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WIRELESS
INFRASTRUCTURE TECHNOLOGY & MARKETS
THE
CHALLANGE OF 3G
Report
No. 2203
Table Of
Contents
2.
Introduction & Background
3. Wireless Driving Forces, Trends, and Issues
3.1 Trends and Issues
3.1.1 Asia becomes leading Wireless Market in 2002 and is
a 3G leader
3.1.2 Western Europe’s wireless saturation and emerging
3G services
3.1.3 United States’ emerging 3G data services
3.1.4
Emerging replacement market and net adds opportunities
3.1.5
Difficult Economic Environment: high debt in Telecom
3.1.6 Service Plans; Prepaid, Contract, Roaming
3.1.7
Data Services’ revenue percentage
3.1.8
Intellectual Property (IP) moving down food chain
3.1.9 Network Equipment Vendors provide services
3.2
Driving Forces Discussions
3.2.1
International Competition
3.2.2 Competition in US
3.2.3 2G Migrations (1G to 2G): Essentially Complete
3.2.4 International Telecommunication Union (ITU) Global 3G
Activities
3.2.5 Internet Data Revolution
3.2.6 DSP and configurable Technologies
3.2.7 Software Defined Radio (SDR) Technology
3.2.8 CMOS Semiconductor Technology
3.2.9 Multiuser Detection (MUD), Smart Antenna, and Error Coding
DSP Algorithms
3.2.10 World Radio Conference (WRC)
3.2.11 World Trade Organization (WTO) Telecommunication Trade
Agreement
3.2.12 Open Standards
3.2.12.1
Third-Generation Partnership Projects (3GPP and 3GPP2)
3.2.12.2 Open Mobile Alliance (OMA)
3.2.12.3 Open Base Station Architecture Initiative (OBSAI)
3.2.12.4 Brew
3.3
Wireless Infrastructure Capacity Estimates
3.3.1
Voice Capacity: Erlang Capacity
3.3.2 Data Capacity: Always-on Composite Bit rate
3.3.3 Telenor Mobile GSM Capacity Experiences Interview
3.3.4 Capacity Estimates by Technology
3.3.4.1
Voice Capacity
3.3.4.2 Data Capacity
3.3.4.3 Capacity Summary
3.4
Emerging 3G Services
3.4.1
Messaging Services
3.4.2 Location Services
3.4.3 Infotainment Services
3.4.4 M-Commerce
3.4.5 Mobile Internet Services
3.4.6 Enterprise Services
3.5
Wireless LANS (WLANs): 3G friend or foe?
3.6 Wireless IP (Internet Protocol) Networks
3.7
Profile: US West’s Open Network Wireless Technology
4.1 Wireless Subscriber Forecasts
4.1.1
World Subscriber History and Forecasts
4.1.2 Drivers and Assumptions
4.1.3 Western Europe Trends and Subscriber Forecasts
4.1.4 China Trends and Subscriber Forecasts
4.1.5 United States (US) Trends and Subscriber Forecasts
4.1.6 Japan Trends and Subscriber Forecasts
4.1.7 Korea Trends and Subscriber Forecasts
4.2
Mobile Terminal & Handset Market Forecasts
4.2.1
Market Forecasts
4.2.2 Market Discussions
4.3
Wireless Infrastructure Market Forecasts
4.3.1
Deployed Infrastructure Examples
4.3.2 Infrastructure Forecasts
4.3.3 Capacity Forecasts
4.3.4 Infrastructure Electronic Equipment Forecasts
4.3.5 Wireless Semiconductor Forecasts
4.3.6 Global 3rd Generation (3G) Infrastructure Opportunities
4.3.7 Wireless Multimedia Opportunities & Forecasts
5.
3G Wireless Technology Evolution & Standards
5.1
ITU IMT-2000 Requirements and Goals
5.2 Summary of 1G and 2G Wireless Standards
5.3 Global 3rd Generation (3G) Technologies & Standards
5.3.1
3rd Generation Project Partnership (3GPP) Standards
5.3.1.1
GERAN (GSM/EDGE Radio Access Network) / EGPRS (IMT-SC)
5.3.1.2 GPRS/EGPRS
5.3.1.3 UTRA/Wideband CDMA (WCDMA) (FDD) (ITU IMT-DS)
5.3.1.4 UTRA TDD and TD-SCDMA (IMT-TC)
5.3.2
3rd Generation Project Partnership 2 (3GPP2) Standards
5.3.3
Digital Enhanced Cordless Telecommunication (DECT)(ITU IMT-FT)
5.3.4 Harmonized IP Multimedia Subsystem (IMS) Core Network
(“All IP”)
5.4
2nd Generation (2G) Cellular/PCS Standards
5.4.1
Global System for Mobile Communication (GSM)
5.4.2
TDMA or Digital AMPS (DAMPS)
5.4.3 Pacific Digital System (PDC)
5.4.4 cdmaOne/IS-95
6. Technologies for 3G
6.1 Modulation and Coding Technology Evolution for 3G
6.1.1
Historical Summary of Communication Algorithms
6.1.2
Coding: Convolutional, Trellis, TCM, & Concatenated Coders
6.1.3
Viterbi Algorithm: Efficient Maximum Likelihood Decoding
6.1.4
Turbo Coding
6.1.5
Multiple-Access Interference (MAI) Mitigation/Multiuser Detection
(MUD)
6.2
Smart Antennas
6.3 Software Defined Radios (SDR) for 3G
6.3.1
Wireless Transceiver Architectures
6.3.2 RF and Data Acquisition
6.3.3 IF and Baseband DSP Architectures
6.3.4 Vision of SDR Evolution
6.3.5 SDR Standards
6.4
DSP Semiconductor Technologies for 3G
6.5
Bluetooth - Short-range wireless technology
6.6
WAP - Wireless Application Protocol (WAP)
7.
Company Profiles
7.1
Wireless Carriers/Operators
7.1.1
Americas
7.1.1.1
Verizon Wireless (NYSE: VZ)
7.1.1.2 Cingular Wireless
7.1.1.3 AT&T Wireless (NYSE: AWE)
7.1.1.4 Sprint PCS (NYSE: PCS and parent NYSE: FON)
7.1.1.5 VoiceStream / DT-T-Mobile (NYSE: DT ADR)
7.1.1.6 Nextel Communication, INC (NASDAQ: NXTL)
7.1.1.7 Alltel Corporation (NYSE: AT)
7.1.1.8 Leap Wireless International, Inc. (Nasdaq: LWIN)
7.1.1.9 US West/Qwest (NASDAQ: Q)
7.1.1.10 CALA (Caribbean and Latin America)
7.1.1.11 American Moviles (NASDAQ: MDX)
7.1.1.12 Canada
7.1.2
Europe
7.1.2.1
Vodafone Group (NYSE ADR: VODA); UK
7.1.2.2 Deutsche Telekom (NYSE ADR: DT), Germany
7.1.2.3 France Telecom (NYSE ADR: FTE); Orange, UK
7.1.2.4 Telecom Italia Mobile (TIM)/Telecom Italia(NYSE
ADR: TI); Italy
7.1.2.5 Telefonica (NYSE: TEF), Telefonica Moviles (NYSE:
TEM); Spain
7.1.2.6 MMO2
7.1.3
Asia
7.2
Network Infrastructure System/Equipment Providers
7.2.1
Alcatel (NYSE ADR: ALA)
7.2.2 Ericsson (ADR NYSE: ERICY)
7.2.3 Fujitsu Limited (OTC: FJTSF)
7.2.4 Huawei Technologies (China)
7.2.5 Lucent Technologies (NYSE: LU)
7.2.6 Motorola (NYSE: MOT)
7.2.7 NEC (NASDAQ: NIPNY) (FTSE: 6701q.l) (TYSE: 6701)
7.2.8 Nokia (ADR NYSE: NOKA)
7.2.9 Nortel Networks (NYSE: NT)
7.2.10 Samsung Electronics Co. Ltd. (OTC: SSNNF)
7.2.11 Siemens AG (NYSE: SI)
7.3
Semiconductor Suppliers
7.3.1
Agere (NYSE: AGR’A)
7.3.2
Altera Corporation (NASNAQ: ALTR)
7.3.3 Analog Devices (NYSE: ADI)
7.3.4 Intel (NYSE: INTEL)
7.3.5 Motorola Microelectronics (NYSE: MOT)
7.3.6 Philips (NYSE: PHG)
7.3.7 Qualcomm, Inc. (NYSE: QCOM)
7.3.8 Silicon Laboratories Inc (NASDAQ: SLAB)
7.3.9 STMicroelectronics (NYSE: STM)
7.3.10 Texas Instruments (NYSE: TXN)
7.3.11 Xilinx, Inc (NASDAQ: XLNX)
7.4
Wireless Intellectual Property (IP) Suppliers
7.4.1
Power Amplifier Suppliers
7.4.1.1
Andrew / Celiant (NASDAQ: ANDW)
7.4.1.2 Powerwave Technologies, Inc (NASDAQ: PWAV)
7.4.1.3 Spectrian Corporation (NASDAQ: SPCT), REMEC (NASDAQ:
REMC)
7.4.2
Superconductor Technology Suppliers
7.4.2.1
Conductus, Inc (NASDAQ: CDTS)
7.4.2.2
ISCO International, Inc (AMEX: ISO)
7.4.2.3 Hypres, Inc
7.4.2.4 Superconductor Technologies, Inc (NASDAQ: SCON)
7.4.3
Smart Antennas
7.4.4
Other Intellectual Property Suppliers
7.4.4.1
InterDigital Communications Corporation (NASDAQ: IDCC)
7.4.4.2 Intrinsity, Inc
7.4.4.3 Mercury Computer Systems (NASDAQ: MRCY)
7.4.4.4 Morpho Technologies
7.4.4.5 Morphics Technology, Inc.
7.4.4.6 QuickSilver Technology, Inc.
7.4.4.7 RadioScape Ltd.
7.4.4.8 Repeater Technologies, Inc. (Nasdaq:RPTR)
7.4.4.9 Thin Multimedia
Figures
Fig.
1 Typical WLAN Configuration
Fig. 2 2002 WLAN Revenue by Equipment Category
Fig. 3 WLAN Equipment Sales Forecast 2002-2006
Fig. 4 Market Forecast From 2003-2006
Fig. 5 Total Chip Set Shipments by Technology in 2002
Fig. 6 802.11 Shipment Forecast Summary 2001-2005
Fig. 7 IEEE 802.1x Communications Link
Fig. 8 Comparison of Process Technologies For WLAN
Fig. 9 802.11 5 GHz Frequency Band Assignments Worldwide
Fig. 10 1500 Byte UDP Throughput Comparison of 802.11a vs. 802.1b
Fig. 11 Range Throughput Comparison of 802.11a vs. 802.11g
Fig. 12 Indoor Propagation Delays in The Home
Fig. 13 Range vs. Throughput Comparisons of 802.11abg Chip Sets
Fig. 14 802.11 Standards Structure For Extensions
Fig. 15 Public WLAN Network Service Revenue by Venue
Fig. 16 Public Hotspot Site and Subscriber Growth 2002 -2006
Fig. 17 Global Public Hotspot Site Growth 2001-2002 by Company
Fig. 18 Telia GPRS WAN vs. 802.11b Usage Cost
Fig. 19 Global GPRS WAN vs. Wi-Fi Usage Cost
Fig. 20 2002 Enterprise vs. Consumer Sales Percentage
Fig. 21 2002 H/W Shipment Categories by Percentage
Fig. 22 Enterprise vs. Consumer Equipment Growth 2001-2002
Fig. 23 WLAN H/W Revenue by WLAN Technology 2001-2002
Fig. 24 Shipment Growth 802.11b vs. 802.11a From 2001-2002
Fig. 25 WLAN Shipment Growth by Equipment Type 2001-2002
Fig. 26 WLAN Total Sales Growth by Equipment Type 2001-2002
Fig. 27 Consumer WLAN Sales Growth 2001-2002
Fig. 28 NIC/BBRG/AP Consumer Shipment Growth 2001-2002
Fig. 29 NIC/BBRG Consumer Sales Growth 2001-2002
Fig. 30 2002 Consumer NIC Vendor Sales Share
Fig. 31 Consumer BBRG/AP Vendor Sales Share 2002
Fig. 32 Overall Market Vendor Share Sales in 2002
Fig. 33 Overall Market Vendor Share Sales in 2001
Fig. 34 Comparisons of Enterprise vs. Consumer Sales 2001-2002
Fig. 35 Enterprise Sales Growth From 2001 -2002
Fig. 36 NIC/AP Sale Summaries For 2001-2002
Fig. 37 NIC/AP Enterprise Shipments Summary 2001-2002
Fig. 38 802.11b NIC/AP Enterprise Shipment Growth 2001-2002
Fig. 39 802.11a NIC/AP Enterprise Sales Growth 2001-2002
Fig. 40 2002 Enterprise Ap/Bridge by Vendor Sales in 2002
Fig. 41 Enterprise AP/Bridge Vendor Share Sales For 2001
Fig. 42 NIC Vendor Sales Share 2H/02
Fig. 43 802.11a AP Vendor Sales Share 2H/02
Fig. 44 Overall 802.11a Vendor Sales Share 2H/02
Fig. 45 Overall 802.11a Vendor Shipment Share 2H/02
Fig. 46 2002 Branded NIC Vendor Sales Share
Fig. 47 2001 All NIC Vendor Sales Share
Fig. 48 2002 Consumer NIC Vendor Sales Share
Fig. 49 2002 Vendor Share of Shipments
Fig. 50 Vendor Shares of PC OEM NIC Sales in 2002
Fig. 51 Vendor Shares of PC OEM NIC Shipments in 2002
Fig. 52 Total Vendor Market Share 2002 Sales
Fig. 53 Total 2002 Vendor Share 2002 Shipments
Fig. 54 2002 Chip Vendor Share in Sales
Fig. 55 2002 Chip Vendor Share in Shipments
Fig. 56 Chip Sales by 802.11 Technology Type
Fig. 57 WLAN 2002 Global Market (Consumption)
Fig. 58 Total Sales by Equipment Category 2002-2006
Fig. 59 Shipment Forecast 802.11 NIC/AP and Embedded
Fig. 60 Breakout Forecast of Equipment Sales 2002-2006
Fig. 61 Enterprise/Consumer Infrastructure Percent 2002-2006
Fig. 62 Enterprise/Consumer Clients Percent 2002-2006
Fig. 63 Shipment Forecast Summary 2001-2005
Fig. 64 LAN/WLAN Market Share For 2001 Volume
Fig. 65 Comparisons of Wireless Data Transmission Speeds
Fig. 66 Growth of Smartphones & Handheld Computing
Fig. 67 WLAN Smartphones, WLAN Pdas & WLAN Phone Growth 2001-2006
Fig. 68 Growth of 2.5G Cellular Data Phones
Fig. 69 Corporate Voice WLAN Network Supporting Voice
Fig. 70 Comparison of LAN Infrastructures
Fig. 71 The Evolution of WLAN Cards and Form Factors
Fig. 72 Client NIC Card Percentages For 2002
Fig. 73 SDIO Module Forecast of Shipments From 2003 To 2007
Fig. 74 Global Desktop, Notebook, & PDA Unit Growth-2002-2006
Fig. 75 WLAN Desktop, Notebook & Thin Client Growth 2002-2006
Fig. 76 Penetration of Wireless Tablet PCs 2002-2006
Fig. 77 Global DSL Subscriber Penetration by Major Region
Fig. 78 Worldwide DSL Subscriber Growth by Major Region
Fig. 79 Global DSL and Cable Modem Subscriber 2001-2006
Fig. 80 Global Wireless BB Router-Gateway Shipments 2001-2006
Fig. 81 WW Cable Telephony Subscriber Growth 2001-2006
Fig. 82 WW Wireless Set-Top Box Growth 2001-2006
Fig. 83 Wireless Set-Top Box Growth From 2003 To 2006
Fig. 84 Global WLAN Media Client Equipment Growth 2001-2006
Fig. 85 WLAN Silicon Suppliers-Current and Pending
Fig. 86 Typical 802.11b WLAN NIC Components
Tables
Table
1 WLAN Protocol Standard Distance Versus Speed Comparison
Table 2 The Four Stages of
Table 3 Overview of 802.11b/a/g Technology
Table 4 Permutations of 802.11x and Approval Status
Table 5 Mandatory Transmission Speeds of Different 802.11 Standards
Table 6 802.11a Versus 802.11b Throughput Comparison
Table 7 Media Transmission vs. 802.11 WLAN Throughput
Table 8 Allocation of 5ghz Bandwidth by Major Region
Table 9 Bluetooth and Other WLAN Alternatives
Table 10 Comparisons of 2.5G/3G vs. Wi-Fi Service Cost
Table 11 802.11 Sales Detail From 1H/02- 2H/02
Table 12 Consumer/Enterprise Sales-Shipment Detail 1H/02-2H/02
Table 13 Equipment Sales & Shipments Summary 2001 -2006
Table 14 Enterprise vs. Consumer Sales From 2002-2006
Table 15 Individual vs. Business Users of WLAN 2002-2006
Table 16 Equipment Sales and Shipments Detail 2001 –2006
Table 17 BBRG Percent of Broadband Net Users-2001-2006
Table 18 Business Client/AP Expansion Ratios From 2001-2006
Table 19 WLAN Total Chip Set Forecast Through 2006
Table 20 WLAN Chip Set Forecast by Type 2002-2006
Table 21 Embedded WLAN IP Forecast: 2002-2006
Table 22 Mobile WLAN NIC Card Values 2002-2006
Table 23 WLAN Consumer Equipment Shipment Forecast From 2002-2006
Table 24 WLAN Equipment Penetration Model From 2002-2006
Table 25 Major Notebook PCs With Integrated 802.11b WLAN Card
Table 26 Changes of Client NIC Cards by Type 4Q/01-2Q/02
Table 27 SOHO 802.11b Router Gateway Comparison
Table 28 Taiwanese NIC & Basestation Shipment Forecast
Table 29 Big 6 Taiwan WLAN Suppliers
Table 30 Component offerings of 802.11 Chip Suppliers
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