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Wireless Broadband in the USA

Wireless Broadband in the USA for GIGA Technology Program Miika Nevalainen, Veijo Iivonen Finpro USA, Silicon Valley November 14, 2005 Table of Contents 1. Introduction 2. Market Overview 2.1 Business Volume 2.2 Major Service Providers 3. Technology 3.1 From 2G to 3G

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Wireless Broadband in the USA

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  1. Wireless Broadband in the USA for GIGA Technology Program Miika Nevalainen, Veijo Iivonen Finpro USA, Silicon Valley November 14, 2005

  2. Table of Contents 1. Introduction 2. Market Overview 2.1 Business Volume 2.2 Major Service Providers 3. Technology 3.1 From 2G to 3G 3.2 3G 3.3 Beyond 3G 3.4 Wi-Fi and WiMax 3.5 UWB and Bluetooth 3.6 MediaFLO, DVB-H 3.7 MIMO 3.8 WiBRO, WiMAX, Flash-OFDM 3.9 Seamless Interoperability, Handover 4. Services 4.1 Services – 2G/2.5G/3G 4.2 Services - Wi-Fi 4.3 Consumer Applications 4.4 Business Applications 4.5 Trends Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 2

  3. Table of Contents 5. Private Sector R&D Activities 5.1 Research Activities 5.2 Funding 5.3 Components: Terminals 6. Policymaking and the Role of the Public Sector 6.1 The Government Role 6.2 Municipal Action 7. Public Sector R&D Activities 7.1 Research Activities 7.2 Funding 7.3 Organizations 8. Possibilities for Finnish Companies 8.1 Services and Applications 8.2 Leveraging Expertise 9. Foreseeable Radical Changes 9.1 3G Networks and Services 9.2 Wi-Fi and WiMAX 9.3 Voice over IP 9.4 Wireless Enterprise, Home and Community Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 3

  4. 1. Introduction Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 4

  5. 1. Introduction Introduction • This report has been written for the GIGA program of Tekes, focusing on converging networks. The report provides information on the U.S. wireless broadband markets. • This report discusses the following issues • Overview of the U.S. wireless broadband market • Competitive environment • Technology adoption and outlook • Available services • Government’s role in the development of the wireless broadband Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 5

  6. 1. Introduction United States in a Nutshell Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 6

  7. 2. Market Overview 2.1 Business Volume 2.2 Major Service Providers Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 7

  8. 2. Market Overview 2.1 Business Volume Wireless Market • Emerging wireless internet and content services stimulate market growth • Wireless Internet and applications for cellular & Wi-Fi (and WiMAX in the future) attract new users • 2008, wireless market reaches $212.5 billion • 10 percent CAGR from 2005 to 2008 • Revenues in 2004 totaled $145.1 billion • up 11.6 percent from 2003 • 12.4 million smartphones will be sold in 2005, 98.5 million by 2009 • Source: TIA, 2005 Source: TIA, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 8

  9. 2. Market Overview 2.1 Business Volume Wireless Internet Users in the U.S. Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 9

  10. 2. Market Overview 2.1 Business Volume U.S. Mobile Data Revenue Source: Brosnan, 2005 (Figure consists from conclusions made by ITU, Gartner, CTIA and Brosnan) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 10

  11. 2. Market Overview 2.1 Major Service Providers Top U.S. Cellular Providers - Subscribers Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 11 Source: Data from carriers, Sep. 2005

  12. 2. Market Overview 2.1 Major Service Providers Top U.S. Cellular Providers – Quarterly Revenues Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 12 Source: Data from carriers, Sep. 2005

  13. 4. Services 2.2 Major Service Providers Top U.S. Mobile Internet Web Sites, June 2005 Source: Telephia, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 13

  14. 2. Market Overview 2.2 Major Service Providers Service Provider Technologies:2.5G and 3G • Cingular • Operates a nationwide GSM/GPRS/EDGE system • T-Mobile USA • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network • Verizon Wireless • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems • Sprint Nextel • Operates CDMA (Sprint PCS) and iDEN (after Sprint-Nextel Merger), 1xRTT, EV-DO systems • Alltel • Operates networks with CDMA, AMPS, EV-DO Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 14

  15. 2. Market Overview 2.2 Major Service Providers Cingular Wireless L.L.C. • Largest wireless company in the U.S., with total customers: 51.6 million • Acquired AT&T Wireless in 2004 • Operates a nationwide GSM/GPRS/EDGE system • Upgrading its six UMTS (W-CDMA, 1900 MHz) networks to HSDPA by year end 2005 • HSDPA trials on UMTS ongoing in Atlanta • First HSDPA launches in 15 to 20 markets, expanding to other U.S. markets during 2006 • Equipment from L.M. Ericsson, Lucent Technologies Inc, and Siemens AG, Novatel, Sierra, Nokia, Sony Ericsson Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 15

  16. 2. Market Overview 2.2 Major Service Providers Cingular Wireless Revenue Structure Second Quarter 2005 Source: Cingular Wireless, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 16

  17. 2. Market Overview 2.2 Major Service Providers Verizon Wireless • The 2nd largest mobile carrier in the USA • 47.4 million subscribers • Operates CDMA, AMPS, CDMA2000 1xRTT, EV-DO systems • Entered EV-DO market in 2003 • 500,000 to 1 million customers connect by laptops (1xRTT & EV-DO) • 140 million potential customers, 61 markets • Verizon’s BroadBand Access EV-DO service is offered in major airports and business districts in 34 markets. • Plans to cover more than 50% of the country’s population by the EOY 2006 • Leader in the U.S. EV-DO market • Faces strong competition from Sprint-Nextel and Cingular Wireless • Verizon Wireless reduced EV-DO prices by $20, to $60/month for unlimited services • Launched VCast service for video viewing from handset, $15 a month • Achieved the first VoIP and Video call in August with Lucent’s technology • Real testing will be done in 2006 • Verizon Wireless reports having 19.1 million data users (contributing 7% of the operator’s total revenue, compared to 4.2% one year ago) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 17

  18. 2. Market Overview 2.2 Major Service Providers Verizon Wireless Revenue Structure Second Quarter 2005 Source: Verizon Communications, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 18

  19. 2. Market Overview 2.2 Major Service Providers Sprint Nextel • The 3rd largest mobile carrier after merger • 45.6 million subscribers (post merger, 3Q2005) • Operates CDMA based networks (Sprint PCS) • Launched EV-DO services in 2005 in 34 markets • Plans to become the second major U.S. operator with EV-DO by the year 2006 • Plans to roll out service in 60 metro areas across the USA in 2006. • EV-DO is being used as an extension of their 1xRTT data deployment • Offering Sprint PCS Connection Cards for EV-DO, and is evaluating handsets, and planning business and consumer applications • Connection card can also be used for Sprint’s CDMA-2000 service • Pricing starts from $40/mo for 40MB of data and go up to a cap of $90/month, when the customer accesses more data. Unlimited data for $80/month • Offers high-speed mobile data service to notebook PCs • Sprint had 8.1 million data users (30% of total base), 7 million (26%) on PCS Vision, in 2Q 2005, data contributing more than 10% of total revenue Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 19

  20. 2. Market Overview 2.2 Major Service Providers Sprint Nextel Revenue Structure (Wireless)Third Quarter 2005 Source: Sprint Nextel, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 20

  21. 2. Market Overview 2.2 Major Service Providers T-Mobile USA, Inc • Customer base is about 19.2 million • Operates a GSM/GPRS/EDGE 1900 MHz voice and data network • Likely to skip commercial UMTS deployment and directly offer HSDPA services in 2007 (plans tied to spectrum availability) • Launched EDGE services across 90% of its GPRS-enabled network, with the average speed of 100-130 kbps • Offers a pair of EDGE/enabled handsets from Motorola Inc. and Nokia • Customers access EDGE services for the same price as their current GPRS rate plans. The carrier will have a EDGE-specific pricing in the future • Offers Wi-Fi Wireless Broadband Internet access at 6,000 locations in the U.S. Customers can access the network on a pay-as-you-go basis, with monthly or prepaid subscriptions Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 21

  22. 2. Market Overview 2.2 Major Service Providers T-Mobile USA Revenue StructureSecond Quarter 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 22

  23. AllTel Corp. • Total number of subscribers is 10.5 million • Acquired Western Wireless in Jan 2005, becoming the fifth largest U.S. wireless operator, with customers in 33 states • Operates networks with CDMA, AMPS technologies • Launched 1x EV-DO in March 2005 in three markets, targeting primarily enterprises, in Ohio, Cleveland and Florida. Planning to expand the service so it covers 6 to 10 markets by year-end • EV-DO available for about $70/mo • Roaming agreement primarily with Verizon Wireless Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 23

  24. 2. Market Overview 2.2 Major Service Providers Alltel Revenue StructureSecond Quarter 2005 Source: Alltel Corp, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 24

  25. 3. Technology 3.1 From 2G to 3G 3.2 3G 3.3 Beyond 3G 3.4 Wi-Fi and WiMAX 3.5 UWB and Bluetooth 3.6 MediaFLO, DVB-H 3.7 MIMO 3.8 WiBRO, WiMAX, Flash-OFDM 3.9 Seamless Interoperability, Handover Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 25

  26. 3. Technology 3.1 From 2G to 3G Cellular Technologies by Generation • The mainstream U.S. cellular technologies can be categorized in two groups • CDMA (CDMA2000) technologies • 2G: CDMA (IS-95A, IS-95B) • 2.5G: 1xRTT • 3G: EV-DO • Enhanced 3G: EV-DO Rev A -Planned • GSM based technologies • 2G: GSM • 2.5G/”2.5G+”: GSM/GPRS/EDGE • 3G: W-CDMA (UMTS) • Enhanced 3G (3.5G): HSDPA -Planned Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 26

  27. 3. Technology 3.2 3G 3G Today – W-CDMA • Cingular deploying • W-CDMA (UMTS) • Target of 6 markets: Dallas, Detroit, Phoenix, San Diego, San Francisco, Seattle • Speed 200 – 320 kbps • Also planning to roll out HSDPA • Trials in Atlanta ongoing • Speed will be 400 – 700 kbps • Lucent press release indicates 3.6 Mbps, but according to some sources the speed is up to 2 Mbps • T-Mobile plans to deploy HSDPA directly • Plans to upgrade the current GPRS/EDGE networks • HSDPA speeds planned to be 384 kbps – 1.8 Mbps Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 27

  28. 3. Technology 3.2 3G 3G Today – EV-DO • Nearly 80 million people access CDMA2000 (Source: CDG) • CDMA2000 1xEV-DO broadband penetration is growing • EV-DO coverage increases • More handsets and services become available • Verizon Wireless EV-DO (61 markets) • Speeds 400 – 700 kbps, bursts 2Mbps • Sprint-Nextel EV-DO (34 markets) • Speeds 400 – 700 kbps, bursts 2Mbps • Alltel EV-DO (3 markets) • Speeds 300 – 500 kbps, bursts 2.4Mbps • EV-DO price range: $59.99 – $79.99 a month Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 28

  29. 3. Technology 3.2 3G 3G Vendors • Examples of U.S. UMTS and CDMA2000 vendors: • Lucent • HSDPA solutions • UMTS&W-CDMA core network solutions • Motorola • Products for UMTS/W-CDMA/HSDPA, CDMA/EV-DO • End-to-end mobile data solutions (handsets, infrastructure, middleware and applications) • Cisco • Infrastructure solutions (IP technology for GPRS & 1xRTT and 3G) • Nortel • GSM, UMTS/HSDPA infrastructure solutions • Qualcomm • Chipsets for CDMA2000 based 3G (EV-DO) • Chipsets for W-CDMA (UMTS) & HSDPA • MediaFLO content delivery platform for operators • BREW application platform (integrate applications with chip systems) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 29

  30. 3. Technology 3.3 Beyond 3G Future Trends – towards 4G • 4G research is going on, and standardization is still in progress • Two main viewpoints to 4G • Convergence of wireless mobile communications and high speed wireless access systems • Higher data rates than existing wireless / mobile networks • Potential evolution from 3G/3.5G to 4G • HSDPA and EV-DO Rev A, and eventually Rev B provide higher bandwidth than basic 3G, suitable for applications such as VoIP • Mobile WiMAX or Flarion OFDMA might become potential gap-fillers between 3G and 4G • MIMO and adaptive antenna technologies are in key position for achieving high bandwidth • 4G deployment is expected after 5-7 years Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 30

  31. 3. Technology 3.3 Beyond 3G HSDPA and EV-DO Rev A • HSDPA • Cingular & T-Mobile are planning for HSDPA • HSDPA will be first supported by PC Cards, then handsets • Device unavailability has been a problem with UMTS, and it is unclear how well demand of handsets and PC cards will be satified for HSDPA • PC Cards are predicted to become available during 2005, and handsets during 2006, for example, from Ericsson/Sony-Ericsson, as well as Sierra Wireless • Cingular is cooperating with Nokia among others • 1xEV-DO Rev A • Some operators plan to deploy directly 1X EV-DO Rev A • This will mean waiting for availability • Verizon Wireless achieved the first VoIP call with Lucent technology • Plans to perform real testing in 2006 • Speeds up to 3.8 Mbps (receive) and up to 1.8 Mbps (send) (Source: 3GNewsroom.com) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 31

  32. 3. Technology 3.4 Wi-Fi and WiMax Wi-Fi and WiMAX • The number of hot spots in the United States expected to grow from 32,800 in 2005 to 64,200 in 2008 (TIA, 2005) • TIA: Wi-Fi and WiMAX markets are key drivers of wireless equipment spending: • Spending on wireless CAPEX/Wi-Fi/WiMAX expected to reach $22.3 billion in 2005, and $29.3 billion by 2008 (7.1 percent compound annual gain) • Wi-Fi infrastructure revenue expected to reach $5.2 bln in 2005 • WiMAX infrastructure revenue expected to reach $115 million in 2005 (TIA, 2005) • Wi-Fi Spending • Services spending reached $21 million in 2004. Expected to be $45 mln in 2005, and 335 mln by 2008 (99.9% CAGR) (TIA, 2005) • Equipment spending reached $4.35 bln in 2004. Infrastructure spending expected to total $7 bln in 2008 (12.6 compound annual increase) (TIA, 2005) • WiMAX Spending • Infrastructure spending will be $115 million in 2005 and rise to $290 million by 2008 (109.7 percent CAGR) (TIA, 2005) • North America WLAN equipment revenue in 2Q05 was 359.17 mln, accounting for 49% of worldwide revenue (PR Newswire/Infonetics, 2005) • Wi-Fi and WiMAX markets are increasing • Wi-Fi hotspots exist already. Fixed Wireless WiMAX business cases are being experimented with • Mobile WiMAX is a promising technology on the way towards 4G Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 32

  33. 3. Technology 3.4 Wi-Fi and WiMax Wi-Fi • Wi-Fi starts to be prevalent at home, coffee places (Starbucks/T-Mobile, SBC), airports, hotels, office • Many municipalities are launching Municipal Wi-Fi • Example: The City of Philadelphia wireless network • Some cities offer free service, some consider it would not be fair to telecom providers business • Free service could stimulate increased business among the community’s shops, coffee houses, banks and other businesses • Google has placed a bid to provide free Wi-Fi coverage for the City of San Francisco • Wireless VoIP is an emerging trend • Mobile Phones with Wi-Fi capability give new opportunities for users • Vonage launched the first VoIP/Wi-Fi handset • Marketing campaigns are aggressive, including a free upgrade of router when signing up to VoIP service • Vonage and Linksys partner with providing VoIP in wireless routers Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 33

  34. 3. Technology 3.4 Wi-Fi and WiMax Activities in WiMAX Area • AT&T trials: corporate solutions and urban setting • Atlanta (IEEE 802.16-2004) • New Jersey (Pre-WiMAX/Fixed) • Fixed WiMAX gaining increased attention by service providers and vendors • Mobile WiMAX (802.16e) standard ratification still ahead • Intel and Nokia teamed up to accelerate Mobile WiMAX adoption • Reducing prices and enabled handheld prices is a key issue for adoption Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 34

  35. 3. Technology 3.4 Wi-Fi and WiMax WiMAX Infrastructure Revenue in the U.S. Source: TIA, 2005 Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 35

  36. 3. Technology 3.4 Wi-FI & WiMAX WiMAX & Wi-FI Vendors • Examples of WiMAX vendors • Motorola • Lucent • Nortel • Sierra Monolithics • Intel • Examples of Wi-Fi vendors • Cisco (Linksys) • DLink • Netgear • Intel Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 36

  37. 3. Technology 3.5 UWB and Bluetooth UWB and Bluetooth • United States has approved spectrum use for UWB (3.1-10.6 GHz) • In August 2005, Kansas based Bluetooth SIG teamed up with UWB developers to increase device possibilities • Attractive for transferring streaming media between appliances like TVs, stereos and PCs. • Cable replacement possibilities at home environments • USB/UWB solutions being discussed for mobile devices • Standardization (IEEE) situation causes concern • Competing views: MBOA and UWB Forum, difficult to predict who wins • UWB Forum may have slight advantage (FCC- approved) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 37

  38. 3. Technology 3.6 MediaFLO, DVB-H MediaFLO, DVB-H • Qualcomm recently demonstrated MediaFLO solution for mobile content • MediaFLO USA, subsidiary of Qualcomm, works together with content and technology partners to provide mobile entertainment/information access, incuding TV/Video broadcasting and other content • Targeted carriers, offered through MediaFlo’s multicast networks • Based on OFDM • CrownCastle trials DVB-H • CrownCastle trials DVB-H through its network • CrownCastle and Nokia have announced joint piloting of DVB-H based broadcast in the United States Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 38

  39. 3. Technology 3.7 MIMO MIMO (Multiple Input, Multiple Output) • Products have already been released, while standardization continues • For example, Airgo Networks released first MIMO enhanced chipsets in 2003, and recently announced new products boasting better performance than that of wired 100BaseT Ethernet. • Nortel Networks recently demonstrated MIMO capabilities and has strong programs going on • Academic research is going on, for example, in Stanford University, University of California San Diego, and others • Many companies are active with MIMO, working in groups to make proposals for IEEE 802.11n standards • TGnSync: Agere, Atheros, Cisco, Intel, Qualcomm, MetaLink and others • WWiSE: Airgo Networks, Broadcom, HP, Motorola, Texas Instruments, Buffalo, Nokia, and others • EWC: Atheros, Broadcom, Intel, Buffalo, and others • MIMO is seen as an essential technology for future 4G networks • Technologies enable high bandwidth solutions Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 39

  40. 3. Technology 3.8 WiBRO, WiMAX, Flash-OFDM WiBRO, Mobile WiMAX, Flash-OFDM • Fixed WiMAX (IEEE 802.16-2004) is expected to use 3.5GHz and 5.8GHz bands of spectrum, with 1 Mbps data rates • Mobile WiMAX (IEEE 802.16e) will initially operate in the 2.5GHz band, providing higher speed and anytime, anywhere' access • Motorola has indicated plans to enter Mobile WiMAX area • Nortel plans to offer fixed and mobile WiMAX products (WiBro), together with Intel • Nortel wants to be involved with WiMAX to augment their UMTS/HSDPA, CDMA, VoIP and Wireless Mesh activities • Mobile WiMAX initiative is targeted at consumer and enterprise market to complement and extend the reach of existing 3G cellular networks, leveraging last mile wireless links and existing networks • Fixed WiMax is an attractive choice to when compared to cable/T1/DSL in the USA • Nortel’s fixed WiMAX solutions are expected to be commercially available in 2006 • LG-Nortel Joint Venture’s mobile WiMAX to be trialed during 2006 in North America • WiBRO: Sprint Nextel will test WiBRO in the USA, a South Korean implementation of IEEE 802.16e – this may have interesting implications to WiBRO adoption • Flash-OFDM: Acquisition of Flarion by Qualcomm poses competition to the current Mobile WiMax effort • Qualcomm/Flarion deal helps Qualcomm to better support OFDMA and hybrid OFDMA/CDMA customers Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 40

  41. 3. Technology 3.9 Seamless Interoperability, Handover Seamless Interoperability, Handover, Convergence • Service providers have identified the need to leverage various fixed and wireless technologies to complement each other • Conceptually “Extending the Edge” of the 3G/2.5G network by Wi-Fi, WiMAX service • Convenience to end-users, reduced customer churn • Seamless roaming, robust infrastructure, more coverage area • Potential for “one bill for all services” • Future: customers may pay less for voice calls (VoWi-Fi) • Service providers are offering users more opportunities to connect • Road Warrior VPN: Cingular Wireless Data jointly with SBC Freedomlink enables user to switch between networks • T-Mobile has been offering hot spot connectivity in addition to other plans • Vendors are teaming up to provide capabilities for convergence and seamless handover of voice/data between cellular and WLAN networks • Kineto Wireless (UMA innovator) and Nokia recently announced a joint agreement for convergence • In the converged environment, there are new challenges in Handover, Billing Management, Service Management and Element Management • Scalability and interoperability are of essence. • Convergence issues to be addressed • Roaming within the same carrier, different technologies/networks • Roaming between different carriers, different technologies/networks • Who owns the customer? What are the revenue sharing agreements? Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 41

  42. 4. Services 4.1 Services – 2G/2.5G/3G 4.2 Services - Wi-Fi 4.3 Consumer Applications 4.4 Business Applications 4.5 Trends Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 42

  43. 4. Services 4.1 Services – 2G/2.5G/3G Services and Pricing • Cellular service providers offer typically the following voice services with package based pricing • Individual plans, Family plans, Business plans • Wireless Internet plans are provided either as • Add-on to the voice plan or stand-alone services • Value-add services are charged separately • Audio and video clips (can also be free) • Ringtones, ringback tones, games • Service providers are launching advanced high bandwidth services by 3G technologies • For example, Verizon Wireless launched VCAST on their EV-DO network, to deliver high quality video, music and other entertainment • Some advanced applications are already being offered by 2.5G technologies – but higher-quality services will be realized by additional capacity of 3G and enhanced 3G Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 43

  44. 4. Services 4.1 Services 2G/2.5G/3G Example: Comparison of Individual Voice Services Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 44

  45. 4. Services 4.1 Services - 2G/2.5G/3G Unlimited Wireless Internet Services Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 45 Plans require one year agreements

  46. 4. Services 4.1 Services - 2G/2.5G/3G Cingular Wireless Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 46

  47. 4. Services 4.1 Services – 2G/2.5G/3G Verizon Wireless Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 47

  48. 4. Services 4.1 Services – 2G/2.5G/3G Sprint Nextel Connection Card Phone Used as a Modem • Data Access: Unlimited WIFI Hotspot Plan $40/month, Unlimited PC Access with WIFI Hotspot Package $55/month, Unlimited Wireless PC Access Plan (with using a wireless PC card) $45/month • Web Plan: • Nextel Data Access Pack $10.00/mo (unlimited web access, unlimited data access, mobile e-mail, instant messaging and pay-as-you-go txt/image/audio msging • Nextel Data Ultimate $20.00/mo (unlimited web access, unlimited data access, unlimited image/audio msgs, mobile e-mail, instant messaging, and pay-as-you-go txt messaging) • Prices exclude taxes and Sprint fees • (Source: Sprint, 2005) Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 48

  49. 4. Services 4.1 Services – 2G/2.5G/3G T-Mobile Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 49

  50. 4. Services 4.2 Services – Wi-Fi Wi-Fi Services • Some Top Wi-Fi operators in the USA are • Infonet Services Company • T-Mobile USA • Airpath • Wayport • Boingo Wireless • SBC Freedom Link • Deployments in coffee places, hotels, book stores, airports • Seem to be constantly seeking roaming agreements worldwide to increase market share Wireless Broadband in USA/ Nevalainen, Iivonen / 14.11.2005 / © Finpro ry/ / 50

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