Professional Documents
Culture Documents
Agenda
1. Objectives
2. State of the Mobility Market
3. Vision and Strategy
4. Key Customer Drivers
5. Portfolio in Brief
6. Competitors: CDMA Strategic Position
7. Value Proposition
8. Initial Points of Contact
9. Key Takeaways
10. Acronyms
11. Q & A
Objectives
This session focuses on educating our sales teams on how to sell this portfolio.
After completing this session, you will be able to:
Describe the CDMA radio access portfolio
Present 3G solutions that perfectly meet operators challenges
Highlight Alcatel-Lucent main differentiators
Compare Alcatel-Lucent solutions vs competitors
Market Growth
Market Trends
Technologies
Operator Challenges
Landscape Challenges
Market consolidation
Non-traditional competitors entering to own telecom wallet
Legislative impacts
Networks
Subscriber retention
Capacity
Capacity
End-user experience
OA&M interfaces
Technology/Market Influences
VoIP
Price
Mergers/market consolidation
Product life
WiMAX/broadband technologies
Wi-Fi roaming
Performance/quality
Security
Coverage
Huawei
3%
Samsung
6.2%
Others
2.2%
Alcatel-Lucent
47.3%
Motorola
19%
World-class partnerships
Bringing customers the most competitive solutions available
Integrators, devices
Nortel
22.2%
Bursts up to 1 Mbps
Bursts up to 2 Mbps
QoS
Broadcast/multicast (BC-MCS)
Multimedia content to multiple users using OFDM
2000
IS2000
(CDMA2000
1X)
2001
2002
2003
IS856 Rev A
(1xEV-DO)
IS856 Rev 0
(1xEV-DO)
Voice
2004
Broadband
2005
2006
IS856 Rev B
(1xEV-DO)
Enhanced broadband
2007
IS856 Rev C
(1xEV-DO)
2008
2009
Harmonization?
Ultra broadband
Key Features
26.4E voice
packet data
Data optimized
bursts of over 1 Mbps
allIP architecture
Higher FL / RL rates
low latency
bursts of over 2 Mbps
QoS
OFDM multicast
Multi carriers
higher peak rate
Broadband data
VOD, MOD
high-speed Internet
enterprise
applications
Broadband real-time
applications
Key Applications
Voice
high-speed data
picture, video
email
web browsing
Multimedia
VoIP and video delivery
advanced IMS
TDM
CDMA
Dates shown are standards completion dates (or expected completion dates.)
CDMA/TDM
OFDM*
OFDMA/MIMO/SDMA
10 | Alcatel-Lucent's CDMA Portfolio | November 2006
Less real estate, less power consumption, self diagnosing and more efficiencies
Provide clear consistent service with a coverage and capacity options i.e., Macrocell vs Compact Cell
Differentiate service
T Decrease Footprint
S Efficiencies
T Maintenance Costs
All Rights Reserved Alcatel-Lucent 2006, 21155
Radio Access
Lucent built W-CDMA and CDMA base stations on a common platform that differ
in only a single circuit pack
CDMA supports 3G evolutions with only SW upgrades and minimum HW change
Our base stations use common assets and come sized for diverse deployment
needs
One size does not fit all network needs
Inherently supports Alcatel-Lucents IMS solution
Designed to gracefully evolve
Evolving from circuit to packet to provide investment protection for our
traditional customers
Immediate 3G networks for new markets
Sized for emerging markets to mature,
capacity-demanding networks
Core
Transport
L2 Switch
Aggregatio
n Router
Wireless
DHCP
DNS
PDSN
RNC--AP
1X RNC
PCF
Video
Voice
ENTERPRISE
IP
Network
ECP
ATM SHO
Data
AAA
DCS
1XAccess
Network
Content
Services
1X RNC cPSB
1
/E
T1
GigE
(PCF)
Applications
Applications
SMSC
OA&M
Network
HLR
DS3
OMP FX/
OMC--RAN
OMC
T1/E1 Mux
Channelized
RCS AP &
OA&M Proxy
Watchmark
1X&DO BTS
T1/
E1
DO RNC
IP
Network
Acronyms
1X - CDMA2000 1X
1X RNC - 1X Radio Network Controller
AAA - Activation, Authorization & Accounting
AP - Application Processor
cPSB - CompactPCI Packet Switching Backplane
DCS - Digital Cellular Switch
DHCP - Dynamic Host Control Protocol
DNS - Domain Name Server
DO RNC - 1xEV-DO Radio Network Controller
ECP- Executive Cellular processor
HLR - Home Location Register
L2 - Layer 2
OA&M - Operation, Administration & Maintenance
PCF - Packet Control Function
PDSN - Packet Data Serving Node
RCS Radio Cluster Servers
SHO - Soft Hand Off
SMSC - Short Message Service Center
Radio Access
Complete Range of Base Stations
Modcells
Compact
High Density
8420
4400
(Indoor GA July.06,
Outdoor Target to
GA Jan.07)
2400
(Target to GA
Spring 07)
A microcell for hole filling, in-building and rural (low capacity) applications
URC/MCR
Radios
URC
URC
URC
URC
CMU
CMU
CMU
CMU
CMU
CMU
CTU
CTU
UCR/MCR
UCR/MCR
UCR/MCR
UCR/MCR
UCR/MCR
UCR/MCR
CMU
CMU
CMU
CMU
CMU
CMU
URC
Controller Card
Provides Network
Interface
I/O Panel
Network
Connections
Alarm Connections
Ethernet
I/O Panel
Common Units
Band Specific Units
OMR
OMR
OMR/Q
Primary Rubidium
Secondary Quartz
Connection to CTU
CPC
CPC
CPC
CPC
CPC
CPC
CPC
CPC
CMU
Baseband Processing
Pooled Resource
CDMA2000 1X or SB-EVM
+SW Load
CPC
Converts +24/48VDC to internal
voltages
N+1 Redundancy
Platforms
1X
DOr0
DOrA
88
>1130
43
41/5/101
35
>209
29
17/4/13
16
13
5
4/0/2
2
-
7
54
Coexistence of next gen BTS (BSR) with traditional RAN architecture needed to preserve investment in current EV-DO
infrastructure
Enables the user to move seamlessly within a network of BSRs and between BSR and surrounding networks
Mobility within the BSR network combines the best of IP and lower layer mobility protocols for superior performance
(HLR/HSS)
O
IP
Backbone/
Internet
CDMA2000
Voice
1x DCS/
ECP
AAA
DO Overlay
PDSN
Data
USDS
PSTN/
PLMN
Rural drop-in networks that have difficult business case due to backhaul costs
Barrier to ubiquitous deployment: high speed, metro-E/optical facility availability
Facilitated by broadband cable plant
Switching platform that delivers a full range of voice and data services.
Supports up to 2 million BHCA
99.9999% reliability
Efficient migration to packet
Supports centralized and integrated OA&M
Modular distributed architecture
The Packet Switch Compact was developed to deliver the same features and
benefits of the Packet Switch in a greatly reduced footprint. It scales from
35K -250K BHCA and can evolve to a full size Packet Switch if capacity needs
increase. This product combined with the Mobility Manager Compact provide
an MSC solution that fits the needs of emerging markets.
Handles the call processing and mobility management functions in the network.
It is a scalable solution that allows operators to achieve up to 2 million BHCA.
The product features are continually enhanced to improve efficiencies and the
introduction of satellite processors allows for capacity enhancements as well as
significant footprint reduction. Future plans to handle up to 3 million BHCA.
USDS
ISG
VoIP SIP AS
(OSA--GW,APB)
(OSA
LMRS
(MRCF&P
SMS
(CSCF,
PDF,
FS5000)
FPS
(5E)
O
Plexus
LNG
(MGCF
& MGW)
OMC--H,
MI, eSM OMC
OMC--CN
OMC
(CCF, OCS)
SurePay
PDSN
VitalQIP
1X PD
IP
Network
ECP
1X Access Network
LCP
AAA
IP
Backhaul
HLR
OMP FX/
OMC--RAN
OMC
RCS AP
1X
Traffic
1X RNC
1X BTS
1x & DO BTS
DO
Traffic
Parlay AS
DO Data
& VoIP
Diameter
DO BTS
DO
Backhaul
DO RNC
Acronyms
APB - Active PhoneBook
AS - Application Server
CCF - Charging Collection Function
CSCF - Call Session Control Function
ENUM - tElephone NUmbering Mapping
eSM - Enhanced Service Manager
FPS - Flexent Packet Switch
GRAS - Global Roaming Application Server
HSS - Home Subscriber Server
ISG - Intelligent Services Gateway
LCP - Lucent Control Platform
LMRS - Lucent Media Resource Server
LNG - Lucent Network Gateway
MGCF - Media Gateway Control Function
MGW - Media Gateway
MI - Management Interface
MRCF&P - Media Resource Control Function and
OCS - On-line Charging System
OMC-H - Operations and Maintenance Center Home Location Register
OMC-CN - Operations and Maintenance Center Core Network
OSA-GW - Open Service Access - Gateway
PDF - Policy Decision Function
SIP- Session Initiated Protocol
USDS - Universal Subscriber Data Structure
PSTN/
PLMN
All Rights Reserved Alcatel-Lucent 2006, 21155
Multiple call types: direct, 2 users, predefined/ad hoc groups, member lists, chat room
Azerbaijan
Uzbekistan
Tajikistan
Finland
Russia
Kyrgyzstan
Georgia
Kazakhstan
Belarus
Latvia
Norway
Ukraine
Poland
Moldova
Romania
Czech Rep
Mongolia
Canada
Bermuda
Bahamas
Cayman Islands
Portugal
Jamaica
Haiti
Dominican Rep Algeria
Mali
Puerto Rico
US Virgin Island
Niger
Antilles
Barbados
Trinidad & Tobago
Venezuela
Cote D'Ivoire
Ghana
Nigeria
Cameroon
USA
Mexico
Belize
Honduras
Guatemala
El Salvador
Nicaragua
Panama
Colombia
Ecuador
Peru
KEY
Brazil
Chile
Uruguay
Congo
Angola
Zambia
Namibia
Botswana
Japan
S Korea
China
Nepal
Taiwan
Hong Kong
Laos
China
Egypt Israel
Egypt
Pakistan
Kuwait
Oman
India
Saudi Arabia
Sri Lanka
Yemen
Ethiopia Bangladesh
Myanmar
Kenya
Thailand
Uganda
Malaysia
Rwanda
Indonesia
Mauritius
Madagascar
Mozambique
Vietnam
Cambodia
Guam
Philippines
Saipan
Fiji
Australia
South Africa
New Zealand
Australia
Verizon 17%
China Unicom
11%
Sprint Nextel
9%
LG (Korea) 2%
KTF (Korea) 7%
Reliance (India) 5%
SKT (Korea) 7%
est. 56.7M subs
2. China Unicom
4. Vivo (Brazil)
7. Reliance (India)
8. KTF (Korea)
KDDI (Japan)
7%
Vivo (Brazil)
8%
Alcatel-Lucent network infrastructure supports six of the largest CDMA network operators
23 | Alcatel-Lucent's CDMA Portfolio | November 2006
ZAPP partnered with Lucent to design and deploy a third-generation mobile network, using
Lucent Flexent CDMA450 Modcell ES base stations and associated core network equipment.
The new network provides data speeds of up to 2.4 Mbpsamong the fastest data speeds
available in Europe
Challenge
Solution
Benefits
Zapps network CAPEX and OPEX figures are the lowest in the industrythanks to the Lucent
architectures large coverage footprint, high capacity, usage-driven link budgets, and efficient
packet-based encapsulation
Flexible Lucent architecture enabled Zapp to achieve 90% population coverage and 80%
geographic coverage with only 502 BTSs and a total investment of USD 150 million
Lucent network and service design expertise helped Zapp achieve extremely high network
availability (99.955%) and call completion rates (98.57%)
Zapps per-subscriber revenues of approximately USD 25 ARPU easily outpace the competition
Lucent post-sale services and support keeps Zapps network operation and evolution in line
with latest technology upgrades
This customer reference was provided to Lucent Technologies prior to merger completion
Strategy
Achievements
Issues
To upgrade existing analog networks and supply new greenfield Nordic mobile telephone (NMT)
and 450 Mhz operators with digital CDMA technology in the 450 Mhz band
Target customers: existing and greenfield NMT operators in the A, H, and K bands of the 450 Mhz
frequency band
Recent achievements: LU has installed, commercially launched and is expanding the first
commercial CDMA450 network for Zapp Mobile (formerly TeleMobil) Romania in 2001. Has a
present subscriber growth of over 400 thousand and a capacity of over 2 million. Has installed
and optimized four other networks in the Russian Federation - Delta and Moscow Cellular
Communications (MCC), Uzbekistan, and Vietnam
Lucent established and drove the initial market opportunity
Lucent has installed, commercially launched and is expanding commercial CDMA450 network
for Zapp Mobile (formerly TeleMobil) Romania in 2001
Lucent has installed and optimized four other networks in the Russian Federation
Delta & Moscow Cellular Communications (MCC), Uzbekistan, and Vietnam
Lucent is traditionally the high price competitor in most RFP responses
Despite this Lucent is invariably on the final sort list of vendors
Lucent is high in terms of Capex but has business cases to show we are very competitive in
terms of Opex
While Lucent was initially positioned to be the market leader in the 450 market Asian vendors
embarked on an aggressive campaign to dominate and gain market acceptance
RFP responses were significantly lower than any competitive bids (many contacts were
suspected of being offered below cost and peripheral equipment from external sources was
offered for pennies-on-the-dollar)
Asian companies offered aggressive vendor financing and network sponsorship western
companies could not match
Lucent has had several opportunities to swap out competitors (including other NAR vendors)
networks in other frequency bands, but has lost the opportunity when the incumbent supplier
typically undercuts any viable deal Lucent was able to structure
All Rights Reserved Alcatel-Lucent 2006, 21155
Low cost
Target Market
Differentiation
Broad
Niche
Competitive intensity will force partnerships or withdrawals from the CDMA market as competitors
execute their strategies
27 | Alcatel-Lucent's CDMA Portfolio | November 2006
CDMA (SWOT)
Strengths
Innovation Our R&D ability
Common platform
Flexible assets and common sparing
Best-in-class switch
Graceful evolution in RAN and Core
Quality
High capacity w/scalability
OPEX savings
Support for legacy products
Weaknesses
Price
Lack of a distributed solution
Time to market with small scale products
Support for legacy products uses resources
Our salaries and benefits
Opportunities
Ericsson has exited CDMA
Nortel seems to be focusing on cheap
Potential for gaining traction with IMS
CDMA450 opportunities
Asian vendors have not gained traction in NAR
Market changes, consolidation, government
controls
Ability to offer financing
Threats
GSM-backed campaign to position CDMA as 2G
dying technology
Asian vendors are influencing the market
We have no government support
VoIP off-loading our MSC
Breadth of current portfolio and age of
embedded base impacting ability to deliver new
products
3G operators offering secure high-speed data access with mobility can command a
premium over existing Internet/data access options
29 | Alcatel-Lucent's CDMA Portfolio | November 2006
Enhanced Support
y Services
y Network optimization
y Expanded sales teams
Shuang Yu (BTS)
Conclusions
Operators need 3G to deliver the applications and services that drive ARPU
CDMA2000 / 1xEV-DO is worlds leading 3G technology
Pent-up demand for mobile business productivity tools can be satisfied now with 3G airlinks
and services with Alcatel-Lucents CDMA portfolio
33 | Alcatel-Lucent's CDMA Portfolio | November 2006
Acronym List
1X
1xEV-DO
1X RNC
AAA
AAT
ACK
AF
AP
APB
AR
ARQ
AS
AT
BCMCS
B-PCF
BTS
CBR
CCU
CCF
CDM
cHDLC
CICC
CMU
cPSB
CRC
CRM
CSCF
D-ARQ
DCS
DHCP
DNS
DO
DO RNC
DPH
DRC
DSC
ENUM
ECP
ECPC
E-PCF
eCRTP
EF
EMS
E-PCF
ER
ERP
Esm
ESC
FBP
FMM
FMS
FPS
CDMA2000 1X (x = 1 carrier)
1xEVolution Data Optimized
1X Radio Network Controller
Activation, Authorization & Accounting
Average Aggregate Throughput
Acknowledge
Assured Forwarding
Application Processor
Active PhoneBook
Aggregation Router
Automatic Repeat Request
Application Server
Access Terminal
Broadcast Multicast Services
1X RNC Blade PCF
Base Transceiver Station
CDMA Baseband Radio
CDMA Control Unit
Charging Collection Function
CDMA Digital Module
Cisco High Level Data Link Control
Common Interface Control Card
CDMA Modem Unit
CompactPCI Packet-Switching Backplane
CDMA Radio Controller
Customer Relationship Management (Siebel)
Call Session Control Function
Delayed ARQ
Digital Cellular Switch
Dynamic Host Configuration Protocol
Domain Name Service
1xEV-DO
1xEV-DO Radio Network Controller
Data Protocol Handler
Data Rate Control
Data Source Control
tElephone NUmbering Mapping
Executive Cellular Processor
ECP Complex
Netra Ethernet PCF
Enhanced Compressed RTP
Expedited Forwarding
Element Management System
Netra Ethernet PCF
Edge Router
Enterprise Resource Planning (Portal. Focusing on SAP,
Oracle, PeopleSoft )
Enhanced Service Manager
Ethernet Switch Card
Flexent Blade Platform
Flexent Mobility Manager
Flexent Mobility Server
Flexent Packet Switch
FRPH
GICC
GRAS
GUI
H-ARQ
HDLC
HLR
HO
HSS
IFRPH
ISG
IOT
IP
IPBH
IPCP
IPoHDLC
L2
LCP
LMRS
LNG
MAC
MAP
MGCF
MGW
MI
MLG
MLPP
MLPPP
MLS
MRCF&P
MSC
NAQ
OA&M
OCS
OMC-H
OMC-CN
OMP-FX
OSA-GW
PCF
PD
PDF
PDSN
PHA
PHV
PP
PS
PSTN
PSU
PTS
PTT
PTX
QoS
RCC
RCS
Rev 0
Rev A
RLP
RNC-M
ROHC
RTP
SB-CBR
SB-CBRm
SB-EVM
SB-EVMm
SCM
SDB
SFA
SHO
SIP
SMSC
SNMP
SS7
SUA
TCS
TP
TPU
TS
UCR
UCRm
UDP
ULAM
USDS
VCC
VoIP
VPC
VPN
WPS
Quality of Service
Reliable Clustered Computing
Radio Cluster Servers
1xEV-DO Revision 0
1xEV-DO Revision A
Radio Link Protocol
CDMA2000 1X RNC Management
Robust Header Compression
Real-time Transport Protocol
Single Board Radio for Modcell 4.0
Single Board Radio for Modcell 1.0-3.0
Single Board EVM for Modcell 4.0
Single Board EVM for Modcell 1.0-3.0
Supply chain management
Short Data Burst
Sales Force Automation (Siebel)
Soft Hand Off
Session Initiated Protocol
Short Message Service Center
Simple Network Management Protocol
Signaling System 7
Software Update Automation
Traffic Control Server
Force 690 Traffic Processor
Traffic Processor Unit
Time Slot
Ultra CDMA Radio for Modcell 4.0
Ultra CDMA Radio for Modcell 1.0-3.0
User Datagram Protocol
Ultra Linear Amplifier Module
Universal Subscriber Data Structure
Virtual Channel Connection
Voice over IP
Virtual Path Connection
Virtual Private Network
Wireless Priority Service