2008 relating to the 4G mobile broadband
network.
Aiming to deliver data rates of 2 to 4 Mbps.
Source: Sprint Nextel
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High-Speed Wireless Technology Snapshot
According to the FCC, by the start of 2006:
CDMA 1xRTT and/or 1xEV-DO has been launched in at leastsome portion of counties containing 283 million people, orroughly 99 percent of the U.S. population.
GPRS, EDGE, and/or WCDMA/HSDPA has been launched inat least some portion of counties containing 269 million people,or about 94 percent of the U.S. population.
Higher speed technologies, EV-DO and WCDMA/HSDPA, areavailable in counties containing 63 percent and 20 percent of
the U.S. population.
Source: FCC 11th CMRS Competition Report
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Next Generation Network Rollout in the United States
Estimated by County
Source: FCC 11th CMRS Competition Report
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Wireless licensees are deploying advanced networks
across Americaincluding carriers of all sizes
Verizon Wireless has launched an EVDO-based broadband service that is
available in 242 major metro areas in 41 states that are home to more than200 million people, with average speeds of 400-700 kbps, bursting to 2.0
Mbps. Verizon is now upgrading to EVDO Rev. A in six states, boosting
average download speeds to 450-800 kbps, and upload speeds to 300-400
kbps
Sprint Nextels mobile broadband network reaches more than 200 millionpeople nationwide, in 9,473 communities, offering average download
speeds of 400-800 kbps. Its EVDO Rev A network now covers more than
95 million people, boosting upload speeds to 350-500 kbps, and download
speeds to 600 kbps-1.4 Mbps. Sprints entire mobile broadband network is
expected to be upgraded to Rev A by 3Q07
Cingular Wireless HSDPA-based BroadbandConnect service has beendeployed in 33 states, Puerto Rico, and the District of Columbia, with
average speeds of 400-700 kbps. Customers are able to use 3G in 165
cities, including 73 of the top 100 markets
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Wireless licensees are deploying advanced networks
across Americaincluding carriers of all sizes
Alltels AxcessSM Broadband service is available in more than100 markets in 19 states, offering speeds of 400-700 kbps withbursts up to 2.4 Mbps. Alltels AxcessSM Mobilink service isavailable in markets in at least 34 states, offering speeds up to
114 kbps.
T-Mobile USA has announced it will spend $2.7 billion by 2008in building a 3G UMTS/HSDPA network. T-Mobile currentlyoffers mobile Internet access through its GSM/GPRS network,and operates a network of more than 8,000 wireless hotspots
in the U.S.
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making available a wide variety of advanced
applications
Alaska Communications offers its ACS Mobile Broadband inAlaska.
Alaska DigiTel offers wireless data service in Alaska.
Cellular South offers CDMA-based wireless data service in theSoutheastern U.S.
Dobson Cellular, operating in 16 states, introduced itsSignalink data service in September 2005.
GCI offers GSM-EDGE-based broadband service in Alaska.
Midwest Wireless, now owned by Alltel, offers Mobile WirelessInternet service in the Upper Midwest.
U.S. Cellular offers its Brewbased easyedge EnhancedWireless Service in all of its markets.
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including Mobile Video and Data Services
Competing mobile television networks / services now include:
MobiTV (offered by Alltel, Cellular South, Cingular, MidwestWireless, and Sprint Nextel in the U.S., and by CentennialWireless and Verizon Wireless in Puerto Rico).
Modeo (formerly Crown Castle Mobile Media, launching in30 cities beginning in 2006).
V CAST (Verizon Wireless continental U.S. offering).
Qualcomm / MediaFlo USAs MediaFloTM System (intendedto deliver multimedia content to wireless consumers viaexisting CDMA1X and UMTS systems, and overQualcomms 700 MHz spectrum).
Aloha Partners HiwireTM subsidiary also plans to offer MobileTV using 700 MHz spectrum.
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Wireless is a Competitor in the Broadband
Marketplace
In the first of 2006, total high-speed lines grew 26%, from 51.2million to 64.6 million lines, and 59% of all adds were mobilewireless subscriptions(FCC High-Speed Services for Internet
Access, January, 2007)
From June 2005 to June 2006, mobile wireless share of totalbroadband lines rose from 1% to 17% of total broadbandlines.(FCC High-Speed Services for Internet Access report)
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Broadband Speedometer MaximumDownload Speeds
Wireline 2.5 G Wireless 3G Wireless 4G Wireless
CableModem
768kbp
s
30Mbps
56kbps
144kbps
144kbps
384kbps
2Mbps
3M
bps
3
.6Mbps
2Mbps
Dial-UpADSL
IXRTT
GPRS
EDGE
EVDO UMTS /WCDMA
HSDPAEVDORev. A
WiMAX
2
0Mbps
FiOS
30Mbps
3M
bps
1.5
Mbps
ADSL
ADSL
15Mbps
5M
bps
FiOS
FiOS
Multiple Sources: Webopedia, bandwidthplace.com, PC Magazine, carriers, ISPs
Notto
Scale
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Broadband Speedometer Ranges
Wireline 2.5 G Wireless 3G Wireless 4G Wireless
CableModem
Upto768kbps
144kbps
384kbps
Dial-UpADSL
IXRTT
GPRS
EDGE
EVDO UMTS /WCDMA
HSDPAEVDORev. A
WiMAXFiOS
Upto30
Mbps
Up
to3Mbps
Upto1.5
Mbps
ADSL
ADSL
Upto15
Mbps
Up
to5Mbps
FiOS
FiOS
1-6Mbps
2
-4Mbps
220-3
84kbps8
00kto1.1
Mbps
450-800kbps
400-700kbps
50-70kbps
28-45
kbps
Multiple Sources: Webopedia, bandwidthplace.com, PC Magazine, carriers, ISPs
Notto
Scale
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Consumers Benefit From ProductDifferentiation
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Wireless Licensees and MVNOs Compete
Across Many Dimensions
Wireless service providers compete on the basis of price,features and innovative handsets, including branded andexclusive product and service offerings, such as:
Content targeted to specific demographic groups, such as Helios mobile
MySpace, or
Combinations of content and handsets such as Virgin Mobiles Txt Toneswhich is based on an exclusive deal with a major record label and isavailable only on Virgins Kyocera Cyclops phone, or
Other exclusive features, such as the pre-loaded Virgin Mobile AudioMessaging service available on the Cyclops phone, and
T-Mobiles converged HotSpot@Home offering combining T-MobilesWiFi hotspot access and licensed wireless network service for seamlesscoverage using a single multimode device.
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Wireless Phones Have Become Multifunction
Devices
Source: QUALCOMM
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How Cell Phones Access the Web
The primary way in which wireless phones and devices initiallyaccessed the Internet and Web is through a protocol called the
Wireless Access Protocol (WAP) and its associated markup
language, the Wireless Markup Language (WML).
WAP is an open technology based on Internet technologies WML is based on XML (extensible markup language) - HTML
The three main reason why wireless Internet uses WAP: Transfer speed
Size and readability
Navigation
Smaller screens, more limited colors, slower connection speeds
Advanced cell phones and Aircard-enabled laptops now handleHTML
Wireless Access Protocol (WAP)
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Source: QUALCOMM
Globally, More than 200 Mobile BroadbandDevices have been Introduced
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A Complex Environment Requiring Close
Collaboration to Create a Positive Experience
There are literally hundreds of handsets and wireless-enableddevices available in the U.S. (www.PhoneScoop.com lists 818handsets and wireless-enabled devices such as PDAs,Blackberries and SmartPhones).
Number and variety of devices and players requires carriers
and their partners to deal with hundreds of combinations ofnetworks, handsets, messaging platforms, billing systems, anduser interfaces to ensure consistent delivery of content toconsumers (including games, music and video programming,messages, etc.).
Carriers and aggregators need to work together and with third-party content providers to ensure interoperability, quality userexperiences, and to block objectionable content (e.g., spam).
Carriers are extending CPNI protections to these servicesthrough contracts with third-party content providers.
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Carriers and Content Providers Must Work
Together to Create Seamless Access for Consumers
Web Video Needs a Middleman to Go Mobile, Producers of entertainment content are interested in reaching millions of cellphoneusers in the U.S. but mostly need to work with wireless-service providers, due to thecomplex technologies required to deliver video and downloadable songs to handsets.Cellphone operators can reformat and distribute content to millions of subscribers.(Wall Street Journal, Nov. 8, 2006, p.B-2)
Verizon,YouTube Aim to Bring Web Videos to Cellphones, TV
"Though many cellphones provide Internet access, it is difficult for cellphone users to watch
video on the Web, in part because it typically isn't formatted for cellphone screens. But
cellular operators such as Verizon Wireless have the technology to bring video, music, and
other entertainment options to those screens." (Wall Street Journal, Nov. 7, 2006, p.A-1)
The Mobile Word allows wireless consumers to watch and listen
to your favorite minister's sermons, special events, and Christianrelated content wherever you are. How does it work? Depending on your type of phone and carrier, The Mobile Word
service consists of either a BREW, Java, or WAP application that runs on your mobilephone. The Unity In Values network and carrier networks work together to broadcastthe video content. (http://themobileword.com/register/FAQ.aspx)
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Policies to Further Broadband Adoption
Wireless Should Not be Subject to Any Net Neutrality Rules
Allow the Market to Continue to Work Regulate Only in theEvent of Market Failure
Regulation, If Necessary, Should Occur at the National Level Ensure that Wireless Carriers Have Access to Spectrum
Eliminate Regulations that Favor Certain Technologies orClasses of Providers (e.g., Universal Service and Intercarrier
Compensation)