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3G CDMA Latin America Regional ConferenceMay 15 & 16, 2007

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CDMA2000 as a Platform for Emerging MarketsFlavio Mansi

Vice President, Business Development3G CDMA Latin America Regional Conference

May 15-16, 2007

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3G CDMA Latin America Regional ConferenceMay 15 & 16, 2007

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CDMA2000 Competitive Advantage• Excellent RF propagation characteristics:

– Signals can travel longer distances– Fewer base stations are needed to cover wider areas– Network investment and operating costs are significantly reduced

• Spectrally efficient and mature technology:– Economically supports high-quality voice, and “always-on” broadband data,

and multimedia services – Unmatched network capacity and coverage

• Up to 168 users (155 Erlangs) of voice traffic per 5MHz sector/carrier 1 - More than 4 times GSM 2

• EV-DO Rev A provides up to 3.1 Mbps peak data rate per user - More than 20 times that of an EDGE network 3

– Improved security and privacy– Numerous value-added services designed to increase operator revenue– A simple and cost effective migration path to next generation services, that

preserves your investment• A 3G technology

– An excellent performance & value propositionNotes: 1. CDMA2000 1X with 1-way receive diversity at handset and 4-way Rx diversity at BTS (assuming 1% blocking).

2. GSM with AMR vocodor and re-use of 1:1Sources: 1. "Further Capacity Improvements in CDMA Cellular Systems", QUALCOMM Inc, Roberto Padovani

2. “GSM AMR Vocoders: Facts About Increased Voice Capacity”, QUALCOMM Internal Paper: Rao Yallapragada3. "EDGE Performance Evaluation”, Alecsander Eitan and Amir Gazit, Qualcomm Israel Ltd., March 2003

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3G CDMA Latin America Regional ConferenceMay 15 & 16, 2007

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1. Simulación QUALCOMM, ganancia SAIC no incluida2. Simulación QUALCOMM3. "Further Capacity Improvements in CDMA Cellular Systems", QUALCOMM Inc, Roberto Padovani, Asume 2-way Rx Div en la terminal y 4-way Rx

Diversity en la BTS. 4GV: Capacity Operating Point 24. Simulación QUALCOMM, 4GV: Capacity Operating Point 2

9x

EVRC

2FL Rx7x

EVRC

3x

AMR

12.2 kbps

4x

EVRCBase EFR 3/9

10x, 4GV

5xAMR 5.9

2xAMR 3/9

12x4GV, PIC11x, 4GV

7x

2FL Rx

3xAMR 1/1

12x, 4GV, 2FL Rx

14x, 2FL Rx4RL Rx

8x, 2FL RL4RL RX

GSM1 cdmaOne WCDMA2 1X3 DOrA (VoIP)4

287 – 448301 – 462

1/1

10x, EVRC2FL Rx

14x, 2FL Rx4RL Rx

Nota:Asume carga de tráfico de voz al 100%en sistemas móviles

Comparación en la Capacidad de voz(Erlangs por Sector en 2x10 MHz)

231 – 448245 – 462

1/1

107 – 246120 – 260

1/1

1341471/1

31 – 9041 – 1033/9 – 1/1

Erlangs/SectorUsuarios/SectorReuso de Frecuencias

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3G CDMA Latin America Regional ConferenceMay 15 & 16, 2007

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CDMA2000 requires the least number of cell sites for rural markeCDMA2000 requires the least number of cell sites for rural marketstsAssumptions:1. Coverage area = 1,000 sq. km.2. Subscriber density = 31 Subs/sq. km3. Available spectrum = 5 MHz4. Average voice traffic per sub = 200 MoU/month5. Average data traffic per sub = 5 Mb/month6. Wireless penetration = 50%, Carrier market share = 25%7. Voice usage = 100%, Voice BH = 10%8. Data usage = 100%, Data BH = 12%9. Simultaneous Calls/Sector/Carrier: EV-DO = 44, 1X = 35, GSM/EDGE = 6, WCDMA/HSDPA = 60, WiMAX = 2510. Physical Layer FL data throughput (kbps): EV-DO = 1280, 1X = 350, GSM/EDGE = 86, WCDMA/HSDPA = 3600, WiMAX = 2300

5353

2424

EV-DO/VoIP@800 MHz

2727

1X@800 MHz

WCDMA/HSDPA@2100 MHz

7575

GSM/EDGE@900 MHz

175175

WiMAX@2500 MHz

Source: QUALCOMM, September 2006

Less cell sites - lower total cost

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3G CDMA Latin America Regional ConferenceMay 15 & 16, 2007

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Fixed WirelessPhones

Data Usage

VideoPhones

KaraokePhones

Voice+SMSBrowserPhonesVoice Only

M2MMeters

Broadband Laptop PCs

PDAPhones

VideoConferencing

Voice Devices

NavigationDevices

TelemetryModules

GamePhones

Mid Tier

High

Entry Level

Price Tier

CDMA2000 Provides Greater Segmentation to Address All Market Needs

Location Trackers

WorldPhones

Smart Phones

MusicPhones

PC DataCards

ConsumerElectronics

Mobile TVPhones

BroadbandModems

USBModems

Public Safety Phones

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MotorolaC210

LGRD2330

KyoceraK112

Huawei C218

HaierD1000

JingpengSpektra 101

SamsungN 380

ZTEC133

Nokia1255

ZTEC150

SamsungN500

BREWBREW--enabled lowenabled low--end phonesend phones

LGRD2340

LGRD2430

LGRD2530

LGRD2630

UTStarcomC1122

38 entry-level CDMA handsets from 13 suppliersNotes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$50.

2. Only devices shipped in volumes above 10,000 units are shown.

Sub-US$50

MotorolaC131

LGRD2535

LGRD2670

SamsungS109

KyoceraKX 17

CDMA2000 Provides a Wide Selection of Affordable DevicesCompetition and economies of scales continue to drive down prices

Sub-US$40Sub-US$30

ZTEC160

LG2750

Rose631

Jingpeng101

TCL401

LGRD2650

LGRD2690

LGRD2710

MotorolaW150i

HaierC1000

HuaweiC2205

JingpengC131

JingpengC132

LG2530

LG3330

Legend: Color Screen Handsets

ZTE204

ZTE203

ZTE202

Kimpo761

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0

50

100

150

200

2005 2006 2007 2008 2009 2010 2011

3G CDMA: Sub-US$50 Devices

(Millions)Sub-US$50 3G CDMA2000 Handset Shipments

Source: Shailendra Pandey, Research Analyst, Mobile Wireless, ABI Research, March 2007

Affordability will expand the reach of 3G CDMA

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Providing Universal Services 3G is Connecting Citizens to Voice & Internet ServicesIndia• Reliance will meet universal service obligations by

providing 3G service to 48,310 villages that don’t have public phone facilities1

• Shyam Telecom has equipped a fleet of around 200 self-employed rickshaw drivers with a mobile calling office, including fax2

Dominican Republic• Tricom deployed over 1,700 public pay phones in

underserved rural areas. These phones will eventually be used for high-speed Internet access3

Uganda• MTN and Grameen Bank helped the economy of

villages by providing microcredtis to deploy CDMA WLL “Village Phones” @ 800 MHz4

Ecuador• Edumasters installed 3G kiosks at several public

schools to provide free Internet access. Panama is next.5

Chile• BellSouth provided 3G broadband access to 667

schools nationwide6

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Fulfilling Public Safety Initiatives3G is protecting and saving livesU.S.• 3G carriers offer E911 services with accurate (5-30m)

position location capabilities• The Broward County (Florida) Sheriff’s Office uses 3G

for child protection services

Japan• SECOM launched a nationwide location-based security

service

China• Unicom donated 150 kid tracker devices to the Beijing

School of the Blind3

Korea• SKT and National Police Agency introduced a Missing

Children Service

Norway• Nordisk Mobiltelefon delivered a custom push-to-talk

GUI for Norwegian Police

Canada• Ontario Police quickly access vital information

(including fingerprints IDs) and respond to emergencies instantly with position location dispatch

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Conclusion

• The “CDMA2000 Rural Connectivity Solution” offers affordable telephony, Internet and multimedia access to large coverage areas that have a low population density

• Rural Services: CDMA2000 addresses a country’s national objectives by increasing telephony, Internet penetration, enterprise productivity, and improving vital services including:

– Telemedicine, remote learning, public safety, asset management, emergency and disaster relief, national security, telemetry, transportation and utility services, agriculture, tourism, etc.

• Coverage: CDMA2000 enables the largest coverage area using the lower (warmer) 450 and 800 MHz frequency bands and extended base station coverage solutions.

• 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.

• Entry-level Devices: A large selection of entry-level CDMA2000 handsets are currently available. The average price for these devices is expected to approach $33 by 2009.

Thank You!