1. motorola confidential proprietary motorola, the stylized m logo, and motowi4 are registered in...

Motorola Confidential ProprietaryMOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2006

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3

Site costs – Light Infrastructure Benefits

AntennasSeparate → Integrated

Active ElementsMany → Few

Civil WorksTower → Pole/Stand

Real EstateTraditional → Innovative

CablingAnalog Coax → Digital

Installation ToolsHeavy Equip. → Hand Tools

CoolingA/C → Convection/Fans

Infrastructure HousingTemp Control Building → All Outdoor

PowerK-amps → amps

Capex Cost Difference

•Traditional Cellular Infrastructure

•(Range: $80k-190k) •Light Infrastructure•(Range: $30k-120k)

•Blended avg: ~$96K •Blended avg: ~$44K


4

Flat IP Architecture

- Now on IP Cost and performance curves

- Reduced Capex, backhaul and Opex costs.

By reduced network complexity.

Majority off the shelf equipment

TRADITIONAL CELLULAR ARCHITECTURE

Internet PSTN

MSSSGSN

Base StationControllers

GGSN Media Gateway

Base Stations

CARRIER ACCESS POINT (CAP) ARCHITECTURE

Internet PSTN

Access Points

CAPController

VoIPGateway

or IMSData Gatewayor IMS


5

• WiMAX Chipset costs– Design simplicity: Full-duplex TDD streamlines RF design

– Leverage with 802.11a/b/g makes multi-mode cheaper

– 2.5Ghz and 3.5Ghz world-wide spectrum allocations drive economies of scale

• Global ecosystem

Technology cost comparison

Estimate Chipset cost evolution

00.20.40.60.8

11.21.41.61.8

2

2005 2006 2007 2008 2009 2010 2011

HSDPA

UMTS

LTE chipset MM device

DO-Rev0

CDMA 1X

GSM

WiFI chipset for MM

DO-RevA

WiMAX voice centric WiMAX MM centric


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WiMAX Business Model

Link Estimation Tool Capacity Simulator

Coverage Analysis Capacity Analysis

Model Input Sheet

Model Result Sheet

Integrated with Model


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Model Inputs and Results

- 10 Year Financial Pro-forma- Estimate TCO and ROI- Capacity is estimated using the pseudo simulator for each year- Includes wireless/wireline backhaul

Model Input Sheet

Model Result Sheet

Inputs Include:

• Frequency band, Channel BW

• Network Type – Fixed, Mobile, Mixed

• Coverage rollout, Design details (Demographics, Antenna Ht etc, Duty Cycle ..)

• Services Offered, Traffic profile and demand

• ARPU, Handset Costs/Subsidies

• Churn Rates, subscriber rollout

• Backhaul details, Existing network synergies


8

Operator Business Modeling Methodology & Results

• Applied varied penetration rates, densities, and traffic mixes to mobile and fixed/nomadic models

• Applied most efficient product to carrier business model – Over 60 business models generated

• Summarize results and apply to market segments– Close business cases based on:

• Solving for ARPU vs.. Number of Subscribers

• Product Cost averages 5% to 10% of TCO minimal impact to business case– Big hitters: Site specific costs in backhaul, site acquisition, site rental, and site utilities

• Site Costs: 15% to 30% of TCO


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Summary Carrier Business Model Results


10

TCO Comparison

0.00

50.00

100.00

150.00

200.00

250.00

0.40 0.66 1.00 1.33 1.99 3.98 7.97 12.07

Data Usage Per Sub Per Month (GB)

TCO

in $

MN WiMAX - Costs

CDMA - Costs

UMTS - Costs

Mobile Technology Comparisons: TCO based on Data Usage per User

CapacityExpansion Risk

Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless)

2 GB per Person per Month

TCO tipping point toward WiMax


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Sites Comparison

0

50

100

150

200

250

300

350

400

450

0.40 0.66 1.00 1.33 1.99 3.98 7.97 12.07

Data Per Sub Per Month (GB)

# of

Site

s WiMAX - Sites

CDMA - Sites

UMTS - Sites

Mobile Technology Comparisons: TCO based on Data Usage per User

CapacityExpansion Risk

Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless)

2 GB per Person per Month

TCO tipping point toward WiMax


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Broadband Capacity Comparison (SIMO)

SIMO (1x2)

DL STBC (Alamouti)

DL Open Loop MIMO (2x2)

DL EBF (4x2)

Specturm Occupancy 1.25 MHz (FDD) 5 MHz (FDD)

#sub-carriers 1.2288 Mcps 3.84 Mcps

DL Sector Throughput (Kbps)Web Browsing with HTTP Traffic 570 2300 3967 3967 4317 7042

DL Sector Throughput (Kbps)Full Buffer Traffic 640 3200 7700 7700 8517 10508

UL Sector Throughput (Kbps)Full Buffer Traffic 500 1100 1125 1125 1125 1125

DL User Packet Call Throughput (Web Browsing with TCP/IP) 85 85 152 152 150 162

DL User Packet Call Throughput (Full Buffer) 140 340 570 570 650 760

DL Voice Capacity (Erlangs) 35 120 150 200 200 >300

UL Voice Capacity (Erlangs) 30 80 120 120 120 120DL sector SE Web Browsing

(bps/Hz/sector) 0.40 0.46 0.54 0.54 0.59 1.02DL sector SE Full Buffer

(bps/Hz/sector) 0.45 0.64 1.06 1.06 1.17 1.53UL sector SE Full Buffer

(bps/Hz/sector) 0.35 0.22 0.45 0.45 0.45 0.42VoIP site SE (E/MHz/Site) 31.5 24.0 36.0 36.0 36.0 36.0DL site SE Web Browsing

(bps/Hz/site) 1.20 1.38 1.63 1.63 1.78 3.07DL site SE Full Buffer (bps/Hz/site) 1.34 1.92 3.17 3.17 3.50 4.59ULsite SE Full Buffer (bps/Hz/site) 1.05 0.66 1.35 1.35 1.35 1.25

1024

10 MHz TDD

Features HRPD-A WCDMA- Rel 5/Rel6

802.16e (1X3x1)


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WiMAX System Simulation Results: SummaryAll MS are @ 30 Kmph

SIMO (1x2)

DL STBC (Alamouti)


DL EBF (4x2)

SIMO (1x2)

DL STBC (Alamouti)


DL EBF (4x2)

SIMO (1x2)

DL STBC (Alamouti)


DL EBF (4x2)

Specturm Occupancy

#sub-carriers

Number of DL data symbols 28 28 28 26 30 30 30 28 30 30 30 28

Number of UL data symbols 9 9 9 9 9 9 9 9 9 9 9 9

DL overhead symbols(Preamble+MAP) 7 7 7 7 5 5 5 5 5 5 5 5

UL overhead symbols(Ranging+ACK+CQICH+sounding) 3 3 3 4 3 3 3 4 3 3 3 4

DL Sector Throughput (Kbps)Web Browsing with HTTP Traffic 3967 3967 4317 7042 9000 9000 10393 13200 5786 5786 6321 9100

DL Sector Throughput (Kbps)Full Buffer Traffic 7700 7700 8517 10508 13393 13393 19821 16000 10982 10982 13929 13500

UL Sector Throughput (Kbps)Full Buffer Traffic 1125 1125 1125 1125 2175 2175 2175 2175 1650 1650 1650 1650

DL User Packet Call Throughput (Web Browsing with TCP/IP) 152 152 150 162 175 175 175 157 152 152 160 140

DL User Packet Call Throughput (Full Buffer) 570 570 650 760 500 500 750 750 450 450 600 540

DL sector SE Web Browsing (bps/Hz/sector) 0.54 0.54 0.59 1.02 0.41 0.41 0.48 0.64 0.40 0.40 0.43 0.66

DL sector SE Full Buffer (bps/Hz/sector) 1.06 1.06 1.17 1.53 0.61 0.61 0.91 0.78 0.75 0.75 0.96 0.98

UL sector SE Full Buffer (bps/Hz/sector) 0.45 0.45 0.45 0.42 0.29 0.29 0.29 0.27 0.33 0.33 0.33 0.30

DL site SE Web Browsing (bps/Hz/site) 1.63 1.63 1.78 3.07 1.23 1.23 1.43 1.92 1.59 1.59 1.73 2.65

DL site SE Full Buffer (bps/Hz/site) 3.17 3.17 3.50 4.59 1.84 1.84 2.72 2.33 3.01 3.01 3.82 3.93ULsite SE Full Buffer (bps/Hz/site) 1.35 1.35 1.35 1.25 0.87 0.87 0.87 0.80 1.32 1.32 1.32 1.22

1024 1024 1024

802.16e (1X3x3) 802.16e (1X4x2)

10 MHz TDD 10 MHz TDD 10 MHz TDD

Features

802.16e (1X3x1)

1. motorola confidential proprietary motorola, the stylized m logo, and motowi4 are registered in...

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