How CDMA2000 1X, EV-DO Rev. A and VoIP will satisfy the demand for affordable telecommunications

In 2006, the wireless industry exceeded 2.7 billion users worldwide, a major milestone. But many people – at least 4 billion – lack access to a personal phone. People in most urban markets have multiple wireless-service providers to choose from, but vast rural areas in emerging markets still don’t have coverage. Bridging the “digital divide” has become a key priority for governments.  

In order to bridge the “digital divide” many countries worldwide have universal service projects underway and service providers are looking for ways to deliver telephone and Internet access to underserved markets.  In most cases, wireless technologies are more economical than wireline both for providing universal access and for operator-initiated efforts to expand service to low-revenue areas.

Although there are a wide variety of wireless technologies available, operators and governments increasingly are choosing 3G (CDMA2000^® and WCDMA) over 2G (GSM). 3G technologies are the most spectrally efficient and can provide voice and true broadband access much more economically. These are some of the reasons that the wireless industry is steadily migrating to 3G. Analysts forecast that the number of 2G subscribers will begin to decline in 2008 and by 2010, 3G will account for 41% of total users worldwide.

 Figure 1: Worldwide 2G and 3G Subscriber Trends

Note:  1G/2G/2.5G includes AMPS, cdmaOne, GSM/GPRS/EDGE, iDEN, PDC, PHS, and TDMA
Source: Strategy Analytics, Worldwide Cellular User Forecasts, 2005-2010, January 2006

CDMA2000 is Best Suited for Enabling Affordable Telecommunications

CDMA2000 technologies are leading the rapid migration to affordable 3G services. As of January 2007, 190 operators in 84 countries have deployed or are deploying CDMA2000 networks. There are more than 325 million CDMA2000 customers, which is approximately 70% of the 3G market today.  In developing markets, CDMA2000 is by far more widely deployed than WCDMA. In fact, more than 125 of the 190 CDMA2000 operators are in developing markets.

Figure 2:  CDMA2000 Deployments and Trials Worldwide

186 1X Commercial Networks
  40 1X Deployments (to be launched)
    6 1X Trials
  55 1xEV-DO Commercial Networks
  57 1xEV-DO Deployments (to be launched)
    6   1xEV-DO Trials
   5   1x EV-DO Rev. A Commercial
   6   1xEV-DO Rev. A Deployments (to be launched)

Source: CDMA Development Group, February 2007

The family of CDMA2000 technologies that are commercially available today include CDMA2000 1X, 1xEV-DO Rel. 0 and Rev. A.

CDMA2000 1X is a digital voice and data technology capable of supporting up to 168 voice subscribers per sector and peak data transmissions up to 153.8 kbps. 1X is the most widely deployed 3G technology today with 226 commercial and pre-commercial networks and 320 million users across all continents.

• CDMA2000 1xEV-DO Release 0 (Rel. 0) is an evolutionary technology upgrade that is optimized to support peak download speeds of up to 2.4 Mbps and upload speeds of up to 153.8 kbps.  It is widely used to provide enhanced data services, including video, multimedia and broadband Internet access. Up to 112 operators have deployed or are deploying Rel. 0 and they currently serve 55 million users.

• CDMA2000 1xEV-DO Revision A (Rev. A) is an enhanced version of Rel. 0 and is the most advanced 3G technology commercially available today.  With its ability to support significantly higher peak data rates (3.1 Mbps on the downlink and 1.8 Mbps on the uplink), carrier-grade Quality of Service (QoS) and low latency (below 50 milliseconds) on an IP radio network, Rev. A enables operators to extend IP throughout the radio access and core network and to offer delay-sensitive, concurrent and symmetrically-oriented applications, such as Voice over Internet Protocol (VoIP), video telephony and push-to-talk services on the same packet network.

CDMA2000 is ideal for developing countries because it can very economically provide telephone, Internet access and advanced data services in both densely-populated urban centers and sparsely-populated rural regions.  The technology has also leapfrogged other wireless technologies in the migration to next-generation all-IP capabilities to offer converged next-generation telecommunication services in the future.

By deploying CDMA2000 1X, an operator can take advantage of the high-voice capacity and broad range of low-cost devices to deliver affordable, high-quality voice services even to the most price-sensitive consumers.  By complementing 1X with CDMA2000 1xEV-DO Rev. A, an operator can offer broadband Internet, advanced multimedia messaging, customized enterprise data applications and delay-sensitive services such as VoIP.  Once VoIP-enabled Rev. A devices become widely available in 2009, operators will have the option to migrate from 1X circuit switch voice to the more robust and cost efficient all-IP delivery of voice and data.  This will help enable the convergence of telecommunications, entertainment and information technology in the palm of a user’s hand.

CDMA2000 Advantages

When selecting a wireless technology, operators and governments should evaluate the following key commercial and technical considerations:

• Reliable, clear, secure and ubiquitous access to carrier-grade voice services.

• High-speed broadband data and Internet access, increasingly important for supporting business, health, education and safety within emerging markets.

• Coverage, capacity and scalability of the wireless network to cover sparsely-populated rural areas and to easily and cost-effectively add network capacity in densely-populated urban areas.

• Network Flexibility to support a wide variety of environments and installations (fixed and full mobility; urban and rural areas, outdoor and indoor coverage, contiguous and non-contiguous coverage, IP-based and circuit-switched core network interfaces, etc.).

• Favorable Economics enabled through a reduced Total Cost of Ownership (TCO), which includes capex, opex, and handsets priced below $35USD.  

• Wide selection of affordable devices (from entry-level phones to broadband-enabled PC laptops and Internet access modems) from a large selection of suppliers who benefit from large economies of scale.

• Clearly defined, long-term technology evolution roadmap with backward compatibility to ensure the preservation of previous investments.

• Availability of the technology within various frequency allocations to enable network deployment flexibility, roaming and economies of scope.

• Proven technology to ensure that it is capable of providing what the users want and expect.  An enhanced user experience will increase customer satisfaction, revenue per user and loyalty, while reducing churn.

All of these aspects are well covered by the family of CDMA2000 technologies, as follows:

• Carrier-grade voice capacity superior to any other commercially available 3G technologies (33-40 voice calls in 1X and 40-60 in EV-DO Rev. A using VoIP).

 Figure 3: Voice Capacity per Sector

Source: Various and Signals Research Group, LLC

• High-speed broadband, low latency and enhanced quality of service of CDMA2000 1xEVDO Rev. A., make it ideal for broadband access to the Internet and bandwidth-intensive applications (streaming multimedia, distance learning, telemedicine and VoIP).

Figure 4:  Forward Link Data Throughputs

Notes:

1.  Full buffer, physical layer throughput with 100% of subscribers using latest technology.  Actual gains would depend on handset penetration

2.  6 Sector sites: cover the same area as 3-sector sites.  Capacity quoted for 2 adjacent sectors or 120 Degree arc.   IA = Intelligent Antenna.

• Flexible design for both mobile and fixed services, using wideband or narrowband bandwidths, with ubiquitous or non-contiguous coverage, expanding the network as the demand for services grows and incrementally adding more bandwidth as needed, thanks to the smaller 1.25 MHz channel size.
   

• Economics of CDMA2000 is more favorable than most any other wireless technologies.  In the long run, CDMA2000 @ 800 MHz or 450 MHz has a competitive TCO advantage over GSM and WCDMA. CDMA2000 offers a 26% cost savings over GSM/UMTS/HSDPA @ 2100 MHz and a 12-23% cost savings over GSM/UMTS @ 900 MHz.
   

• Device availability with close to 1600 CDMA2000 device models on the market today, offered by 89 suppliers, with prices of CDMA2000 1X entry-level handsets approaching GSM price levels. (Entry-level 3G CDMA2000 1X handsets from multiple suppliers are available in the range of $25-40 USD.)
   

• Available for use in a wide range of frequency bands (450, 800, 1700, 1900 and 2100 MHz). The lower frequencies, such as 450 MHz and 800 MHz are especially well-suited for covering sparsely populated rural areas because the radio signals in these bands travel farther. As a result, fewer base stations and less capital and operating investments are required to serve a large area.

Figure 5:  How Frequency Affects Coverage

Sources: ANATEL and Lucent Technologies

Conclusion

Over the past several years, wireless has emerged as the favored means of providing universal access to telephony and broadband data services in emerging markets.  Of all the wireless technologies currently available and scheduled for release within the next two years, CDMA2000 offers superior performance and economics, enabling the affordable delivery of carrier-grade voice, multimedia messaging, Internet access and a wide variety of other broadband data services to emerging markets.  The technology’s benefits include affordable voice and true broadband speeds, ample device selection, an ecosystem with significant economies of scale and scope, and substantial cost savings in capital and operating investments.

Mr. Celedonio von Wuthenau
Regional Director for Latin America
CDMA Development Group, Inc.