HUAWEI TECHNOLOGIES CO., LTD.
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CDMA2000CDMA2000Expanding the M2M MarketExpanding the M2M Market
Norman LindseySenior Principal ExpertHuawei Technologies (USA)March 2011
Key Attributes for a Successful M2M PlatformKey Attribute CDMA2000
Ubiquitous Coverage √√
Network Longevity √√
Low Total Cost of Ownership √√
Network Reliability √√
Enhanced Security √√
Network Capacity & Speed √√
Energy Efficiency √√
Low Latency √√
IP-based Packet Data √√
Accurate Position Location √√
Global Roaming √√
Private Network Option √√
Focus on Coverage, Longevity, Cost and MarginPage 2Source: Harbor Research, Inc., September 2010
4x
CDMA2000 Coverage: Key for M2M Services
CDMA2000 Provides Ubiquitous Coverage for Customers
Globalization & “Mobility of Things” drive need for wide coverage
The solution is CDMA2000
CDMA2000 Data Coverage MapMost M2M apps require ubiquitous coverage:
• Retail• Telematics• Health Care• Transportation• Fleet Management• Consumer Electronics• Remote Asset Tracking, etc.
Page 3Source: Aeris Communications, March 2011
Page 4Note: Based on Qualcomm simulations, coverage is defined as the maximum area with less than 1% of the users in outage;Assumption: 3GPP2 simulation frame work, embedded sector, with all 1X Advanced features including MRD, FL and RL interference cancellation, new RC
x1X Today
1X Advanced
4x 70% greater coverage enables better in-building
M2M services
4x higher voice capacityfrees up spectrum
for M2M
1X Advanced:4x capacity increase or 70% more coverage
70% coverage increase
1X Advanced Further Improves Coverage and Capacity
4x
Longevity of Revenue Streams
CDMA2000 Provides M2M Investment Protection
CDMA2000 networks and services will be around for many years
1G1G1G2G2G2G
3G3G3G
4G4G4G
Subs
crib
ers
(Billi
ons)
Source: Wireless Intelligence (WCIS+) and CDG, July 2010 Page 5
M2M Module Price ComparisonCDMA2000 modules are becoming more price competitive
Source: Harbor Research, Inc., September 2010
CDMA2000 provides a balance between cost and capabilityPage 6
Valuable Revenue Source for OperatorsMore Lucrative Business Models
• More connections → More Revenue
• Higher price per M2M bit → More AMPU
• Lower marketing costs and churn → Higher Margins
• Low bandwidth price models → More Profitability
Service Tariff Plan
Monthly fee ($ per month) Free Package Price
($/MB)
M2MPlan S 8.4 100 KB 12.9Plan M 16.8 1 MB 9.8
Data service Basic Plan 17 ~ 67 2.9 ~ 17.4 MB 3.4
(Tariff plan in Japan)
M2M service
Mobile Phonedata service
3X+
X
Price/ MB
High Margin data plans ensure CDMA2000 Success in M2MPage 7Note: AMPU – Average Margin Per User
It’s About Coverage
Tier 1 players indicating that ubiquitous coverage is criticalMany applications require national roaming capability
It’s About Longevity
M2M apps have lower device churn resulting in lower marketing and upgrade costsTechnologies with longevity are favored to minimize marketing and upgrade installation costs
It’s About Cost
Device cost is critical component to successful business caseDevices must provide balanced tradeoff between cost and functionality
It’s About Optimizing Margin
Similar to SMS business model, low bandwidth apps can provide high marginTime management of data transfer minimizes network impact improving margins
Key Metrics of M2M Success
Focus On Coverage, Longevity, Cost, and Margin
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