Emerging Technology: UMTS

Universal Mobile Telecommunications System

Agenda
• The Importance of UMTS
• Trends and Past Developments
• UMTS Adoption Mexico and US
• Future Expectations (5)
• Conclusions
The Importance of UMTS
• Represents the natural evolution from GSM
networks.

• Improves end user experience by offering a wide

range of high bandwidth multimedia services.

• Optimal use of radio resources (more user

simultaneously, greater data speeds with a great
cost efficiency).

• Some technical aspects that offer a competitive

advantage compared with other 3G technologies

• UMTS is a matured technology that is standardized

and corresponds to the ITU IMT-2000 requirements
for 3G
Trends and Past Developments
EVOLUTION OF UMTS
Source: Appendix D, Figure 1. ITU-T
Seminar, Rio de Janeiro “IMT-2000 and
beyond Systems”
http://www.itu.int/ITU/ITU-
T/T/worksemworksem/imt2000/program.h
tml

Kbps
Kbps max.
System max. Comments
theoretical
real
GSM 9,6 9,6 Commutation of circuits
HSCSD (High Speed Circuit They group several channels GSM for
57,6 28,8
Switched Data) oneself transmission of data
GPRS 171,2 44 Commutation of packages
EDGE (Enhanced Data Rates
384 70 Change of modulation system
for Global Evolution)
De 384 a
UMTS 100 Interfaz radiates UTRAN
2000
Adoption - Mexico
Mexican wireless market has 1 big player and some others small
participants

From all these participants just 2 have

launched 3G Services

CDMA2000 1X EDGE
40 Million Mobile Users

3G Coverage
100% * Increased voice capacity
* High speed data services
Services

* Instant messaging,
* e-mail
* Internet access at higher speeds*
Adoption - US
The US provides UMTS on 1 network. The US has been slow to adopt UMTS.
Investors waiting for maturity of the technology, Consolidation in the industry.
(Cingular acquired AT&T Wireless Nextel merged with Sprint PCS)
US Market Share

• UMTS/HSDP • CDMA2000 1xEV-DO

T-Mobile
12% Cingular (AT&T) • EDGE
31%

Sprint Nextel
28%
Verizon
Wireless • Wi-Fi Planned • EDGE
29%
• UMTS/HSDPA Planned
176 Million Mobile Users • WiFi hotspots Planned
3G Coverage
100%

* Increased voice capacity

Services

* High speed data services

* Instant messaging,
* e-mail
* Internet access at higher speeds
Future Expectation (I)
• The total regional data and voice
service integration may occur in the
next 3 to 4 years, offering free
commerce services among North
America and Mexico. In the next year,
the service integration will reach the 30
% to 45 %
Future Expectation (I) – Shared Services
US Market Share

T-Mobile
12% Cingular (AT&T)
31%

Sprint Nextel
28%
Verizon
Wireless
29%
Future Expectation (II) – Services Diversity
• The VoIP services could be integrated
into the UMTS schema
• The instant messaging and
application / add on’s services will be
able to share information in the next
2 ~ 3 years.
• The TV Broadcast Mobile Service will
be available for customers in the next
2 to 4 years.
Future Expectation (II) – Services Diversity
UMTS

Low Costs & Service Plans

$ Fees =
Data Transfer Online
Rates App’s &
Security & Reliability Downloads

DATA
Remote
VIDEO
Conference
& TV
Video
Mobile Voice Messaging Mobile Phones
Phones & Instant
VoIP Services Messages
Future Expectation (III)
• Due 2008, the 60% of the mobile
caught market will be conformed by
young people form 15 to 30 years
(most of them students or junior
employees) located in a B ~ B+ to A ~
A+ economical segment.
Future Expectation (III) - Consumption
3G/UMTS subscriber growth
40

35

60% - A ~ A+
30 40% - B+

25

20

15

90% - A ~ A+
10

0
Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06
millions

Rest of World Japan Europe

Future Expectation (IV)
• The UMTS services will integrate
enterprise collaborative services able
to cover the 50% or 75% of the actual
services of a Metropolitan Area
Network and improve the cost
reduction by a 30% to 40%.
Future Expectation (IV) – Enterprise Services

45%
10% 25%
5%

35% 40%
10%

30%

Voice Services Voice Services

Video Services Video Services
Data Services Data Services
Others Others
Future Expectation (V)

• The UMTS services may be compatible with

the most of the X10 and HomeAI devices to
control and schedule tasks at home and
office by a remote connection in the next 4
to 6 years.

• The mobile devices integration may be

orientated to the natural integration with
different markets devices
Backup Slides
Adoption – US Wireless Networks
• Cingular (AT&T) – 54.1 Million Subscribers

• Just launced UMTS with HSDP (Peak Speed:14.4 Kbs)

(High-Speed Downlink Packet Access)
Deployment into 6 major markets to be complete12/06

• Provides EDGE (2.75G) Speeds up to 236.8Kbs

• Entire network is GSM and offers General Packet Radio

Service (GPRS)- 2.5G
Introduction - What is UMTS?
Adoption – US Wireless Networks
• Verizon Wireless – 51.3 Million Subscribers

• CDMA2000 1xEV-DO (Peak rate of 2.4 Mbps)

• Provided first to businesses in January 2004
• Provided to consumers in early 2005 as V-CAST
• Typial rates of 300-500 Kbps

• CDM2000 + Cellular Digital Packet Data (CDPD)

• 2.5G enhancement where 3G is unavailable
Adoption – US Wireless Networks
• Sprint Nextel – 49.1 Million Subscribers

• Nextel – iDen integrated digital cellular technology

• 800 MHz network – Typically business users (over 16m)

• Sprint PCS - Nationwide all digital 1.9 Ghz 2G-network

• Network was upgraded in 2005 to EV-DO

Sprint Nextel will trial new services and devices that allow
The user to switch from cellular to Wi-Fi
Adoption – US Wireless Networks
• T-Mobile – 21.7 Million Subscribers

• 2G- GSM network

• 3G Strategy: WiFi hotspots

• Launched EDGE in October 2005.

• Expected to receive a license for UMTS/HSDPA

December 2006.
Comparative Matrix - Cultural
Aspect México
Family Family is the first priority.
Children are celebrated and
sheltered.
Wife fulfills domestic role.
Mobility is limited.
Religion Long Roman Catholic tradition.
Fatalistic outlook. "As God wills."
Education Memorization.
Emphasis on theoretical.
Rigid, broad curriculum.
Nationalism Very nationalistic.
Proud of long history and
traditions.
Reluctant to settle outside Mexico.
Personal Sensitivity Difficulty separating work and
personal relationships.
Sensitive to differences of opinion.
Fears loss of face, especially
publicly.
Shuns confrontation.
Status Title and position more important
than money in eyes of society.
USA
Family is usually second to work.
Children often minimally parented;
are independent.
Wife often fulfills dual roles.
Mobility quite common.
Mixed religions.
"Master of own life" outlook.
Analytical approach.
Emphasis on the practical.
Narrow, in-depth specialization.
Very patriotic.
Proud of "American way of life."
Assumes everyone shares his/her
materialistic values.
Separates work from
emotions/personal relationships.
Sensitivity seen as weakness.
Tough business front.
Has difficulty with subtlety.
Money is main status measure and
is reward for achievement.
Market Needs

• Means to use mobile as converging telecom services

• Communication anytime – anywhere with groups/partners
• PC functions on mobile
• Cost-Benefit communication
• Market profile: business people
• Integrated services: Voice, Video, PC functions