Enabling Notebook Users with

Wide-Area Broadband Access

QUALCOMM Incorporated
September, 2005
 Enabling Notebook Users with
Wide-Area Broadband Access

Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Market Drivers for the Notebook with Émbedded 3G WWAN Capability . . . . . . . . . 3

The Shift toward Notebook Computers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

The Growing Demand for Wireless Broadband . . . . . . . . . . . . . . . . . . . . . . . . 4

The Growth of 3G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

WLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3G Technologies ............................................9

CDMA2000 1xEV-DO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

WCDMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3G and WLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Complementary Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3G/WLAN Interoperability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Embedded 3G Modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Inside the Notebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Improved RF Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Convenience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Optimized Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Benefits to End Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Benefits to Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
 Enabling Notebook Users with
Wide-Area Broadband Access

Executive Summary
The benefits and convenience of having wireless broadband connectivity are
so compelling that enterprises now desire to provide connectivity to their
mobile workforces anytime and anywhere. The global introduction of 3G (third
generation) wireless networks satisfies this desire by making it possible for
notebook computer users to enjoy wireless broadband connectivity far beyond
the coverage areas of WLAN (Wireless Local Area Networks).

3G is a proven technology, enjoys favorable economies of scale, ensures investment

protection and allows for interoperability with existing WLAN networks. As a
result, several industries have come together to offer notebooks integrated with
3G technology, making wide-area wireless broadband service a reality.

Notebooks with embedded 3G improves employee productivity and effectiveness.

More importantly, embedded 3G enables enterprises to benefit from convenience,
cost savings and optimized performance.

Introduction

The need for mobile connectivity is growing dramatically around the world.
Over the last several years, there has been an increased demand by computer
users for a full desktop computing experience in a mobile environment—users
want to be able to access email with large attachments, files on corporate
servers and the Internet while away from their desks. And nowhere is
this need more evident than among businesses with mobile workforces.
Employees that stay connected are more productive and effective—
resulting in greater profitability for the enterprise.

Since the introduction of the WLAN its popularity and use in providing
wireless broadband access to notebook users has grown noticeably in
offices, hotels, homes and campuses. In fact, the demand for WLAN
has been so high that the reduction in WLAN component costs has
made it common practice for computer manufacturers to integrate
WLAN technology directly into their notebook computers.
Furthermore, the increase in demand has created a business opportuni-
ty for WLAN service providers who now charge fees for WLAN access.

page 1
 Enabling Notebook Users with
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The benefits and convenience of having wireless broadband connectivity are

so compelling that users now desire connectivity anytime and anywhere. The
global introduction of 3G wireless technologies, such as CDMA2000®1 and
WCDMA2 (wideband CDMA), satisfies this desire by making it possible for
notebook users to enjoy wireless broadband connectivity across a very large
coverage area—a typical 3G base station can provide a range of several miles,
whereas a typical WLAN access point provides a practical range of 50-100
feet. 3G networks are Wireless Wide Area Networks (WWAN) and provide users
with access across cities, states and even entire countries. And unlike
other wireless broadband technologies that have yet to be commercialized,
such as fixed WiMAXTM or mobile WiMAX, 3G is available on a large scale today with
more than 195 million subscribers and has a solid growth path moving forward.

The proliferation of 3G networks, the growing demand for wireless broadband

access and the favorable economies of scale has led leading notebook
manufacturers to integrate 3G wireless technology along with WLAN technology
into their products, solidifying the complementary nature of the technologies
and providing users with greater coverage and much needed flexibility.

Using notebooks embedded with 3G and WLAN technologies, the enterprise

can improve its bottom-line results through cost savings and optimized
performance. In addition, 3G and WLAN-equipped notebooks afford the
enterprise’s mobile and remote workforces with convenient access to all
applications as if users were wired to the company LAN (Local Area Network),
enhancing their productivity and effectiveness.

This paper discusses:

• The market drivers for the embedded 3G notebook

• The capabilities offered by today’s 3G networks
• 3G and WLAN interoperability
• The performance advantages of embedding 3G into the notebook
• The benefits of 3G technologies to the enterprise

[1] CDMA stands for Code Division Multiple Access.

[2] Also known as UMTS® Universal Mobile Telecommunications System. page 2
 Enabling Notebook Users with
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Market Drivers for the Notebook with Embedded 3G WWAN Capability

Three trends should be considered early indicators of the future success of
broadband access via 3G wireless networks. The first trend is the ongoing shift
from desktop computers to notebook computers; second is the growing
demand for wireless broadband currently represented by WLAN; and third is
the continuing proliferation of 3G networks around the world.

The Shift Toward Notebook Computers

Notebooks are no longer for road warriors only. The combination of computing
power, portability and affordability has made notebooks an increasingly popular
choice for general purpose computing. Beyond the enterprise, notebooks are
also widely used in homes and in schools.

A recent report by Gartner3 estimates that global notebook shipments currently

represent over 30% of all personal computers shipped today and will account
for 40% of all personal computers shipped by 2009. Figure 1 shows the
increasing share of notebooks as a percentage of total computer sales.

Shipments of Notebook Computers Total Notebooks

% of Notebooks

120 90%

Percent of Personal Computers

80%
100
70%
Millions

80 60%

50%
60
40%

40 30%

20%
20
10%

0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009

Figure 1. Gartner Worldwide Mobile PC Shipments 2001-2009

[3] Source: Gartner Dataquest Marketview Database, June 2005. page 3

 Enabling Notebook Users with
Wide-Area Broadband Access

The Growing Demand for Wireless Broadband

The corporate sector has embraced WLAN technology. Enterprises have
deployed WLANs in their offices and corporate campuses. These networks
are being used for corporate intranet access as well as access to vertical
applications in warehouses, factories and loading docks. The increased
demand for WLAN-enabled notebook computers demonstrates the need for
wireless broadband access.

WLAN connectivity was initially achieved through PC cards. Today, most WLAN
modems are embedded directly into notebooks as a standard configuration.
The rapidly growing sales of notebooks with embedded WLAN modems are
highlighted in Figure 2. Including consumer and enterprise notebooks,
Strategy Analytics4 estimates that more than 70% of notebooks sold today
have an embedded WLAN modem.

100%

Embedded WLAN Notebook Sales

90%
Share of Embedded WLAN Notebook Sales

80%

70%

60%

50%

40%

30%

20%

10%

0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Figure 2. Strategy Analytics Global Notebook PC Sales

[4] Strategy Analytics, Global Notebook PC Sales Forecast, Dec. 2004. page 4
 Enabling Notebook Users with
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Today, WLAN is used in most corporations to provide employees with wireless

broadband access throughout office campuses including conference rooms,
cafeterias and building lobbies. The familiarity of using WLAN access in the
enterprise and the growing number of notebook computers with embedded
WLAN capabilities has led to increased use outside the office environment.

A common place to find WLAN coverage is in locations

frequently visited by business travelers. Many hotels,
convention centers and airport lounges now offer a pay-per-
use WLAN service to its visitors. In addition, some coffee
shops and restaurants offer WLAN access that is not only
targeted at business people, but also consumers looking to
stay connected. Finally, there has been a large trend in the
deployment of WLANs in homes. Deploying a WLAN in the
home provides notebook users wireless access from
anywhere within the home network coverage area, including
the living room, kitchen or outside on the patio.

The Growth of 3G
3G is an ITU (International Telecommunication Union)5 specification for the
3rd generation of wireless communications technology. 3G delivers among
other capabilities, higher peak data transmission rates, greater system capacity
and improved spectrum efficiency over 2nd generation systems and support
services.

3G technology has been deployed on a large scale and is well established.

CDMA2000 1X networks have been in commercial service since 2000.
Commercial WCDMA networks were introduced in 2001 and CDMA2000
1xEV-DO networks were introduced in 2002. There are a total of 70 countries
in which 3G services are provided, with North America, Western Europe, Japan
and South Korea leading the uptake in subscribers. Figure 3 provides a world
view of the countries in which 3G networks have been deployed.

[5] The ITU is the telecommunications arm of the United Nations. page 5
 Enabling Notebook Users with
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Figure 3. Worldwide 3G Presence (Source: 3GToday.com)

There are more than 155 commercial 3G networks providing service to

more than 185 million paying subscribers6. The market potential for 3G
has led to significant support from the 3G device and infrastructure
manufacturing community, resulting in favorable economies of scale
today. To date, more than 730 3G devices have been commercialized and
more than 10 leading infrastructure manufacturers are providing 3G network
equipment. As seen in the figure below, industry research firm Strategy
Analytics expects CDMA2000 and WCDMA technology families to account
for more than 1.3 billion subscribers worldwide, or nearly 50% of the
mobile subscriber base, by 20107. Such a high growth rate is a strong
indication of the competitive nature of the 3G market and the technology
itself. And with the increase in 3G subscribers globally, it is expected that
the cost of devices and network infrastructure will continue to decline.
And with network operators all vying for these subscribers, the cost of 3G
services is also expected to drop.

[6] Source: 3G Today, www.3GToday.com, June 2005.

[7] Source: Strategy Analytics, Wireless Network Strategies (WNS) page 6
Strategic Advisory Service, Dec. 2004.
 Enabling Notebook Users with
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CDMA2000 & WCDMA subscribers 50.0%

1400.0 50%
CDMA2000 & WCDMA % of totals
43.9%
1200.0

Percent of all mobile subscribers

40%
36.0%
1000.0
subscribers

28.9% 30%
800.0
22.6%
600.0
17.9% 20%

13.5%
400.0

8.3% 10%
200.0

0 0%
2003 2004 2005 2006 2007 2008 2009 2010
Figure 4 - Strategy Analytics: CDMA2000 and WCDMA Subscriber Growth

3G service providers continue to invest in 3G by expanding their network

coverage areas. Today in the US, 3G services including CDMA2000 1X,
CDMA2000 1xEV-DO and WCDMA are available to almost 90% of the
population. Other markets throughout the world have similar plans to pro-
vide 3G services to a greater number of subscribers. So not only does 3G
have a large presence throughout the world, it also has an increasing foot-
print within individual markets.

Within the last few years, alternative technologies have been proposed and
marketed to meet the needs of the wireless broadband user, with WiMAX
receiving the most attention. A common misperception is that WiMAX will
be deployed on a large scale to address the market needs not being served
by 3G. The reality is that WiMAX was initially developed for backhaul8 and
dedicated connections among one or multiple points—Fixed WiMAX. The
mobile version, or Mobile WiMAX, is being positioned as an alternative
technology to 3G, yet the technology is unproven and is not currently standardized

[8] Backhaul is the connection between the WLAN access

point and the fixed broadband network. page 7
 Enabling Notebook Users with
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(impacting aspects such as economies of scale and interoperability). A

standardized Mobile WiMAX solution will not be available in the near future
and when available, will unlikely provide the coverage areas to support the
expectations of today’s end users.

3G technology and its evolution path provide the following advantages to notebook
users now:

• Large scale coverage—3G service providers worldwide continue to

enhance coverage areas

• True mobility—remain connected while moving in a train, bus or taxi

• Investment protection—backward compatibility enables devices to

continue working even after advancements in the network are made

• Reduced cost—high volumes and competitive environment will drive

down cost of access

• Access to the full suite of enterprise applications—access to

applications and corporate data as if being in the office

The three trends discussed indicate that real demand exists for broadband
access via 3G wireless notebooks. 3G’s large coverage areas and favorable
economies of scale are evidence that a solution already exists today to meet
the needs of the wireless broadband user.

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Technology

Wireless Local Area Networks (WLAN)

WLAN technologies are based on the family of IEEE9 802.11 standards, including
802.11a, 802.11b, 802.11g and future versions such as 802.11n.

Most commercial WLAN networks today are characterized by peak transmission

speeds of 11Mbps although they are usually constrained by the backhaul
connection to much lower speeds. The typical range of WLAN is approximately
50-100 feet, depending upon the antenna, the physical environment and
interference levels. WLAN is designed to operate over short distances and to
operate in designated unlicensed spectrum. Since unlicensed spectrum can be
used by different radio frequency (RF) systems, there is an increased probability
of interference that can have an adverse impact on network performance.

3G Technologies
3G technologies, represented by the CDMA2000 and WCDMA standards, are the
latest generation in the evolution of mobile phone networks. 3G networks provide
high-speed data services over a wide coverage area, enabling notebook users to
accomplish tasks at the office, at home or on the road. 3G networks also allow
roaming and interconnection between domestic and international markets.

CDMA2000 and WCDMA are both built on a similar underlying CDMA air interface
technology and have clearly defined evolution paths with enhancements and
performance improvements. 3G provides investment protection to the end user
with backward compatibility such that as networks are upgraded and
enhanced, existing 3G devices will continue to operate. Backward compatibility
ensures embedded 3G notebooks will continue to get services into the future.

[9] IEEE is the acronym for Institute of Electrical and Electronics Engineers.
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The diagram below highlights the roadmap and performance of both technologies
as defined or being discussed in the standards bodies.

3G TECHNOLOGIES
DESIGNED FOR DESIGNED FOR IN-BAND
IN-BAND MIGRATION MIGRATION OR NEW SPECTRUM

1.25 MHZ CDMA2000 1xEV-DO Enhanced EV-DO Scalable Bandwidth EV-DO

DATA + IP VOICE IS-856 Release 0 Revision A
• Dedicated for packet data • Software QoS, • 3.1 Mbps forward link • Up to 46 Mbps forward link
• 2.4 Mbps peak rates (forward link) Gold Multicast • 1.8 Mbps reverse link • Up to 27 Mbps reverse link
• 400–700 kbps average end user rates • VoIP, lower latency,
Flow-based QoS,
Platinum Multicast

DESIGNED FOR
IN-BAND MIGRATION

1.25 MHZ CDMA2000 1X

DATA + VOICE
IS-2000 Release 0 Revision A Revision C Revision D
• Double voice capacity over cdma One
• 153.6 kbps packet data
• 50–90 kbps average end user rates

DESIGNED FOR
NEW SPECTRUM

5 MHZ WCDMA (UMTS) HSDPA HSUPA

DATA + VOICE
3GPP Release 99 Release 5 Release 6
• 64/384 kbps circuit switched/packet data • 1.8 to 14.4 Mbps • 5.7 Mbps reverse link
• 64–250 kbps average end user rates forward link (EUL), IMS, MBMS

Figure 5. Technology Evolution Roadmap

CDMA2000 1xEV-DO10
CDMA2000 1xEV-DO (EV-DO) is the natural evolution path for CDMA2000 1X
operators that want to offer higher bandwidth 3G capabilities. Optimized to meet
the growing demands of today’s wireless needs, EV-DO is a high-performance,
cost-effective technology based on an IP network architecture. Commercial
EV-DO systems can provide peak data rates11 of 2.4Mbps in the downlink12. In
commercial networks, operators commonly advertise average EV-DO end-user
data rates between 400kbps and 700kbps. Users moving outside of EV-DO
coverage will still have access to 3G services from the underlying 1X network.

[10] For more information on CDMA2000 1X and 1xEV-DO visit

www.3gpp2.org.
[11] Peak data rates refer to the maximum data rate supported for each user.
[12] Downlink refers to the flow of data from the network to the device. page 10
 Enabling Notebook Users with
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The next revision of the standard, CDMA2000 1xEV-DO Revision A (EV-DO

Rev. A) is designed for more symmetric applications. It has a downlink peak
data rate of 3.1Mbps (average end-user data rates between 600kbps and
1.3Mbps) and an uplink peak rate of 1.8Mbps. EV-DO Rev A will also improve
the connection set-up time and support delay-sensitive traffic.

Higher peak data rates will be supported in the future with the evolution to
Scalable Bandwidth EV-DO. Scalable Bandwidth EV-DO is being planned to
support peak data rates of up to 46Mbps. The system will be backward
compatible with support for existing EV-DO and EV-DO Rev. A devices and will
be able to dynamically support different data rates based on application
needs, device capabilities and available resources.

WCDMA14
WCDMA is the evolution path to 3G for GSM/GPRS operators. WCDMA
provides a clear migration path to provide enhanced data capabilities over
time. Today, commercial WCDMA networks are deployed in multiple markets
offering peak data rates up to 384kbps (average end-user data rates between
150kbps and 250kbps).

The evolution of WCDMA is HSDPA (High Speed Downlink Packet Access).

HSDPA provides a converged packet network that allows support for end-to-end
IP services. Commercial HSDPA systems are expected to support downlink peak
data rates of up to 7.2Mbps15 (average end-user data rates between 400kbps
and 1.5Mbps). To enhance the uplink data capabilities, WCDMA operators
plan to deploy a further enhancement referred to as HSUPA (High Speed
Uplink Packet Access). HSUPA systems are expected to support peak uplink
data rates of 5.7Mbps. Both HSDPA and HSUPA will be backward compatible
with WCDMA systems, enabling an efficient upgrade path for operators and the
ability to continually support existing devices.

[13] Uplink refers to the flow of data from the device to the network.
[14] For more information on WCDMA visit www.3gpp.org
[15] The standard defines support up to 14.4Mbps. page 11
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3G and WLAN

Complementary Technologies
3G and WLAN networks together will be used to meet end users’ wireless
broadband needs.

There are a growing number of public locations that now provide WLAN
coverage including airports, hotels and coffee shops. More and more often,
pay-per-use fees are being charged for WLAN access in public areas. With a
notebook capable of supporting both 3G and WLAN, most users will use WLAN
in select areas where it is both available and free of charge, such as in corporate
offices, some public places or in the home. And since WLAN coverage is
limited and is not sufficient to meet end-users’ need for wireless broadband
access anytime anywhere, users will use 3G in all areas outside of free WLAN
coverage. 3G’s large footprint complemented by WLAN local coverage ensures
wireless broadband access across a wide area as shown in Figure 6.

WLAN Hot Spots

HOTEL

Offices
Hotels & Conferences

Airports 3G Coverage
College Campuses

Train Stations

Homes

Figure 6. Complementary Coverage of WLAN and 3G Networks

3G/WLAN Interoperability
Both the wireless and IT industries are taking the necessary steps to ensure
3G and WLAN interoperability. The 3G standards groups that are actively
working on this convergence and standardization are the Third Generation
Partnership Project (3GPP), which concentrates on the development of WCDMA
standard; and the 3GPP2, which focuses on the development of CDMA2000

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standards. Furthermore, efforts are taking place within the IEEE to enhance
users’ experience with mobile devices by supporting seamless handover
between heterogeneous networks, such as 3G and WLAN.

Switching mechanisms are already in place to support users moving from 3G

to WLAN or vice-versa, and future work includes making the convergence
between 3G mobile wireless technologies and WLAN technologies more seam-
less. Ultimately, a user will not know or care what network is being used—as
long as it works. 3G/WLAN convergence will enable common billing, customer
care and user authentication mechanisms over both 3G and WLAN.

Notebook vendors are planning to incorporate software functionality into

their operating systems that allows users to seamlessly roam between 3G
and WLAN networks.

Embedded 3G Modules

Inside the Notebook

In July 2004, the Peripheral Component Interconnect

Special Interest Group (PCI-SIG), a part of IEEE, ratified
a new standard of the PCI architecture named PCI Express
Mini Card Electromechanical Specification (PCIe Mini Card).
Today, manufacturers are preparing to introduce this technology
into notebook computers in the last half of 2005 and into
2006. The PCIe Mini Card allows vendors to create devices
with smaller form factors than those possible with traditional
PCI interfaces, via the use of low pin-count connectors. The
PCIe standard provides the flexibility for manufacturers to
implement either a PCI Express bus or a USB 2.0 bus.

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Improved RF Performance
Antennas play a critical role in the performance of wireless technology and are
a key element of the embedded WLAN and 3G modem. Antennas provide the
means by which signals from the modem are transmitted to the network and
signals from the network are received by the modem. Their placement, exposure
to interference and size play a critical role in the overall performance of the
modem such as throughput rates, number of dropped connections and
ultimately, end-user experience and satisfaction.

A notebook computer is a highly complex RF (Radio Frequency) environment

with a multitude of components packed tightly together. Much of the interference
in a notebook comes from the bottom half, below the keyboard, where the
main components reside. The main CPU, memory chips, video circuits and
other components are located on the motherboard and generate high frequency
noise which could potentially fall within the receive bands of 3G radios.
Other sources of interference include radiation from transmission lines routed to
circuitry embedded in the display area. Interference in the radio receiver
affects the overall wireless performance and user experience.

Therefore, the placement of the antenna with respect to the sources of

interference plays a key role in the overall performance of a wireless connection.
For example, to minimize interference, it is preferred to position the antennas
as far as possible from the bottom half of the notebook—either at the top of
the lid/screen or high up on the side of the notebook lid/screen.

One of the key advantages of an embedded module is that both the notebook
and modem vendors work together at the time of the initial design; optimizing
the design and placement of both the module and antennas to minimize any
interference. Since the antennas are no longer constrained to the PC card slot,
more efficient antenna elements are also possible. Multiple antennas can be
placed inside the notebook to leverage RF receive diversity techniques as well
as support multiple frequency bands. Receive diversity is a technique that
leverages the use of a secondary antenna and receive chain. Because the
secondary antenna is placed separately from the primary one, the receiver can
combine the signals received from both antennas to improve performance.

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In the computing industry, the introduction of the PCIe Mini Card and the
large scale availability of 3G technologies are driving manufacturers to integrate
3G modems directly into notebooks. Figure 7 shows the expected transition
from PC cards to embedded modems and by 2009, more than 50% of all
cellular modems sold will be embedded16.

Share of PCMCIA vs. Embedded Cellular Modem Shipments

PCMCIA Embedded
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2003 2004 2005 2006 2007 2008 2009

Figure 7. In-Stat/MDR Share of PCMCIA vs. Embedded Cellular Modem

Shipments Worldwide16

An indication that embedded 3G notebooks are a reality is that modem

manufacturers are producing 3G PCI Express Mini Card Modules.
Manufacturers such as Novatel Wireless, Sierra Wireless and Pantech all have
product plans for the embedded notebook market.

Tighter development and integration of 3G modules into the notebook platform

and the use of more efficient antennas will result in a more reliable product
that achieves the advertised and realizable performance of 3G networks.
Ultimately, embedded technology ensures that module vendors, notebook
manufacturers and 3G service providers work together closely to provide the
best end-user experience possible.

[16] In-Stat/MDR Cellular Modem Worldwide Shipment Forecasts &

Market Overview, Dec.2004. page 15
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The Enterprise
It is clear that the demand for wireless broadband data access across a wide
area exists today. Many of the 3G network operators around the world have
been successful in deploying these services. Enterprises around the world
are realizing the following benefits of wide-area wireless broadband access
from notebook computers with 3G capabilities:
Novatel Wireless

• Convenience

• Cost Savings

• Optimized Performance

Convenience
Enterprises are always looking for ways to improve the productivity and
effectiveness of its employees. By providing notebooks with 3G wireless
Pantech
broadband capabilities to mobile workforces, enterprises enable employees such
as sales people to safely and remotely access corporate databases, check on
inventory levels and make delivery commitments to their clients—from anywhere
within 3G coverage, in real time—just as if they were physically in their offices
and their computers were wired to the LAN. 3G also improves mobile workers’
productivity by making it easy for them to work during down time in their schedules.
With easy access to email and the corporate servers, mobile workers can now
check and send emails during layovers at airports or while sitting in a customer’s
office lobby. In addition, wireless broadband capabilities enable employees to
Sierra Wireless
better serve their clients with improved response time to queries.

Notebooks with embedded 3G capabilities will make it easier for users to begin
using wireless broadband access. Pre-configured systems from the factory and
"84% of survey tighter integration of the hardware and software will allow users to gain wireless
respondents from broadband access right out of the box and experience true mobility.
Fortune 100 companies
said they were interested
or very interested in
laptops with embedded
high-speed modems"
-iGillottResearch, 2005

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Cost Savings
When evaluating different options for improving workforce productivity, IT
departments evaluate both the cost and associated savings with any new
technology. Notebooks with embedded 3G technology provide wide-area
wireless broadband access resulting in cost savings to the enterprise in the
areas of reduced WLAN costs, standardized configurations and asset management.

Hidden Cost of “WLAN Usage”

Although there are a growing number of WLAN coverage areas, more and more
now charge access fees based on hourly, daily or even monthly rates. Without
access to 3G networks, a frequent business traveler may use several different
WLAN networks on a single business trip to stay
connected to critical corporate information—and
at $10.00 to $15.00, single day access prices
add up for IT departments. With the continuing
decrease in cost of 3G broadband access, an end
user on a week-long business trip may spend more
money on WLAN access than he or she would
have spent for an entire month of 3G service. And
often times, the costs for WLAN access is so
buried in expense reports that upper management
never sees them. By giving users a communication
solution that works nationwide with “all you can
eat” plans, companies can eliminate the need to
pay variable fees for WLAN access.

Standardized Configuration
Notebooks with embedded 3G devices make it easier for IT departments to
standardize wireless broadband access across the company. Standardized
solutions reduce overall IT costs and improve the serviceability and scalability
of the equipment.

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With external PC cards, IT departments may have to maintain and service multiple
versions of hardware and software in their installed base. Supporting multiple
devices impact all tiers of technical support and can result in higher costs for
staffing, training and documentation. Doing so also makes it more difficult for
IT departments to provide the highest level of service to mobile workforces.

In contrast, the process of maintaining and updating drivers and software is

simplified when IT departments move to a standardized, embedded platform.
Additionally, Remote Access Server (RAS) management can be simplified with
a single solution for access to corporate data and mobile applications
development can be unified—meaning developers can focus on application
development with less effort spent on platform inconsistencies or hardware
compatibility issues.

A standardized, embedded solution also provides flexibility to the service

provider and enterprises in regards to provisioning devices. Embedded notebooks
will make it possible for the provisioning process to be centrally managed by
the IT department. The IT department, together with the service provider, can
activate or deactivate modules on demand. The enterprise can then activate or
deactivate a subscription without having to go through the time consuming
process of purchasing, installing and configuring a PC card on a user’s machine.

Asset Management
No matter how much control and auditing is in place, when users have a plug-
in wireless network card for their computer, there will be times of “asset drift,”
where employees loan devices to other users of notebooks or they are misplaced.
"With the availability of External data cards are also prone to theft and damage. Issues such as these
laptops with embedded can be avoided with embedded 3G devices.
high-speed modems, 2/3
of survey respondents from
Fortune 100 companies
expect an increase in
wireless data usage in
the enterprise."
-iGillottResearch, 2005

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Optimized Performance
Convenience and cost savings alone will not drive an enterprise to adopt a
new technology. Performance of the solution also needs to be evaluated. In
addition to improved data rate performance due to a tighter integration
between the notebook and the 3G modem, IT departments will experience
improved performance in terms of security and connection management.

Security
IT security groups are experiencing ever-growing pressure to protect intellectual
property from theft and leakage. Security issues associated with unprotected
access to WLAN networks have been well documented and have caused concern
throughout IT departments. This issue can be resolved by using secure end-
to-end connections such as IPSec or SSL-based VPNs that are layered with
at least two factor authentications for full IP connectivity.

However, the choice to use a VPN connection from a public or home WLAN
is the choice of the user each time a connection is made. For example, an
employee may log in to a WLAN hotspot from a hotel for general Internet
access and chose to forgo using the VPN. However, while
connected the employee may start an IM chat session with
a colleague and provide the status of a development project
or an update on contract negotiations—leaving confidential
information exposed.

In a WLAN environment, any user with a device set to promiscuous

mode can listen to a neighbor’s communications with easily
downloadable software from the Internet. That same approach
is not possible if a user is connected to a 3G network. 3G
systems are not susceptible to easy eavesdropping like those
of WLAN networks, requiring sophisticated and expensive
equipment to gain access. IT departments can rest easier
knowing that confidential information is not being compromised.

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Connection Management
Tight integration of an embedded solution with its corresponding connection
manager provides for an optimized solution. With both 3G and WLAN devices
embedded into the notebook, connection manager software can manage the
connection to different networks and different technologies both automatically
and transparently by making intelligent decisions about service availability,
ultimately providing the end user with an improved experience when access
wireless broadband services. Some PC manufacturers will develop advanced
connection managers that have a "one stop" application that incorporates multiple
service providers, all wired and wireless technologies, diagnostics and support,
and allows the user to develop customized profiles to make the setup and
usability of communications simple and easy to use.

Conclusion
The success of WLAN and increased sales in notebook computers has led to
an increased demand for wireless broadband access anywhere, anytime. 3G
networks provide the wide-area coverage that complements the limited coverage
provided by WLAN technology. 3G is a proven technology, enjoys favorable
economies of scale, provides investment protection and allows for interoperability
with existing WLAN networks. As a result, several industries have come together
to make notebooks embedded with 3G capabilities a reality. The integration
of 3G modules into the notebook and the use of more efficient antennas will
result in a high performance, reliable wireless broadband solution.

Benefits to End Users

Embedded 3G technology simplifies the end-user experience of staying connected
and provides notebook users with wireless broadband access in most areas
covered by their mobile phone subscription. Staying connected anywhere,
anytime improves the mobile worker’s productivity and effectiveness. The use of
internal antennas and tighter integration of hardware and software also provides
improved performance overall.

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Benefits to Enterprises
IT departments can provide their mobile workforce with secure, seamless
access to their corporate IT systems in areas covered by 3G—protecting
company assets and improving overall productivity. By giving users a
communication solution that works nationwide with “all you can eat”
plans, companies can eliminate the need to pay variable fees for WLAN
access. Furthermore, the deployment of embedded technologies provides
cost savings in areas of asset management, configuration, support and training.

The global success of 3G and the arrival of embedded 3G modules into notebooks are
making wide-area wireless broadband service a reality. These technologies are
converging inside the notebook to provide convenience, cost savings and optimized
performance. The entire value chain of end users, IT departments, notebook manufacturers
and service providers will all enjoy the benefit from this trend.

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