2. Broadband Access Technologies Abdul Aziz El Bassiouni Marketing Director, ZTE (Egypt)

3. Background & Motivation Broadband Worldwide Market Broadband Arab Telecom Market AGENDA

4. –Increasing reliance on the Internet as an information, communications, business, and entertainment tool. –New bandwidth intensive applications are being introduced that are driving demand for greater broadband access. Background & Motivation Translates to High growth rate of worldwide installed base of broadband subscribers

5. –New Applications are rapidly increasing the demand for faster web access. –Current Broadband Applications include the following: Internet Access (Digital Audio and video downloading). E-commerce (interactive shopping over the Internet). IP Telephony. Video conferencing. Web casting. Telecommuting and Virtual Private Networks (VPNs). –Future Broadband Applications include the following: Distance learning and educational networks. Unified Messaging enables an end user to access voice mail, e-mail, and fax from a single device. Multicasting (is the automatic transmission of files or streaming audio and video to pre-selected multiple users). Multiplayer Gaming. Utilities Management. Home Monitoring. Telemedicine. Why Broadband ?

6. –High performance access is not limited to businesses. An equal broadband opportunity lies in the home market. –Broadband subscribers are heavy users of the Internet (22 hours online a week online). –Broadband includes all flavors of high speed digital voice, data and video services, infrastructures, clients, and technologies that enable these services. This Broadband Definition requires the following: Digital content Data rate of 200kb/s in both directions. Amore aggressive definition calls for 384kb/s (to enable full-frame-rate digital video). Interactivity. Packet based technology. –According to this definition, the number of worldwide broadband subscribers will exceed 80 millions by the end of year 2005. –In USA, only 9% of 52 million Internet users had migrated to a form of broadband access. Broadband Worldwide Market

7. –The leading broadband access technologies are: Cable Modem Digital Subscriber Line (DSL) Fixed Wireless Satellite Access Fiber-to-the-Home (FTTH) Broadband Over Power Lines. Leading Broadband Technologies

8. –Actual tests showed that the cable modem speed varies from 160 kbps to 1.3 Mbps. –Cable modem service is often sluggish during peak afternoon and evening hours. –Security is a second concern for cable modem service. Users have some ability to monitor other user’s computers, like in local area networks. –Number of cable modem subscribers are about 10 millions. Total number of cable TV subscribers worldwide are 300 millions. –Cable modem limitation: Only in one direction. Cable Modem

9. –ADSL may be able to receive data up to 6.1 Mbps, if a home or small business is close enough to a telephone company. –Typically, individual connections will provide from 1.544 Mbps to 512 kbps downstream and 128 kbps upstream. –DSL line can carry both data and voice signals and the data part of the line is continuously connected. –Addressable market include 1000 million copper wire access lines connect homes and business customers to Public Switched Telephone Network (PSTN) worldwide. –DSL limitation: Line performance degrades with distance from central office.. Digital Subscriber Line (DSL)

10. –Includes Multichannel Multipoint Distribution Service (MMDS) and Local Multipoint Distribution Service (LMDS). –LMDS operates at 28 GHz and 31 GHz bands, with speeds average around 38 Mbps downstream. –MMDS operates at 2.5 GHz band reaches speeds up to 27 Mbps. –Fixed wireless is expected to enjoy strong growth in Latin America, Asia and Africa where existing telecommunications infrastructure cannot support wired broadband access. –Fixed Wireless limitation: LMDS and MMDS are Sensitive to Line of Sight Condition. Fixed Wireless

11. –Wireless Local Loop (WLL) with cdma2000-1x can now provide peak data rates of 153.6 kbps and average throughput of 60 kbps. – Cdma2000 EV/DO can provide a peak data rate of 2.4 Mbps and average throughput of 300-600 kbps. Fixed Wireless cdma2000

12. Why CDMA2000 For WLL Certain factors are critical to determining which technology is most beneficial, including: –Global recognition of the technology (~ 200 million users) –Effective use of spectrum –Flexibility in coverage solutions –Cost competitive solutions –Broad range of products and applications –Fast implementation –Easy maintenance CDMA2000 is delivering on 3G, and addresses these factors

13. –Data speeds to consumes are often limited to 400kbps. Multicasting can occur at higher speeds since all are receiving the same data. –Satellite based Internet subscribers are less than 2 million subs. –Satellite broadband access total addressable market is about 50 million users of of direct broadcast satellites. –Satellite Access limitation: one way transmission only, and needs another channel for the uplink. Also there are significant delays in response time. Satellite Access

14. –Very Coasty ($1000/home). – More economical fiber solutions emerge, like Passive Optical Networks (PON) and Fiber to the Curb (FTTC). –10 Gbps for each wavelength. –As the cost decrease in future, this technology will finally dominate the broadband market. Fiber-to-the-Home (FTTH)

15. –Broadband Access are available now in many Arab Countries. –DSL is now available in Egypt, Jordan. –Satellite Access is available. –CDMA2000 WLL is now available in: Algeria (200k lines) Egypt (100k lines) Kuwait (20k lines) Yemen Syria Saudi Arabia Iraq Broadband Arab Market

16. –10% to 20% of Internet users are migrating to Broadband Access. –In Egypt, more than 3 million dial-up subscribers use the Internet. –Number of Broadband users in Egypt is estimated to be 30,000 to 60,000 and may reach 100,000 by the end of 2005. –Total Arab Market forecast is 300,000k by the end of 2005. Broadband Arab Market Forecast

17. –To study the South Korean broadband example of the investment in broadband technologies. The Government is the main investor in broadband industry. (10 million broadband users out of 45 millions). –State adoption of broadband technologies. –Increase awareness of broadband access alternatives. –Encouraging people to own Computers. –Governments to subsidize broadband services. Recommendations

18. What ZTE can provide Total Solution Mobile Communication Data Communication Optical Transport Switch &Access Products Value-added Service GSM Softswitch IP 3G PHS ATMDWDM Access Network System Intelligent Network Video Conferencing System SDH / SONET Switching System Billing System Short Message Center Call Center Intelligent Power Supply CDMA Network solutionOther ProductsHandsets

19.  Wide cooperation 1- Strategic partnership with local companies. 2- Sub-contracting with other main contractors. 3- Joint bidding consortium. 4- Financing jointly. ZTE’s Policy

20. Thank You!