The Story of Personal Broadband Australia

1
The Story of Personal Broadband Australia

• Presented to Joint AHCIET-CITEL
• Broadband Wireless Access Seminar
• 20-21 October 2003

2
ArrayComm Industry Leadership

• ArrayComm background
• Founded 1992, 300 patents, 170,000 base stations
• Headquarters San Jose, California
• Technology and end-to-end systems
• Adaptive antenna technology for PHS, GSM, W-CDMA
  networks
• End-to-end wireless systems (i-BURST, WLL)
• Consistently reducing costs of coverage and
  capacity
• Business model
• Technology licensing
• Chipsets
• Stimulating Personal Broadband

3
Outline

• Portable Broadband Australia
• Australian market
• Regulatory environment and Spectrum
• Business model and offering
• Technology and standards
• Summary

4
The Australian Market

• Developed information society
• high household PC penetration (50)
• high Internet penetration (gt21)
• high mobile penetration (59)
• Compelling demographic composition
• high GDP per capita (a40,000)
• high urban density (75 of population in 8
  capital cities)
• Strong economy
• high economic growth (gt4 average annual growth)

5
Segments and Unmet Market Needs

• End Users
• affordable service
• available service
• reliable service
• Distributors (ISPs, Enterprise IT departments)
• subscriber-installed devices (no truck roll)
• functional/business models extending existing
  wired services
• local loop bypass for competitive providers
• Carriers, Network Operators
• data economics significantly better than 2G/3G
• functional/business models consistent with wired
  broadband
• predictability of uptake

6
Economics of the Data Market

• Personal Broadband
• Primary Access
• IP Only
• Unpaired
• Spectrum
• TDD
• Flat Rates

price threshold
3MB
2MB
broadband
1MB
500K
Access speed
speed threshold
400K
300K

• Wireless Data
• Cellular Voice Voice- Based Data
• Paired Spectrum
• FDD
• Metered Rates

narrowband
200K
100K
50K
3.00
5.00
.05
.02
.01
.005
1.00
2.00
4.00
.25
.10
Cost per Megabyte
Data economics
Voice economics
7
Mobile broadband network economics
BTS
Site Acq Prep
Backhaul
Site Lease Pwr/Maint
Backhaul
Modeling indicates overall cost of ownership and
operation competitive with DSL and Cable, and
superior to 3G
8
Outline

• Portable Broadband Australia
• Australian market
• Regulatory environment and spectrum
• Business model and offering
• Technology and standards
• Summary

9
Australias Regulatory Environment

• Flexible use permitted by ACA
• 1905-1910 MHz part of WRC 3G allocation
• Australia now has services in this band
• Europe, which mandated IMT-2000, does not
• Separate TDD and FDD allocations established by
  ACA
• TDD naturally matched to data applications
• physics, economics argue for separate FDD/TDD
  allocations
• Nationwide allocation also very significant

10
Affordable, Flexible Spectrum

• 5 MHz TDD (1905-1910MHz)
• 8 capital cities, 14.5 Mpops
• 75 of Australian population
• A9.5M, 0.07USD/MHz-pop
• 15 year license term

Darwin 0.1 m
Brisbane 2.2 m
Perth 1.4 m
Canberra 0.3 m
Adelaide 2.0 m
Sydney 4.8m
Melbourne 3.6 m
Hobart 0.2 m
Black denotes license coverage
11
Not all spectrum is valued equally
Source FCC, ArrayComm, 2001
12
Outline

• Portable Broadband Australia
• Australian market
• Regulatory environment and spectrum
• Business model and offering
• Technology and standards
• Summary

13
The old approach to business development
Some indications of demand
Value Chain
Single operator, providing own distribution,
service ops, and network ops Unilateral action
to deploy new service
Distribution
ServiceOperation
Operator
Industry Surround
One-way communication to market
Industry Analysts
NetworkOperations
Capital Markets
Trusted primary vendor relationship
Standards
Integration,Support
Spectrum Policy
Single, vertically-integrated vendor, providing
technology, productization, network elements, and
integration
InfrastructureElements
Consumer Perception
Vendor
BTS, UTEquipment
Technology
14
gives way to new, more efficient business model,
Clear demand and segmentation
Existing customer relationships
Value Chain
Multiple distribution channels to fit segment
preferences
Distribution
Direct and/or indirect distribution
ServiceOperation
Multiple operators with usable spectrum
Wholesale network model (possibility)
NetworkOperations
Trusted prime contractor relationships
Integration,Support
Favorable Industry Surround
InfrastructureElements
Multiple, trusted sources for each network element
Industry Analysts
Standards
Capital Markets
BTS, UTEquipment
Standards
Spectrum Policy
Technology
Proven technology
Inter-Industry Partnerships
Industry Organization
WiFi Operators
Wireless Data Opers
Industry and Consumer Publicity
15
which is proving successful in Australia

• Coalition of new and established parties
• Pre-commercial trials in Sydney
• Basis for funding country-wide rollout

Retail
Wholesale
Integn, Infra.
Equipment
Tech,
16
for bringing to market a new mobile broadband
wireless access offer
iBurst by ArrayComm Personal Broadband System
A Broadband Wireless Access Offer that Directly
Addresses Needs in Fixed and Mobile Segments
Broadband 1 Mbps per user Affordable Deployment
and operating economics enable flat-rate
wholesale pricing competitive with DSL or
Cable Hassle-Free Plug play installation Accessi
ble Take it with you nationwide Mobile Up to
highway speeds Complementary to WiFi and wireless
data Low Risk Proven technology, standards-based
IP networking support, multiple large
manufacturers Channel Friendly Easy to
differentiate through a wide range of channels
many bundling opportunities Transparent IP-centric
design end to end
17
Outline

• Portable Broadband Australia
• Australian market
• Regulatory environment and spectrum
• Business model and offering
• Technology and standards
• Summary

18
TDD vs FDD(Time versus Frequency)
(X ms)
FDD
TDD
(Y ms)
19
Benefits of TDD technology

• Benefits enhanced by TDD
• Spectral Efficiency
• Reduced system costs
• Flexible Asymmetry
• Technologies enhanced by TDD
• Adaptive Antennas Arrays
• IP-based Broadband Interfaces

20
i-BURST Network/Service Model
Billing and Service Platforms
Packet Service Switch (Tunnel Switch, PDSN)
Cable
Service
Access Transport
21
Benefit of spectrally efficient technology

• Mobility spectrum scarce and expensive worldwide
• 2/3G solution for consumer broadband in 5 MHz not
  viable

• TDDadaptive antennas greatly increase spectral
  efficiency
• i-BURST spectral efficiency is 40x that of 2.5G
  and 3G

22
The Standards Access landscape
MBWA
W-LAN
802.20
802.11x
Broadband
802.16
Speed
Personal Broadband Service
Proprietary
3G
Narrowband
2.5G
ITU/3GPP/3GPP2 2G and 3G
2G
Fixed
Local Area
Wide Area
Mobility
23
Outline

• Portable Broadband Australia
• Australian market
• Regulatory environment and spectrum
• Business model and offering
• Technology and standards
• Summary

24
Summary

• PBBA demonstrates the benefits of a new business
  model for introducing mobile broadband wireless
  access service
• Leverages partners strengths and core
  competencies
• Reduces time to market
• Shares risks and rewards
• To learn more visit PBBA at http//www.pbba.com.au
  
• Flexible regulatory policies can stimulate a
  competitive broadband wireless access market
• New services available to consumers
• Supports focus on economics of service delivery,
  service consumption
• Greater accessibility of markets to
  new/non-traditional entrants
• Our Australian experience is a near-ideal
  confluence
• demand unmet by traditional wireless/wired
  alternatives
• flexible-use and affordable TDD spectrum
• economic, efficient broadband wireless technology
  
• iBURST leverages the benefits of TDD and adaptive
  antenna technology in a mobile broadband wireless
  access system
• Spectral efficiency significantly greater than 3G
  systems
• Deployable in a 5-10 MHz (unpaired) band,
  optimizes use of scarce mobility spectrum
• Economics of deployment allows DSL competitive
  pricing
• Real world experience supports future submission
  to IEEE802.20