LTE & WiMAX: a Fixed Line Broadband Alternative

Richard Keith Director of Global Strategy, Broadband Access SolutionsHome & Networks Mobility

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

WiMAX & LTE in Rural areas

Right combination of Coverage, Capacity & true broadband User experience is essential for Economically viable wireless fixed line BB services

LTE & WiMAX: potentially viable technology for addressing “Digital Divide”

Different Business Model

USER EXPERIENCE

SPECTRUM FLEXIBILITY

SPECTRUM AVAILABILITY

Fixed Wireless vs. Mobile Cellular

New Revenue Sources

DSL/FLBB like

Datarate & Latency

1.4MHz to 20MHz bandwidth => simplify

refarming

Some existing URBAN spectrum unused

in rural areas

How far into rural can wireless based Broadband service be economically viable?

Population density is critical to bus case

Subscribers expect to Pay a Premium if no other means of connections

DEVICE& SiliconEarly Silicon

CPEs/DonglesVs.

Mature SiliconHandsets

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Device Type Impact

CPE have a significant impact on reach & rural wireless business model

Mobile

1.0 x

Datacardor Laptop

1.1 x

IndoorCPE

2.2 x

4.8 x Area

OutdoorCPE

8.7 x

75 x Area

Clustered communities

Cell site optimized for coverage of hamlet

Hybrid design Indoor and Outdoor CPEs:

(few outside of coverage)

Sparsely populated area

Outdoor CPE for very large coverage

Indoor CPECoverage

Indoor CPECoverage

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Market Examination – France& Model Conditions

No FLBB connectionsNo FLBB connections

Poor FLBB conxPoor FLBB conx

Good Good FLBBFLBB

ConnectionsConnections

Traditional Traditional Mobile Mobile

Network Network CoverageCoverage

Population Area

Total 65M 550K

Urban 5.5% 0.04%

Suburban 43.2% 3.3%

Rural 51.3% 96.7%

Fixed

ARPU $50

Penetration 20% HHs

Avg User Data 53 kbps

with 20x OS

Dimensioning 124 kbps UL>>1 Mbps DL

(16,522)

(2311)

Urban and Suburban50% Pop, 3% Land

Rural Population

(8) (12)

(29)

(70)

(197)

(690)

(4)(1)0%

25%

50%

75%

100%

0% 25% 50% 75% 100%

Cumulative Area

Cu

mu

lati

ve

Po

pu

lati

on

(XX) People per sq Km Population Density : Columbia University SEDAC

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Fixed Broadband Market ExaminationPositive NPV

Urban and Suburban

• Site Density similar to Mobile Network• Coverage Avg: 3 - 7 sq/km• 50% of 20% uptake of larger numbers• 800MHz offers 225% “coverage” site

advantage vs. 2.6GHz • BUT, 800MHz offers 25% “capacity” site

advantage vs. 2.6GHz

Rural • Site Density applied to Fixed ONLY• Coverage Avg = 400-600 sq/km• Outdoor CPE: limited path loss,

more power uplink• 2600 and 800 nearly the same at

the lowest densities

Indoor 2.6

15 500 100

Outdoor 800 and 2600Indoor 800

Population Density: Columbia University SEDAC

Hybrid Indoor + Outdoor hits 32M/50% popOutdoor only hits 16M/25% pop

Outdoor CPE 800

0%

25%

50%

75%

100%

0% 25% 50% 75% 100%

Cumulative Area

Cu

mu

lati

ve P

op

ula

tio

n

5

Both LTE 800 and 2600 yields positive NPV deep into Rural Areas

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

thank you