AT-ZXD332-0500-ITP-Wireless1WhatYourParentsNeverToldYouAboutWirelessTelecomITPWirelessModuleTelecomITPWirelessModuleFebruary26,2001February26,2001CONFIDENTIALThisreportcontainsinformationthatisconfidentialandproprietarytoMcKinsey&CompanyandissolelyfortheuseofMcKinsey&Companypersonnel.Nopartofitmaybeused,circulated,quoted,orreproducedfordistributionoutsideMcKinsey&Company.Ifyouarenottheintendedrecipientofthisreport,youareherebynotifiedthattheuse,circulation,quoting,orreproducingofthisreportisstrictlyprohibitedandmaybeunlawful.JasonRabbinoJasonRabbinoMcKinsey&CompanyMcKinsey&Company2AQUICKCONTEMPORARYWIRELESSKNOWLEDGEQUIZ*FootnoteSource:Sources•WhatU.S.carriersuccessfullybid$2.9billionfor44wirelesslicensesintheJanuaryauctions?•Wherewillthefirstfull-scaledeploymentof3rdGenerationwirelesstechnologybelaunched?•HowmanywirelesscarriersarebiddingonthefournextgenerationwirelesslicensesinFrance?•Whatcompanyispoisedtobecometheworld’s#1manufacturerofcellularphones?•Howmanysatellitesmadeupthenow-defunctIridiumsystem?•WhenwasthefirstU.S.cellularsystemactivated?3•Wireless101•Wirelessvoice•Wirelessdata•Industryleaders•ThefutureofwirelessTODAY’SDISCUSSION4•Wireless101•Wirelessvoice•Wirelessdata•Industryleaders•ThefutureofwirelessTODAY’SDISCUSSION5INTHEBEGINNING:SIGNALSANDFREQUENCIESWirelessisthetransferofinformationviaradiowavesABAnalogsignal•Onecompletewave=onecycle•#ofcycles/second=frequency•FrequencyismeasuredinhertzDigitalsignal•Digitalsignalsarebinary(on/off)•Digitalsignalsuseananalogcarrier,theon/offpatternsrepresentdata,butcannotcarryitFrequenciesofcommonitemsHumanvoice2000HzFMradio88MHzTVchannel60746MHzCellularphones700-1990MHzLargesatellitedish4.2GHzVisiblelight500THzSource:Beginner'sGuidetoRFandWireless,McKinsey&Co.6THERADIOSPECTRUMFrequencyrangeCommunicationsUses/services*30-50MhzWalkie-talkies,cordlessphones54-72MhzTVchannels2-488-108MhzFMradio512-825MhzTVchannels21-69825-849MhzCellphones869-894MhzCellphonetowers928-932MhzRadiopaging1400-1427MhzPassiveradioastronomy1559-1610MhzGPSsatellites1610-1626MhzLowEarthorbitingsatellites1850-1990MhzPCSwirelessGuidetosomebasiccommunicationallocationsoftheradiospectrum*U.S.allocationsonly.Oftendifferentthaninternationalallocationofspectrum.Source:NTIA,McKinsey&Co.,FCC7INTROCELLULAR:GETTINGCONNECTED,STAYINGCONNECTEDABCDInitialconnection•Everycellsitecontinuallytransmitsacontrolsignal(SIC)*•Whenthecellphoneisturnedon,itsearchesforcontrolsignalsandrespondswithitsown•Whileallsitesreceivethecellphonecontrolsignal,theonereceivingitwiththehighestpowerbecomesthecontrolcell(TowerCinourexample)•Thecontrolcellmonitorsthephone’ssignallevel•Whenaneighboringcellbeginstoreceiveahighersignalstrength,thecallistransferred(fromcellCtocellD)•Thistransferisknownasthe“hand-off”CDThehandoff*SystemIdentificationCode(carrier-specific5digitnumberassignedbytheFCC)Source:McKinsey&Co.8*SeveralMSCscanbecombinedintoamasterMobileTelephoneSwitchingOffice(MTSO)foracoveragearea/citySource:ComputerTechnologyResearchCorp,Nortel,Ericsson,MotorolaCellularradionetworkILLUSTRATIVEVLRHLRVLRHLRMSCBSCBSCBSCMobileswitchingnetworkFixedtelephonynetworkMSCBSCMSCBTSMSVRLHLREIRACExchangeExchangeExchangeExchangeExchangeExchangeGatewayGatewayswitchswitchInter-MSCbackbonenetworkBASICMOBILENETWORKCOMPONENTSANDTERMINOLOGYTransitTransitbackbonebackbonenetwork...