Prospects for 3G Mobile Communications Market and TechnologyProspects for 3G Mobile Communications Market and Technology
January, 2004January, 2004
NEC CorporationNEC Corporation
January, 2004January, 2004
NEC CorporationNEC Corporation
1. 3G Mobile Market Status1. 3G Mobile Market Status2. View on Future Evolution2. View on Future Evolution
A) Radio Aspect A) Radio Aspect B) Network AspectB) Network Aspect
3. NEC’s Activities3. NEC’s Activities
© NEC Corporation 2004 Confidential 3
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000NTT DoCoMo Mobile sub.
au Mobile sub.
Vodafone Mobile sub.
i-mode sub.
Ezweb sub.
Vodafone Live sub.
Mobile users in JapanMobile users in JapanTotal Mobile users: 85MTotal Mobile internet users :74MRatio of 3G user : 30% ( as of end Dec 04 )
(K)
19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003Source: TCA (Telecommunications Carriers Association)
20042004
90% of mobile users use Mobile Internet in Japan
Photo mail start(Nov 00)i-mode start
(Feb 99)
1st Stage Mobile Internet Rapid increase in Mobile
Internet usersFixed Rate Billing
start(Nov 03)
2nd Stage Mobile Internet
Photo mail supporting the improvement of Data ARPU
3rd Stage Mobile Internet Introduction of new services
enabled by “fixed rate billing”
© NEC Corporation 2004 Confidential 4
0
10
20
30
40
50
60
70
80
90
100
Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04
AR
PU
in
Eu
ro
0
5
10
15
20
25
30
35
40
45
50
i-mod
e R
atio
(%
)
i-mode
Voice
Ratio of i-mode
Source: NTT DoCoMo
Decline in voice service revenue has been recovered by data service revenue. (e.g. NTT DoCoMo)
New Revenue generated by Mobile Internet Service
Euro = 135 J-yen
(2Q/2004)
0
10
20
30
40
50
60
70
80
90
DoCoMoTOTAL
DoCoMoFOMA
au TOTAL au EV-DOA
RP
U i
n E
UR
O
Data
Voice
© NEC Corporation 2004 Confidential 5
Data SpeedData SpeedData SpeedData Speed
Evolution of Service and Terminal Functionwith increase of Data Speed
Service/Service/
ContentsContents
Service/Service/
ContentsContents
TerminalTerminalTerminalTerminal
Wall PaperWall PaperWall PaperWall Paper
Ringing ToneRinging ToneRinging ToneRinging Tone
Sort TextSort TextSort TextSort Text
Picture MailPicture MailPicture MailPicture Mail
Real ToneReal ToneReal ToneReal Tone
Log/DiaryLog/DiaryLog/DiaryLog/Diary
Movie ClipMovie ClipMovie ClipMovie Clip
Full MusicFull MusicFull MusicFull Music
GameGameGameGame
Digital CameraDigital CameraDigital CameraDigital Camera Media PlayerMedia PlayerMedia PlayerMedia Player Digital TVDigital TVDigital TVDigital TV
SchedulerSchedulerSchedulerScheduler
NovelNovelNovelNovel
NetworkNetworkNetworkNetwork2G2G2G2G 2.5G2.5G2.5G2.5G 3G3G3G3G
~10Kbps ~10Kbps 100Kbps ~100Kbps ~
© NEC Corporation 2004 Confidential 6
Mobile Subscribers in Japan
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Dec/01 June/02 Dec/02 June/03 Dec/03 June/04 Dec/04
Sub
scrip
tion
in T
hous
and
3G TOTAL
2G TOTAL
3G: WCDMA, 1x/Ev-Do,
2G: PDC, cdmaOne
Source: Telecommunications Carriers Association, Japan
-800
-600
-400
-200
0
200
400
600
800
1000
1200
Jan
-04
Fe
b-0
4
Ma
r-0
4
Ap
r-0
4
Ma
y-0
4
Jun
-04
Jul-
04
Au
g-0
4
Se
p-0
4
Oct
-04
No
v-0
4
De
c-0
4
Ne
t In
cre
ase
('00
0)
DoCoMo 2GDoCoMo 3Gau 2Gau 3GVodafone 2GVodafone 3G
Mobile Subscribers in Japan(Accumulated)
Mobile Subscribers in Japan(Monthly)
30%30%
Subscribers are shifting from 2G to 3G
© NEC Corporation 2004 Confidential 7
0.16 0.35 0.591.1
5.49
6.75
8.87
1.99
4.18
0
1
2
3
4
5
6
7
8
9
Jan Mar May Jul Sep Nov Jan Mar May July Sept Nov
3G subscriptions are increasing very rapidly
2003 2004
(1M subs)
Source : Telecommunications Carriers AssociationSource : Telecommunications Carriers Association
DoCoMo8.50Mil sub.
Vodafone0.37Mil sub.
W-CDMA Subscribers in Japan
© NEC Corporation 2004 Confidential 8
Japan8.9mil
3 Italy2.0 mil.
3 UK1.8 mil.
3 Austria
3 Sweden
At the beginning of 2005, global subscription of UMTS network
had already reached to 16 million on more than 60 networks..Source: UMTS Forum
3 Australia
Source: TCA and Others. As of December 2004
16 million W-CDMA subscribers in the world
3G OperatorSubscribersin thousand
DoCoMo 8,499
Vodafone KK 366
3 UK 1,800
3 Italy 2,000
Other 3 Operators 2,100
3G OperatorSubscribersin thousand
DoCoMo 8,499
Vodafone KK 366
3 UK 1,800
3 Italy 2,000
Other 3 Operators 2,100
© NEC Corporation 2004 Confidential 9
Japanese users enjoy rich data service since introduction of flat-rate charge
Set favorite contents(3 programs, max.3MB/prog)
Download contents at night
Enjoy contents atanytime and anywhere
“EZ Channel” by auPeriodic auto-delivery Contents service
“EZ Channel” by auPeriodic auto-delivery Contents service
Flat-rate Charge Service started in Japan
Packet Traffic
Start date System Monthly Price No. of Users
KDDI Nov. 2003 EV-DO \4200 (Euro31)
1.1 Mil
DoCoMo June 2004 WCDMA \3900 (Euro29)
1.4 Mil
Vodafone
Nov. 2004 WCDMA \3900 (Euro29)
-
“Chaku-Uta Full” by auDownload entire Music
“Chaku-Uta Full” by auDownload entire Music
Interactive GameInteractive Game
© NEC Corporation 2004 Confidential 10
Near toBase station(High Radio Strength)
Far from
Base Station(Low Radio Strength)
-Adaptive Modulation and Coding QPSK to 16QAM, Low to High Error Correction- Hybrid ARQ, Fast Adaptive Scheduling
• Down link : W-CDMA=384kbps HSDPA=14.4Mbps• Improvement of total throughput with dynamic far field / near field control• HSDPA specification: 3GPP Release 5
Low Speed High Speed
HSDPAReady for commercial service within one year
HSDPA uses remaining carrier power for
packet traffic
Packet Traffic
© NEC Corporation 2004 Confidential 11
What is happening in current mobile market in Japan ?
• Fixed Tariff for Packet traffic is becoming dominant in 3G– AU (Ev-Do): 1 Mil users now
• Packet usage 30 times of ordinary users– DoCoMo (WCDMA): 1.4mil user now
• Packet usage 13 times of ordinary users• Traffic on 3G network increased 1.9 time
s– VDF KK (WCDMA): Stared in Nov.2004
• “HSDPA” will be soon.– HSDPA is the key technology for realizing fl
at-rate packet communication service efficiently.
– Best effort type packet traffic increases rapidly by efficient use of radio resources.
Network to be preparedin advance
Packet traffic isincreasing rapidly
Over 100 systems arein commercial operation
© NEC Corporation 2004 Confidential 12Source: DoCoMo/Vodafone
100%
90%
80%
70%
60%
50%3 6 9 12 3 6 9 12 3 6
2002 2003 2004
:DoCoMo:Vodafone KK
Vodafone KK :99.6%(as of Aug.2004)
DoCoMo: 99.7%(as of Jun.04)
5,000
4,000
3,000
2,000
1,000
0
No. of sites
150
1670
3800
1800
3500
Mar.2003 Mar.2004 Mar.2005(plan)
:DoCoMo:Vodafone
●DoCoMo Vodafone KK and networks reached to more than 99% of area coverage ratio (equivalent to 2G)●Expanding indoor coverage for user satisfaction
Coverage Expansion Plan
Outdoor Coverage in terms of population Indoor Coverage in terms of No. of sites
© NEC Corporation 2004 Confidential 13
Coverage DesignArea Patrol
RAN System Installation
RAN Tuning
W-CARD
Drive TestW-CARD
Commercial Service
Continuous Quality Improvement & Area Management
RAN OptimizationRAN Optimization
2. View on Mobile Network Evolution
A) Radio Aspect (Super3G)
2. View on Mobile Network Evolution
A) Radio Aspect (Super3G)
© NEC Corporation 2004 Confidential 15
Mobile Network Evolution for Future
4G4G4G4GS3GS3GS3GS3G3.5G3.5G3.5G3.5G3G3G3G3G
384Mb/s384Mb/s 14Mb/s14Mb/s
NetworkNetworkAspectAspect
100Mb/s100Mb/s 1Gb/s1Gb/sDataDataSpeedSpeed
RadioRadioAspectAspect
WCDMAWCDMA EnhancementEnhancement MIMOMIMO OFDM, etcOFDM, etc....
HSDPAHSDPA AMCAMC H-ARQ, etc.H-ARQ, etc.
New AccessNew Access
CS + PSCS + PS PS Only (All IP)PS Only (All IP)
CSCS
IMSIMS PSPS
IMSIMSIMSIMS
PSPSRANRAN
IP-RAN
IP-RAN
© NEC Corporation 2004 Confidential 16
MIMO: Multiple Input Multiple Output
Parallel Spatial transmission by multiple transmit and receive antennas increase the Frequency efficiency
Par
allelT
ran
sm
ission
Sig
nal
Sep
aratio
n
& D
iversity C
om
bi
ning
■MIMO Multiplexing
Parallel spatial Transmission of data signals using Multiple Transmit antennas
=> Increase Data rate by the number of antennas
■MIMO Diversity
Transmit same data and receive them diversity combining
=> Improve receive performance under bad radio propagating condition
Tx Rx
#1
#2
#3
#4
#1
#2
#3
#4
© NEC Corporation 2004 Confidential 17
Down Link Access Scheme: OFDM
VSF-OFCDM• OFCDM: Orthogonal Frequency & Code
Division Multiplexing– Optimal Mixture of Orthogonal Frequency Division
Multiplexing (OFDM ) and Code Division Multiplexing (CDM)
– Time and Frequency domain spreading is adopted to OFDM
• Improve frequency reuse efficiency by OFDM• Frequency Diversity effect by narrow band
multi-carrier
• VSF: Variable Spreading Factor– Cellular Environment: Spreading factor > 1
• To reduce the affect of interference • Data Rate: 10Mbps@10MHz BW
– Hot spot Environment: Spreading factor = 1• To increase the link capacity• Data Rate: 100Mbps@10MHz BW with MIMO
OFCDM Coding
2. View on Mobile Network Evolution
B) Network Aspect (Fixed Mobile Convergence)
2. View on Mobile Network Evolution
B) Network Aspect (Fixed Mobile Convergence)
© NEC Corporation 2004 Confidential 19
Multiple new wireless technologies with high-speed, wide-band, and high mobility emerged
aiming at Beyond 3GTwo systems (1) “Cellular phone technology” based on 3G or 3.5G and (2) “Wireless LAN technology” based on _WiFi are present and various kinds of regulations appeared.
Multiple new wireless technologies with high-speed, wide-band, and high mobility emerged
aiming at Beyond 3GTwo systems (1) “Cellular phone technology” based on 3G or 3.5G and (2) “Wireless LAN technology” based on _WiFi are present and various kinds of regulations appeared.
2~ 3Km
Mobility*
(Sp
eed km
)
Communication speed ** (Mbps)
High
LowHigh
~ 100
~ 10
~ 3 ~ 50Low
802.11b802.11a
802.11bWiFi
802.16e 802.16aWiMax
PHS
HSDPA
2/2.5G
3/3.5G
Mobile phone
Wireless LAN
High-speed, wide-area wireless technology with 4G, 802.20, etc.
Communication distance ***
100m max.
*Adaptability to mobile in a base station**Downlink speed***Effective communication distance from base stationReference: Search description, ABI research
Difference between Mobile phone and Wireless LAN
NW: Close - OpenCapacity: Based on voice – Data with large capacityQoS: Complete – Basically best effort.
Evolution of Radio Access NetworkEvolution of Radio Access Network- Flow of 2 Systems Aiming at Wireless Broadband -- Flow of 2 Systems Aiming at Wireless Broadband -
© NEC Corporation 2004 Confidential 20
Public telephone network
Public telephone network
FOMA Mobile telephone network
FOMA Mobile telephone network
Solution in Cooperation with FOMA®
My Office Anywhere, In-house or outside, by one FOMA®®
Outside
At siteAt siteAt siteAt site
FOMA N900iLFOMA N900iL
MovingMoving
At maintenance site
To web meetingfrom TV telephone
Reference to documents for
meeting
FOMA N900iLFOMA N900iL
FOMA® is a registered trademark of NTT DoCoMo.
Off deskOff deskOff deskOff desk
In-house
Access point Access point
UNIVERGE WLWireless controller
UNIVERGE WLWireless controller
FOMA N900iLFOMA N900iL
Can catch easily by use of presence
Wireless extension telephone
by wireless LAN(Wireless IP telephone)
FOMA in office
FOMA N900iLFOMA N900iLApplication
cooperation from FOMA
outside the office
At own deskAt own deskAt own deskAt own desk
FOMA N900iLFOMA N900iL
FOMA FOMA N900iN900iLL
Wireless Wireless LANLAN
FOMFOMAA
Wireless LANWireless LAN
SIP telephony serverUNIVERGE SV7000
Application server
© NEC Corporation 2004 Confidential 21
WLAN AN
3GPP-AAA
WLAN AN
3G public WLAN
AP
UMTS
IMS
AP
AP AP
BTS BTS BTS
IP-RNC(aTCA)
SGSN(aTCA)
GGSN(aTCA/RMS)
HSS CSCF MRFC
MGW
MGWWAG
WAG
PDG
MRFP
MGCF
3G PS
Fixed Network VoIP
I-CSCF
CSCF 3G-AAAProxy
SV7000 Enterprise
BASResidence
3G Authentication
Enterprise
AP
SV7000AP
Mobile Network Fixed network
New PF applied
PDG : Packet Data Gateway WAG :WLAN Access Gateway AAA :Authentication, Authorisation and Accounting AP :Access Point MGW:Media Gateway FunctionHSS :Home Subscriber Server
PDG : Packet Data Gateway WAG :WLAN Access Gateway AAA :Authentication, Authorisation and Accounting AP :Access Point MGW:Media Gateway FunctionHSS :Home Subscriber Server
MRFC: Multimedia Resource Function ControllerMRFP: Multimedia Resource Function Processor CSCF: Call Session Control Function MGCF:Media Gateway Control Function
MRFC: Multimedia Resource Function ControllerMRFP: Multimedia Resource Function Processor CSCF: Call Session Control Function MGCF:Media Gateway Control Function
3G CS
PSTN
Next Generation Mobile Network
SGW
© NEC Corporation 2004 Confidential 22
・・・Service Applications/ ContentsService Applications/ Contents
IP based Service Platform IMS
Mobile Packet NetworkFixed Packet Network
Internet
2G/3G Mobile
ADSL/FiberHSDPA/EUDCH
Wireless AccessWireless Access
Wired AccessWired Access
Cable
WiFiWiMAX
Business TripBusiness Trip
OfficeOfficeHot SpotsHot Spots
ResidenceResidence
TransportatiTransportationon
One Stop Subscription / Single User ID / Simple Billing One Stop Subscription / Single User ID / Simple Billing
Mobile/Fixed Service Integration-Seamless Service-
© NEC Corporation 2004 Confidential 24
NEC serves you the total solutions with the most innovative technologies and services.
Semi-conductors, Electric PartsSemi-conductors, Electric Parts
InfrastructuresInfrastructuresTerminalsTerminals
PSTNPSTN
The internetThe internet
Macro Node-B
Mobile Internet PlatformMobile Internet Platform
Basic Servers VA Servers
In-Building SolutionsIn-Building Solutions(Micro/Pico Node-B)(Micro/Pico Node-B)
GGSNGGSN
SGSNSGSN
Core NetworkCore Network
RNCRNCSGWSGWHSSHSS
MGWMGW
CSCFCSCFMRFMRF
MGCFMGCF
PresencePresence
IP Multimedia Subsystem (IMS) IP Multimedia Subsystem (IMS)
NEC Multimedia Platform (NEMIP) NEC Multimedia Platform (NEMIP)
Gateway Gateway &Proxy&Proxy
Contents
Contents
E2E solutions for mobile networkE2E solutions for mobile network
NB-341Micro NBNB-341
Micro NB
NB-44x/88xMacro NB
NB-44x/88xMacro NB
Radio Server +Remote RF HeadRadio Server +
Remote RF Head
© NEC Corporation 2004 Confidential 25
Professional ServicesRapid and accurate Design Simulation and OptimizationHigh Skill, Know-how, and Experience
Equipment SolutionsSmall & High Performance Products
Cafeteria Airport, Station Office building
NEC SolutionsNEC Solutions
RF Server
Shopping Mall
RS3000
RF Repeater
Design, Implement, Optimisation
Micro Node B
BuilSke/FloSco
100% HSDPA
prepared
Radio Server + Remote RF Head
Indoor Solution
© NEC Corporation 2004 Confidential 26
FinlandFinland
Asia
Europe
UKUK NorwayNorwayGermanyGermany
NetherlandsNetherlands
BelgiumBelgium
LuxemburgLuxemburg
SpainSpain
PortugalPortugal
FranceFrance
Czech Czech RepublicRepublic
PolandPoland
AustriaAustria ItalyItaly GreeceGreece
BahrainBahrain S.AfricaS.Africa
JapanJapan
TaiwanTaiwan
HongKongHongKong
MalaysiaMalaysiaMoonacoMoonaco
Isle of ManIsle of Man
W-CDMA Infrastructure Sales to 33 Operators in24 Countries/Regions
North America
USAUSA
Middle East /Africa
NEC/Siemens WCDMA Projects (Contract)
© NEC Corporation 2004 Confidential 27
NEC /Siemens enjoy Top share of Base Stations NEC /Siemens enjoy Top share of Base Stations in Commercial Operation with 23,800 units(35.1%) in Commercial Operation with 23,800 units(35.1%)
Source: “Worldwide W-CDMA Cellular Base Station Market Report “ by Multimedia Research Institute (Aug. 2004)
NEC/NEC/SiemensSiemens35.1%35.1%
Ericsson22.8%
Nokia20.8%
Panasonic10.6%
Fujitsu5.6%
Others5.1%
Total No. of Node-B : 67,900
W-CDMA Base Station Vendor Share(No. of Units Commercially Deployed as of Aug.2004)
© NEC Corporation 2004 Confidential 29
Bridge for Virtual and Real= Digital Appliance =
ISPISP
CPCP
ShopShop
BankBank
HomeHome
MaterializationMaterialization
UnexpectedlyUnexpectedlySuddenlySuddenly
UnexpectedlyUnexpectedlySuddenlySuddenly
Needs of UsersNeeds of Users
• Want to contact XXWant to contact XX
• Want to Watch TV, listen to musicWant to Watch TV, listen to music
• Want to check XXWant to check XXWant to MemoWant to Memo
• Want to know timeWant to know time
• Want to shopWant to shop ・・・・・ ・・・・・
What users “want to do” not “can do”What users “want to do” not “can do”
without Time and Place constraintwithout Time and Place constraint
What users “want to do” not “can do”What users “want to do” not “can do”
without Time and Place constraintwithout Time and Place constraint
Digital Appliance
© NEC Corporation 2004 Confidential 30
Service and Terminal Diversification corresponding to Network Evolution
StreamingStreamingStreamingStreaming
LISLISLISLIS
PicturePicturePicturePicture
RingingRingingMelodyMelodyRingingRingingMelodyMelody
InternetInternetInternetInternet
MailMailMailMail
SMSSMSSMSSMSRoamingRoamingRoamingRoaming
VoiceVoiceVoiceVoice
GameGamePIM PIM GameGamePIM PIM
InfraredInfraredRayRay
InfraredInfraredRayRay
StorageStorageStorageStorage
MobileMobileCommerce Commerce
MobileMobileCommerce Commerce
Digital TVDigital TVDigital TVDigital TV
WirelessWirelessLANLAN
WirelessWirelessLANLAN
Music playerMusic player
GPSGPSViewerViewer
Digital TVDigital TV
LANLAN
ApplicationApplicationServiceService
TerminalTerminal
Internet phoneInternet phone
RFIDRFID
JAVAJAVA
PCPCTelephoneTelephone
Fuel CellFuel Cell
3.5G > S3G > 4G3.5G > S3G > 4G3G3G2.5G2.5G2G2G
10kb/s10kb/s 100kb/s100kb/s 1Mb/s1Mb/s 10Mb/s10Mb/s
CircuitCircuit Circuit+Circuit+ (( PacketPacket ))(( CircuitCircuit )) +Packet+Packet →→ ALL IPALL IP
MobileMobileNetworkNetwork
100Mb/s100Mb/s 1Gb/s1Gb/s