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Presentation name NORTEL NETWORKS CONFIDENTIAL PG 1 Metro Wireless Mark Morell February 3, 2004.

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Presentation on theme: "Presentation name NORTEL NETWORKS CONFIDENTIAL PG 1 Metro Wireless Mark Morell February 3, 2004."— Presentation transcript:

1 presentation name NORTEL NETWORKS CONFIDENTIAL PG 1 Metro Wireless Mark Morell February 3, 2004

2 presentation name NORTEL NETWORKS CONFIDENTIAL PG 2 Whats Driving Wireless Today? The Wireless Lifestyle has become mainstream – Call the person, not the place Traffic is shifting to the Wireless Network – Fixed Voice migration in the home and office – Wireless as first infrastructure in developing markets Data traffic is a growing profit driver – Already dominates fixed networks, emerging in Wireless Users are driving services to Wireless

3 presentation name NORTEL NETWORKS CONFIDENTIAL PG 3 1,149 Source: EMC Q1/03 Traditional Market Growth Metrics Subscriber Growth continues to drive Revenue 2,007 20022006E 20022004E Source: IMS Q1/03 2006E Nortel Estimate 309 1998 July 03 - 1,256

4 presentation name NORTEL NETWORKS CONFIDENTIAL PG 4 Wireless Today and in Five Years Wireless is 34% of Global Telecoms Service Revenue …growing to 50% ITU, 2003 19% of U.S. Voice Traffic is Wireless …growing to 50% 4% Source: FCC / CTIA / Nortel estimates 19% 19982002E Packet 2008E 50% 19982002E 2008E

5 presentation name NORTEL NETWORKS CONFIDENTIAL PG 5 The US Wireless Players Forrester – December 11, 2003 Company Reports, financial analyst

6 presentation name NORTEL NETWORKS CONFIDENTIAL PG 6 Data Bolsters Revenue Steady Global Data Growth Revenues increasing % of Revenue increasing Traffic increasing

7 presentation name NORTEL NETWORKS CONFIDENTIAL PG 7 Wireless Networks Evolution 19 sec 2.1 sec CDMA IS95 384kbps 2000 200120022003 GSM TDMA IS136 CDMA 1xEV-DV 3G Evolutionary steps timed to meet market demands for high speed data and increased voice capacity GSM GPRS 170 kbps CDMA 1xEV-DO 2.4 Mbps 3G Standards Peak Data Rate 2 min 1 min < 1 sec 6.7 sec 1 sec < 1 sec 30 sec 4.2 sec < 1 sec Movie Music Video Audio Song Picture Web Page E-Mail SMS 1 hr 3G 26 hr 1 hr 19.5 min 2.5G 118 hr 5 hr 42 min 23 min 2G Source : Reed Hundt, McKinsey and Co GSM EDGE CDMA 1xRTT 307kbps UMTS 2004

8 presentation name NORTEL NETWORKS CONFIDENTIAL PG 8 Assorted Devices Source: GTRAN DotSurfer 6000 GTRAN DotSurfer 6200 LG KH-5000LG SV-110LG KV-1100SK Teletech IM-6100 Fujitsu F2611 (FOMA) Panasonic P2402 (FOMA) Sharp SH2101V (FOMA) Motorola A835 Motorola A920 NEC e808YNokia 7600 NEC e808 Many different styles Not just typical handsets

9 presentation name NORTEL NETWORKS CONFIDENTIAL PG 9 GPRS Summary 16.7M active GPRS subs. globally at end of 2Q03 – 37% increase from 1Q03 – 4.5M added in 2Q03 8.9M active GPRS subs in WE at end of 2Q03 4.7M active GPRS subs in AP at end of 2Q03 2.0M active GPRS subs in NA at end of 2Q03 >200 GPRS networks worldwide have been commercially launched – Another 33 GPRS networks are in deployment and another 26 are planned >156 GPRS terminals made by more than 38 manufacturers available – 47M GPRS devices were produced in 2002 and 95.7M expected in 2003 GPRS growth driven by better terminals, improved coverage and content – 3M Vodafone Live! subscribers by Oct. 2003, just one year after launch – Over 1M subscribers outside Japan on i-mode over GPRS as of Sep. 2003 – RIM had 711K subs as of Aug 2003 and is targeting 1M by 5/04 (growth driven by RIM on GPRS in Europe and NA) Sources: EMC Data Metrics Sep. 2003, GSM Association

10 presentation name NORTEL NETWORKS CONFIDENTIAL PG 10 Data ARPU Progress – T-Mobile NA Source: T-Mobile USA Data ARPU/Postpaid Subs.SMS Customers (M) Paid Downloads (M) Data ARPU $US # Downloads (M) Customers (M) 3Q03 data ARPU: 2.7% of postpaid ARPU 1.1B billable SMS messages in 3Q03 Over 75% buy downloads using wireless handset RIM Subscribers (K) International roaming capabilities 90% increase in data ARPU year-over-year Subscribers (K)

11 presentation name NORTEL NETWORKS CONFIDENTIAL PG 11 1xRTT Summary Sources: CDG 12/01/03, EMC, Company reports Global Summary Asia NATop 7 1xRTT Operators Operators3Q03 1xRTT Subs Sub Penetratio n SK Telecom Korea13,476,00075% KDDI Japan10,203,00067% KT Freetel Korea7,002,00067% Sprint PCS USA (PCS Vision)2,700,00014% LG Telecom Korea2,526,00053% China Unicom (2Q03)600,0001% Telesp Brazil (2Q03)540,0008% There were 64.6M 1xRTT subscribers at end of Sep. 2003 representing 37% of CDMA subscriber base of 174.1M 23.4M active data 1xRTT subscribers globally end of 2Q03 with growth of 27% from 1Q03 21.0M active data subs. in AP 1.6M active data subs. in NA Almost 1M active data subs. in CALA 63 CDMA2000 1X commercial networks launched 14 CDMA2000 1X networks are scheduled to be deployed in the next 12 months More than 422 devices are available with color displays, cameras, and GPS capabilities Sprint PCSs Vision subscribers were 2.7M in 3Q03, up 29% from 2Q03 Vision subscribers made up>40% of gross adds in 3Q03 Data ARPU now >$2 Verizon is experiencing increased demand for its data services Test messaging usage was >400M text messages/month and >1B for 3Q03, up 24% from 2Q03 BREW-based downloadable ringtones, games, and exclusive content grew to 4M downloads/month, up 47% Picture messaging grew to 2M picture messages/month in 3Q03, in less than 3 months after launch Korea and Japan most advanced 1xRTT markets More than 25M 1xRTT subs (~56% of mobile subscribers) in Korea KDDI Japan has now surpassed 11M 1xRTT subscribers (11/03) At the end of Sept., China Unicom announced a deal to purchase 1M 1x color display handsets Korea and Japan success attributed to: Low-cost terminals National coverage Multi-media content * All of these subscribers are not necessarily users of 1xRTT data services

12 presentation name NORTEL NETWORKS CONFIDENTIAL PG 12 EV-DO Status Sources: CDG, company websites 8 commercial networks launched by end of 3Q03 APBW (Taiwan) Brasil Telecom (Brazil) KT Freetel (Korea) Monet Mobile Networks (USA) PT Wireless (Indonesia) SK Telecom (Korea) Verizon Wireless (USA) Vesper (Brazil) 4 commercial networks to be launched in next 12 months KDDI (Japan) launched on November 28, 2003 TELECSA (Ecuador) >45 EV-DO devices shipping or announced for 1H04 1x EV-DO has reached about 3M subscribers in S. Korea by Oct 2003 SK Telecoms 1xEV-DO subscribers exceeded 2.5M by end of 3Q03 1X EV-DO killer apps in S. Korea are video on demand services accounting for over 50% of total downloads Other hot applications are ringtone and character downloads, karaoke, and TV broadcasting 2003 results in Korea expected to lay the groundwork for future revenue generation from these services worldwide

13 presentation name NORTEL NETWORKS CONFIDENTIAL PG 13 EV-DO Data Uptake – SK Telecom ARPU (Won) Data ARPU by Handset Type (Sep 2003) ARPU (Won) Data ARPU %: 9% 12% 12% 13% 15% Data ARPU Total Data EV-DO Contents Usage 43,767 >2.5M EV-DO customers by end of 3Q03 >1.2M June customers by end of 3Q03 3,934 46,501 5,569 43,788 5,325 44,150 5,657 44,486 6,604 Total Data Video-On- Demand (VOD ) 56% Picture/ Sound 16% Jukebox 11% Games 8% Karoake 5% Other 4% EV-DO Tariffs by Application Won per packet Data ARPU %: 5% 13% 28% 34%

14 presentation name NORTEL NETWORKS CONFIDENTIAL PG 14 Where Does WLAN Fit? Technology Comparison CDMA2000 1X1xEV-DOWLAN Throughput Up to 153.6 kbps per userUp to 2.4 Mbps per user802.11b - up to 11 Mbps 802.11a - up to 54 Mbps per access point Subscriber Usage Wireless InternetWireless Internet & Streaming Audio/Video Mobility Full Mobility Limited Mobility; Portable Coverage Macro; Wide Area coverage (WAN), Pico ~300 ft range; Limited coverage areas (LAN); Public or private networks, Applications Data and voiceData Devices Handset, PC Card, PDAHandset, PC Card, PDA, laptopLaptop, PC Card, PDA Spectrum Licensed 800 MHz & 1900 MHz Unlicensed (except UK, HK); RF spectrum at 2.4GHz for 802.11b; 5 GHz for 802.11a Current Providers Mobile operators Wayport, T-Mobile Security High Low

15 presentation name NORTEL NETWORKS CONFIDENTIAL PG 15 Public WLAN Global Status Europe: BT Openzone announced reseller relationships with Vodafone and Orange, and Orange offers trails immediately SFR France announced Paris railway hotspot award to Alcatel Wind Italy certified Novatels Merlin PC card Asia: Globe Philippines launches PWLAN, mostly in shopping malls and hotels KT now over 8K hotspots, worlds largest – launching an integrated PWLAN and EV- DO service. NTT DoCoMo has introduced a dual-mode 3G/WiFi handset NA: T-Mobile announced deal with Texaco to install several hundred drive-up hotspots Verizon launches a competitive data service in Washington and San Francisco, CDMA 1x EV-DO for PC card and PDA access at $79/month with $150 PC card. Intels dual band PC card (802.11b/a) is delayed to 4Q03 RIM announced it is developing a Blackberry that can roam between WiFi and cellular networks CALA: Iusacell Mexico is planning service launch in 1Q04 Source: PyramidUnits (K) Global: analyst Disruptive Analysis predicts 25M cellular/WLAN multimode devices by 2006, starting in 2004 Slowdown seen in volume of market events (new services, consolidations, etc.) in 3Q, compared to the first half of the year Global Hotspot Tracking: # of hotspots in-service

16 presentation name NORTEL NETWORKS CONFIDENTIAL PG 16 MSC CS SS7 HLR PDSN Data Center WLAN Data Center AAA Server (Bridgewater or Metasolv) AAA Server / Radius Proxy Terminals WLAN CDMA Internet Single sign-on Single bill Single authentication 1X/DO Metro Cell BSC/RNC Nortel WLAN 2220 Access Point Nortel WLAN 2201 Mobile Adaptor Nortel WLAN 2250 Security Switch Shasta BSN Nortel One-Bill Solution with Seamless Mobile IP Mobile IP allows seamless handoff between CDMA 1X/DO & WLAN BirdStep Mobile IP client Mobile IP Home Agent for WLAN and CDMA 2000 FA Customers access WLAN network via Mobile IP client software to CDMA operator

17 presentation name NORTEL NETWORKS CONFIDENTIAL PG 17 Nortel One-Bill AAA-based Solution AAA partners (Bridgewater and MetaSolv) integrates CDMA 1X/DO with WLAN authentication and billing MSC CS SS7 HLR PDSN Data Center WLAN Data Center AAA Server (Bridgewater or Metasolv) AAA Server / Radius Proxy Terminals WLAN CDMA Internet Single bill Single authentication 1X/DO Metro Cell BSC/RNC WLAN provider and CDMA operator have a billing/roaming relationship that allows access to the CDMA AAA user authentication and RADIUS billing records Nortel WLAN 2220 Access Point Nortel WLAN 2201 Mobile Adaptor Nortel WLAN 2250 Security Switch Shasta BSN

18 presentation name NORTEL NETWORKS CONFIDENTIAL PG 18 Wireless Mesh Networks Key characteristics – Auto-discovery of nodes and routes – Auto-configuration of network components – Mesh topology – Wireless interconnection Advantages – Rapid network deployment – Reduced infrastructure costs – Reduced engineering and operational costs – Increased network reliability

19 presentation name NORTEL NETWORKS CONFIDENTIAL PG 19 An innovative public WLAN access solution Reduces installation and commissioning costs by more than 75% – Self-configuring, self-healing – No RF engineering required – Outdoor packaging and low power consumption permits installation almost anywhere Reduces operating expenses by more than 70% – Eliminates requirements for wired backhaul connection to every AP – Basic router connection to backbone network, Packet Gateway manages mobility, roaming, and security Provides differentiated WLAN access in large areas – Mobility within the CAN – Broadband access and transit remove network bottlenecks Enterprise / ISP / Metro Distribution Network Wireless Gateway 7250 Community Area Network Wireless AP 7220 Wireless Gateway 7250 Enterprise / ISP Backbone Network Layer 3 Switch Layer 3 Switch Border Gateway (NAT, Firewall, etc.) Internet at large Optivity NMS AAA, DHCP, RADIUS NOSS

20 presentation name NORTEL NETWORKS CONFIDENTIAL PG 20 Example – Downtown Core (Toronto) Situation – Dense urban area covering financial, shopping, entertainment and government centers – Today: Spotty hotspot coverage – With Nortel Networks PWLAN: High capacity (200 Mbps), low cost data service throughout area Benefits – Lower OpEx – eliminate 133 T1s; replace with 5 T3s – Add in-building coverage to adjacent enterprises – Simplify deployment – fewer connections to make and maintain NAPWireless AP Service Area ~ 1.5 km x 1.4 km requiring 133 Wireless APs and 5 NAPs

21 presentation name NORTEL NETWORKS CONFIDENTIAL PG 21 Internal Trial at Carling Additionally, 10 WARPs to be deployed inside

22 presentation name NORTEL NETWORKS CONFIDENTIAL PG 22 Data Access Landscape Speed Fixed Nomadic Mobile 100 kbps1 Mbps Cable Modem GPRS, Mobile Circuit Switch 1xRTT, EDGE UMTS 1xEV-DO 802.11 a/b/g 10 Mbps100 Mbps 802.16 a/d 802.16e 802.20 IEEE is leading the wireless next generation OFDM standards DSL

23 presentation name NORTEL NETWORKS CONFIDENTIAL PG 23 IEEE 802.16 WMANs Wireless Metropolitan Area Networks (Chaired by NIST) Task Groups (TGs): 802.16a (completed 1Q03) New addition of MAC and PHY for 2-11 GHz, both licensed and unlicensed This complements the original 802.16 (10 – 66 GHz) standard completed previously 802.16c (Chairs: Ensemble Communications, Nokia) Developing a series of three conformance standards in support of the 10- 66 GHz air interface specified in IEEE Standard 802.16 802.16d (Chair: WiLan Inc) Ratifying set of 802.16a system profiles to reduce scope of standard to specific, interoperable, subsets. Contributions for 256OFDM will be developed and brought in by WiMAX forum for ratification by 802.16d. Targeting to add hooks to 802.16d for forward compatibility to 802.16e standard 802.16e (Chairs: InterDigital, WiLan Inc) Mobile Wireless MAN PAR approved December 2002. Likely to proceed with deliberate speed Likely to be based on OFDM, potentially with MIMO Potential Applications: Point-Multipoint backhaul, including Hotspot backhaul Residential and SOHO DSL-like service Nortel Networks participates in 802.16 One 802.16a chipset on the market today Products expected to reach market in 2004

24 presentation name NORTEL NETWORKS CONFIDENTIAL PG 24 WiMAX Forum Seen as analogous to Wi-Fi Alliance in WLAN space: – Being pushed hard by Intel and Fujitsu – Strong push to focus on base profile of 256 OFDM w/o many options – Promote interoperability, certify conformance – I.e. interoperability certification – Marketing, branding, build industry momentum WiMAX membership includes Intel, Fujitsu & several others: – New members include Motorola and Atheros 802.16 history is a hodgepodge of point to multipoint solutions for 2 to 66 MHz: – The multitude of options result from an attempt to address several markets (with regulations specifics) and failure to reach a compromise – No mandatory configuration makes interop difficult WiMAX aims to define a set of system profiles that: – Reduce scope of implementations – Target specific market segments – Guarantee interop – Allow higher volumes and a more competitive market – Are ratified by IEEE 802.16d

25 presentation name NORTEL NETWORKS CONFIDENTIAL PG 25 IEEE 802.20 MBWA Mobile Broadband Wireless Access PAR was chaired by Flarion PAR and separation from 802.16 driven by Mark Klerer (ex-Nortel, now Flarion) Current leadership associated with Qualcomm, Lucent and NTT-DoCoMo Goal is to develop low latency packet data cellular-like service Technology direction unclear Potential Threat to CDMA and UMTS? Target Bandwidth:1.5MHz and 5 MHz Target Spectrum: PCS allocation Snapshot from May 2003 and November IEEE 802.20 meeting Working methods/processes - 3 new correspondence groups created: channel/traffic model system requirements evaluation criteria Requests for more time to create this standard Some recognition of (Nortels view of) need for differentiation from 3G To be useful, 802.20 must provide greater value than 3G standards New leadership is not seen as favorable to Flarion technology Nortel Networks participates in 802.20 Too soon to tell whether 802.20 will amount to much May be preempted by 802.16e

26 presentation name NORTEL NETWORKS CONFIDENTIAL PG 26 IPT Prioritized list of Security work 1.OS Hardening, including documenting the ports and services used on the element – OS hardening work completed for some NEs and EMSs. Work required to document ports and services. 2.Data encryption. Methods include encrypting the protocol (SSH, SSL, SNMPv3) and/or encrypting the entire path (IPSec). Pros and Cons to both, and we believe both are required in some areas of the solution. – Very few NEs have implemented encryption. Large amount of work/resources required. 3.Strong Passwords, centralized control – MFT Framework implementing a Radius based solution in FWK 3.3 (delivers with PWI V5 – CuR 2005). A good starting point, but large amount of work/resources required to implement on the NEs, and integrate with all OAM applications. Work can be phased into multiple releases. 4.Secure Logs/Audit logs, support for security trouble shooting by maintaining an audit trail of user activities. Framework in place, but requires implementation on all NEs. Work can be phased into multiple releases Security

27 presentation name NORTEL NETWORKS CONFIDENTIAL PG 27 CTIA stated Priorities 1.OS Hardening is considered fundamental - Customers want documentation of valid services and ports, and want all unused services and ports disabled and closed 2.Authentication with strong passwords and centralized administration 3.Encryption of credentials – dont send passwords in clear text 4.Authorization – multiple levels of user access depending on role 5.Integrity of Data – ensure data received is the data sent 6.Session Logging – generate audit trails to enforce user accountability 7.Encryption of data – Prevent theft of data, fraudulent spoofing 8.Dont store session logs in clear text – again to enforce accountability Security

28 presentation name NORTEL NETWORKS CONFIDENTIAL PG 28 In Closing….. 3G has arrived… WLAN integration starting to take place with WWAN Continued Development of Standards Continuing Only Time will Tell on which standards are accepted by the Market Many standards have come and gone in the past Make no mistake – wireless access is a must!

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