CDMA Technology in Latin America

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CDMA Technology in Latin America
Celedonio von Wuthenau Director, Latin America
Programs CDMA Development Group
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2G vs. 3G

• 2G GSM, TDMA and cdmaOneä today
• 3G WCDMA, CDMA2000, TD-SCDMA today and
  tomorrow

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3G CDMA next generation services and networks
3G CDMA technologies bring new services to the
consumer and improved delivery at lower cost to
operators
Less BTS than any other technology Examples
Mexico and Argentina
Spectral efficiency
Improved voice capacity
CDMA2000 170 Erlangs GSM 40 Erlangs
CDMA2000 1xEV-DO 4500 kbps CDMA2000 1X 1650
kbps WCDMA 800 kbps EDGE 600 kbps GPRS 250
kbps
High data rates
Mobile and fixed broadband access Entertainment Vi
deo and audio downloads TV broadcasts Video
Monitoring Locationbased services MMS
Advanced data services
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Wireless is migrating to 3G CDMA

• 735 million 3G subscribers by 2008, nearly 40 of
  the market
• 630 million, or 85, of the 3G market will use 3G
  CDMA technologies

Source Yankee Group, April 2004
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3G CDMA in the Americas Dominating the market
and showing the path to 3G

• 24 3G CDMA operators in North America. More than
  70 of CDMA subscribers use 3G services
• 30 3G CDMA operators in Latin America with more
  than 9 million 3G users

• North America
• Dominant technology with 47 market share
• 40 operators
• 92 million users

• Latin America
• 25 market share
• 39 operators in 20 countries
• 42.2 million users

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THANK YOU!!!
Celedonio von Wuthenau cvwuthenau_at_cdg.org Phone
54 11 4328 6210 Mobile [phone]
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Support Slides
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CDMA2000 advantages

• Offers a direct path to 3G for TDMA and CDMA
  operators
• Time-to-market advantage available and widely
  deployed in 800 and 1900 MHz spectrum
• Preserves investment in existing ANSI-41 core
  networks. Leverages existing AMPS coverage.
  Minimizes capex and opex
• Has proven evolution path to most advanced data
  services

Offers a cost effective migration path for
existing 1G and 2G systems
Efficiently utilizes available spectrum resources
for voice and data

• Requires only 1.25 MHz of spectrum
• Is the most spectrally efficient of all 2G and 3G
  technologies offering the highest capacity for
  voice and data traffic
• Doubles capacity of cdmaOne networks
• Increases capacity of TDMA networks by 4x

Supports a broad range of applications

• Delivers high-speed data transmission up to 2.4
  Mbps
• Supports all leading application platforms
• Delivers revenue-generating multimedia
  applications

Offers a wide selection of devices at affordable
prices

• There are over 325 CDMA2000 handsets for 800 and
  1900 MHz bands
• CDMA2000 handsets are backward compatible with
  cdmaOne handsets

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CDMA2000 offers the most capacity to growth
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and the highest data throughput for advanced
applications
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CDMA2000 sets the pace for 3G

• The first IMT-2000 technology was deployed in
  October 2000
• 112 operators in 55 countries across 6
  continents 21 operators in deployment
• 146.8 million subscribers growing at 5 million
  per month
• More than 730 devices

December 2004 146.8 Million CDMA2000 16 Million
WCDMA
May 2003 50 Million CDMA2000 .6 Million WCDMA
May 2002 10 Million CDMA2000 .1 Million WCDMA
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CDMA2000 is leading the evolution to high-speed
data and multimedia services
CDMA2000 1xEV Subscribers
Subscribers (thousands)

• Operators are rapidly deploying high-speed data
  technologies
• 19 commercial 1xEV-DO networks 17 more in
  deployment and 5 trials
• 12 million users today
• Nearly 130 million 1xEV users in four years 40
  of CDMA2000 subscribers
• to grow wireless data
• With an average of 300-600 kbps up to 2.4 Mbps,
  CDMA2000 1xEV-DO offers the highest-data rates of
  any commercial wireless network
• this allows operators to introduce advanced
  multimedia applications for consumer and
  enterprise customers
• Data is the fastest growing business and, for
  some operators, will account for 50 of revenues
  in five years

Percent CDMA2000
Source Yankee Group 2Q 2004
Live broadcasts
Movies
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CDMA2000 is the leading 3G platform in Latin
America

• CDMA is one of the leading wireless technologies
  in the region
• 39 operators in 20 countries
• One in four subscribers use CDMA technologies
• In Brazil, VIVO, the largest operator in the
  region, holds 45 of the market
• The subscriber base will more than double and
  market share will reach 30
• CDMA2000 dominates the 3G market
• It was the first IMT-2000 technology deployed
  in December 2002
• There are 30 operators in 17 countries
• 29 CDMA2000 1X networks
• 6 CDMA2000 1xEV-DO networks
• Most CDMA operators migrated to CDMA2000
• Operators use CDMA2000 to offer a broad range of
  services
• Wireless markets differentiate through data,
  grow revenue VIVO, Telefonica Peru, Telcel
• Fixed-line voice substitution BSI in Argentina,
  Panama
• Provide high-speed data access Vesper, Cantv

cdmaOne commercial 28 CDMA2000 commercial
35 CDMA2000 deployments 7 CDMA2000 trials 3
cdmaOne CDMA2000 CDMA (cdmaOne CDMA2000)
Source EMC, September 2004
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CDMA2000 demonstrates 3G benefits
END USER
OPERATOR
Higher gross adds, lower churn
Improved quality of service and innovative
services

• KDDI has 16.5 million 3G subscribers and is
  capturing greater market share due to demand for
  their au services and a drop in churn from 1.8
  to 1.49
• Verizon had record net adds in 1Q and 2Q 2004 and
  churn dropped to 1.45 from 1.8

Higher revenue
Access to information, entertainment, higher
productivity

• SK Telecoms data revenue grew from 8 to 19 of
  total revenue
• Verizon generates 4.2 of total revenue or 240
  million in data revenue
• VIVO data contributes 4.8 of total revenue and
  is growing more than 140 per year

New market opportunities
Access to telecommunication

• Provide voice services in underserved areas
  India, Argentina, Panama
• Provide high-speed access to the Internet
  Telstra in Australia, Eurotel in Czech Republic,
  Movilnet in Venezuela

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CDMA2000 is well positioned to meet future
market needs in Latin America

• Provides the most capacity at a lower cost per
  user
• Can be deployed rapidly

Wireless market will continue to grow rapidly

• Number of users will almost double to reach 260
  million in 2009

• Offers the highest data-rates at the lowest cost
  today

• Offers flexibility in introducing data services

Demand for data will grow over time

• Allows for phased evolution to data
• Supports multiple service platforms

• Offers a very cost-effective solution for remote,
  low-density areas

Service to large areas with low-teledensity and
no Internet access

• CDMA2000 in the 800 and 450 MHz bands is well
  suited to provide both voice and high-speed data
  in remote and hard-to-reach areas
• Many countries are evaluating CDMA450 to advance
  their universal access goals
• Trials in Brazil, Argentina, Peru