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WiFi & 3G CDMA

Industry Analyst Briefing Deck. May, 2003. 802.11a. WiFi & 3G CDMA. Hot Spot. Cordless Internet. 802.11b. PWLAN. 802.11g. Covering QUALCOMM’s Campus with WiFi. QUALCOMM believes in 802.11 for the enterprise & home environments

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WiFi & 3G CDMA

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  1. Industry Analyst Briefing Deck May, 2003 802.11a WiFi & 3G CDMA Hot Spot Cordless Internet 802.11b PWLAN 802.11g

  2. Covering QUALCOMM’s Campus with WiFi • QUALCOMM believes in 802.11 for the enterprise & home environments • QUALCOMM has spent over $300,000 "full up costs" for the access points covering our common areas and meeting rooms • 200 Access Point's represent in one mid size company in a restricted area campus an equivalent of 20% of Boingo's sites nationwide • Access point installation currently costs about $1,500, at around $500 per an access point and approximately $1,000 in installation expenses. - Cometa, May, 2003 Source: QUALCOMM IT

  3. Public WiFi Service Limitations • Data speeds • Limited by backhaul and multiple access scalability • 11 Mbps becomes irrelevant when connecting through a T1/E1 (~1.5 Mbps), DSL or cable modem (300 – 500 kbps) • “Hotspot” coverage • Very limited • Predicated on “travel to compute” model • Backhaul costs • Landlord fees/revenue sharing • Perceptions of ultra-low service fees are incorrect • Hotel room phone example • CTIA IT show / T-Mobile example • Billing issues • WiFi roaming is in its infancy, need for multiple subscriptions • Barriers to entry are few • “Java Joes” can provide free access next door to a Starbucks/T-Mobile

  4. Mainstream Users Expect Ubiquitous Coverage • A single 802.11 access point covers roughly 25,000 square feet • One or more APs consists of a WLAN “hotspot” • A single suburban 3G cellsite covers roughly 750,000,000 square feet Number of public WiFi access points (est.) By 2006, estimated U.S. public WLAN access points will cover an area roughly equaling 3.5 cell sites Source: Gartner Dataquest 2002,

  5. T-Mobile/Starbucks averages 1 user / day / hotspotat 46 minutes each session Limited to Backhaul: T1/E1 (~1.5 Mbps) Usage required to break even on just the T1 access lines: 90 users per AP! T1’s are expensive! Source: Strategy Analytics, October 2002

  6. Cisco Starbucks FinderSource: <http://www.cisco.com/warp/public/779/smbiz/cmo/yahoo/index.html> • New York City • 96 Total “Hot Spots” • 20 Wireline Locations • 20 Landline Ethernet Hotels • 5 Wireless Locations (non-café) • 3 Admirals Clubs • 2 WiFi Hotel Lobbies • 71 Starbucks • San Francisco • 86 Total “Hot Spots” • 15 Wireline locations • 15 Landline Ethernet Hotels • 3 Wireless Locations (non-café) • 1 Admirals Club • 1 WiFi Hotel Lobby • 1 Restaurant • 68 Starbucks 4 % of these sites are Wireless and not owned by Starbucks Are coffee shops the optimal place to work? What if you don’t get a seat… 100% of the “Hot Spots” in Both Cities are Covered by CDMA2000

  7. http://www.verizonwireless.com/express_network/index.html

  8. Will P-WLAN services go the way of the pay phone? Recent CTIA Trade Show (3/03, New Orleans) Hotspots offer a beacon of access today. What happens when cellular data pricing plans are lowered and data rates increased? Since cellular phones are now widely used and pricing plans include large bundles of minutes, payphones are less popular

  9. History Lessons for Wireless Networks • Rabbit phone service: Subscribers to the service, backed by Hutchison Whampoa, could make mobile calls when they were within 100 metres of a Rabbit transmitter. • WiFi as a business?: Adam Zawel, Yankee Group - "The business models are still uncertain," he said. "That's why we've seen some early failures. It's an uncertain opportunity.” • But if the history of Rabbit and its peers is any guide, location-specific services may prove unpopular. Source: http://news.bbc.co.uk/1/hi/technology/2175804.stm

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