Wimax - Opportunites for Developing Nations

WiMAX is a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to cable and DSL. It provides fixed, nomadic, portable and mobile wireless broadband connectivity.

OVERVIEW Wimax Technology Wimax Standards OFDM & OFDMA Wimax Advantage Competing Technologies

In a typical cell radius deployment of three to 10 kilometers Wimax systems can be expected to deliver capacity of up to 40 Mbps per channel, for fixed and portable access applications. Mobile network deployments are expected to provide up to 15 Mbps of capacity within a typical cell radius deployment of up to three kilometers.

Outdoor CPE Indoor CPE Wimax Cards/Chips

OFDM is a digital multi-carrier modulation scheme, which uses a large number of closely-spaced orthogonal sub-carriers . Orthogonal Frequency Division Multiple Access ( OFDMA ) is a multi-user version of the popular OFDM digital modulation scheme. Multiple access is achieved in OFDMA by assigning subsets of subcarriers to individual users as shown in the figure below. This allows simultaneous low data rate transmission from several users.

Adaptive Antenna System - beam forming properties that can steer their focus to a particular direction or directions. This means that while transmitting, the signal can be limited to the required direction of the receiver; like a spotlight. Conversely when receiving, the AAS can be made to focus only in the direction from where the desired signal is coming from.

Adaptive Modulation and Coding - Adaptive modulation allows WiMAX system to adjust channel modulation scheme, according to SNR ratio in radio link. If good SNR is achieved, system can switch to the highest throughput modulation (64QAM). If fading occurs system can shift to other low-throughput modulation, but still not dropping connection.

WCDMA HSDPA HSUPA CDMA1x EV-DO Rev 0 EV-DO Rev A EV-DO Rev B LTE EV-DO Rev C Mobile WiMAX Mobile WiMAX II 3GPP 3GPP2 Mobile WiMAX Revolution

Addition of Beamforming increases spectral efficiency by ~2x over MIMO Note: 3G mobile WiMAX performance comparison based on EV-DV simulation methodology

Parameter WiMAX LMDS Range 50 Kms 5 Kms Frequency 2-11 GHz 3 GHz License Combination of licensed and unlicensed spectrum Licensed spectrum Standard 802.16/16d/16e Standards activities are currently underway at the ATM Forum, the Digital Audio Video Council (DAVIC), the European Telecommunications Standards Institute (ETSI), and the International Telecommunications Union (ITU). Line of Sight Required in case of 802.16 but not required in case of 802.16d Required but can be done away with by using Orthogonal Frequency Division Multiplexing (OFDM) Data Rates Upto 75 Mbps Upto 1.5 Gbps Mobility Using 802.16e, but this standard is likely to come only by 2008 No mobility offered suitable only for fixed wireless broadband

High data rates, high mobility along with wide area coverage are the hallmarks of future Mobile Broadband services

The promise of a free CPE Intel is strongly backing the technology and committed to provide WiMAx enabled laptops from H2 2007 / 2008 Samsung and Intel are first tier chips manufacturers and have the capacity to deliver mobile WiMAX modules embedded into data, consumer electronic and voice devices Large ecosystem Intel is investing a lot of money in the technology First Tier vendors are more and more committed to the technology: Samsung, Motorola, Alcatel… Balanced IPR position No single company is in a dominant patent ownership position According to WiMAx Forum, main holder is Samsung who owns close to 20% of main patents Cheaper spectrum and license fees In France for example, about 60 M€ for one national license, compared with 619 M€ for 3G license

Lack of volume and poor economies of scale First Mobile WiMAX-certified equipment should be available in H2 2007 Mobile WiMAX vs. Fixed WiMAX Delay of WiMAx offering Main operators are waiting for backward compatibility (Europe) Mobile services are expected to be the main market Few large carriers ready to deploy At the global level only Sprint Nextel and KT have clearly endorsed WiMAx technology Lack of harmonised / valuable spectrum Different frequencies worldwide Part of the spectrum is not suitable for mobility Indoor coverage is still an issue

Capacity Planning Coverage Costs Churn gives de-installation and re-installation of CPEs Expensive customer premises equipment compared to ADSL Line-of-sight systems may require costly pre-installation site surveys Continuous trade-off between capacity, coverage and reach and frequency re-use/interference Line-of-sight systems with high coverage require more frequency re-use and give more interference issues Lack of information of future customer locations demands careful initial coverage and capacity planning of line-of-sight systems Careful initial planning of fixed wireless access solutions needed for cost effectiveness and future scalability Capacity planning with physically shared medium Lack of access to optimal site locations may result in re-planning

Licensed Bands Required for assuring QoS and service reliability Generally preferred in heavily populated areas Network scalability under control of operator Operator predetermine impact of license fees on business case Fewer operators means less crowding Unlicensed Unlicensed spectrum in rural areas means lower cost for the end customer Fast roll outs – no need to wait for the licensing process Counters the lengthy licensing process

In most markets, the unlicensed spectrum that could be used for WiMAX is 2.4GHz and 5.8GHz. Since the spectrum is unlicensed, the barrier to entry is low, thus making it easier for a potential operator to begin offering services using the spectrum. In some instances, this can be advantageous for obvious reasons. Unfortunately, there are also several disadvantages. In certain countries, in particular in Europe, the concept of "light licensed" spectrum applies, meaning that the intended user has to file its intent to use the unlicensed spectrum.

Interference - Because unlicensed spectrum can be used by several different RF systems, there is a high probability of interference. Unlicensed RF systems can include anything from competing WiMAX networks or Wi-Fi access points. Cordless phones and Bluetooth (2.4GHz only) also use this spectrum Increased Competition - Operators who use unlicensed spectrum have to assume that another operator could easily enter the market using the very same spectrum. In large part, the relatively high number of public Wi-Fi access points is due to this fact Limited Power - Another disadvantage with the unlicensed spectrum is that government regulators typically limit the amount of power than can be transmitted. This limitation is especially important at 5.8GHz where the higher power could offset the propagation loss associated with spectrum in higher frequencies - more on this topic later. Availability - While the 2.4GHz spectrum is universally available, the 5.8GHz spectrum is not currently available in a number of countries.

Licensed spectrum comes at a potentially high price, but it is well worth it, especially when the service offering requires high quality of service. The greatest advantage of having licensed spectrum is that the licensee has exclusive use of the spectrum. It is protected from outside interference while competitors can only enter the market if they also own or lease spectrum. The licensed spectrum is found at 700MHz, 2.3GHz, 2.5GHz and 3.5GHz, with the latter two frequency bands currently receiving the most attention.

Presently, this band is used by several organizations for point-to-point and point-to-multipoint microwave links, spread all over the country 2.3 Ghz used in korea only. Re-location of such links would be necessary to make available spectrum for WiMax in this band.

Availability of adequate spectrum for WiMAX is constrained due to existing usages, especially by the INSAT based satellite operations. 2.5 GHz is ideally for both Release of a part of the spectrum in this band may be explored by mutual consent.

Internationally, the frequency band 3.4-3.6GHz is used for WiMAX. In India, availability of spectrum for WiMAX, in this band, is constrained due to use of lower extended C-band (3.4-3.7 GHz) by existing operational INSAT system. Discussions with Department of Space is in progress for release/ sharing part of 3.4-3.6 GHz Band. More no of Antennas The 3.5GHz frequency band is currently available for use in virtually every country except the United States. In addition to the RF propagation challenges inherent to this band, many European licenses restrict how the spectrum can be used, since in this particular band cell handoffs are not currently allowed, which is not exactly ideal when trying to offer a mobile voice and data service that requires uninterrupted service for voice calls

The 700MHz spectrum band is heavily utilized in many regions of the world, including North America and most of Europe. Internationally, this frequency band is used for other mobile technologies but it is also ideal for Wimax Cell radius is larger here

Benefits of economies of scale - lower cost of equipment. Interoperability and roaming of equipment and terminals Globally. Success of WiFi and its world wide adoption is credited to the globally unified spectrum assignment in the 2.4 GHz band. The success of WiFi can be repeated in WiMAX by assigning globally harmonized spectrum bands.

Favored frequencies 2.3 GHz - 2.5 GHz : Mobile services 3.5 GHz : Fixed services Source: IDATE

System Profile Spectrum Duplexing Channel Width Mobile WiMAX, IEEE 802.16e-2005 2.3 - 2.4 GHz (100 MHz) TDD 5/10 , 8.75(only in Korea) MHz 2.5 - 2.69 GHz (190 MHz) TDD 5/10 MHz 3.3 - 3.4 GHz (100 MHz) TDD 5, 7 MHz 3.4 -3.6 GHz (200 MHz) TDD 5, 7, 10 MHz 3.4 -3.8 GHz (400 MHz) TDD 5, 7, 10 MHz Fixed WiMAX IEEE 802.16-2004 3.4 – 3.6 GHz TDD 1.75, 3.5, 7 MHz 3.4 – 3.6 GHz FDD 1.75, 3.5 , 7 MHz 5.725 – 5.850 GHz TDD 5/10 MHz

2005 2006-07 2007+ Availability and coverage (phase 1) Capacity and pricing (phase 2) Service differentiation (phase 3)

The WiMAX Forum is an industry-led, non-profit corporation formed to promote and certify compatibility and interoperability of broadband wireless products. Our member companies support the industry-wide acceptance of the IEEE 802.16 and ETSI HiperMAN wireless MAN standards. What this means? For network operators this means equipment interoperability across vendors For component vendors this means fewer product variations and higher volumes For end-users this means faster and cheaper access that is more widely available

Content / Ecosystem (28%) Service Providers (33%) System Vendors (22%) Component Suppliers (17%) WiMAX Forum 414 Members Global Representation 28 WiMAX Forum Certified Products

EQUIPMENT MANUFACTURERS SERVICE PROVIDERS

SR Telcom Today’s Vendors Mainly 802.16d-2004 New Entrants 2H 2006 + Supporting 802.16e-2005 Alvarion Proxim Redline Airspan Aperto IP Wireless Navini Adaptix Nextnet Samsung Motorola Siemens Alcatel Nortel Huawei & ZTE Recently announced entrants Ericsson and Nokia Surviving in Niche Markets Acquired Expect flurry of mergers and buyouts By 2009, smaller players will be: Strix Systems Siemens

ARPU or Equivalent Number of Users Carrier-Centric Ad-Supported Search-Centric Craigslist Source: Yankee Group, 2006 Community-Centric Communications Centric CE-Centric Commerce-Centric Content-Centric

JAN-2007 Wi-MAX was founded in 2001, Intel joined WiMAX in 2003 More than 125 WiMAX members up to now Industry chain of Broadband Wireless access will be ready Source: WiMAX Increasing WiMAX members

Source: Intel, the WiMAX Forum * Other names and brands may be claimed as the property of others

Fixed WiMAX ‘06 Nomadic WiMAX ’ 07 – ‘08 Mobile WiMAX ’ 08 – ‘09 Technology Modem Client PC-Card + Integration Notebook Full Mobile Integration Full range of Mobile Devices Outdoor & Indoor Modems + WiFi Desktop + Notebook

Bridging the Digital Divide WiFi Hotspots Economic Vitality Digital Govt Education Home Usage Healthcare Safety & Security Wireless Broadband Connectivity

Application Bandwidth VoIP (Depending on Coding) 4 ~ 64 Kbps Video Phone (WiBro) 32 ~ 384 Kbps Music 5 ~ 128 Kbps Video Clips 20 ~ 384 Kbps Movies Streaming > 2 Mbps Web Browsing ~ 256 Kbps Instant Messaging ~ 250 Bytes Data Download (FTP) ~ 1 Mbps E-mail ( with Attachment) ~ 200 Kbps

WiMAX Cost of Coverage : WiMAX currently targets higher frequencies, increasingcapital and operating costs of coverage. WiMAX spectrum would require more than four times the number of WiMAX cell sites needed for coverage compared to the cellular band, and nearly twice the cells needed forUMTS band. Coverage will be expensive WiMAX Architecture – Costs As a WAN service WiMAX would require the same primary macro network cost components included in today's 3G networks: Cell Sites, Towers, RAN Equipment, Backhaul, Routers, Interconnect, etc.

Cellular operators adding subscribers more than 7-8 million per month Nov 07 - 8.3 million subscribers Dec 07 - 8.2 million Subscribers Present Telecom Scenario Fixed lines > 57 million Cellular Subscriber > 233 million Cable TV Subscribers > 100 million

Indian Market is Dominated by DSL operators Only 2.7 million Subscribers Fixed line operators not capable of providing broadband services to more than 10 million consumer Cable penetration is not showing good signs of growth Optimistic Side Wireless Cellular operators showing positive signs , with 40 million subscribers hooked to GPRS/EDGE Service …..which can be future potential customers for WiMax services .

It has severely impacted the EBITDA margins of the company , operators are looking for more spectral efficient networks and providing a provision for enhanced services and better QOS. Increasing Traffic and Declining ARPU – Major concern for existing operators

Embedded devices are key to future Personal Broadband Potential !!! Device Convergence

WiMAX & 3G: Different Solutions on Different Timelines EV-DO EV-DO Rev A EV-DO (Rev B, C, AIE) OFDMA, IP- Optimized Next Gen Mobile BWA 3GPP2 Technology Evolution 2010+ UMTS/ WCDMA HSPA (+) LTE 3GPP Technology Evolution 802.16-2004 802.16e-2005 WiMAX Rel 1 802.16 NextGen WiMAX Technology Evolution WiMAX – Next Generation Network Capable a Full Generation In Front of LTE

Today Future One radio Multi radio Device Convergence Cellula r Wi-Fi UWB WiMAX Wi-Fi Cellular

Why WiMAX ? Technology Innovation OFDM,MIMO, All IP Strong Ecosystem Competition, Innovation, Economical Markets & Segments Emerging, Developed Consumer & Enterprise Service Provider New Business Model, TTM, Low Cost- High Performance Spectrum Allocation WiMAX specific, 2-3 carriers /Country, TDD & FDD Consumer Needs Applications, Devices, Mobility vs. WiFi, 3G Hotspot to everywhere Up to 1/10 th Cost $/bit Why WiMAX? WiMAX : Foundation for Hyper-Connectivity and True Broadband

WLAN is useful for high-speed Internet/Intranet access for low mobility & stationary users (especially corporates) WLAN coverage of a major city may require typically approx 100:1 as many access points compared with number of UMTS base stations for equivalent coverage; WLAN also requires substantial investment in backhaul capacity Concerns regarding WLAN performance when hot spot capacity is shared by a large number of simultaneous users WiMAX – broadband wireless access (BWA) system for metropolitan area networks 3G/UMTS offers benefits of wide area coverage, full mobility, integral security, roaming, full integration with charging/billing systems WLAN & WiMAX coupled/combined with 3G/UMTS/HSPA will offer mobile broadband for EVERYBODY and EVERYWHERE , whatever the technology and access mode WLAN gives “hot spot” coverage WiMAX extends coverage to metropolitan area networks 3G/UMTS gives full mobility

Operators move towards fully converged IP network Providing seamless and complete transparent experience optimized to their Device Service Location

ASN - The ASN coordinates traffic across multiple Base Transceiver Stations (BTS) and supports security, handoffs and Quality of Service (QoS). CSN - The CSN manages core network operations through Internet Protocol (IP) servers, Authorization, Authentication and Accounting (AAA), Voice over Internet Protocol (VoIP) and Public Switched Telephone Network (PSTN) gateways, and it provides an interface to legacy core networks and other operators’ networks.

Intranets/ Internet WiFi/WiMax Base Switching Station (GSM/EDGE) UTRAN (WCDMA) Mobile Packet Backbone Network IP Multimedia Subsystem Access Point Site Router Base Transceiver Station (BTS) Base Station Controller (BSC) Service Domain Host Subscriber Server (HSS) Emergency Alert System (EAS) Call Session Control Function (CSCF) Media Resource Function (MRF) Transit Switching Center (TSC) Mobile Switching Center (MSC) Serving GPRS Support Node (SGSN) Multimedia Gateway WLAN Access Server Gateway GSN Media Gateway Base Transceiver Station (BTS) Radio Network Controller (RNC) Mobile Packet Networks PSTN/ ISDN

The specifications being developed by the NWG(Networking Group) within the WiMAX Forum define the role of the ASN and CSN and ensure that WiMAX networks can interwork with other networks, using WiMAX or other wireless or wired access technologies such as cellular, Wi-Fi, DSL, cable or fiber. In addition 3 different ASN profiles have been accommodated .

Simplified DSL Architecture The role of the Application Service Provider, the Network Service Provider and the Access Service Provider in the DSL reference architecture are similar to the role of the ASP, NSP and NAP in the WiMAX reference architecture.

The migration of DSL access networks towards Ethernet based aggregation introduces a V reference point in the architecture which allows the combination of a mobile WiMAX network with a DSL access network based on Ethernet bridging.

For gaining access to WiMAX network resources, the user’s MS has to perform an initial network entry procedure . Network discovery and selection User/Device Authentication QoS and Service Flow establishment Mobile IP registration and tunnel establishment

About – KDDI provides both fixed and wireless services via their existing DSL, FTTH and 2G/3G CDMA networks. KDDI provides extensive national coverage, with mobile coverage to over 99% of the Japanese population and a fixed network that reaches throughout Japan. As part of the push towards realizing a ubiquitous network society, KDDI is actively pursuing a convergent wireless, fixed and mobile network that it has coined “ Ultra 3G ”. Ultra 3G will provide users with a seamless experience across various complementary fixed, wireless and mobile access technologies on a packet-based core network for both voice and a full range of broadband data services.

WiMAX features Benefits to KDDI and other mobile operators High capacity Supplementary coverage to 2G and 3G networks to offer significant high speed data capability Low cost spectrum Alternative low cost spectrum even in areas of strong coverage to ensure peak performance for key services and users Low latency and high channel width Services and applications that are cost- and performance-optimized for highspeed real-time operation and essential for VoIP Standards-based Proven low risk technology with clear evolution path and widely available equipment and user devices including laptops and a variety of handheld devices All-IP core An already available avenue to rapidly move towards an all-IP IMS/MMD environment given other equivalent options such as LTE are still many years from implementation; lower operational cost base VoIP An economical IP-based voice back-up to supplement existing and future mobile networks Interoperability with fixed, mobile and wireless networks Fully convergent network service with seamless transparent handovers andsession continuation for users moving between 2G, 3G, DSL, FTTH, Wi-Fi and other fixed, wireless and mobile networks Attractive IPR Lower ongoing cost of operation, upgrade and user device royalties

10 MHz Spectrum to be allocated in 2.5Ghz band . Base price of 25 % of 3G Spectrum. Players offering 3G and WiMax services will be subject to an additional spectrum charge of 0.5% of their total revenues.

BSNL-SOMA Alliance- To provide wireless broadband coverage to nearly 200 million people in 3 states. Wateen telecom(Pakistan) –Nationwide WiMAX Deployment using 802.16e and IMS solutions , recently ordered 198,000 CPE from Motorola.

US SprintNextel:Q4 WDC, Chicago Clearwire Vanu Alltel BellSouth (Fixed) AT&T/SBC (Nevada – fixed) 5GHz WISPs Asia Korea: SKT Japan: KDD/NTT China: 3G allocations, WiMAX allowance India: Tech-neutral spectrum allocation (Tata – Aperto) Europe UK: BT Germany: ClearWire, NextWave Broadcom, Deutsche Breitband Dienste France Spain Italy Latin America Brazil: TVA (Samsung), Telephonica, Telmar, Brasil Telecom Mexico: TelMex Argentina: Entrach Tech-neutral spectrum allocation

As last mile broadband solution The Demand is Real

Wimax is a winning business case enabling the operator to pursue enormous business opportunities in the emerging market. focus on business Segment => higher returns. Wimax connection, provisioned within 48 hours => early start of network usage => no revenue leakage Thus the future delivery mode for broadband is certain to be Wimax!

Lower revenues (ARPU) for broadband services. Fewer customers can afford own customer premise equipment. Higher churn Higher percentage of bad debts can result in higher operating expense Lower percentage of households own personal computers thus reducing the size of the addressable market for broadband services.

Standardisation and mass production will give low prices Self-installation and self-configurable solutions will reduce costs Planning Coverage Costs Adaptive antennas will increase reach Non-line of sight capabilities increase coverage, simplifies planning Improved capacity utilisation as IP based WiMAX supports multicast Services Equipment flexibility enables fixed, nomadic and mobile services

WiMAX claims to provide peak throughput up to 75 Mbps in 20 MHz bandwidth Claims coverage range > 30 miles Claims to operate in 2- 11 GHz (2.5GHz, 3.5 GHz, 5.8 GHz) Claims to provide a broadband wireless data alternative for the cable and wireline industry Unrealistic Claim for NLOS scenarios; Estimated sector throughputs 12- 16 Mbps (DO supports ~24 Mbps in 20 MHz) Urban/ Suburban use would be 1 to 3 miles; Rural use can have larger range Data rates diminish drastically as distances increase Greater than 2.5 GHz presents harsh channel conditions for mobility Performance degrades drastically Markets will be limited to underserved areas; Cable and DSL industry will continue to thrive in existing markets

Wimax - Opportunites for Developing Nations

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