Nikkei Electronics Asia -- February 2007
Tech Feature
ULC Mobile Phones Reach Markets

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Jan 26, 2007 16:19 Nikkei Electronics Asia
After months of development, ultra-low-cost (ULC) handsets that cost as little as US$50 began shipping at the end of 2006, with more models at even lower prices scheduled for delivery in 2007 to markets in Brazil, Russia, India and China (BRIC). Chip makers are designing single-chip solutions to drive down component costs, while handset makers are stripping down software and specifications, retaining voice and text messaging functions only, in order to keep prices low.

With the developed markets now at saturation point, Nokia Corp and Motorola Inc are aggressively chasing the ULC market; over the next three years about two-thirds of new cellular users are expected to be in the developing world. The GSM Association (GSMA) predicts that several hundred million ULC models will ship by 2010.

ULC Launches
Motorola chose to launch its first ULC model, the Motofone, in India in November 2006. The Motofone runs on Motorola's stripped-down SCPL (Scalpel) design platform for Linux-based phones.

"What we want to do is bring the cell phone experience to users who have never used a phone before," said Steve Lalla, Motorola's VP, referring to the Motofone launch. "Not only is it affordable, but we've included voice prompts, icons, and menus to make it easier to make calls."

At 9mm thick, Motofone is marketed as Motorola's thinnest phone. Its screen displays simple graphics rather than text, providing the means to move between voice calls and text messaging, as well as to navigate and retrieve messages. Motofone is currently bundled with Indian carrier BSNL at a price of Rs1,650 (US$37) and doesn't come with features such as MP3 or video playback.

Nokia is expected to match Motorola's move by unveiling its own ultra-thin ULC model, the Barracuda, in 2007. Meanwhile, Samsung Electronics Co Ltd plans to roll out its cheapest model, priced at US$50, in 2007.

Single-Chip Migration
The evolution of ULC phones was made possible through the integration of the RF subsystem with the digital baseband processor on the same chip, leading to a drastically reduced bill of materials cost (BOM) for handset developers. In developing single-chip basebands, chip makers had to overcome low supply voltage, interfering with RF components.  Once the technical obstacles had been overcome, handset design houses were able to cut component costs by 75% and manufacturing cost by as much as 50%.

At the forefront of the single-chip baseband migration is Texas Instruments Inc (TI), whose LoCosto single-chip baseband powers both Motorola's Motofone and Nokia's Barracuda. By leveraging its DRP digital RF processor architecture, TI was able to integrate both RF and baseband functions into a single 90nm chip.

Including Nokia and Motorola, TI has already signed up 15 handset brands, including some of China's leading domestic brands, to develop handsets based on LoCosto.

Other ULC Solutions
While TI has adopted the single-chip approach, other players are coming up with different ways to help handset designers cut cost. ADI's Mercury reference platform features a multi-chip module for entry-level GPS/GPRS handsets. This platform is based on the AD6720 Atlas integrated analog/digital baseband processor. The AD6720 includes all digital and analog processing functions as well as power management in a single package. Sufficient on-chip zero-wait-state SRAM is provided for basic GSM functionality, and external memory can be added as needed for features such as GPRS.

Infineon Technologies has also begun volume production of its second-generation SoC, called the
E-GOLDvoice, with shipment targeted for the end of the first quarter of 2007 (see Fig). According to Infineon, the E-GOLDvoice chip will cut manufacturing costs to below US$16 for a handset, including a complete BOM. With a footprint of 8 x 8mm, the E-GOLDvoice chip combines a baseband processor, radio frequency transceiver, power management unit and static RAM, according to Infineon. Like the LoCosto, it supports basic function voice and short messaging functions with support for polyphonic ringtones playback. However, Infineon is producing the E-GOLDvoice chip on 130nm process as opposed to TI's 90nm process.

by Van Tran