CDMA and OFDM:

The convergence of
wireless broadband services

www.cdg.org September 2008

 CDMA AND OFDM
Wireless Broadband Services

1. Introduction
Up until the end of the 20th century, there was a fairly clear division between the cellular industry and other telecommunication
industries which offered basic telephone, television, radio, computer and Internet services. Most mobile operators used
second generation (2G) digital wireless technologies to enable voice communications and limited data services, while most
wireline, cable and satellite systems provided the bulk of the other telecommunication services. In spite of its initial limitations,
cellular communications have been a tremendous success, surpassing fixed line connections worldwide in 2001, just 12
years after its market introduction. This has been especially evident in developing markets where, due to their lower
deployment costs and greater network flexibility, wireless technologies have become the primary means of communication
for millions of people, spurring the economic and social development of these markets.

Since the beginning of the 21st century, there has been a dramatic shift in the market dynamics of telecommunications
services. With the introduction of third generation (3G) IMT-2000 technologies based on CDMA, wireless operators have
been able to offer high-quality voice services as well as broadband Internet access and multimedia services, blurring the
boundaries between the telecom industries. Service providers and regulators across both developed and developing markets
have been quick to adopt and promote the technologies, and in the 7 years since the deployment of the first 3G network
(based on CDMA2000®) in 2000, over 460 operators have launched CDMA2000 and WCDMA systems surpassing 685
million users in June 2008. The adoption of 3G mobile broadband technologies, based on CDMA2000 1xEV-DO and
HSPA, has also been accelerating, reaching 335 commercial systems serving more than 131 million users in 120 countries
in a little over 5 years.

Yet again, the wireless industry stands at the crossroads of selecting capabilities and services to take it well into the future.
These new dimensions include: the proliferation of voice, video, television, broadband Internet and value-added data services;
integration amongst wireless and fixed networks to enable the seamless delivery of these services over multiple networks;
improved user experience and economics; and convergence of industries such as telecommunications, information and
broadcasting.

This white paper discusses the future role of CDMA2000 in an environment where new wireless local area networks
(WLAN), wide area networks (WAN) and mobile broadcast networks are now being considered. In Section 3, the paper
highlights the CDMA2000 migration, beginning with IS-95, through 1X, EV-DO and beyond. With this basis of understanding,
the paper then examines the advantages of multi-carrier EV-DO Rev. B, as well as the benefits of Orthogonal Frequency
Division Multiplexing (OFDM)1 technologies for certain applications.

Convergence will play a major role in next-generation wireless networks. Section 4 examines convergence at the device and
network layer and how it will allow wireless service providers to pick and choose the most appropriate network technology for
the given application. The paper concludes with an analysis of the potential deployment scenarios for OFDM-based next-
generation mobile broadband solutions as a complement to 3G CDMA solutions.

1 Includes Orthogonal Frequency Division Multiple Access Technologies (OFDMA)

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2. Next-Generation Mobile Broadband Technologies

The next-generation of IMT systems based on CDMA and OFDM, as well as broadcast technologies, will be key enablers
of the transition to the next dimension of wireless broadband capabilities and services. In particular, mobile broadband
technologies such as CDMA2000 EV-DO Revision B (Rev. B), HSPA+, Long Term Evolution (LTE), and Mobile WiMAX
(802.16m) will support multi-megabit-per-second data delivery to users, carrier-grade VoIP and other real-time and broadband
intensive applications. For specific bandwidth-intensive applications such as multicasting and broadcasting, OFDM-based
technologies such as DVB-H, FLO, ISDB-T, S-DMB and T-DBM have been commercialized since 2006.

FIGURE 1
CDMA2000 Roadmap
With Complementary Mobile Broadcast and Broadband Solutions

Existing 3G cellular technologies, including CDMA2000 1X/EV-DO, WCDMA/HSPA, and TD-SCDMA, utilize CDMA as the
core radio access technology. Since their first market introduction, they have evolved to deliver higher capacities, through-
puts and efficiencies to support the growing usage of increasingly bandwidth-intensive data services. In narrow bandwidth
allocations (up to 5 MHz), Rev. A and Rev. B, HSPA and HSPA+ can achieve some of the highest data throughputs possible
in a given amount of spectrum. With wider radio channels (more than 10 MHz), OFDM-based technologies such as LTE
and Mobile WiMAX have emerged as viable options to deliver wider-bandwidth mobile broadband services.

For narrowband deployments (up to 5 MHz), CDMA technologies can achieve

some of the highest data throughputs possible, while OFDM technologies can offer a
simpler implementation within wider radio channels (more than 10 MHz)

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Both 3G CDMA and OFDM-based technologies provide the spectral efficiencies, network capacities and latencies necessary
to support mobile television and rich broadband services of the future. Yet, depending upon the market scenario they can
either complement or compete against each other. Each technology has its own technical merits.

Considering the significant market momentum and large economies of scale and scope of 3G CDMA technologies, they
will continue to be the leading platform for mobile communications, including next-generation broadband services, well
beyond the year 2020. Nevertheless, some incumbent operators and new service providers are considering the purchase
of additional spectrum and deployment of OFDM-based systems.

3G CDMA technologies will continue to be the leading platform

for mobile communications well beyond the year 2020

Regardless of the operator's approach and existing technology roadmap, it is becoming evident that a "one network fits all"
strategy will not suffice in future competitive markets. Selecting alternate technologies will be very dependent upon an
operator's unique set of circumstances, including market opportunities, assigned licenses, available spectrum, previous
technology selections, vendor relationships and propensity for risk. In other words, service providers will choose the path
and technologies that best meets their market and economic requirements.

For more than a dozen years, the CDMA technology roadmap has provided operators with technology-leading performance
capabilities and a time-to-market advantage. Thanks to CDMA's forward-and-backward compatible technology upgrades
within the 1.25 MHz CDMA radio channel, CDMA operators have benefited from the favorable economics of an evolutionary
"in-band" solution. As a result they have been able to deploy new technologies and value-added services throughout their
entire network much faster than their competitors.

The CDMA2000 family of technologies is strongly positioned to remain a vital component of the convergence revolution.
With the commercial availability of CDMA2000 1xEV-DO Revision A (Rev. A) in 2006 and multi-carrier EV-DO, or EV-DO
Revision B (Rev. B) in 2008 to provide additional capacity via a simple software upgrade, CDMA2000 operators will be able
to offer multi-megabit-per-second average data rates to individual users while leveraging the large economies of scale and
scope that the CDMA2000 industry offers.

The CDMA2000 family of technologies is strongly positioned to contine

meeting existing operator requirements and will play a key role in the future of wireless
and its convergence with other industries

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3. The CDMA2000 Migration Path Optimizes Performance to Deliver

Next-Generation Services While Leveraging Legacy Systems
Since its inception, CDMA2000 has sought to maximize performance and minimize costs by sustaining an evolutionary path
that eliminates the need for expensive "forklift" upgrades. This commitment has resulted in a faster time-to-market, lower
capital and operating expenditures, and a higher degree of backwards compatibility between new and legacy technologies
within a CDMA2000 network.

CDMA2000's In-Band Evolution Towards Advanced Broadband Capabilities

When IS-95 (known by the trade name cdmaOne™) was first commercialized in 1995, it utilized a 1.25 MHz radio channel.
By using a narrow radio channel, CDMA operators benefited from greater flexibility in deploying services in existing
“in-band” frequency allocations, as compared to wider-bandwidth 10 MHz radio channel solutions.

Over the years, CDMA technology has matured with the introduction of a number of new technology advancements that
have enabled increased capabilities, an enhanced user experience and improved economics, including new speech
vocoders, advanced antenna techniques, interference cancellation and the aggregation of radio channels. These
advancements became available through the publication and commercialization of new global standards such as
CDMA2000 1X and CDMA2000 1xEV-DO.

CDMA2000 1X, 1xEV-DO Rel. 0 and 1xEV-DO Rev. A (all ITU-approved, IMT-2000 3G technologies) are designed to oper-
ate in a single 1.25 MHz channel and allow operators a smooth upgrade to deliver higher performing and more affordable
services. All three technologies have been commercially deployed: 1X was introduced in 2000, Rel. 0 was launched in
2002, and Rev. A was commercialized in late 2006.

FIGURE 2
CDMA2000 Market Maturity and Future Growth

*Source: Actual CDMA Development Group

**Source: Average of ABI (Jan 2008) and iGR (Mar 2007) subscriber forecasts

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FIGURE 3
EV-DO Market Maturity and Future Growth

*Source: Actual CDMA Development Group

**Source: Average of Strategy Analytics (Jan 2008), ABI (Jan 2008), Wireless Intelligence (Jan 2008), WCIS+ (Jan 2008), iGR (Mar 2007)
and Yankee Group (Dec 2007) subscriber forecasts

Rev. A maximizes spectral efficiency to deliver a peak data rate of 3.1 Mbps in the downlink and 1.8 Mbps in the uplink,
plus lower latency and advanced QoS mechanisms to support carrier-grade VoIP and other delay-sensitive applications.
The use of a 1.25 MHz radio channel, however, limits the maximum data rate that any one user can achieve. Therefore,
for CDMA2000 operators looking to deliver additional bandwidth and multi-megabit-per-second data rates economically to
their subscribers while preserving their previous infrastructure investments, an upgrade to multi-carrier Rev. B is the
optimum solution. Rev. B is also a viable solution for Greenfield deployments.

For CDMA2000 operators looking to deliver additional bandwidth economically to their

subscribers and preserving their previous infrastructure investments, an upgrade to
multi-carrier Rev. B is the optimum solution

Multi-Carrier EV-DO Rev. B Builds Upon the Spectral Efficiencies of EV-DO and Aggregates Spectrum to Offer
Advanced Wireless Broadband
EV-DO Rev. B, also an approved IMT-2000 standard, is a multi-carrier implementation of Rev. A that allows operators to
combine several discrete 1.25 MHz carriers through a software upgrade without any degradation of spectral efficiency. For
example, using three 1.25 MHz carriers (within 5 MHz of spectrum) and a software upgrade to Rev. B, the user peak data
rate jumps to 9.3 Mbps in the downlink and 5.4 Mbps in the uplink. With an additional channel card hardware upgrade,
the peak data rates will increase further to 14.7 Mbps in the downlink. The additional carrier assignments also increase
the capacity for VoIP communications.

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The average data rates advertised for commercial Rev. A networks range from 600 kbps to 1.4 Mbps in the downlink and
500 to 800 kbps in the uplink. With a three carrier Rev. B software upgrade implementation, a user should experience
average data rates that are three-times higher, up to 4.2 Mbps in the downlink and 2.4 Mbps in the uplink, and even higher
with the hardware upgrade.

For the operator that has deployed multiple Rev. A channels, these enhanced capabilities will only require a modest capital
investment since a software upgrade to the Rev. A infrastructure is generally all that is required along with new communications
modems in the handsets. The operator may also choose to add new Rev. B channel cards for higher performance
improvements.

From the subscriber's perspective, the performance of Rev. B will deliver a much better user experience, including quicker
network connections and faster downlink and uplink data rates. Rev. A subscribers will also benefit since less network
capacity will be consumed by the faster Rev. B devices, freeing up unused network resources for Rev. A devices.

Since Rev. B allows an "in-band solution" that simply requires a software upgrade
to aggregate multiple Rev. A hardware channels, CDMA2000 operators will be
able to roll-out the high-speed broadband technology quickly throughout their entire
network and still support Rev. A devices

4. Convergence and the Role of 3G and OFDM Systems

Network convergence defines the seamless integration of multiple access technologies through a common core network.
Device convergence, enabled by Moore's Law, describes the ability for one device to support multiple radio technologies.
The combination of network and device convergence allows service providers to deliver a larger selection of revenue-
generating services across different types of networks, including concurrent voice and data services, seamlessly and with
greater flexibility.

Network and Service Convergence

Network and service convergence is facilitated by IP Multimedia Subsystems (IMS), a set of standardized technologies
which are being adopted by mobile operators and fixed wireline operators to enable IP-based core network solutions. IMS
defines and separates an operator's network into access, control and application layers, thus allowing an operator to more
quickly introduce applications and services, migrate from a circuit-switched network to an all-IP packet-switched data
network, and provide a seamless user experience to its subscribers, regardless of the access network being used.

As there is no single network technology that is a perfect fit for all user situations, services and environments, IMS will
enable operators to interconnect their various wireless and fixed network systems to improve the delivery and economics
of convergent services. Here are a few examples to help illustrate the point:

• The convergence of networks: In addition to 3G networks, in most developed countries there is an abundance of
Wi-Fi access points in residential homes, coffee shops, campuses and enterprises. In all instances, Wi-Fi is used
to provide a short range wireless extension of a broadband wireline connection, such as xDSL, to a small group of

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3
people who are within range of the signal. There is also a growing availability of wide area broadcast networks
dedicated to the delivery of television, rich multimedia multicasting and datacasting services to mobile devices. A
large number of 3G CDMA operators are using OFDM-based Wi-Fi and forward link only broadcast networks such as
DVB-H, FLO, T-DMB, and ISDB-T to complement their existing portfolio of services, provide extra broadband capacity
and offload traffic from their wide area networks in home, campus and office environments. This allows 3G operators
to leverage their existing mobile communications networks to become ubiquitous Internet Service Providers (ISPs) and
broadcasters.

• The extension of coverage: To reach more subscribers and provide advanced services to where they work and live,
pico and femtocell solutions are being deployed for seamless universal access to 3G voice and broadband services.
Extending coverage serves two purposes: it expands access to services; and increases the service provider's network
capacity by offloading user traffic from its WAN radio channel and using a separate backhaul.

• The convergence of services: The introduction of a wide selection of services defines the competitiveness of a service
provider. A single operator's ability to deliver voice, video, broadband Internet access, position location and a plethora
of mobile data services maximizes their revenue opportunity across a diverse subscriber base (where each user has
unique needs) and leverages existing capital expenditures. These services are used to supplement and extend services
across multiple industries including entertainment, education, transportation, banking, advertising, broadcasting and
information technology. To even the casual industry follower, it is evident that no single telecommunications delivery
mechanism is currently capable of fulfilling all of these multi-varied requirements. Instead, operators typically use
an IMS implementation to provide subscribers with a seamless user experience by assigning the most
appropriate access technology (3G CDMA, Bluetooth, 802.11, NFC, OFDM, etc.) to deliver the requested service.

OFDM-based Technologies Offer Operators an Opportunity to Complement 3G Solutions in Delivering

Converged Services
Due to its huge economies of scale, 3G CDMA will retain a significant cost advantage over OFDM-based technologies
when it comes to delivering mobile telephone and broadband services, a cost advantage exemplified by the availability of
very affordable 3G CDMA2000 handsets. Almost 100 very low-end (less than $50 USD wholesale) CDMA2000 handsets
from nineteen different suppliers are currently available in high-growth emerging markets around the world. In 2008, more
than 50 million very-low-end (VLE) CDMA2000 handsets are expected to be shipped.

3G CDMA will retain a significant cost advantage over OFDM-based technologies

when it comes to ubiquitous mobile broadband services

Analysts forecast that by 2010, there will be 548 million mobile broadband users worldwide, and 94 percent of them will be
using iterations of existing technologies, such as EV-DO and HSPA, which will eclipse all alternative broadband technologies.
Economies of scale is the single biggest contributor toward achieving more attractive device prices, since it drives down
manufacturing costs and distributes development costs across a large number of devices.

The harmonization of higher-bandwidth spectrum for OFDM-based solutions will be necessary to build economies of scale.
Considering WCDMA as an example of how long it takes to roll-out a new technology, it will take OFDM-based
solutions at least a decade to offer ubiquitous coverage, global roaming and competitively priced handsets.

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FIGURE 4
Cumulative Global Mobile Broadband Subscribers

Sources: Strategy Analytics, Worldwide Cellular User Forecast, July 2007, and Mobile Broadband Subscriptions Forecast, November
2006, Wireless Intelligence World Cellular Subscriber Forecast, October 2007, Yankee Group, Global Mobile Forecast, October 2007,
In-Stat/MDR, April 2007, Informa, Future Mobile Broadband: HSPA, EV-DO, WiMAX & LTE, 2007, Yankee Group, Modest WiMAX
Grows Despite Uncertainty, January 2007

FIGURE 5
3G CDMA Lowest Handset Pricing and Global Handset Shipment Volume
PRICE SHIPMENTS

Sources: ABI (Q4 2007), IDC (July 2007), Strategy Analytics (July 2007) and Yankee Group (October 2007) handset shipment
forecasts, Yankee Group, CDMA2000 and WCDMA ASP trends, January 2008

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While CDMA-based technologies offer compelling performance and economic advantages that will support service
providers well into the next decade, there are situations and applications where OFDM-based technologies may be more
attractive to operators.

For service providers who want to offer mobile broadcast or multicasting services, OFDM-based technologies such as
DMB, DVB-H or MediaFLO are better suited to simultaneously deliver rich multimedia content from one base station
transceiver to many people in a single sector. In this case, the supplementary OFDM-based broadcast network will overlay
the 2G/3G mobile network to deliver premium video content and television-like services.

FIGURE 6
CDMA and OFDM Complementary Coexistence

For service providers with existing or a limited amount of spectrum, CDMA-based technologies are the best option since
they are more spectrally efficient in bandwidths up to 5 MHz. For a service provider that has access to a large amount of
bandwidth (e.g., more than 10 MHz of spectrum), OFDM-based technologies may be a suitable option to introduce new
bandwidth-intensive broadband services or complement existing 2G or 3G solutions with additional broadband capacity in
densely-populated metro-zones, also referred to as "hot-zones." This is because wider radio channels support higher data
throughputs in capacity constrained areas such as busy or dense data traffic areas. For larger bandwidths, greater than
2x5 MHz FDD or 10 MHz TDD, OFDM-based technologies offer a simpler implementation than CDMA technologies.
Outside of high traffic metro areas, OFDM-based systems are not economical since the spectrum and network will most
likely remain under utilized.

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Outside of high traffic metro areas, OFDM-based systems are not economical since the
spectrum and network will most likely remain under utilized

FIGURE 7
Optimal Bandwidth Assignments For CDMA and OFDM-based Technologies

IMS can be used to combine the economic advantages of the ubiquitous 3G network with a complementary wider-bandwidth
OFDM broadband network in high-traffic areas or "hot-zones" within the network. In this overlay scenario, an operator would
retain the 3G network for wide area broadband coverage while the consumer will need to own a dual-mode (CDMA + OFDM)
handheld device to access the higher bandwidth broadband services inside and outside of the OFDM coverage zones.

Fixed, line-of-sight, OFDM-based technologies such as WiMAX are also well-suited to provide backhaul connectivity to
2G/3G mobile broadband networks. Several CDMA2000 networks use WiMAX (IEEE 802.16d) for their backhaul.

To some extent, the relationship between 2G/3G and mobile OFDM networks is very similar to the relationship between
2G/3G and Wi-Fi. Just as Wi-Fi complements 3G, mobile OFDM technologies will complement the services, features and
network capacity provided by 3G.

The role and deployment of OFDM systems will be ultimately determined by a business case, which in turn will depend on
the availability of revenue-generating applications and affordable devices, the market demand for bandwidth-intensive
applications and the economic benefits they offer to the operator. The industry is yet to develop a clear business model
for these services, and as the experience with 3G demonstrates, it will take time for a sustainable business model to
evolve. Thus, the mass market adoption timing of wider-bandwidth OFDM-based solutions is uncertain.

OFDM-based solutions will be built-out over time as the demand for high-capacity broadband services grows and wider
bandwidth spectrum becomes available. Meanwhile, 3G CDMA solutions will coexist with these higher-bandwidth OFDM-
based solutions until OFDM-based technologies are fully capable of delivering an equivalent or better value proposition to
the end user, including ubiquitous coverage, compelling broadband services, carrier-grade VoIP replacing circuit-switched
voice services, affordable devices, global roaming and an improved profitability for operators.

The mass market adoption timing of wider-bandwidth OFDM-based

solutions is uncertain

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FIGURE 8
OFDM Broadband Overlay Timeline

It is expected that CDMA and OFDM-based solutions will coexist well beyond 2020. Until then, 3G CDMA-based solutions
will remain the core business for mobile operators. Once the adoption criteria are met, the more than 3-4 billion wireless
subscribers in the world will begin migrating to the newer generation of wireless technologies. With an ever increasing
subscriber base, the migration process is lengthening.

FIGURE 9
Migration Timeline

OFDM-based solutions will be built-out over time as the demand for high-capacity
broadband services grows and wider-bandwidth spectrum becomes available

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Device Convergence Integrates Multiple Access Technologies Onto One Platform for a Seamless User Experience
As more capabilities and features are introduced into handheld devices, Moore's Law is enabling more wireless technologies
to be incorporated within them. Presently, these wireless technologies include analog, IS-95, GSM, GPRS, EDGE,
CDMA2000 1X, WCDMA, CDMA2000 1xEV-DO and HSPA for wide area network access, Wi-Fi for the local area network,
GPS for location-based services, near field communications (NFC) for mobile commerce, and Bluetooth for personal area
network connectivity. By the end of 2008, CDMA2000 WorldModeTM devices will include Mobile WiMAX. By the end of 2010,
LTE is expected to be available in other WorldMode devices.

As consumers become accustomed to the presence of multiple access technologies, they will expect their handheld device
to support the technologies that they use the most wherever they go. Carrying a separate device for each access technology
isn't considered practical. 3G CDMA handsets that support multiple radio technologies already exist (there are 100 WorldMode
devices that support both CDMA2000 and GSM technologies). In the coming years, CDMA2000 devices will include support
for WCDMA/HSPA, WiMAX and LTE. Bluetooth is becoming very common due to consumer interest in wireless headsets and
various government regulations which strictly limit holding a cell phone while driving. NFC-enabled handsets are being used
for transportation and mobile commerce solutions. Likewise, Wi-Fi is integrated into a number of CDMA handsets to pro-
vide high-speed access to the Internet/VPN in the home, campus or office.

FIGURE 10
Multimode Multiband WorldMode Configurations

Radio Frequency Links

450 MHz 700 MHz 800 MHz 1500 MHzGPS 1700 MHz 1800 MHz 1900 MHz
AWS 2100 MHz 2500 MHz 3500 MHz
* WiMAX is enabled using a separate chipset

Most consumers will not purchase a single-mode OFDM-based device that only works within limited areas. OFDM-based
devices, therefore, will have to support multiple technologies and a range of bands to retain the existing wide and local
area connectivity provided by 3G and other widely used technologies, not to mention the valuable revenue produced by
their voice and broadband data services.

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5. Conclusions
The "one technology fits all" approach will not suffice in the future competitive telecommunications market. Instead,
operators will leverage the most appropriate technology for a particular application or service. Bluetooth will support the
personal area network, NFC will enable mobile commerce, Wi-Fi will satisfy local area network connectivity, GPS will
enable presence and location-based services, 2G and 3G cellular technologies will provide ubiquitous voice and broadband
data services, and OFDM-based technologies will provide large amounts of bandwidth for backhaul, broadcast and broadband
applications in "hot-zones."

For most operators, 3G CDMA-based technologies will be more than sufficient for their voice and broadband data requirements
for at least a decade. For those operators that require higher amounts of bandwidth, especially in high-traffic areas, OFDM-
based technologies offer certain economic benefits and will enable them to complement their services, features and cov-
erage. In most instances, however, 3G CDMA will remain the leading and most economical platform for the delivery of
mobile broadband services.

OFDM-based solutions will be built-out over time as the demand for broadband services grows and spectrum becomes
available. Mass adoption of these wide-bandwidth OFDM-based solutions will take years, as coverage is expanded and
economies of scale are built. Meanwhile, CDMA2000 will continue to be the core business for hundreds of operators for
well over a decade and play a key role in the future of the wireless industry.

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