1 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
LAS SOLUCIONES TECNOLOGICAS DE 3G WCDMA
OSIPTEL, LIMA18 de octubre de 2005, 10:00-12:00
Petri ReijonenSales Director, 3G WCDMA & General Manager, MESOLatin America, Nokia Networks
2 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Agenda
1. Global 3G WCDMA Market Situation (El mercado global 3G WCDMA)• Commercial networks, terminals, subscribers• Standards situation• Service evolution
2. 3G WCDMA Technology Update (Actualizacion tecnológica 3G WCDMA)• WCDMA call capacity, voice capacity and quality• HSPA peak rates, capacity and latency• Internet-HSPA• 850 vs 1900 MHz• Minimum bandwidth requirement
3. 3G WCDMA in Latin America (La situación de 3G WCDMA en América Latina)• Market characteristics• Terminal situation• Spectrum situation
3 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Global 3G WCDMA Market Situation
4 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G WCDMA Basics Reviewed
3G WCDMA/HSPA GSM/EDGECarrier 5 MHz 200 kHz + frequency hoppingFrequency bands New and existing bands Existing bandsAccess Wide-Band Code Division Time Division
Network optimization Antenna and site planning Frequency planning
HW capacity 700 simultaneous calls/cabinet 120 simultaneous calls/cabinetNew services Simultaneous voice and data
Low delay IP services (VoIP)Dual Transfer Mode in 2006Long delay IP services (PTT)
Max downlink speed 14.4 Mbps HSDPA specs3.6-7.2 Mbps HSDPA terminals
480 kbps specs240 kbps terminals
Max uplink speed 5.76 Mbps HSUPA specs1.46-2.0 Mbps HSUPA terminals
480 kbps specs120 kbps terminals
Radio network RAN = UTRAN = Node-B + RNC BSS = GERAN = BTS + BSC
Round trip delay <100 ms >200 ms
5 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WCDMA Commercial Networks, Terminals, Subscribers
87 commercial WCDMA networks, 186 WCDMA phones, 32 M WCDMA subscribers
6 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G WCDMA Standards Situation4G
3.9 G
HSPA3G WCDMA HSDPA I-HSPAHSUPA
GSM GPRS EDGE EDGE Evolution2G
1991 2001 2003 2005 2007 2009 2011
WiMAX (802.16e)
WiMAX (802.16-2004)
WCDMA is mature technology with significant downlink (HSDPA) and uplink (HSUPA) improvements steps emerging
7 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WCDMA Service Evolution
HSPAHSPA11--1010MbpsMbps
WCDMAWCDMA128128--384384
kbpskbps
EDGEEDGE8080--160160
kbpskbps
GPRSGPRS3030--4040kbpskbps
GSMGSM1010--4040kbpskbps
Video sharingVideo sharingVideo Video
telephonytelephonyReal time IPReal time IP
Real time Real time gamesgames
High speed High speed mobile mobile
intranetintranet
Faster Faster business business
connectivityconnectivityFaster Faster
streamingstreamingFaster content Faster content
downloaddownloadWeb browsingWeb browsingMobile intranet Mobile intranet
accessaccessVideo streamingVideo streaming
VoiceVoiceSMSSMS
MMSMMSWAPWAP
DownloadDownloadPresencePresence
Audio streamingAudio streaming
WCDMA enables real time connections, efficient business connectivity, close to WLAN bit rates and high efficiency
8 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G Services Uptake
Content
Play music
Play videos/ movies
Video mail
Video calling
Read books/ comics
97
68
16
12
10
7
3
Content
Video mail
Live TV
High speed data cards
Home watch
26
8
4
2
2
1
48
16
10
9
6
5
58
42
13
9
7
1
Video calling
Content
Video mail
Live TV
High speed data cards
Content
Video calling
Video mail
Live TV
High speed data cards
% % % %
Japan South Korea Italy Hong Kong
Source: Nokia study June 2005, based on regular usage of several times a week. Note: Korea CDMA
Each market has 1 or 2 popular 3G services
9 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G Operators ARPU
36
50
56
52
3034
19
27
42
30
Country average ARPU70 Hutchison ARPU60
50
40
30
20
10
€ 0Italy UK Austria Sweden &
DenmarkAustralia
Source: Hutchison, EMC database, Jun 05
3G WCDMA operators generate higher ARPU in voice and data
10 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G WCDMA Technology Update
11 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
High WCDMA Call Capacity
0
20
40
60
80
100
120
140
AMR 12.2kbps
AMR 10.2kbps
AMR 7.95kbps
AMR 7.4 kbps AMR 5.9 kbps AMR 4.75kbps
Use
rs p
er s
ecto
r per
5 M
Hz
Up to 130 simultaneous calls per sector
12 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
High WCDMA Voice Capacity
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000Subscribers per site
Min
utes
/sub
/mon
thWCDMA 2+2+2 assumed
WCDMA enables >1000 minutes of usage
13 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
High Voice Quality with Wideband AMRQuality [MOS]
3.03.13.23.33.43.53.63.73.83.94.0
AMR 5.9kbps
AMR 12.2kbps
WB-AMR8.85 kbps
WB-AMR12.65kbps
Capacity [users/sector]
0
20
40
60
80
100
120
140
AMR 5.9kbps
AMR 12.2kbps
WB-AMR8.85 kbps
WB-AMR12.65 kbps
= Current AMR with audio bandwidth 300-3400 Hz = Wideband-AMR with audio bandwidth 50-7000 Hz
WB-AMR provides 20% better voice quality without much sacrificing voice capacity
14 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
High HSPA Peak Data RatesUplink HSUPA• Theoretical up to 5.76 Mbps• Initial capability 1.46 Mbps
Downlink HSDPA• Theoretical up to 14.4 Mbps• Initial capability 1.8 – 3.6 Mbps
# of codes Modulation Maxdata rate # of codes TTI Max
data rate
5 codes QPSK 1.8 Mbps 2 x SF4 2 ms10 ms 1.46 Mbps
5 codes 16-QAM 3.6 Mbps 2 x SF2 10 ms 2.0 Mbps
10 codes 16-QAM 7.2 Mbps 2 x SF2 2 ms 2.9 Mbps
15 codes 16-QAM 10.1 Mbps 2 x SF2 +2 x SF4 2 ms 5.76 Mbps
15 codes 16-QAM 14.4 Mbps
HSPA brings 10-20 x speed compared to EDGE
15 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
High HSDPA Data Capacity
Even smallest HSDPA site enables 300 broadband wireless users,each downloading 1 GB data per month
HSDPA Data Capacity with 1+1+1 Configuration
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
100 200 300 400
Broadband data subscribers per site
GB
/sub
/mon
th
16 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Low HSPA Latency
0
20
40
60
80
100
120
140
160
180
200
WCDMA 2004 WCDMA 2005 HSDPA 2005 HSUPA
ms
WCDMA 120 ms, HSDPA 80 ms, HSUPA 50 ms delay
17 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Internet-HSPA
RNC SGSNGGSN/ISN Internet
Standard Nokia BTS
ISNwith HA
I-HSPA module
RNC = Radio Network ControllerSGSN = Serving GPRS Support NodeISN = Intelligent Service Node HA = Home Agent
Standard terminals
Nokia’s I-HSPA innovation enables broadband wireless access business
18 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WiMAX vs HSPA Cell Range
4.34
2.53
1.31
0.98
0.17
0.00 1.00 2.00 3.00 4.00 5.00
HSPA 850 MHz
HSPA 1900 MHz
WiMAX 2500 MHz
WiMAX 3400 MHz
WiMAX 5400 MHz
Cell range [km]
HSPA has substantially larger cell range than WiMAX
19 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Internet- HSPA for Mass Data Traffic
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
100 200 300 400 500 600 700 800 900 1000
Served MB per user per month [MB/User/Month]
Eur
GPRS
EDGE
WCDMA
HSPA
I-HSPA
Nokia’s I-HSPA innovation lowers capital expenditure significantly
20 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G Impact to Base Station Backhaul
BEFOREHSPA
AFTERHSPA
63E1/STM-1
32E14E1 8E1 16E11E1 2E1 2 x STM-1Capacity
2-3 x backhaul transmission needs to be planned for high HSPA traffic
21 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WCDMA Frequencies
Operating Band
UL Frequencies UE transmit, Node B receive
DL frequencies UE receive, Node B transmit
I 1920 – 1980 MHz 2110 –2170 MHz II 1850 –1910 MHz 1930 –1990 MHz III 1710-1785 MHz 1805-1880 MHz IV 1710-1770MHz 2110-2170MHz V 824 – 849MHz 869-894MHz VI 830-840 MHz 875-885 MHz
UMTS850USA
1.7/2.1 GHzUSA
2100 MHzGlobal
1900 MHzUSA
1800 MHzEurope
Next: UMTS 900 EuropeUMTS 1700 JapanUMTS 2600 Europe
CEPT FDD UL 2500-2570CEPT FDD DL or TDD 2570-2620CEPT FDD DL 2620-2690
UMTS800Japan
22 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
850 vs 1900 MHz Band
0.0 0.5 1.0 1.5 2.0
GSM850 Voice
WCDMA850 Voice
WCDMA850 Data
GSM1900 Voice
WCDMA1900 Voice
WCDMA1900 Data
Cell range [km]
1900 MHz requires 2-3 x more sites than 850 MHz
23 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Minimum Bandwidth Requirement for WCDMA
WCDMA (= 20 x GSM)
4.0 MHz
Min 2.1 MHzMin 2.3 MHz
GSMGSM
= WCDMA
= BCCH or non-BCCH GSM= Non-BCCH GSM
2 x 4.0 MHz is sufficient for WCDMA if close to friendly GSM
24 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Nokia WCDMA Technology Milestones
• WCDMA• Commercial WCDMA network deliveries since September 2001 • More than 50 WCDMA trials conducted 2001-2002• First dual mode GSM/WCDMA and triple mode GSM/EDGE/WCDMA terminals • Supplier for approximately half of the 86 commercially opened WCDMA networks• 51 WCDMA network deals • WCDMA-GSM Intersystem handovers available first in the market• First commercial end-to-end 3GPP IP Multimedia Subsystem used in 3G• Market leader in R4 core networks globally and in Latin America
• HSPA• Six public and 15 non-public HSDPA network deals • Nokia will deliver approximately 10 HSDPA trials during 2005• First to demonstrate HSUPA, in 3GSM Cannes February 2005• Launched Internet-HSPA, an HSPA innovation, in March 2005
Nokia is technology leader in 3G WCDMA & HSPA
25 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
3G WCDMA in Latin America
26 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Latin America Market Characteristics re 3G WCDMA
• Consolidated market
• High growth potential
• Operators seek differentiation
• Urbanized population
• Mainly US frequencies 850 & 1900
WCDMA wave after operators start seeking new revenues streams and differentiation
27 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Latin America Service Revenues
0
5
10
15
20
25
30
35
40
2003 2004 2005 2006 2007 2008 2009
OtherSMSVoice
2G enabled services (voice & SMS) dominate operator revenue streams. Other services largely possibly with EDGE
Billion EUR
Source: Nokia Mobile Services Forecast - March 2005
28 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Latin America Post vs Prepaid Subscribers
Postpaid segment is natural for WCDMA. Postpaid is >15% of total customer base with >35 USD ARPU compared with prepaid <10 USD ARPU
Million
0
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008 2009
PostpaidPrepaid
Source: Pyramid Latin America Mobile Demand 1Q2005
29 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WCDMA Capability in New Phones
0%
25%
50%
75%
100%
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Post-paidPre-paid
WCDMA will be built-in functionality in most mid to high end phonesSource: Nokia
30 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
WCDMA for Urban Latin America Million
0
5
10
15
20
25
Mexico
City
Sao P
aulo
Bueno
s Aire
s
Rio de
Jane
iro
Lima
Bogot
a
Belo H
orizo
nte
Santia
goCar
acas
Guada
lajar
aPor
to A
legre
Monter
rey
Recife
Salvad
orBra
sília
Latin America is 75% urbanized, therefore an ideal WCDMA environmentSource: www.citypopulation.de
31 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Latin America Spectrum SituationMHz
0
10
20
30
40
50
60
70
80
90
TF A
rgen
tina
TF C
hile
TIM B
razil
Ente
l Chi
le
TIM A
rgen
tina
AMX Bra
zil (C
laro)
TF P
eru
AMX Mex
ico (T
elcel)
AMX Arg
entin
a (CTI)
AMX Colo
mbia
TF C
olom
bia
Telem
ar B
razil
Brazil
Tele
com
Digite
l Ven
ezue
laTF
Mex
icoTI
M Per
u
TF B
razil
(Vivo
)
AMX Ec
uado
rTF
Ecu
ador
Ola Colo
mbi
a
19001800900850
Current 2G spectrum is sufficient for 3G in most countriesSource: Nokia
32 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Summary
33 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
Summary• Global 3G WCDMA Market Situation
• 87 commercial networks, 186 terminals, 32 million subscribers• 3G WCDMA is welcomed evolution to 2G and has established itself globally• HSDPA and HSUPA are key enhancements to WCDMA available shortly• Dramatic expansion of new services to end-users (video call, fast downloads)
• 3G WCDMA Technology Update• WCDMA is lowest cost cellular network technology for voice and data• WCDMA enables >1000 minute voice packages• WCDMA enables 20% better voice quality• Nokia’s I-HSPA enables broadband wireless access business• 2 x 4.0 MHz is sufficient for WCDMA if close to friendly GSM
• 3G WCDMA in Latin America• Postpaid segment is natural for WCDMA• Most mid to high end phones will have build-in WCDMA/HSPA functionality in 2007• Notebooks will have integrated HSDPA capability starting 2006• Huge urban agglomerations are ideal environment for WCDMA• Current 2G spectrum sufficient for 3G in most countries initially• New spectrum1700/2100 or 2100 and 2600 needs to be reserved for future 3G
34 (34) © Nokia 3G WCDMA – Perú Oct 2005.ppt / Petri Reijonen
¡Muchas gracias!