Mobile Broadband Market Dynamics BV Raman CDMA Development Group October 3, 2007

Key Lessons Learned

Migration from 1G to 2G to 3G It took 2G technologies the better part of a decade to find widespread adoption.* Over optimism and growing pains are often intrinsic to the process that informs the introduction of any new technology.*

The migration to newer technologies takes longer, and is never as simple as it may seem.

2

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry”, IDC, September 2007

www.cdg.org

Key Lessons Learned

Evolutionary Change Mobile network operators, like others engaged in network-based enterprises, prefer a graceful evolutionary change to a disruptive revolutionary change.*

Graceful evolutionary change is preferred over disruptive revolutionary change.

2

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry,” IDC, September 2007

www.cdg.org

Key Lessons Learned

Compatibility and Interoperability The coordination endeavor requires an appropriate inclusive arena — usually a standard-setting body — in which industry players can meet to discuss and resolve their concerns and build consensus in a productive and expeditious manner.*

The process of ensuring compatibility and interoperability across multiple industries requires efficient standardsetting bodies, network maturity and business predictability. 2

*Source: “Past as a Guidepost to the Future: Reflections on the Continued Growth of the Mobile Communications Industry”, IDC, September 2007

www.cdg.org

India’s Targets set by DOT

2005 2007 2010

Telecom Subs

Internet Subs

Broadband Subs

(In Millions)

(In Millions) 6 18 40

(In Millions) 3 9 20

250 500

While we are well on the way to achieve our Telecom Subscriber Targets, we are way off the mark on Internet & Broadband Subscribers.

2

www.cdg.org

India Internet & Broadband Subscribers

10 6.7

8.1

7.7

6.9

Millions 5 0.9

1.3

1.6

2.1

1.8

9.3

8.6

2.3

0 Dec'05

Mar'06

Jun'06

Broadband Subs

Targets Broadband Internet

2005 3 Mln. 6 Mln.

Sep'06

Dec'06

Mar'07

Internet Subs 2007 9 Mln. 18 Mln.

2

www.cdg.org

Limitations to Internet & Broadband Penetration in India Limited Amount of Copper Deployed by Fixed Line Operators Including the incumbents, BSNL & MTNL. According to TRAI the Maximum number of Subs that can be accomodated is 9 Million. So What is the Solution? The Solution is to DEPLOY High Speed networks on diverse competing platforms. Need a Cogent Technology Agnostic Spectrum Management Policy Grow the emerging Advance Wireless Systems.

2

www.cdg.org

CDMA2000: Evolution of Services

Wireless Broadband Evolution CDMA2000 is leading the evolution to next generation mobile broadband services

Network Evolution All-IP Network For Fixed-Mobile Convergence (VoIP & data) Co-existence of Different Access Networks for Various Needs

y Coverage, Mobility, Capacity,QoS, Data Rates

Mobile Device Evolution Convergence of Communication, Computing & CE Platforms Multi-mode Devices Connect

Service Evolution User Behaviors Trend from Wired to Wireless Same Rich IP Apps and

to Various Access Networks

Services in all Environments

y Service Requirements, Availability, Cost …

y Ubiquitous & Consistent Experience Desired

2

www.cdg.org

CDMA2000 Service Evolution Same Rich IP Apps and Services in all environments

User Trend: Shift from Wired to Wireless y Ever increasing demand for more and higher quality video y Users sharing content within a traditional fixed environment (wireless through the home) y Place-shifting of content now accessible at all times and places with wireless

Individuals becoming content creators y Handsets now becoming media generation and storage devices y Wireless connection to social networks allows users to express themselves anytime, anywhere 2

User Generated Content on Social Networks www.cdg.org

EV-DO Rev. A: Leading wireless broadband The first All-IP, low-latency, broadband multimedia, multicasting and mobile VoIP network to be commercially deployed, with speeds over 3 Mbps

Telcel (Venzuela)

Movilnet (Venzuela)

Arobase Telecom (Cote d’Ivoire)

Bermuda Digital Communications (BDC)

Mobilkom (Czech Rep)

EOCG (Caribbean)

Telesystems or Ukraine

Skytel (Mongolia)

MTS First Wireless (Nigeria)

Telefonica O2 (Czech Rep)

Dozens of Rev A networks will be deployed in 2007 2 Logo Not Shown: Broadband Everywhere (Philippines)

www.cdg.org

CDMA2000 All-IP Deployment Scenarios A Packet-based network for unified voice, broadband data, and multimedia services

PSTN

• Centralized or Distributed network configuration • Local Exchange is not required • Cost-effective service even in very remote areas • Efficient usage of bandwidth • Can operate cost effectively over satellite links

Media Gateway

Ring

Centralized Centralized Server Server Media Gateway

PSTN

Local PSTN

Media Gateway

Media Gateway

PSTN Star

Distributed Distributed Server Server

PSTN

Chain

Media Gateway

2

Media Gateway

PSTN

Although Althoughbackhaul backhaulof ofremote remoteRF RFnetwork networkelements elementswill willremain remainaasignificant significantcost, cost,with with fewer sites, an all-IP CDMA2000 solution can significantly reduce the overall system fewer sites, an all-IP CDMA2000 solution can significantly reduce the overall systemcost. cost.

www.cdg.org

CDMA2000 Device Selection

CDMA2000: The Largest Selection of 3G Devices Over 1700 CDMA2000 devices have been introduced to the market Entry-level Personal Voice-centric Messaging Handsets Mobile Phones

EV-DO PC Cards

EV-DO USB modems

Fixed Wireless Phones

WorldModeTM Global Roaming Phones

PDAs

EV-DO Fixed Wireless Terminals

Television Phones Watch TV on a large screen from your mobile phone using TV Out cables

2

including 469 CDMA2000 1xEV-DO devices from 92 Manufacturers

Interactive Multimedia CE Devices

EV-DO PCexpress Embedded Modules for PC Notebooks

www.cdg.org

CDMA Fixed Wireless Devices Across 450, 800 and 1900 MHz bands

Aiji Systems AP-210

Aiji Systems F20

AnyData AXW-P1900PCO

Axesstel P830

DowTel WS-6110

LG 2 LST-3000 * CDMA450

Axesstel AXW-T450/ 800/1900

Axesstel PX110/120/130

Hantel HTP-1901

Huawei CP800 1X

AnyData AWL-200C

AnyData AXW-P1900

• Aiji Systems • AnyData • Audiovox • Axesstel

EVEV-DO Rev. A

EVEV-DO Rev. A

DowTel WS-2100

LG LST-250

Huawei ETS2000

AnyData AWR-E100C

DowTel WS-8000

LG LST-2500

Huawei SYF 005

EVEV-DO Rev. A

Sierra Wireless Digi MP 595 GPS Connect Port WAN Axesstel Ruggedized In-Vehicle LinkSys MV410*/420/430/440 Modem Wireless G 3G Broadband Gateway Wi-Fi Router EVEV-DO Rev. A

• Samsung design

• Hantel Telular Phonecell XP4P • Huawei • Hyundai Curitel Axesstel L-450/800/1900

EVEV-DO Rev. A

Telular Phonecell SX4T

Telular Phonecell SX5P

Kyocera KR1 Router

• Westech • DowTel

• Kison • Kyocera • LG • Motorola • NEC • RWT • Synertek • Standard Telecom • Sewon (Maxom) Maxom)

Telular Phonecell SX4e

Huawei ETS2051

LG LSP-3000

Huawei ETS1000/1200/1500

Huawei ETS2077

RWT FCT-CDMA

Telular SX6P-200C

Huawei ETS2200/2288/2500

Westech DTT-810/1910

Cypress Solutions CTM-140

LG LSP-340E

Westech DTP-810/1910

• Telular • ZTE

Note: Above devices are representative samples. This is not an all inclusive list

Novatel Wireless Ovation MCD3000

ZTE WP520B/560/920B

ZTE WF520F

ZTE WP960

www.cdg.org

CDMA2000 1xEV-DO Rev A Devices 26 Rev A devices –as of May 2007 - offer increased data speeds in both directions

Novatel Wireless Expedite E720 PCI Express Mini Card Toshiba W47T

Huawei EC 360

2

Novatel Wireless Merlin S720

Kyocera KR1 Mobile Router

* CDMA450

Pantech PX-500

Sierra Wireless AirCard 597E

Digi Connect Port WAN

Toshiba DRAPE

Sierra Wireless AirCard 595

UTStarcom 5800 (HTC Libra)

Axesstel MV110*/140 USB Modem

Sierra Wireless MC5725(V) PCI Express Mini Card

Sierra Wireless AirCard 595U USB Modem

Axesstel Sierra Wireless MV410*/420/430/440 MP 595 GPS 3G Broadband Gateway Ruggedized In-Vehicle Modem

Novatel Wireless Ovation MCD3000

LinkSys Wireless G Wi-Fi Router

www.cdg.org

CDMA2000 WorldModeTM Devices Global roaming enabled with CDMA2000/GSM/GPRS multi-mode/multi-band devices

Samsung SCH-A790/W109/A795/IP-A790

Motorola A840/A860

LGE W800

CDMA2000 1X/EV-DO/GSM/GPRS WorldMode Devices

Samsung SCH-i830 2 (EV-DO)

LGE KW-9200 (EV-DO)

Amoi CMA8301 (EV-DO)

Amoi V810 (EV-DO)

Samsung SCH-i819

LGE W810

Yulong Telecom Coolpad 728

Samsung Samsung Samsung Samsung Samsung Samsung Samsung SCH-W219 SCH-W379 SCH-W399 SCH-W531 SCH-W569 SCH-W579 SCH-V920

Yulong Telecom Coolpad 728B

UTStarcom T66

CECT C828

Yulong Telecom Yulong Telecom Coolpad 858T Coolpad C288

Daxian C8000

Hisense D806

ZTE H500

www.cdg.org

CDMA2000: Strong Evolution Path

CDMA: Time-to-Market Leadership in 3G and beyond CDMA

CDMA/TDM

OFDM

OFDM/OFDMA/MIMO/SDMA

MIMO

CDMA2000 Evolution Path

VoIP

CDMA2000

CDMA2000

EV-DO

EV-DO

1X

1xEV-DO

Rev A1

Rev B1

DL: 2.4 Mbps UL: 153 kbps (1.25 MHz)

DL: 153 kbps UL: 153 kbps (1.25 MHz)

DL: 3.1 Mbps UL: 1.8 Mbps (1.25 MHz)

DL: 6.2 – 73.5 Mbps2 UL: 3.6 - 27 Mbps2 (2.5 – 20 MHz)

UMB3 Requirement: DL: 140 - 291 Mbps4 UL: 34 – 79 Mbps (10 – 20 MHz)

WCDMA Evolution Path

VoIP

Rel-99

Rel-5

Rel-6

WCDMA

HSDPA

HSUPA

DL: 384 kbps UL: 384 kbps (5 MHz)

DL: 1.8 - 7.2 Mbps UL: 384 kbps (5 MHz)

DL: 1.8-14.4 Mbps UL: 5.72 Mbps (5 MHz)

Rel-7

Rel-8

HSPA+ HSPA+ Phase 15

Phase 25

Target: DL: 14 - 42 Mbps UL: 11 Mbps (5 MHz)

VoIP

LTE6

Requirement: DL: 150 Mbps UL: 50 Mbps (20 MHz)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Note: timeline depicts initial commercial availability of each technology. Those introduced beyond 2008 are under standardization and are subject to variability 1

EV-DO Rev A and Rev B incorporate OFDM for multicasting. Data rates are based on 64 QAM and a 2x20 MHz FDD band allocation and are scalable with the number of carriers assigned. Up to 15 carriers, up to 4.9 Mbps per carrier. 3 Multiple modes supported: CDMA, TDM, OFDM, OFDMA, LS-OFDM. New antenna techniques used: 4x4 MIMO and SDMA. Leverages EV-DO protocol stack. 4 Data rates are based on 2x20 MHz FDD band allocation and 4x4 MIMO. Data rate depends on the level of mobility. 2 5 Upper range of DL peak data rates for Release 7 and Release 8 introduce enhancements is based on 64 QAM, 2x2 MIMO. 6 Initial requirements are based on OFDMA in the DL and SC-FDMA in the UL, FDD, 64 QAM, 2 TX MIMO in DL, and 16 QAM single TX stream in UL. 2

www.cdg.org

EV-DO Rev A: Enhanced Mobile Broadband Higher spectral efficiency, faster data rates, greater symmetry, and lower latency Higher broadband data rates y 3.1 Mbps peak data rate on forward link y 1.8 Mbps peak data rate on reverse link Greater symmetry y Designed for symmetric traffic y Improves user experience for UL intensive applications (sending email, pictures, etc.) Higher spectral efficiency y Increased rate quantization on both forward and reverse link enables more efficient use of air link resources y 1.2 times Rel 0 forward link sector capacity y 3.4 times Rel 0 reverse link sector capacity Reduced latency y Support for delay sensitive applications such as VoIP, push-to-talk, video telephony, instant multi-media (IMM), video conferencing, and low-latency network gaming Optimized Quality of Serivce (QoS) y User-based (based on subscription), application-based, and flow-based prioritization DO Platinum Multicast y Economical delivery of rich content to the mass market. y 1.5 Mbps capacity with > 98% coverage Backward compatibility y Continued support for existing 1X and Rel 0 devices 2

www.cdg.org

EV-DO Rev B: Multi-carrier Broadband Higher performance with greater spectrum flexibility

Aggregates multiple EV-DO channels for higher performance y Software upgrade to existing Rev A channel cards y Allows deployment in “hot-zones” with high data demand

Higher broadband data rates y Peak data rates are proportional to the number of carriers aggregated - 2 RFs = 6.2 Mbps, 3 RFs = 9.3 Mbps

y Initial carrier bandwidth is 2.5 MHz (standard supports up 20 MHz)

Increased (wider) bandwidth y To support more users per sector or lower cost per megabyte y To encourage longer usage

Network flexibility y Allocation of bandwidth for new devices depends on application and network availability

Higher capacity y Improved spectral efficiency on both FL and RL due to multi-carrier transmissions y Better user experience throughout the cell coverage area

Backward compatibility 2

y Co-existence of 1X, Rev A and B devices in the same network y 1xEV-DO Rev A channel cards can be utilized www.cdg.org

Ultra Mobile Broadband (UMB) A technological breakthrough in next generation broadband services

Combines the best aspects of CDMA, TDM, LS-OFDM, OFDM, and OFDMA into a single air interface using sophisticated control and signaling mechanisms and advanced antenna techniques: y Multiple Input Multiple Output (MIMO) and Space Division Multiple Access (SDMA)

Will deliver ultra-high mobile broadband performance*: y Forward link: up to 291 Mbps y Reverse link: up to 79 Mbps y Average network latency: 16.8 msec y Voice over IP (VoIP): up to 500 simultaneous users Will enable the convergence of IP-based voice, broadband data, multimedia, information technology, entertainment and consumer electronic services Commercial availability is expected in early 2009 2

*Based on 2x20 MHz FDD band allocation and 4x4 MIMO. Latency is based on a 32-byte Return Trip Transmission (RTT). VoIP capacity is dependent upon the feature set enabled and network load.

www.cdg.org

CDMA2000 Performance

Site Count Comparison By Technology CDMA2000 requires the least number of cell sites for rural markets

133

Assumptions: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Coverage area = 1,000 sq. km. Subscriber density = 31 Subs/sq. km Available spectrum = 5 MHz Average voice traffic per sub = 200 MoU/month Average data traffic per sub = 5 Mb/month Wireless penetration = 50%, Carrier market share = 25% Voice usage = 100%, Voice BH = 10% Data usage = 100%, Data BH = 12% Simultaneous Calls/Sector/Carrier: EV-DO = 44, 1X = 35, GSM/EDGE = 6, WCDMA/HSDPA = 60, WiMAX = 25 Physical Layer FL data throughput (kbps): EV-DO = 1280, 1X = 350, GSM/EDGE = 86, WCDMA/HSDPA = 3600, WiMAX = 2300

75 66

15

22

EV-DO Rev. A (VoIP) @ 450 MHz

EV-DO Rev. A (VoIP) @ 800 MHz

2 Source: QUALCOMM, March 2007

27

CDMA 1X @ 800 MHz

WCDMA/HSDPA @2100 MHz

GSM/EDGE @900 MHz

WiMAX @2500 MHz

(Capacity Limited)

www.cdg.org

CDMA2000 Enables Lowers Tariffs CDMA2000 1X and EV-DO enables the lowest cost per bit and Erlang

Combined Voice and Data Network Expense (500 Minutes of Use)

USD $25.00

Network Expense/User/Month

GSM/GPRS $22.50

EDGE WCDMA

$20.00

1X 1X / EV-DO Rel. 0

$17.50

The Lower the better!

$15.00 $12.50 $10.00 $7.50 $5.00 $2.50 $0.00 10

20

30

40

50

60

70

80

90

100

Megabytes per User Operators Operatorsprefer prefernetwork networktechnologies technologiesthat thatare areaffordable affordableand andevolutionary evolutionary Source: The Economics of Wireless Data, http://www.qualcomm.com/main/whitepapers/WirelessMobileData.pdf 2 Assumptions: On demand Traffic: a) 15% of traffic demand occurs at the busy hour, b) 7,600 kbps / sq km at busy hour, c) 5MHz Multicast Traffic: a) 2,000 subscribers / cell, b) 30 live streaming minutes / day at 128kbps data rate, c) 1.25MHz

www.cdg.org

Worldwide Average Revenue Per User (ARPU) CDMA2000 will sustain the highest average revenue per user on a global basis

ARPU (USD)

Data Usage drives higher CDMA ARPU for Leading Wireless Technologies

$45 $40 $35 $30 $25 $20 $15 $10 $5 $0

2004 2005 2006 2007 2008 2009 2010 2011 GSM/GPRS/EDGE

CDMA2000

2

Source: Strategy Analytics, September 2006

www.cdg.org

Korea: CDMA2000 1xEV-DO Outpaces WiBRO When given a choice, Korean end-users chose 1xEV-DO over WiBRO

Q3 and Q4 2006 subscriber net addition totals: y 1,057 WiBRO subscribers since WiBRO’s commercial launch in 2006 (KT and SKT) y 1.8 million EV-DO subscribers (KTF and SKT) Total WiBRO roll-out costs: W620 billion

South Korean Wireless Broadband Subscriber Growth (Q3 & Q4 2006)

2,000,000

- SKT spent ~W170 billion - KT spent ~W450 billion

1,500,000

- Only available in select “zones” of the Seoul metro area

y Total EV-DO roll-out costs: W300 billion - SKT spent ~W200 billion (26 cities) - KTF spent ~W100 billion (6 cities - ~80% POPs coverage) - EV-DO had close to nationwide coverage when launched

1,000,000 500,000 0 WiBRO

EV-DO

EV-DO cost less to roll-out over a larger area

2

Source: Wireless Intelligence (1xEV-DO subscribers), media sources (WiBro subscribers, WiBro & EV-DO roll-out expenditures)

www.cdg.org

Conclusion CDMA2000 offers affordable telephony, Internet and multimedia access to large coverage areas that have a low population density y Rural Services: CDMA2000 addresses India’s national objectives by increasing telephony, Internet penetration, enterprise productivity, and improving vital services such as: - Telemedicine, remote learning, public safety, asset management, emergency and disaster relief, national security, telemetry, transportation and utility services, agriculture, tourism, etc.

y Coverage: CDMA2000 enables the largest coverage area using the lower 450 and 800 MHz frequency bands and extended base station coverage solutions. y Network Costs: The spectral efficiency of CDMA2000 and its All-IP architecture reduces the Total Cost of Ownership (TCO) of a network, improves performance and enables faster deployments.

2

y Entry-level Devices: A large selection of entry-level CDMA2000 handsets are currently available. Entry level CDMA devices now well below US$30. www.cdg.org

Conclusion (Cont.) CDMA2000 has been widely deployed in emerging and rural markets worldwide y Universal service: CDMA2000 is bridging the digital divide by providing affordable telephony and Internet access to some of the most remote places on earth. y Flexibility and Scalability: CDMA2000 has enabled operators to address both sparsely populated rural areas and densely populated urban areas, equally well. y Regulatory Environment: India needs a Technology Agnostic Spectrum Management Policy to enable continued economic development.

2

www.cdg.org

Thank You