Sequans Silicon to Power New WiMAX CPE & Devices

By combining several silicon functional blocks on a single chip and using a
"state of the art" 65nm semiconductor process, Sequans Communications Inc. has
developed a family of WiMAX components that has the potential to enable a mass
market for WiMAX CPE and mobile/ portable devices.  It’s that mass market that
semiconductor companies urgently need to become profitable.  Selling huge volumes
of chips increases economies of scale, which drives down manufacturing costs and
bill of materials prices.  This results in lower cost, higher performance end
user products.  If there is sufficient customer demand, a virtuous cycle takes
hold.  This trend is clearly evident in smart phones, notebook PCs, set top boxes
and other electronic gizmos and gadgets.  With good customer acceptance, more and
more functions are packed into smaller and less expensive devices.

Earlier this year, we interviewed Sequans executives and moderated a panel
session in which they participated (see references 1 & 2 below).  In 2010, we expect to see the Sequans SQN 1200 family of
silicon to be embedded in new types of multi-functional WiMAX
CPE, portable WiFi hot spots with integrated WiMAX radios, netbooks and (at long
last) smart phones with WiMAX based mobile Internet access.  That’s a lot to look
forward to, but there’s also promise and potential for a whole lot more.

In fact, many new and different mobile WiMAX devices are possible, including
eReaders, smart meters, multi-user portable game players, video cameras and
surveillance, and health monitoring instruments.  If the components are low cost,
highly integrated functionality, low power consumption and small size, then the
ingredients for new such new devices are in place. 

However, the key to realizing
a wide variety of devices will be a combination of several factors that are
predominantly controlled by the network operator.  Those include WiMAX coverage,
pricing plans, and business models network operators adopt with content
providers.  For example, the mobile/ portable subscriber would like wide
coverage, excellent availability, good performance, but only one bill from the
network provider-independent of the number of wireless devices owned which use
the WiMAX network.  (See Reference 3.  for more details on possible
devices for mobile broadband networks.)

Sequans Silicon Solution for Mobile WiMAX CPE and Devices

Taking advantage of Moore’s Law (to realize ever higher silicon functional
density), in house RF and mixed signal expertise, and the ever- popular ARM
core, Sequans has pulled off a tri-fecta with its latest generation of WiMAX
silicon. 

The SQN 1220 integrates a baseband (IEEE 802.16e-2005 MAC and PHY)
element, tri-band RF (2.3 – 2.4 GHz, 2.5 – 2.7 GHz, 3.3 – 3.8 GHz)
module, and an (ARM based) applications processor- all on a single
silicon die.  To an old time data communications chip architect and
microprocessor applications engineer (like this author), it’s an amazing feat!
The mixed signal processing (digital and analog) capability is especially
impressive.  Additionally, the SQN1220 implements dual transmit channels, which
enable uplink MIMO (as specified in Release 1.5 of the WiMAX Forum system
profile).  As pointed out in our first Sequans article (see Reference 1.) uplink
MIMO results in significantly increased link budget, improved cell coverage,
lower overall power consumption, and lower system cost.

The on-chip applications processor could be used for a variety of tasks,
including: SIP for VoIP, IMS and FMC functions, IP routing over the WiMAX access
network, residential gateway, diagnostics and test functions, smart meter or
instrument reading and control, user interface for a LCD screen and/or keyboard,
device commands and status indicators.  Ultimately, it will be left to the
ingenuity of the device maker to specify the software functions to be
implemented on the on-chip processor.

The SQN1210 is a single die, baseband – RF combo chip without the applications
processor.  It is designed for the smallest of mobile devices, such as mobile
handsets, smart phones, MIDs, and netbooks.  It may be used with notebook PCs
through USB dongles or ExpressCards, or directly embedded in PCI Express
MiniCards or Half MiniCards.  Zyxel has announced their use of the SQN1210 in a
USB dongle- the ZyXEL MAX-507 USB.

Care has been taken to reduce power consumption, which is a critical factor for
all mobile devices.  The SQN1200 family employs the state-of-the-art power
reduction techniques to extend battery life.  Smart software algorithms optimize
resource management for additional power reduction improvements.  The SQN1220 and
SQN1210 consume less than 350 mW of power with fully loaded MIMO traffic and
less than 0.5 mW in standby.

Sequans’ S3MAX software package includes the complete IEEE 802.16e-2005
software stack and all drivers and host applications required for a WiMAX end
system.  Host software includes drivers for all major operating systems (Windows
XP, Vista, Windows CE, MAC OS, and Linux), Sequans’ own connection manager, a
supplicant engine for EAP authentication, a fully-fledged OMA-DM client, and a
field diagnostic tool.  S3MAX also provides a full simulation and verification
environment, which can be easily customized to address specific device maker
needs.

Sequans has sampled the SQN1210 and SQN1220 chips to more than a dozen device
manufacturers who are currently developing next-generation products using that
silicon.  A wide variety of WiMAX products are now in design: USB dongles,
embedded modules for notebooks/netbooks/CE devices, multimode cellular handsets,
portable hotspots, and WiMAX CPE.  Let’s now examine the functionality of a few
of those new products.

In addition to the customers who are actively developing new products, there is
another group of manufacturers evaluating the SQN1200 family chips.  This
number is more than a dozen and is increasing over time.  Sequans expects that many of
these will convert to the ‘active development’ category above once they
recognize the value of the integration we’ve done, the performance, the small
footprint, the low power consumption, the IOT maturity, other features and
benefits. 

In 2010, Sequans expects its silicon to be inside new WiMAX CPE and mobile
devices, to be sold by many different WiMAX network operators.  Those operators
include: UQ Communications (Japan), Packet 1 (Malaysia), Yota and Scartel
(Russia), Axtel (Mexico), Unwire (Australia), Korea Telecom (South Korea), Globe
(Phillipines), Clearwire and its MVNO partner companies (e.g.  Sprint, Comcast,
and TWC).

Let’s look at a few of the new WiMAX end point products expected next year.

Multi-function WiMAX CPE

Consider that most WiMAX deployments today are for fixed broadband access-
effectively a DSL or cable modem replacement.  The SQN 1220 can be exploited in
WiMAX CPE for that application, which includes VoIP as well as a WiMAX modem
with a USB or Ethernet interface to a desktop or notebook PC.  Up until now, VoIP
over WiMAX required multiple boxes and cables.  With VoIP integrated into WiMAX
CPE there is only one box you plug your phone and PC into. 

Craig Miller, Sequans Business Development and Marketing Manager, says that
there are "about a half dozen" customers working on this type of WiMAX CPE for
2010 commercial availability.  Some of those products are currently being tested
in certification labs at the WiMAX Forum and network operators, according to Mr. 
Miller.  Sequans says their SQN1220 solution enables the WiMAX industry’s lowest
cost WiMAX CPE.

Sequans has partnered with Hellosoft to provide a very compact and cost
effective VOIP/ WiMAX capability for CPE.  They have integrated the Hellosoft’s
VOIP media engine into the SQN1220.  According to Craig Miller, " It’s a proven
set of high quality voice codecs available to customers developing VoIP CPE, and
it is available as part of our development license – customers do not need to
negotiate a separate license with Hellosoft.  Our integration effort means that
customers have less software integration and test effort to perform on their
own.  This should reduce their time to market and their development costs.  And,
since these codecs execute on the embedded application processor in the SQN1220,
the VoIP solution is extremely low cost."

Sequans CEO Georges Karam: "With Hellosoft’s VOIP media engine solution, we are
reducing complexity for our customers by offering a pre-integrated,
pre-validated VoIP and Mobile WiMAX total solution.  Adding Hellosoft’s widely
accepted and high quality voice capability to our already highly integrated chip
underscores our commitment to providing the highest performance at the lowest
cost, and to moving WiMAX toward mass market acceptance."

Opinion:  While Vonage offers a VoIP service over any broadband
connection, it would be more attractive if the WiMAX network operator offered
VoIP over (fixed) WiMAX service.  We understand that Clearwire offers such a VoIP
over (fixed) WiMAX service in all of the nation-wide markets that they are
deploying.  We believe that VoIP will have huge growth outside the U.S.  and that VoIP over WiMAX will be a very viable service if the CPE and the tariff are
reasonably priced.

4G Personal WiFi Hot Spots

Best exemplified by Clearwire’s Clearspot (made by Cradle Point), a 4G personal
hot spot is a battery powered WiFi AP/Router that fits in a briefcase.  You can
connect your notebook PC, iPOD touch, iPhone (or other WiFi equipped smart
phone), and other WiFi enabled gadgets to this portable hot spot, as long as
they are within 15 to 20 meters away.

Cisco has announced its intention to make such a unit this year.  Sprint sells a MiFi hot spot that connects to its 3G- EVDO based network.

Currently, 4G personal hotspots use a USB connection to connect to an external
WiMAX modem (AKA as a USB dongle or WiMAX dongle).  But in 2010 we expect to see
the WiMAX modem functionality integrated into the hotspot.  Mr.  Miller states, "Sequans
has several customers developing integrated WiFi/WiMAX portable hot spots." We
think this is a great idea – for both portable and in-home use.

Smart Phones with embedded WiMAX

To date, the only commercially available WiMAX mobile phone we are aware of is
an HTC device sold by Yota in Russia.  That device uses an earlier generation of Sequans silicon (the SQN 1130).  While no other WiMAX equipped smart phones have
been announced, we believe that HTC and Samsung will introduce such devices in
2010.  Sequans says that they have a couple of customers developing smart phones
with their new generation of WiMAX chips.  Obviously, they can’t disclose names
or timeframes.

Opinion: T his author independently concludes that the HTC phone will use
the SQN 1210.  We have tried to confirm this with HTC but were told that they
don’t comment on unannounced products.  We think the Sprint tri-mode phone
scheduled for next year will be from Samsung, as that company already has
produced the Mondi MID that works on CLEAR.  Furthermore, we think that the
mobile WiMAX enabled phones will use either GSM or CDMA for voice, rather than
VoIP over WiMAX.  This is because there are several problems with mobile VoIP,
including QOS guarantees, session continuity and handover/ inter-working with
cellular voice and the PSTN (or other TDM based voice networks). 

Columbia University Professor Henning Schulzrinne says,"Session continuity
between WiFi and 3G doesn’t work, in general.  I think the WiMAX problem is made
worse by the fact that initial deployments are going to be pretty spotty, so
vertical hand-off becomes more important than for traditional cellular voice."

Summary

Sequans believes they’re leading the WiMAX industry in the direction of ‘mass
market’ status, in the same way as WiFi ramped up when highly integrated
components made low cost devices and embedded interfaces ubiquitous.  The SQN1200
family is so highly integrated that it has the potential to remove cost as a
barrier to growth and adoption by device manufacturers.  This capability is
perfectly timed now that WiMAX network operators are finally showing signs of
the kind of broad coverage that could represent a very significant market
opportunity for the device manufacturers.  Sequans’ Craig Miller, "We believe
that mass market WiMAX can be a real phenomenon now – all the pieces are in
place." And we can’t disagree. 

In our opinion, Sequans is providing very valuable silicon and software
technology to the rest of the WiMAX ecosystem.  It is now up to the network
operators and device makers to exploit that technology to build a healthy
business model and move mobile WiMAX forward toward mass-market status.

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References