IMT2000 technology in 450MHz - TT 3... · IMT2000 technology in 450MHz ... (no frequency reuse) ... starts funding Inquam for new licenses acquisition and for the f irst cdma450 network

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IMT2000 technology in IMT2000 technology in 450MHz450MHz

Victor StanCTO Telemobil/Zapp

History & Baseline for startup

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TELEMOBIL HISTORY (1)l First cellular license in Romania (1993) granted to Telemobil -

Telefonica (60%), Radiocomunicatii (20%), Romtelecom (20%)– Nation-wide use of 450 MHz spectrum (453-457.5 & 463-467.5) for NMT– 4.5 MHz of spectrum with 10 MHz duplex distance and 25 KHz channel

space– 900 MHz spectrum conditional allowance

l Launch - High Power balanced Network (1994-1995)– 1 switch in Bucharest (30K) and several cities covered from remote Base

Stations collocating with Radio TV broadcast sites (20 BTS)– Transmission support – analog leased lines– 15 Watt Portable Class terminals– Maximum 1,000 capacity offer (no frequency reuse)

l Rollout - Medium Power balanced Network (1995-1998)– Second switch in Constanta (10K) and in-city new Base Stations (60 BTS)– Transmission support – both analog and digital leased lines plus own MWs– 1.5 Watt Handheld Class terminals– Maximum 18,000 capacity offer (up to 80% congestion, 5% allowed)– 60% of the country covered with Outdoor Level of Service– Frequency reuse in Bucharest (Stockholm model) limits offered capacity to

10K.

TELEMOBIL HISTORY (2)l Telemobil fails to obtain a GSM900 license (1996)

– Monopoly being lost, the profit drops dramatically (1/3 ARPU) starting the 2nd quarter 1997, after the GSM900 begins the price war.

– Customer base remains almost stationary until the end of 1997 (15,000 subs) when starts dropping due to aggressive migration towards GSM services (-5K/year)

– First Voice Mail system (30K) was introduced in ‘97 before GSM.– Network Rollout tries accelerating but much slower than GSM expansion (over 10

times faster).l Telefonica seeks to sell its shares to Romtelecom (1997)

– Romtelecom diverts Telefonica’ shares to RDT – Balli, Racebrook and 450 WirefreeFund (JP Morgan) since was granted with a GSM/DCS1800 license for privatization.

– Consequently to RDT’s capital investment, Romtelecom and Radiocomunicatii shares have decreased accordingly while the license has been extended w ith 10 years, technology agnostic.

l RDT vision focuses on LEMS roadmap (1998-2000)– Both Passive & Active Intelligent Antenna (analog) solutions were the steps proposed

by Radio Design AB (Sweden) to introduce a competitive Low Power Emission Station (0.15 Watt) handset.

– Telemobil chooses a lower cost alternative to introduce the LEMS on Romanian Market – the High Gain Antenna (HGA) together with Low Noise Amplifiers (LNA).

– New Rollout – Low Power balanced network to support 0.1 Watt terminals within the same coverage footprint as for the Medium Power handsets transmitting with 1.5 Watt.

– Additional sites (50 BTS) were required to provide a seamless GSM-equivalent coverage offer.

– The entire NMT network was upgraded, sectorized and optimized during 1999 and 2000.

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TELEMOBIL HISTORY (3)l RDT/Telemobil seeks after digitalization options (2000)

– Entire NMT community was looking after vendors proposals to introduce a digital standard into 450 spectrum.

– Three proposals for a digital standard were submitted to the NMT MOU in 2000:l GSM400 – supported by Ericsson and Nokia.l Cdma450 – supported by Qualcomm and Lucent.l DNMT (replaced by TETRA) – supported by Radio Design & others.

– Both GSM400 & cdma450 were adopted by the operators and vendors were encouraged to continue the standardization and manufacturing work.

l Inquam acquires RDT – Qualcomm (45.7%), Omnia (45.7%), RDT parts (8.6%)– After RDT’ decision to follow CDMA2000 technology roadmap, Qualcomm and Omnia

starts funding Inquam for new licenses acquisition and for the f irst cdma450 network rollout in Romania.

– Starting point - the NMT450 network and license with no constrains related to digitalization.

– The NMT coverage baseline (on the next slide - outdoor level of service), indicates 60% geographical coverage and 40% covered population (in-building).

– In 2001 the NMT network consists in two switches, 125 Base Stations and 30 Transmission & Repeater sites.

– At the same time, each GSM900 network have 9 switches, 1,500 Base Stations and 300 Transmission & Repeater sites.

– The rollout plan targets to match the GSM coverage footprint which requires approximately 500 Base Stations operating at 450 MHz.

NMTBaseline

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GSMCONNEX

GSMORANGE

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Technology ChoiceTechnology Choice

TECHNOLOGY – Standards

6

TECHNOLOGY – Key Factorsl Three key factors to consider while comparing different

wireless technologies:– Coverage offer – in terms of link budgets comparison– Capacity offer – in terms of spectral efficiency– Supported Services – in terms of differentiators for the end user

l Comparing CDMA against NMT and GSM results in:– Superior Coverage based on better Maximum Allowed Path Loss– Superior Spectrum Efficiency based on 1:1 frequency reuse factor– High Speed Packet Data capability as a strong

differentiator/advantage

Additional advantages:- increased optimization flexibility (trading coverage for capacity)- higher transport efficiency (packet based)- high capacity & throughput for data based services (ATM based QoS)- VoIP ready: 1x supports PTT (half duplex) and 1xEV-DV (full duplex

Telephony & Simultaneous Data)

Based on the Free Space Loss calculations, 450 offers 4x larger coverage comparing to 900 for the same technology.

CDMA capacity operating only 3 carriers (3.75MHz) is up to 4x higher than GSM capacity operating 62 channels (12.5MHz).

CDMA link budget is better than GSM even for the same band.

This results in a 4x better efficiency allowing the operator to provide more cost effective services to the end user.

Zapp experience demonstrates the ability to decrease the average investment for the same coverage & capacity to

450 MHz

900 MHz

TECHNOLOGY – Coverage and Capacity

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TECHNOLOGY – Strategic considerations

l CDMA2000 can operate in multiple bands

l CDMA needs only 1.8 MHz of spectrum for the first carrier (1.25 MHz plus the guard bands) while 450 MHZ spectrum can host up to three CDMA carriers

l Based on its cost efficiency, CDMA2000/450 can cover and serve all the NICHE markets left underserved by GSM due to its capacity and/or coverage limitations (on both mobile voice & data markets).

l Due to the poor fixed infrastructure available in Romania & CEE countries, CDMA2000/450 can provide the most cost effective solution for the “Universal Service” initiative.

l Broadband data capability allows CDMA2000/450 to substitute equivalent fixed data solutions (ISDN, CATV, xDSL etc) where these

TECHNOLOGY – Chipsets roadmapl CDMA2000 Chipsets Evolution – Global Roaming

Support

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Network DeploymentNetwork Deployment

Coverage – 2002/2003% - Phase 1 & 2 Sites

- Phase 1 & 2 Roads

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% - Phase 1 & 2 Sites

% - Phase 3 Sites

- Phase 1 & 2 Roads

- Phase 3 Roads


% - Phase 3 Sites

- Phase 1 & 2 Roads

- Phase 3 Roads

Coverage – 2003/2004


% - Phase 3 Sites

% - Phase 4 Sites

- Phase 1 & 2 Roads

- Phase 3 Roads

- Phase 4 Roads


% - Phase 3 Sites

% - Phase 4 Sites

- Phase 1 & 2 Roads

- Phase 3 Roads

- Phase 4 Roads

Coverage – 2004/2005

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PHASE I (2001/2002)

•BTS: 180•DCS: 3•Population Coverage: 30% (Indoor level of Service)•Geographical Coverage: 30% (Outdoor level of Service)•60% Urban Population covered

PHASE II (2002/2003)


1x Coverage (1)

1x Coverage (2)

PHASE IV (2004/2005)


PHASE III (2003/2004)


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1xEV-DO Coverage (2004)l The roll-out plan is based on a socio-economic analysis, considering multiple

factors: population, employment rate, turnover etc and focuses on the broadband data demands

l 1xEV-DO users can roam onto 1x national coverage layer while travelingl Providing up to 2.4Mbps peak data rates in all major cities and 153.6kbps

nationwide l Phase A – Bucharest (Q1/04)

l Phase B – other 40 cities(Q2/04)

Terminals

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Z710

1. Z710i Z710i -- handsethandsetManufacturer: Giga Telecom - KoreaMarket positioning: High – endLaunch date: end of February Physical Characteristics:• - Weight: 80 g• - Size: 45.8 x 84 x 19.9• - LCD: 262K color TFT• - MSM: 5100• - Battery: Li -ion

• Main functions:• - BREW• - Browser• - Build in modem• - GPS One• - SIWA Telespree OTA• - Polyphonic ringtones• - Speaker phone• - Phone book: 500 entries• - T9

Z510

1. Z510/Z510i Z510/Z510i -- handsethandsetManufacturer: Giga Telecom Inc. – KoreaMarket positioning: Middle highLaunch date: available nowPhysical Characteristics:- Weight: 78 g- Size: 83 x 43 x 20 mm- LCD: Gray scale- MSM: 5105- Battery: Li-ion 600 mAhMain functions:– BREW*– Browser*– Build in modem– SIWA Telespree OTA– Polyphonic ringtones– Phone book: 200 entries– Speaker phone– T9* Available February 2004

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Z330i

3. Z330i Z330i -- handsethandsetManufacturer: Curitel Communications Inc. – KoreaMarket positioning: Middle lowLaunch date: end of MayPhysical Characteristics:- Weight: 92.5 g- Size: 108.8 x 47 x 19.6- LCD: 4096 CSTN color- MSM: 5000- Battery: Li-ion 900 mAhMain functions:- BREW- Browser- Build in modem- SIWA Telespree OTA- Polyphonic ringtones- Phone book: 200 entries- Speaker phone- T9

Z315/325

4. Z315i/Z325i Z315i/Z325i –– PTT handsetPTT handsetManufacturer: Ubiquam - KoreaMarket positioning: PAMRLaunch date: end of July Physical Characteristics:

- Weight: 115 g- Size: 118 x 44 x 20 mm - LCD: 65 000 color, STN- MSM: 5100- Battery: Li-ion 1000 mAhMain functions:- BREW- Browser- Build in modem- SIWA Telespree OTA- PTT- GPS- Polyphonic ringtones- Phone book: 500 entries- Speaker phone- T9

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Z110

5. Z110 Z110 -- handsethandsetManufacturer: Gtran Inc. – KoreaMarket positioning: Low endLaunch date: end of August Physical Characteristics:- Weight: 100 g- Size: 103 x 44.5 x 17.5 - LCD: STN with blue color backlight- MSM: 5105- Battery: Li-ion 950 mAhMain functions:- Build in modem- SIWA Telespree OTA- Polyphonic ringtones- Phone book: 100 entries

H150

6. H150 H150 -- handsethandsetManufacturer: Curitel Communication. – KoreaMarket positioning: Low endLaunch date: available now Physical Characteristics:- Weight: 145 g- Size: 124 x 50 x 20 mm - LCD: STN with blue color backlight- MSM: 5000- Battery: Li-ion 950 mAhMain functions:- Build in modem- Browser- Phone book: 100 entries

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S200

7. S200 S200 –– handsethandsetManufacturer: Synertek Wireless. – KoreaMarket positioning: Low endLaunch date: available now Physical Characteristics:- Weight: 120 g- Size: 110 x 44 x 21 mm - LCD: Gray scale- MSM: 5000- Battery: Li-ion 850 mAhMain functions:- Build in modem- Browser- Phone book: 200 entries

Z010

1. Z010 Z010 –– EVEV--DO modemDO modemManufacturer: Gtran Inc. – KoreaMarket positioning: High speed data usersLaunch date: end of MarchPhysical Characteristics:- Weight: 96 g- Size: 116.2 x 47 x 22.2 mm - LCD: Gray scale- MSM: 5500- Battery: Li-ion 1000 mAh

Main functions:- Wireless connectivity: - up to 307 Kbps in 1xRTT

- up to 2.4 Mbps in 1xEV-DO- Built in GPS- Voice- Simple SMS

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Voice and HSPSD capabilityStandard Interfaces:

POTS RJ11Serial RS232CUSB DC in (9 V)

OptionalEthernet moduleWeb Server moduleHandset inside or removable

External antenna

Mobilink – Topex WLL

Traffic & Performance

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ZAPP ZAPP -- SubscribersSubscribers

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03

Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03

SUBSCRIBERS

SUBSCRIBERS 18,380 26,021 31,971 40,733 54,134 65,583 76,342 87,505 98,707 106,109 115,382 126,685 134,644 144,439 151,385 161,146 170,754

Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03

ZAPP ZAPP –– Traffic/Subscriber Traffic/Subscriber -- Voice & DataVoice & Data

Traffic per Subscriber [mE]

0

5

10

15

20

25

30

Jul-02Aug-02

Sep-02Oct-02

Oct-02Nov-02

Dec-02Jan-03

Feb-03Mar-03

Apr-03May-03

Jun-03Jul-03

Aug-03Sep-03

Oct-03Nov-03

Dec-03

voice traff per Sub

data traff per Sub

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ZAPP ZAPP –– Traffic Voice & DataTraffic Voice & Data

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


Traffic CDMA [E] - Network voice traffic data traffic

ZAPP - Hourly Traffic Distribution

Network Voice & Data - Busy Day of the Month

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Traffic Voice (E) Traffic Data FCH (E)

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ZAPP ZAPP -- International TrafficInternational Traffic

0

5

10

15

20

25

30

35

40

45

50


International Traffic [E] Incoming Outgoing

ZAPP – Voice Traffic per Destination

Traffic Distribution Nov-03Mobile to Mobile

to NMT

to Mobifon

to Mobilrom

to Cosmorom

to PSTN TZE

to International

to Voice Mail

Incoming External to MT

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ZAPP ZAPP –– Minutes Of UsageMinutes Of Usage

0

10

20

30

40

50

60

70

80

Millions


Minutes Of UseVoice Data

ZAPP ZAPP –– Call PerformanceCall Performance

Calls & Handoff Success Rate [%]

90

91

92

93

94

95

96

97

98

99

100

Jul-02

Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Calls Handoff

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ZAPP ZAPP –– Drop Call RateDrop Call Rate

Drop Call Rate [%]

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8


ZAPP ZAPP –– Mean Hold TimeMean Hold Time

Mean Hold Time [sec]

0

30

60

90

120

150

180

210

240

270

300

Jul-02 Aug-02 Sep-02 Oct-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03

voice data

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Sales Results

0

2000

4000

6000

8000

10000

12000

14000

16000

Jan '

02Fe

b '02

Mar '0

2

Apr'0

2

May'02

Jun'0

2

Jul'0

2Au

g'02

Sep'0

2

Oct'02

Nov'0

2De

c'02

Jan'03

Feb'0

3Mar'0

3

Apr'03

May'03

Jun'0

3

Jul'03

Aug'0

3

Sep'0

3

Oct'03

Nov'0

3

Monthly Gross Additions

Launch

Management Change

Re-Launch

High-season

Easter HolidaySummer Holiday

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2,003,600 2,180,500 2,337,000 2,462,500 2,635,300 2,672,700 2,746,100 2,911,700

1,637,0001,719,000

1,857,0002,020,000

2,211,000 2,377,0002,590,000

2,878,000

79,500

83,500

95,20191,192

112,700107,209

99,36293,099

153,182127,729

37,03821,114

17,7992,112

68,898 100,671

Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03

Connex Orange Cosmorom Telemobil

Growth in Customer Base (Postpaid+Prepaid)

3,749,9214,029,999 4,306,306

+ 60.6%

4,614,7395,014,560

Mobile Market Evolution

5,243,470

6,022,382*5,547,329

*Estimation

Source: TIW, ORANGE and OTE quarterly financial reports

Market Share – Net Addition (total market)

Mobile Postpaid Market Evolution

41

24 2314

4832

21

3342

52

30

55

37

42

44 56

54

179611

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03*


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Starting from Q3 2002, Zapp has always acquired over 30% of the post paid market growth (tariff plans over 10 USD)

Market Share – Net Addition (Postpaid with monthly fee >10 USD)

Mobile Postpaid Market Evolution

Source: TIW, ORANGE and OTE quarterly financial reports

30.2

4.9

50.8 51.1

63.3

41.5

14.514.323.2

32.439.1

27.2

41.325.3

27.5

26.1 35.3

22.1

14.340.1

30.6

17.328.3

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3*


Sales by Products

0

2000

4000

6000

8000

10000

12000

14000

16000

Jan '

02Fe

b '02

Mar '02

Apr'0

2May

'02Ju

n'02

Jul'02

Aug'0

2Se

p'02

Oct'02

Nov'0

2De

c'02

Jan'0

3Fe

b'03

Mar'03

Apr'0

3May

'03Ju

n'03

Jul'03

Aug'0

3Se

p'03

Oct'03

Nov'0

3

All Products

Z Online Z Share Free Bundled Products Business Products

Documents

IMT2000 technology in 450MHz - TT 3... · IMT2000 technology in 450MHz ... (no frequency reuse) ... starts funding Inquam for new licenses acquisition and for the f irst cdma450 network