CDMA2000 1X - Seamless Evolution to Next

Wireless Evolution
CDMA2000 1X – Seamless Evolution to Next-Generation Services
Steve Falk, Vice President, Global Development
Agenda
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Sprint Overview
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Sprint’s Choice of CDMA Technology
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PCS Vision—3G Application Overview
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3G—Driving Take Rate, Usage and Revenue
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Sprint is a Total Communications Company
Long Distance
Local
Mobile
Coverage
United States/
International
18 states
Network
Voice, Data,
Digital Subscriber Line
(DSL), Tier 1 Internet,
Hosting
Incumbent Local, DSL All Digital CDMA
Products
Outbound/Inbound Voice, Local Service, DSL,
Carrier Access,
Internet/Data Services,
Product Distribution
Managed Services,
Professional Services
Voice, Web Access,
Voice Command,
Short Message Service,
3G - PCS Vision
Customers
Consumer
Small Business
Large Business/MultiNational Company
Consumer
Small Business
Large Business
Consumer
Small Business
Large Business
2002 Revenue
$9 Billion
$6 Billion
$12 Billion
1899
1996
Year Launched 1986
United States
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Sprint Customer Segment Transformation
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Sprint’s Choice of
CDMA Technology
CDMA2000 is commercially available
across six continents
1X Commercial
1X Deployment
1X Trial
1xEV-DO Commercial
1xEV-DO Deployment
1xEV-DO Trial
63 CDMA2000 1X commercial networks (first deployed Oct 2000)
15 CDMA2000 1X networks scheduled to be deployed
2 CDMA2000 1X trial networks
8 CDMA2000 1x-EV-DO commercial networks (first deployed Jan 2002)
5 CDMA2000 1xEV-DO networks scheduled to be deployed
2 CDMA2000 1xEV-DO trial networks
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CDMA2000 will Continue to Expand Rapidly and
Dominate the 3G Market Throughout the Decade
600.0
300,000
500.0
subscribers (millions)
250,000
Millions
200,000
150,000
100,000
300.0
200.0
100.0
50,000
0
2001
400.0
0.0
2002E
2003E
2004E
2005E
2006E
2007E
2001
2002
2003
WCDMA
WCDMA
2004
2005
2006
2007
CDMA2000
CDMA2000
Source: Deutsche Bank, April 2003
Source: Strategy Analytics, 2003
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Sprint CDMA Network
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The Sprint nationwide PCS network covers more than
248 million people and more square miles than any
other digital network in the U. S.
Sprint’s wireless PCS network consists of over 20,000
CDMA cell sites
− Every cell site and every RF carrier operates on IS2000 Release 0 of the CDMA standard
For a Vision customer, they have access to Vision
services where ever Sprint’s PCS service is offered –
Nationwide
Sprint targets an average user data rate of 60-80 kbps
− As measured by performance indicators and network
testing Sprint is currently hitting this target.
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Sprint’s CDMA2000 Migration Path
Sprint’s evolution of CDMA technology along the IS-2000 path continues to
expand on the base capabilities of CDMA2000 1X, bringing more wireless
capacity and higher peak data rates in order to meet the needs of our
customers.
Evolution of CDMA2000 Platform
Current - 14.4 kbps
2G IS-95A
Current - 56 kbps
Current - up to144 kbps
Current – 144 to 720 kbps
2006 – 2.5-3.1 mbps
2G - Compression
CDMA2000 1X
(Release 0)
CDMA2000 1X (with
compression)
CDMA2000
1xEV-DV
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Key Reasons Sprint PCS Uses CDMA
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Highest Quality of Service
− Outstanding voice quality and clarity
− Lowest incidence of dropped calls, uninterrupted data transmission
− Most secure technology
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Easiest / Quickest Transition to 3G
− All 3G Standards roads lead to CDMA technology in the ITU
− Starting with CDMA has significant advantages
! CDMA provides a natural path to 3G
! Avoids technology / market confusion of switch to new
technology
− Flexible in supporting 2G technologies
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Lower Longer-Term Cost Structure
− Migration path includes upgrades rather than complete technology
change
! Avoids building multiple infrastructures
! No need to add BTS (base stations) - significant portion of
CAPEX
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Backward Compatibility
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How CDMA2000 1X Benefits Sprint
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Faster data speeds enable exciting applications for
customers
Up to double voice capacity
Tenfold increase in physical layer data throughput from
14.4kbps to 144kbps
Backwards compatibility with existing systems
Graceful network migration to 3G in existing spectrum
Conferences
Home
Internet
Always On Connection
" Any where
" Any time
" Any way
Dial
ISP Access
through the
Internet
Hotel
Commuting
LANs
Mobile
Meeting Rooms
Router
Router
ATM Switch
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3G Benefits for Customers
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Faster speeds to connect, send and access
information via PCS Vision (3G services)
Longer battery life and longer standby times for
wireless device
Improvements to 2G applications
− Enhanced email - send and open attachments
− More sophisticated business applications
− More elaborate games
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Plus the support for additional applications
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−
−
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Streaming video and audio
Video camera remote monitoring
Video mail
Digital Imaging
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PCS Vision
Clarity You Can See and Hear
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PCS Vision is the 3rd Screen in your life
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2
3
TV
• Cable
• DTV
PC
• Internet
• Broadband
PCS Vision
Wireless you can see
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Vision Apps Fall into 4 Core Content Areas
All content satisfies basic customer needs
INFORMATION
•Web
•Info Apps
•Multimedia
COMMUNICATION
•Messaging
•Picture Mail
•Greeting Cards
TRANSACTIONS
ENTERTAINMENT
•Games
•Music
•Animation/Comics
PERSONALIZATION
•Picture Frames
•Ringers
•Screen Savers
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Sprint 3G Services using CDMA2000 1X Network
PCS Vision gives people the ability to do more than
just make phone calls:
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Rich, full color graphic
screens
Dynamic selection of
advanced multimedia
services
Picture Mail
Messaging
Games
Unique Ringers & Screen
Savers
Web access
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Picture Mail
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Build value into
Vision, creating further
differentiation
− Drive more customers
to PCS (Subscriber
Growth)
− More customers who
pay more (Revenue
Growth)
− More customers who
stay longer (Reduced
Churn)
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Picture Mail Features
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1st low-end integrated camera phone in US
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No setup required - just point, click, share!
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Audio clips for ease of attaching a message
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Fun frames to personalize your pictures
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Use Pictures as screen savers, caller-id
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Create a picture wallet on the phone
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Upload and save pictures on-line
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Coming Soon . . .
INSERTS
FUN FRAMES
STICKERS
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Games - Have Fun in an Otherwise
Wasted Moment
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Benefits
− Turn down time into fun time
− Full color, sound, and vibration
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Current Offering
− Over 125 games in multiple categories
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Retro (Pac-man)
Action & Adventure (MotoGP)
Puzzles (Tetris)
Casino & Card (Blackjack)
…and more
New for 2003
− More branded games (Q*Bert)
− Multi player games (JUMBLE)
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Ringers - Make your Phone Unique
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Benefit
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Personalize the way your phone
sounds
Current Offering
− Over 300 ringers
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Pop (Oops I Did It Again)
Rock (One Step Closer)
R&B (Independent Women)
Movie/TV Themes (James Bond
Theme)
…and more
New for 2003
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Voice ringers
Animated ringers
College Fight Songs
Funny Animal Noises
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Focused Line-up of Content
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Over 125 games from 18 partners
630+ Ringers and Screen Savers from 25 partners
39 web sites from 24 partners
12 information apps from 9 partners
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In Summary
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3G services establish a platform for continually
releasing new and more robust applications to
drive growth, revenue and reduce churn.
Vision Take Rate At An All Time High
− Vision take rate 67% on Vision-capable handsets
− 56% subs are new vs. existing PCS subs
Customer Base Continues To Grow
− Vision subs 2.1M at the end of 2Q’03
− Billed casual users 350K
− Combined PCS Vision and Wireless Web (2G data) subscribers total
4.6M at the end of 2Q’03
Revenue Growth Is Strong
− PCS Vision contributed additional $2 in ARPU of total $62 ARPU
Vision Customers Are Staying After Promotion
− 3G services create stickiness, reducing churn
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