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Qualcomm WiFi and 3G CDMA

The document discusses WiFi and public WiFi services. It notes that WiFi hotspots have limited data speeds due to backhaul connections and scalability issues. Coverage is also very limited with most hotspots located in coffee shops. Maintaining widespread coverage with hotspots would require a large number of access points and incur high backhaul costs. In comparison, cellular networks can provide much broader coverage with fewer cell sites. The sustainability of public WiFi services as a business model remains uncertain as cellular data pricing and speeds improve.

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Sudipta Das
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153 views9 pages

Qualcomm WiFi and 3G CDMA

The document discusses WiFi and public WiFi services. It notes that WiFi hotspots have limited data speeds due to backhaul connections and scalability issues. Coverage is also very limited with most hotspots located in coffee shops. Maintaining widespread coverage with hotspots would require a large number of access points and incur high backhaul costs. In comparison, cellular networks can provide much broader coverage with fewer cell sites. The sustainability of public WiFi services as a business model remains uncertain as cellular data pricing and speeds improve.

Uploaded by

Sudipta Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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TELECOSM 2003 August 24, 2003 Industry Analyst Briefing Deck

May, 2003

802.11a
WiFi & 3G CDMA Hot Spot

Cordless
Internet
802.11b
PWLAN
802.11g
TELECOSM 2003 August 24, 2003

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
TELECOSM 2003 August 24, 2003

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
TELECOSM 2003 August 24, 2003

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.)


120
103.8
100

80 By 2006, estimated
U.S. public WLAN
60
access points will
40 cover an area roughly
20
5.9 equaling 3.5 cell sites
0
2002 2003 2004 2005 2006

Source: Gartner Dataquest 2002,


TELECOSM 2003 August 24, 2003

T-Mobile/Starbucks averages 1 user / day / hotspot


at 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


TELECOSM 2003 August 24, 2003

Cisco Starbucks Finder


Source: <http://www.cisco.com/warp/public/779/smbiz/cmo/yahoo/index.html>

• New York City • San Francisco


– 96 Total “Hot Spots” – 86 Total “Hot Spots”
• 20 Wireline Locations • 15 Wireline locations
– 20 Landline Ethernet Hotels – 15 Landline Ethernet Hotels
• 5 Wireless Locations (non- • 3 Wireless Locations (non-
café) café)
– 3 Admirals Clubs – 1 Admirals Club
– 2 WiFi Hotel Lobbies – 1 WiFi Hotel Lobby
• 71 Starbucks – 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


TELECOSM 2003 August 24, 2003

http://www.verizonwireless.com/express_network/index.html
TELECOSM 2003 August 24, 2003

Will P-WLAN services go the way of the pay phone?


Recent CTIA Trade Show (3/03, New Orleans)

Since cellular phones are now widely Hotspots offer a beacon of access
used and pricing plans include large today. What happens when cellular
bundles of minutes, payphones are data pricing plans are lowered and
less popular data rates increased?
TELECOSM 2003 August 24, 2003

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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