1. 3G Provides Mobile Broadband Today: An Overview of 3G, its Evolution, and some Perspectives on Mobile WiMAX Qualcomm Incorporated January 2008

2. 3G Provides MobileBroadband TodayTable of ContentsExecutive Summary .............................................................................. 1 [1] Introduction ...................................................................................... 2 [2] Wireless Economics......................................................................... 32.1 Supply and Demand ................................................................ 32.2 Operators Are Poised to Provide Additional Services, Performance, and Capacity .................................................... 32.3 Maximizing Revenues, Minimizing Costs ................................ 4 [3] Ecosystem........................................................................................ 5 [4] Applications and Revenue ............................................................... 84.1 3G Provides Service and Deployment Flexibility .................... 84.2 Many Operators Provide Innovative IP-based 3G Services Today ....................................................................... 94.3 3G Provides Mature Mobile Services Today ......................... 10 [5] Cost Considerations....................................................................... 115.1 Scale and Functionality Drive Device Cost ........................... 115.2 Number of Sites Drives Network Cost................................... 15 5.2.1 Capacity Comparison................................................. 17 5.2.2 Coverage Comparison ............................................... 18 [6] Evolution ........................................................................................ 20 [7] Conclusions.................................................................................... 22 1/2008 page i 3. 3G Provides MobileBroadband Today Executive SummaryEconomic principles explain the success of 3G and foreshadow itsdominant role in providing mobile broadband to billions of users. Thedemand for voice communication and the availability of increasinglyaffordable technologies and services have led to an enormous installedbase of global subscribers. The large, mature 3G ecosystem ofoperators, vendors, and developers has sufficient scale to delivereconomical mobile broadband. Numerous operators are providing abroad range of IP-based services today. 3G is a less-expensive technology option for operators than WiMAX.Device cost is governed by scale, and 3G devices across all marketsegments are forecasted to have greater scale than WiMAX. Networkcosts are driven by the number of required sites, since all WANtechnologies should have comparable site costs. 3G systems and theirperformance are proven. WiMAX performance is unproven, since noloaded WiMAX mobile networks yet exist to provide field data. Accordingto simulations, 3G technologies deliver greater capacity and coveragethan WiMAX when compared under the same conditions. Whether incoverage-limited or capacity-limited scenarios, 3G networks requirefewer sites than 802.16e-based WiMAX. As exemplified by the plethora of mobile, nomadic, and fixed broadbandservices offered by operators today, 3G enables all IP-basedapplications in its current incarnations. Furthermore, 3G technologiesprovide strong evolution paths. EV-DO Rev B and HSPA+, followed byUMB and LTE, will deliver even greater performance and leveragewider blocks of spectrum. 3G technologies and their evolutions arepoised to deliver increasingly affordable mobile broadband services to aneager global population. While there will be ample opportunities for alltechnologies, WiMAX will lack the scale and performance/servicedifferentiation necessary for truly ubiquitous mobile broadband. 1/2008 page 1 4. 3G Provides MobileBroadband Today[1] IntroductionMobile phones have profoundly transformed the way we live in mostparts of the world today. A mere twenty years since the introduction ofthe cell phone, the ability to engage in conversation anytime, anywherehas escalated from a desire to an expectation. Making a timely phonecall is no longer a luxury, but often a necessity. While most of us today are not as overzealous about our data as we areabout our conversations, timely access to information is just asindispensable to our personal and work lives. Unimaginable only adecade ago, the Internet is at the center of much business and socialinteraction today. The global addiction to cellular services and theastounding array of available networked content are paving the way tomobile broadband. Cellular voice adoption has been strong, and is still accelerating in partsof the world where phone lines are unavailable to most of the population.Not only has cellular-network coverage grown dramatically, but theunderlying technologies have also evolved to carry data as efficiently asvoice. 3G provides mobile broadband performance in a wirelessenvironment, with peak rates attaining multiple Mbps. Many operatorsare offering music, pictures, video, and Internet access over 3G networkstoday. For many people, 3G broadband may be the only opportunity forpersonal access to networked content. 1/2008page 2 5. 3G Provides MobileBroadband Today[2] Wireless Economics2.1 Supply and DemandRegardless of technology, the law of supply and demand is as importantin wireless economics as it is in other disciplines. Growing demand formobile data is giving rise to a variety of mobile broadband services.Simply stated: We are increasingly mobile. People understand and value the freedomto communicate when and where they choose. We want more data, and at higher speeds. As computers andconsumer devices consume and generate increasingly rich content,the amount of data being shuttled over networks is rising rapidly. Many players are motivated to offer services. Dominant companiesin industries that are approaching market saturation are eagerly seekinggrowth opportunities elsewhere. Expansion into wireless is a popularstrategy, because the scale is so significant. Technologies are available to enable these services. 3G providesa broad range of cost-effective options for operators to differentiatethemselves; they can deliver a full complement of voice and dataservices over networks with performance comparable to cable/DSL. 2.2 Operators Are Poised to Provide Additional Services,Performance, and CapacityOperators are eager to capitalize on demand, but they are also careful todeploy services where it makes sense. Just as with voice networks, 3Gmobile broadband operators initially deploy for coverage, and later addcapacity when demand intensifies. Voice is still the primary source of mobile revenue, and an excellent basefrom which to introduce additional revenue streams. 3G technologiesprovide ample data capacity at broadband speeds, and present a low-risk platform for operators to introduce new data services in response todemand. They also provide an evolution path to all-data networks whereVoIP will allow both low-cost best-effort and high-quality QoS-basedvoice services. 1/2008page 3 6. 3G Provides MobileBroadband Today2.3 Maximizing Revenues, Minimizing CostsAs operators evaluate options for rolling out wireless data services, theycarefully assess each competing technologys potential to maximizerevenue while minimizing cost. 3G technologies allow operators to maximize revenue, because theyenable a full range of large-scale voice and data services. Thesetechnologies also efficiently support fixed, nomadic, pedestrian, andmobile use. 3G operators are successfully providing a wide varietyof mobile data services and open Internet access today. Scale and number of sites govern device and network costs,respectively. 3G has the scale to drive down the cost of a wide range ofdevicesfrom mobile phones, data cards, and embedded laptops today,to wireless consumer electronics devices in the future. 3G networksprovide both the capacity and coverage to minimize the number of sitesneeded when compared with other technologies, while offering high datarates and excellent user experience. In urban and dense suburban deployments, the number of required sitesis driven by a technologys capacity and spectral efficiency. Capacity available for applications = (physical-layer capacity overhead) 3G technologies are highly optimized for wireless and mobility, andexhibit lower overhead in fixed and mobile deployments than competingalternatives.Spectral efficiency = (capacity / spectrum utilized)Spectral efficiency matters, because most operators have limitedspectrum with which to serve broadband customers. 3G technologiesrequire less spectrum than competing technologies, because allcells/sectors can use the same channel frequency. 1/2008 page 4 7. 3G Provides Mobile Broadband TodayFor suburban and rural deployments where subscribers are fartherapart, the number of required sites is driven by a technologys coverage(or cell area).Site count = (area to be covered / cell area)Cell area, in turn, is proportional to the cell radius squared. The radiusor reach of a technology depends on the frequency at which it isdeployed, and the effectiveness of the design. 3G technologies provideexcellent coverage, because they are typically deployed at lowerfrequencies and their air-interface design efficiently compensates forchanging channel conditions. They are also typically FDD technologies;all other things being equal, FDD systems have greater cell radii thantheir TDD counterparts. For existing operators, leveraging past investments as much as possibleis an important component of minimizing cost. Building out newnetworks, duplicating coverage, and replacing devices are expensivepropositions. The rapid proliferation of 3G reflects the advantages ofcost-effective upgrades to deployed networks. Pervasive coverage and long depreciation cycles imply that 3G networkswill persist for many years; new technologies deployed for additionalcapacity will likely only provide coverage where it makes sense.Coverage limitations also imply that new broadband technologies, inorder to provide effective mobile services, will likely require multimodedevices that also support 3G.[3] EcosystemAn important factor affecting a technologys ability to deliver mobilebroadband is the health of the ecosystem to which it belongs. A thrivingecosystem includes successful operators generating revenue for theirservices, and innovative vendors/developers creating products/servicesthat meet operators needs and fuel customer demand. 1/2008page 5 8. 3G Provides MobileBroadband TodayAccording to various industry sources, over 230 operators are currentlyoffering services to an estimated 110 million subscribers over EV-DOand HSPA broadband networks. Nearly 100 vendors are fielding 3Gdevice and infrastructure solutions today. Furthermore, this vendorconstellation is stable, because it is mature and proven. 3G operators have access to a wide array of high-quality devices to offerbroadband services. In fact, 3G offers operators greater diversity acrossall segmentsfrom numerous low-cost handsets, data cards, and USBmodems to a plethora of high-end smartphones, laptops, PDAs, andfixed-wireless gateways. More than 1000 3G1 devices are availabletoday for operators to use to differentiate themselves and stimulatecustomer interest. In addition, more than 100 3G laptop models are available from morethan 16 vendors today. The embedded-3G success story is encouragingmore vendors to incorporate EV-DO and HSDPA modems in theirlaptops alongside Wi-Fi and Bluetooth. ABI Research estimatesthat 3G-embedded laptop shipments will outpace WiMAX-embeddedcounterparts (Figure 1).Worldwide Cellular- and WiMAX-Enabled Notebook PC Shipment Cellular-Enabled Notebook PCs WiMAX-Enabled Notebook PCs40 35Shipments (Millions) 30 25 20 15 10502003 2004 2005 2006 2007 2008 2009 2010 2011 Figure 1. 3G- and WiMAX-Embedded Notebook ForecastSource: ABI, 10/061Combined CDG and GSMA figures 1/2008page 6 9. 3G Provides MobileBroadband TodayThe convergence of the telecommunications, computer, and consumerelectronics (CE) industries is giving rise to new classes of devices.The evolution of mobile phones is turning 3G mobiles into more powerfulcomputing and CE platforms. For example, innovative phones haveincorporated functions of game consoles, electronic wallets (Figure 2),bar-code scanners, music players, glucometers, and many otherapplications. Mobile CouponsEZ FeliCaM-PaymentM-Payment M-Payment ReaderReader NTT M-PaymentKDDI M-PaymentServices ServicesE-Money &Tickets E-MoneyFigure 2. Mobile Payments in Japan In the home, 3G- and Wi-Fi-enabled routers are allowing operators toprovide 3G high-performance broadband services to users who are outof range of traditional DSL and cable offerings. These devices are alsoan interesting solution for customers who want to take their broadbandconnection with them, from their home to small business offices inunserved industrial parks. Another interesting usage scenario is agroup of mobile users sharing a connection in a moving car or train.1/2008 page 7 10. 3G Provides Mobile Broadband TodayMany of these innovations have been realized, because vendors aremotivated by the prospects of achieving significant product scale.3G is so widely deployed, and coverage so prevalent, that lucrativemarket opportunities abound. Not only are 3G networks ubiquitous, they are based on technologiesthat are well-defined in complete, global standards. These standardsare the culmination of numerous quality contributions from manyparticipants318 and 84 members in 3GPP and 3GPP2, respectively.Not only are airlink mechanisms thoroughly defined in 3G standards, soare core networks and interoperability. The resulting reduction inambiguity, the mature streamlined test processes, and the mandatoryfield trials enable 3G products to be brought to market more quickly. Another important ecosystem issue related to standardization andtechnology innovation is that of IPR. Although absolute figures arenot common knowledge, 3G licensing costs are a known quantity.As with 3G, there will be WiMAX royalties; however, there is tremendousuncertainty about the actual rate. It takes time to arrive at a stable, mature ecosystem with well-understooddynamics. All new wireless technologies go through this maturationprocess. The 3G ecosystem is an evolution of first- and second-generation cellular ecosystems; it benefits from years of development.3G technologies have been in development and in the marketplacefor over five years. The WiMAX ecosystem will similarly need to evolveand mature over time.[4] Applications and Revenue4.1 3G Provides Service and Deployment FlexibilityA flexible, high-capacity 3G system enables all services. Operatorscan allocate available capacity for more users, or to provide higherdata rates. Flexible 3G broadband networks can address all marketsegmentsfrom fixed to mobile services; from basic access to richservices; from low- to high-end segments; from voice- or data-onlyto bundled voice and data services. Operators can adapt their mix ofvoice and data offerings over time, and in response to adoption, without 1/2008 page 8 11. 3G Provides MobileBroadband Todayhardware changes. Such flexibility reduces riskand fully monetizes the network. Operators are free to pursue their preferred strategy for augmenting datacapacity a needed. For example, they can apportion more capacity fordata (relative to voice), or they can deploy separate or additionaldata carriers. 3G technologies also enable operators to offer multicastservices (like TV or data-casts) in-band, using technologies like PlatinumMulticast or MBMS; alternatively, 3G can provide greater capacity formulticast offerings via well-integrated out-of-band, single-frequencynetworks, and multimode devices (using technologies like MediaFLOor DVB-H). 4.2 Many Operators Provide Innovative IP-based 3GServices TodayMany innovative operators are offering a wide range of 3G servicesand devices today. 3G enables operators to tap into targeted revenuestreams, whether these involve best-effort browsing, email, video calling,social networks, user-generated content, music downloads, low-latencygaming, video streams on demand, or one of many other services.3G enables a dazzling panoply of services (Figure 3.) with a singlenetwork or with a combination of integrated networks, dependingon an operators strategy.Figure 3. A Sampling of 3G Data Services 1/2008 page 9 12. 3G Provides MobileBroadband TodayIt is perhaps not clear to many that 3G enables all of these serviceswith IP-based deployments todayno circuit-switched infrastructure isrequired. Greenfield operators can deploy EV-DO Rev A or HSUPAnetworks to provide data and/or voice services without circuit-switchedequipment. 3Gs service flexibility arises not only because 3G fully supportsIP-based applications, but also because 3G provides comprehensiveQuality of Service (QoS) for all IP applications. These QoS mechanismseffectively prioritize delay-sensitive flows (e.g., VoIP) over best-effortones (e.g., web browsing). In conjunction with the low latency of EV-DORev. A or HSPA, these mechanisms provide excellent ear-to-mouthdelay (telco-grade VoIP). The latest 3G networks exhibit fast connectiontimes for services like Push to Talk (PTT), and also assure continuity ofdelay-sensitive applications during handoffs. By comparison, WiMAXQoS mechanisms are unproven, and are not yet well-integrated withcurrent IP platforms. The efficiency of 3G networks is enabling mobile broadband pricingthat is approaching cable and DSL levels. The cost of service plansis decreasing, especially in competitive markets in Europe and NorthAmerica. In some cases, operators are offering flat-rate consumer pricingthat ranges from approximately US$17 to US$60 monthly; someoperators offer capped data plans; some offer data-only plans; othersbundle data with voice. 4.3 3G Provides Mature Mobile Services Today3G technologies have evolved from systems designed for mobility fromday one; they offer seamless mobile broadband today. Mobile WiMAXis an evolution of fixed wireless access systems and the fixed-lineDOCSIS specification. WiMAX is not yet a mature mobile technology. 3G provides a comprehensive framework to support seamless handoffsfor all applications (VoIP and data). Supporting mobility lowers WiMAXreliability and impacts capacity. High resource-allocation overhead limitsthe resources (bandwidth) available for power control. Slow powercontrol leads to high Interference over Thermal (IoT) variance, impactsuplink efficiency, and can compromise WiMAX system stability. The lackof strict interference management results in lower sector capacity.1/2008 page 10 13. 3G Provides Mobile Broadband TodayMore robust WiMAX mobile deployments require a frequency reuse-3configuration. The lack of comprehensive interference managemententails reuse-3 for data sub-channels, to avoid significant outage(simulations indicate that >40% outage can result with reuse-1). Theimplication for operators is that more spectrum is required to deployWiMAX for mobility (for example, 30 MHz for a 10 MHz system). Asa result, it can be said that 16e-based WiMAX is not an efficienttechnology for mobile broadband services. WiMAX mobile broadbandrequires a trade-off between spectral efficiency and user experience.[5] Cost ConsiderationsOperators strive to provide profitable wireless broadband services byminimizing their device and overall network costs. Device costs areprimarily related to scale and functionality. The most important networkcosts are proportional to the number of sites deployed. 5.1 Scale and Functionality Drive Device CostOperators device cost decreases as shipped volumes grow. 3G devicevolumes are significant, ~267M shipped in 2006 (Figure 4), andincreasing rapidly as operators upgrade their networks; the cost of 3Ghandsets is declining as shipments increase (Figures 4-6). For likedevices, scale accounts for the cost difference between 3G and WiMAX.WCDMA & CDMA2000 Worldwide Handset Shipments(Millions) 58%*800700600500400 761 30023%* 638535 200 439 352271 100 197 02005 2006 2007 2008 2009 20102011Figure 4. Handset Shipment Trends: WCDMA and CDMA* Percentage of total handset shipmentsSource: Average of ABI (Q4 2007), IDC (Jul 07) Strategy Analytics (Jul 07) and Yankee Group (Oct 07) handset forecasts 1/2008page 11 14. 3G Provides Mobile Broadband TodayWCDMA Handset Costs $450$407 $367 $350 $341$311 $290$287$290 $295 $272$270$270$254$250 $228 $231$217 $221 $197 $198$195$191$181 $141 $141$150 $129 $128$128 $135 $105$50 1Q042Q04 3Q044Q041Q052Q05 3Q054Q051Q06 2Q063Q06 4Q061Q072Q07Lowest 10%Lowest Price Figure 5. Handset Cost Trends: WCDMA Handsets2Source: Qualcomm IncorporatedCDMA2000 Handset Costs $90$82 $83 $77$69 $70$70 $68$68 $57 $59$55$55 $50$51 $49$49 $48$50$43 $42$41$37$35$35 $35 $28$30 $24 $26$24 $20 $10 1Q042Q043Q044Q04 1Q05 2Q053Q054Q05 1Q062Q06 3Q064Q061Q072Q07 Lowest 10% Lowest priced Figure 6. Handset Cost Trends: CDMA Handsets3Source: Qualcomm Incorporated2 Note: WCDMA handsets Sold per Calendar Quarter; lowest price represents completehandsets sold in quantities of approx 50,000 units or higher.Note: Data derived from licensee reports. Does not include modules.3 Note: CDMA2000 Phones Sold per Calendar Quarter; lowest priced represents completephones sold in quantities of approx 150,000 units or higher.Note: Data derived from licensee reports. Does not include modules.1/2008page 12 15. 3G Provides MobileBroadband TodayCompetition between vendors also puts downward pressure on devicecost; however, individual vendors must still be able to achieve sufficientscale to remain profitable and maintain a healthy ecosystem. Prior toecosystem consolidation, market fragmentation can make it morechallenging for vendors of new technologies like WiMAX to achievesignificant scale, because many vendors are pursuing smaller, earlymarket opportunities. The incompatibility between pre-802.16 proprietary solutions, FixedWiMAX (802.16d-based), and Mobile WiMAX (802.16e-based) productsalso impacts device scale. Various operators, capitalizing on time-to-market advantage, deployed proprietary or Fixed WiMAX networks.Figure 7 illustrates how this installed base will cannibalize 16e WiMAXshipments for years, in part because operators cannot upgrade.Operators with profitable businesses are unlikely to replace, at greatexpense, these networks and devices until the case for migration makeseconomic sense.Figure 7. WiMAX and Proprietary Subscriber Forecasts 1/2008 page 13 16. 3G Provides Mobile Broadband TodayIn time, its likely that 802.16e systems will be used for most fixedand mobile deployments, improving the scale equation for WiMAX.In contrast to the various flavors of WiMAX, all 3G systems can beused for fixed and mobile applications today. 3G device scale is also achieved because networks are deployedin globally harmonized spectrum; most countries allocated the samefrequency bands for 3G, and most of the spectrum was paired for FDDduplexing. Harmonization enables vendors to achieve scale, becausetheir products can be deployed in many markets.Figure 8. WiMAX Forum Profiles Attaining scale is more challenging for WiMAX vendors, because thereis more variability in the bands and channelizations used for WiMAXdeployments (Figure 8). For example, fixed networks are generallydeployed in the 3.33.8 GHz bands, but sometimes also at 2.3 or 2.5GHz. Fixed WiMAX products can be FDD or TDD. Mobile networks willlikely be deployed at 2.5 GHz (in TDD spectrum), but also at 2.3 GHz inKorea. Initial mobile solutions will only be TDD. Multiband products arepossible, but they are more expensive. 1/2008 page 14 17. 3G Provides Mobile Broadband TodayFrom a functionality perspective, devices with more capabilities aregenerally more expensive. For example, high-resolution displays,keyboards, touchscreens, memory, operating systems, and high-performance graphics or audio processors all add to the cost ofa device. Most costs are not related to the air-interface technology infeature-rich mobile devices, and differences in modem cost become lesssignificant. As a result of greater scale, 3G devices should have a costadvantage over WiMAX counterparts. Given limited initial WiMAXcoverage, its also likely that early generations of mobile devices wouldrequire 3G radios (multimode) for ubiquitous use. Multimode functionalityadds incremental costs (hardware, software, and testing) to WiMAXdevices. 5.2 Number of Sites Drives Network CostWhen comparing different WAN technologies, it is the number of sitesrequired to provide service that determines the most cost-effectiveoption. All technologies have comparable site costs. The example inFigure 9 illustrates how most site costs are not related to the choiceof WAN technology. The dominant costs are backhaul, operations, siterental/installation, and base stations. Comparable (same-class) base stations of different technologies shouldcost roughly the same. The most expensive base station components(power amplifiers, antennas, etc.) are similar if not identical. In fact,many vendors have exactly the same base station chassis acrosstechnologies; the digital card is the principal difference between thesebase stations. When evaluating different technology options, its also important tocompare similar deployment configurations. It is unrealistic to comparethe cost of a 3G WAN network deployed for mobility to the cost of aWiMAX network deployed for nomadic access or point-to-point backhaulfor enterprises. Both 3G and WiMAX are capable of providing single-cellomni-directional or directional coverage. However, most 3G deploymentsare cellular WANs. WANs are typically deployed for capacity orcoverage. 1/2008 page 15 18. 3G Provides MobileBroadband Today Fixed/Nomadic Voice + Data Network ExampleSeven-Year DepreciatedCapital (% of Total 600 MOU /Sub/Month CapitalNetwork Expense) 38% 1000 MB /Sub/Month ExpenseAncillary Equipment1%Installation/Shipping11%Ancillary EquipmentSite Acquisition 1%Internet Interconnect Installation/ShippingProject Management 0%Site AcquisitionRF Eng / Test Equip1%Project Mgt.BTS12%RF Eng / Test Equip BackhaulBSC8%CoreNet BTSCircuit-Switched 0%CoreNet Packet-Switched3%Other1% Software UpgradeBSC TrainingMSCSparesCore Network UtilitiesOperating ExpenseOther(% of Total NetworkOperationsExpense) 62%Site RentalSite Rental12%Operations 13% OperatingUtilities3%ExpenseSpares 2%Training 1%Notes:Software Upgrade 1% Urban morphology (10K Pops/Sq Km)Backhaul 25%Internet Interconnect5% Wireless penetration: 50% Operator market share: 25% Local call termination charges and long-distance transport costs are notincluded in the network expense calculations Spectrum available: 2X10MHz @ 800MHz Figure 9. Network Cost Breakdown Example 1/2008page 16 19. 3G Provides Mobile Broadband Today 5.2.1 Capacity Comparison Urban and dense suburban WANs are typically deployed for capacity. In order to evaluate the capacity of wireless networks, various methodologies are often employed, including 3GPP/3GPP2 and NGMN, to simulate system performance. 3GPP/3GPP2 methodologies have been employed in the industry for many years and are widely accepted.Simulation results vary with methodology (e.g., NGMN, 3GPP/PP2) and different models can accentuate or minimize the impact of technology designs; nevertheless, the performance trend is consistent when technologies are compared on an equal basis. 3G technologies consistently provide greater capacity than WiMAX, in all NGMN and 3GPP/3GPP2 cases, using a comparable amount of spectrum. Figure 10, employing PP/PP2 methodologies, exemplifies this trend.3Gs greater capacity results from lower overhead and more efficient design. High WiMAX overhead results from inefficient resource Simulation assumptions: allocation techniques that are intrinsic to the 802.16e standard; they SIMO full buffer, physical-layercannot be remedied in certified product implementations. performance 3GPP2 (DOrA, DOrB, UMB, 802.16e WiMAX) and 3GPP (HSPA) framework usedDL Capacity in 10 MHz (Mbps) DV channel model mix 25 Equalizer gain simulated 20 for DOrA, DOrB and HSPA (R7)15 HSPA: 5 MHz FDD carrier9.72 11.9 with 16-QAM; 2 carriers 8.989.2 in 2x10 MHz; 64 QAM provides 10 ~2.5% gain 5.4* 5 DOrA and DOrB: 1.25 MHz FDD carrier;7 carriers in 2x10 MHz 0 WiMAXDOrA DOrB HSPA UMB 802,16e WiMAX: sector capacity for 10 MHz TDD 2:1 carrier isFigure 10. Normalized 10 MHz Downlink Capacity Comparison 3 Mbps, scaled 1.5x to 10 MHz effective FL bandwidth * 802.16e WiMAX control channel overhead from MAP messages reduces capacity available for data 1/2008 page 17 20. 3G Provides Mobile Broadband TodayIn brief, the 16e-WiMAX broadcast-control-channel design requiresthat a large downlink messages be sent with every downlink sub-frame to tell all devices where and when to receive and transmitdata. For reliability reasons, these messages have to be sent at thelowest data rate, consuming a large portion of sub-frame. The moreheavily loaded the network, the more allocations are required, andthe larger these messages. Application data can only occupy theremainder of the sub-frame. Various vendors and several operators planning to deploy WiMAXnetworks for mobility have indicated that a reuse-3 configuration isneeded for data sub-channels. This would further reduce the spectralefficiency of a WiMAX network, as two-thirds of dedicated spectrumwould not be used. For example, an operator with 15 MHz ofspectrum could only deploy one 5 MHz carrier per sector in a reuse-3 configuration. It is possible that WiMAX networks for fixed servicescould employ reuse-1 for data sub-channels, and reuse-3 for thecontrol sub-channel, to improve capacity and spectral efficiency. VoIP capacity is important, because many operators envisioningmobile-broadband services consider a voice offering a necessity fora profitable business case. Low overhead and comprehensive QoSallow 3G to provide a superior mix of VoIP and data. By comparison,WiMAX provides poor voice and poor mixed voice+data capacity.Simulations based on 3GPP2 assumptions suggest that WiMAXvoice capacity should be slightly better than analog, but less than 2Gand much less than 3G. Frequent allocations needed to schedule voice traffic increaseWiMAX signaling overhead (to the detriment of data capacity). 5.2.2 Coverage ComparisonRural and less-dense suburban networks are usually deployed forcoverage. Link budget determines cell radius, and in turn cell area.A simplified coverage explanation: the number of cells required tocover a given region decreases, as the cell area provided by atechnology increases. 1/2008page 18 21. 3G Provides Mobile Broadband Today Comparing cell area/radius, 3G requires fewer sites than WiMAX, even when deployed at similar frequencies (Table 1). 3G networks are typically deployed at lower frequencies than WiMAX, and have better propagation characteristics. FDD technologies like 3G also have better link budgets than TDD technologies like 16e- WiMAX. TDD mobiles only transmit part of the time, and require more power to achieve the same data rate as FDD mobiles at the same distance. This results in a decreased cell radius for TDD technologies, as mobiles are power-limited. 3G systems also have airlink design advantages that provide incrementally better link budget over WiMAX. Link budget is also important for dense urban scenarios where in-building penetration is crucial. Most broadband services are likely to be consumed indoors. Cell Size Comparison for Mobile Deployment Scenario (Rural) Reverse Link (middle loading)DOrA HSUPA UMBUMB UMB 802.16e 802.16eTDD Duplexing FDDFDD FDDFDD2:1TDD 2:1 TDD 2:1 Frequency Band (MHz)1900 19001900 25002500 25003500 Data Rate [kbps] 67.756.0 70.570.570.5 60.460.4 General MAPL [dB]143.0141.3 143.0 143.0 139.3133.6 134.6 Rural MAPL [dB]133.0131.3 133.0 133.0 129.3123.6 124.6 Rural Antenna Height [m]50 50505050 5050 Rural Radius [km] 8.5 7.58.5 7.2 5.63.8 3.3 Rural Cell Area (sq km) 186.6146.3 186.2 134.0 80.2 37.129.2Table 1: (Reverse Link) Link-Budget Comparison: 3G and 802.16eCell Radii and Cell Areas* Assuming a cell-edge target data-rate of 64Kbps @ 1% PER on the ULIn summary, under similar conditions, 3G provides capacity andcoverage advantages for various deployment scenariosincluding forsimulations that employ 3GPP/PP2 to NGMN models; for WANs,hotzones, and hotspots; and for fixed, nomadic, and mobile scenarios.1/2008page 19 22. 3G Provides MobileBroadband TodayCoverage or capacity governs the number of sites for all scenarios, and,by extension, network costs. Although various operators haveconsidered deploying WiMAX as a broadband overlay to 2G voicenetworks, 3G is a more natural and complementary alternative thatprovides lower cost, more deployment flexibility, improved performance,and better integration.[6] EvolutionAs with preceding generations, 3G technologies will continue to evolve,with timely improvements for greater capacity, lower cost, and higherdata rates to support a myriad of voice and data services. As detailedin Figure 11, 3G has a strong, well-developed evolution path withmany successive enhancements; 3G is also being integrated withcomplementary technologies (like 802.11x and MediaFLO/DVB-H)that are evolving in parallel.Evolution of 3G Mobile Broadband UMB LTE DL: 288 Mbps peak DL: 278 Mbps peak UL: 75 Mbps peak UL: 75 Mbps peak HSPA+ Rev. BDL: 14-42 Mbps peak DL: 6.2-73 Mbps peakUL: 11 Mbps peak UL: 3.6-27 Mbps peak HSUPARev. ADL: 1.8-14 Mbps peakDL: 3.1 Mbps peak UL: 5.7 Mbps peakUL: 1.8 Mbps peak HSDPAEV-DODL: 1.8-14 Mbps peakDL: 2.4 Mbps peakUL: 384 kbps peakUL:153 kbps peakWCDMA C2K 1X DL: 384 kbps DL:153 kbpsUL: 384 kbps UL:153 kbps Figure 11. Evolution of 3G Mobile Broadband Technologies 1/2008 page 20 23. 3G Provides MobileBroadband TodayIn the future, a multitude of layered wireless and wired networks willinteroperate to provide all forms of communication, information, andentertainment. As illustrated in Figure 12, anytime, anywhere mobilebroadband will be provided by many different technologies, withthe reach and scale of mobile WANs being the most pervasive.Opportunities exist, and will continue to exist, for many technologies toplay a part in this futurewith the most appropriate technologies beingapplied to the relevant scenarios.Figure 12. Layered Broadband Networks UMB and LTE are optimized mobile OFDMA solutions with advancedantenna techniques that leverage wider bandwidths (20 MHz), providepeak rates of 280 Mbps (in 20 MHz FDD), and address both FDD andTDD spectrum. 3G assures backward compatibility and future interoperability.Compatibility with the installed base has always been part of the cellularindustrys philosophy (at times with painful implications). 3G protectsoperator investments by ensuring backward compatibility, from standardspecification to rigorous field tests. 3G technologies are backward-compatible through Rev. B and HSPA+; by design, UMB and LTE willprovide seamless interoperability with 3G networks. In contrast, 802.16d-and 802.16e-based WiMAX products are incompatible. 1/2008page 21 24. 3G Provides Mobile Broadband Today[7] ConclusionsGlobal demand for broadband is growing significantly and continuesto outpace availability. In general, communication services are trendingtoward ubiquitous access as the line between fixed and mobile usageblurs. Strong, sustained consumer demand for mobile voice serviceshas created an enormously successful global ecosystem, with numerousoperators providing services and vendors delivering products. Withsignificant scale and maturity, the 3G industry is well-positioned todeliver mobile broadband to an enormous installed base of customers,while reaching out to new ones. 3Gs growing scale is leading to more-affordable, more-capable devicesacross all market segments. This fact, in conjunction with growing yetpervasive global coverage, increases the likelihood that 3G devices willmaintain an advantage over their WiMAX analogs. Network expensesare dominated by the number of sites, and simulation results show that3G should require fewer sites than WiMAX. With greater capacity andcoverage in equivalent scenarios, overall 3G network costs again showan advantage. The versatility of 3G systems to support all IP-basedapplications with robust QoS is enabling operators to bring to market awide range of creative VoIP and data services. While 3G systems perform better than WiMAX today, it is also likely thatthey will continue to do so as their evolutions introduce class-leadingOFDMA and MIMO solutions. Rev. B and HSPA+, followed by UMB andLTE, will provide higher data rates, and enable operators to leveragewider allocations as more spectrum becomes available andthe demand for increased performance grows. 2007 Qualcomm Incorporated. All rights reserved. Qualcomm is a registered trademark of Qualcomm Incorporated. MedialFLO is a trademarkof Qualcomm Incorporated. UMB is a trademark of the Telecommunications Industry Association. WiMAX is a trademark of the WiMAX Forum.CDMA2000 is a registered trademark of the CDMA Development Group. Bluetooth is a registered trademark of the Bluetooth SIG, Inc. Wi-Fi is atrademark of the Wi-Fi Alliance. All other trademarks are property of their respective owners. Qualcomm asserts that all information is correctthrough December 2007. 1/2008page 22