The Future of All-IP Broadband Wireless Mobile Networks ASWN 2004 Presentation August 11, 2004 Airvana Proprietary & Confidential ASWN 2004 Presentation Page 1
Outline � Market Trends � Technology Evolution � Emerging Services and Applications Airvana Proprietary & Confidential ASWN 2004 Presentation Page 2
Market Trends Airvana Proprietary & Confidential ASWN 2004 Presentation Page 3
The Growth of Data Traffic � Data Traffic is Growing. Voice Traffic is Stabilizing. � It is not all about voice !! Source: KDDI Q2’03 Investor Presentation A KDDI Packet = 128 bytes Airvana Proprietary & Confidential ASWN 2004 Presentation Page 4
The Growth of Data Traffic (Cont’d) Airvana Proprietary & Confidential ASWN 2004 Presentation Page 5
The Growth of the ARPU � Average Revenue Per User (ARPU) is Growing. � But: ARPU/MByte is declining. � While: Data Traffic Per User is Growing. � Wireless Network Cost-Effectiveness is Key. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 6
The Growth of the ARPU (Cont’d) 15.5 SKT 5.07 High-Speed 12.5 KTF 3.7 Low-Speed 40 KDDI 20 0 20 40 60 Source: Company websites and Q4’03 Investor presentations. ARPU converted to USD. • High-Speed (1xEV-DO) ARPU of SKT, KTF and KDDI compared to each company’s Low-Speed (1xRTT) data service. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 7
High-Speed Delivers 4-5X ARPU of Low-Speed Subscribers Source: 2003 SKT Company Presentation Airvana Proprietary & Confidential ASWN 2004 Presentation Page 8
High-Speed Delivers 4-5X ARPU of Low-Speed Subscribers Source: KTF Q4’03 Earnings Release Airvana Proprietary & Confidential ASWN 2004 Presentation Page 9
The Effect of High-Speed on Subscriber Growth � High-Speed data is attracting subscribers. � High-Speed data is a major competitive advantage. 48% of subs come from competitors! *Source: KDDI Financial Results of the Fiscal Year ended March 2004, presented on Apr 28,2004 Airvana Proprietary & Confidential ASWN 2004 Presentation Page 10
The Effect of High-Speed on Subscriber Growth (Cont’d) Global 1xEV-DO Subscribers 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Highlights • Almost 7 million by March 31, 2004. • KDDI added 350,000 subscribers within 4 months of launch. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 11
The Effect of High-Speed on Subscriber Growth (Cont’d) Total Subscribers 300,000 16,483,100 250,000 45,514,000 200,000 Net Adds 150,000 100,000 50,000 EV-DO Launch 0 May. 2003 Jun. 2003 Jul. 2003 Aug. 2003 Sep. 2003 Oct. 2003 Nov. 2003 Dec. 2003 Jan. 2004 Feb. 2004 KDDI DoCoMo Airvana Proprietary & Confidential ASWN 2004 Presentation Page 12
Technology Evolution Airvana Proprietary & Confidential ASWN 2004 Presentation Page 13
3G Technology Summary CDMA CDMA CDMA WCDMA HSDPA Description (1xEV-DO (1xEV-DO (1xEV-DV) (Rel-99) (Rel-5) Rel-0) Rel-A) Downlink 2.4 Mbps 3.0 Mbps 5 Mbps 2 Mbps 14.4 Mbps Speed Uplink 384 300 Kbps 1.8 Mbps 1 Mbps 384 Kbps Speed Kbps Voice CS, No VoIP VoIP CS, VoIP VoIP Support No VoIP Spectrum 1.25 MHz 1.25 MHz 1.25 MHz 5MHz 5 MHz Used CS: Circuit Switched Airvana Proprietary & Confidential ASWN 2004 Presentation Page 14
The All-IP Architecture � The traffic on broadband wireless networks is increasingly IP. � A huge number of companies develop IP software. � Standardization yields cost effectiveness. � No single company can or needs to develop all the software needed for a broadband wireless network. � The All-IP Architecture. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 15
All-IP Architecture Benefits � IP reduces the cost of the Data Backhaul Network RN IP RN RN Transport RN RN RN RN RN RN RN RN RN RN RN Airvana Proprietary & Confidential ASWN 2004 Presentation Page 16
All-IP Architecture Benefits (Cont’d) � IP Routing Increases Network Reliability/Availability RNC 1 RNC 1 RNC 2 RN RN RN IP RN RN RN RN RNRN Network RN RN RN Dynamically connect to an alternate Radio Network Controller (RNC) if an RNC fails Airvana Proprietary & Confidential ASWN 2004 Presentation Page 17
All-IP Architecture Benefits (Cont’d) � An All-IP Architecture enables network operators to leverage existing IP-based QoS technologies. QoS Config EMS IP RN Public PDSN Backhaul Internet DiffServ Network AN-AAA Router RNC Airvana Proprietary & Confidential ASWN 2004 Presentation Page 18
All-IP Architecture Benefits (Cont’d) � An All-IP Architecture enables network operators to leverage existing IP-Multicast technologies to provide Multimedia Services. RN RNC-1 RN IP Network Content Server RN RNC-n RN Airvana Proprietary & Confidential ASWN 2004 Presentation Page 19
QoS Technology Summary � Allow the system to apply different treatment (e.g., retransmission overload control and scheduling) strategies to different flows. � Control latency during heavy load by prioritizing delay-sensitive traffic over other traffic. � A single subscriber can simultaneously use different applications with different QoS rating. Value Proposition • Enables operators to launch delay-sensitive services such as Push-to-talk (PTT) and Push to Media. • Enables operators to launch carrier-grade VoIP. • Subscribers can simultaneously use PTT (or VoIP), access the web, and email. • Enables operators to offer preferential network performance to customers who pay more (e.g. enterprise laptops over handsets). Airvana Proprietary & Confidential ASWN 2004 Presentation Page 20
QoS Benefits � Customer Segmentation • Deliver different services and network performance to different customer segments. • Gain flexibility in creating data pricing plans. $50/month: Enterprise Plan $15/month: Handset Plan $20/month: PTT and • Unlimited data access • Unlimited data access Multimedia Plan • No Rate Limit • Max Rate = 300 kbps • Unlimited data access • Priority in scheduler • Not delay sensitive • Max Rate = 300 kbps • Priority in overload • Low priority in scheduler • Support for PTT conditions • Low priority in overload traffic • Not delay sensitive conditions Airvana Proprietary & Confidential ASWN 2004 Presentation Page 21
QoS Benefits (Cont’d) � Enables operators to introduce New Applications: • Industry-leading Push-to-talk • Voice over IP (VoIP): – With performance comparable to that of circuit-switched voice – With capacity exceeding that of circuit-switched voice. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 22
Emerging Services and Applications Airvana Proprietary & Confidential ASWN 2004 Presentation Page 23
Evolution of Personal Communications Broadband PC Connectivity Telephony Text Messaging Broadcast TV On-Line Gaming Push-To-Talk Picture Messaging Airvana Proprietary & Confidential ASWN 2004 Presentation Page 24
Outlook: CDMA Applications & Services Legend On-Line On-Line IS-95 Gaming Gaming Broadcast Broadcast Video Video 1xRTT Multimedia Multimedia Messaging Messaging 1xEV-DO Video Video Video On Demand On Demand On Demand Fixed Fixed Fixed Broadband Broadband Broadband Push-To- Push-To- Push-To- Push-To- Talk Talk Talk Talk Camera Camera Camera Camera Phone Phone Phone Phone Notebook Notebook Notebook Notebook PC Access PC Access PC Access PC Access Web Web Web Web Content Content Content Content Telephony Telephony Telephony Telephony Telephony Airvana Proprietary & Confidential ASWN 2004 Presentation Page 25
Why Push to Talk on 3G Wireless Networks? � Push-to-talk (P2T) is a differentiated service • Nextel, the only operator to have P2T for over 10 years, leads US Wireless Industry in ARPU and churn. • P2T is being launched by operators worldwide as a packet data application on 2.5G (1x and GPRS) networks. � Push-to-talk over 2.5G Packet Data Networks • 2.5G networks have limited data capacity – insufficient if application takes off. • Consumers expect P2T calls to cost less than regular voice calls but 2.5G networks deliver packet data at the expense of voice capacity. � Push-to-talk over 3G Wireless Networks • Offers a high-bandwidth, spectrally efficient, data channel to deliver P2T. • Enables operators to offer enhanced P2T services – like Push-to-Media – that leverage the high-bandwidth and the proliferation of multimedia devices. Airvana Proprietary & Confidential ASWN 2004 Presentation Page 26
Voice over IP (VoIP) SIP SERVER QoS-Aware Radio IP PSTN Access Core Network MEDIA SIP Handset GATEWAY � QoS with Flexible Priority Scheduling � Fast Physical Layer Retransmission for Reliability with QoS � Fast Sector Switching for Mobility � Efficient Multiplexing & Header Compression for high capacity Airvana Proprietary & Confidential ASWN 2004 Presentation Page 27
Recommend
More recommend
