2006GSM Association

www.gsmworld.com

Dublin Offi ce

GSM Association Block 2Deansgrange Business ParkDeansgrangeCo. DublinIreland

Tel: +353 1 289 1800Fax: +353 1 289 1551Email: info@gsm.orgWeb: www.gsmworld.com

London Offi ce

GSM Association1st Floor Mid City Place71 High HolbornLondon WC1V 6EAUnited Kingdom

Tel: +44 (0) 207 759 2300Fax: +44 (0) 207 759 2301Email: info@gsm.orgWeb: www.gsmworld.com

In the last year, the GSM Association

successfully created clear policies and

delivered solutions to market that are set

to drive growth for the mobile industry,

both in terms of subscriber numbers

and value.

As established markets approach 100% penetration, the challenge for the industry has been to connect existing customers to new services that will boost revenue. The GSMA has helped spearhead this goal by establishing itself as the leading voice for the mobile operator community on public policy issues such as spectrum management and the evolution of mobile technology. Other success stories in developed markets include the completion of interoperability trials for value-added services such as messaging.

Elsewhere, the potential for growth in emerging markets is huge. Our continued efforts to create genuine momentum in developing markets was enhanced by the Emerging Market Handset programme, resulting in the delivery of the industry’s fi rst sub $30 handset. There can be no doubt that mobile systems now represent the most effective means of bridging the digital divide, demonstrating the social and economic benefi ts of such technology.

As the global body representing operators worldwide, the GSMA is focused on maximising investment opportunity for the industry as a whole and minimising any potential risk. In 2006 the GSMA remains committed to delivering even greater value to its membership and the wider mobile industry.

Robert G. ConwayCEO and Member of the BoardGSM Association

In June this year the mobile phone industry

celebrated an historic milestone, achieving

the second billionth GSM mobile phone

connection in the world. The speed at

which such growth has occurred is an

incredible accomplishment. While it took

twelve years for the industry to reach

the fi rst billion connections, the second

billion has been achieved in just two and

a half years. Today, over one quarter of

the planet’s population use GSM services,

making it the world’s fastest growing

communications technology of all time.

The challenge now is to build on such success. The GSM Association’s primary driver is to improve the business opportunities for its members. A strict agenda has been set for 2006, focused on the challenges that lie ahead.

This includes the promotion of a positive regulatory environment, effective spectrum management, the seamless interaction of new radio access technologies, and the ability for all industry players to compete on a level playing fi eld. The GSMA is intent on driving sustainable growth in both developed and emerging markets, whilst at the same time adhering to the basic GSM principle of interoperable standards delivering seamless services across networks.

With your help, we look forward to welcoming the next billion GSM customers.

Craig EhrlichChairman of the BoardGSM Association

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Global System for Mobile communications

The GSM Association is the global trade association that exists to promote, protect and enhance the interests of GSM mobile operators globally. At the end of July 2006, it consisted of 699 2G & 3GSM mobile operators and 185 GSM manufacturers and suppliers.

Founded in �987 by �5 operators committed to the joint development of a cross border digital system for mobile communications, the Association’s members now provide mobile services to over 2 billion customers across 214 countries and territories around the world.

Since its introduction our members and staff have created the landscape of success for global mobile communications via GSM. Ours is a story of international cooperation and collaboration, between people, companies and governments to create the world’s first global wireless network.

The GSMA aims to accelerate the implementation of collectively identified, commercially prioritised operator requirements and to take leadership in representing the global GSM mobile operator community with one voice on a wide variety of issues nationally, regionally and globally.

The GSM standard is a living and evolving wireless communications standard that already offers an extensive and feature-rich ‘family’ of voice and data services. The GSM family consists of GSM, General Packet Radio Service (GPRS), Enhanced Data rates for GSM Evolution (EDGE) and third generation GSM services (3GSM) based on the latest WCDMA technology. Together these platforms create GSM - The Wireless Evolution.

What is the GSM Association?

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The GSMA is the operator-led trade association

tackling critical path commercial and strategic

issues on behalf of the global mobile industry.

Encompassing public policy, strategic and

technical initiatives, the GSMA focuses on

ensuring wireless services are available to the

greatest number of people on a global basis,

thereby enhancing the value of mobile services

to individual users and national economies while

creating new business opportunities for operators

and their supplier partners.

GSM Association Structure

GSM Association Board

Formed in 2003, the Board provides the Association’s membership with a strong voice, clear direction, and fast decision making. The Board is comprised of 23 CEO-level members representing the global GSM mobile operator community. �2 seats are pre-selected for the �2 largest operators, and there are 9 rotating seats to ensure the Board represents the geographic and cultural diversity of the GSM operator community. The CEO of the GSMA and the Chairman of the Executive Management Committee also sit on the Board. Within the Board, 3 sub committees also exist; Finance, Public Policy and Strategy.

Chairman

Craig Ehrlich, Hutchison Mobile, is Chairman of the GSMA Board. This is an elected position voted for by the Board and has a two year tenure. Craig was re-elected in February 2005.

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Chief Executive Offi cer

Robert G. Conway is a member of the Board, and is responsible for the overall management of the GSM Association. He has held the CEO position since �999.

GSMA Structure

The structure in place enables the GSMA Board to represent the operator community and defi ne the Association’s strategic direction. The priorities it identifi es are then assigned to specially created initiative teams or the appropriate groups through the Public Policy Committee or the EMC. This structure is designed to operate in a fast-moving environment, to identify specifi c goals and to deliver these according to pre-defi ned timetables.

Executive Management Committee (EMC)

The role of the EMC is to provide leadership in the areas of technology, products and services, and provide guidance to the GSMA Board on its strategy and vision. This work is then implemented via the GSMA’s various Special Project teams and Working Groups, all of which report directly to the EMC.

Working Groups & Task Forces/Projects

There are several permanent Working Groups that concentrate on issues that are fundamental to the GSM community – such as interconnectivity, roaming, security and service development – as well as a number of Regional Interest Groups. These groups comprise representatives and specialist experts from operator and Associate Member companies. In addition, Task Forces are created for specifi c initiatives and then disbanded when their goals have been achieved.

GSM Association Offi cers

The GSM Association offi cers – including the Chief Financial Offi cer, Chief Marketing Offi cer, Chief Strategy Offi cer, Chief Technical Offi cer, General Counsel, and Chief Government and Regulatory Affairs Offi cer – support and guide GSMA groups in achieving key deliverables.

GSM Association Professional Staff

With offi ces in Dublin and London, the GSMA professional staff comprises of GSMA offi cers, project directors and dedicated staff with specialist expertise in areas such as legal, marketing and communications, project management, public policy and strategy. This team is responsible for serving the needs of the GSMA Membership while guiding and shaping policy to ensure the GSMA continues in its leadership role within the global wireless communications industry.

GSM (Global System for Mobile communications) is an evolving

wireless communications standard that already offers an extensive

and feature-rich ‘family’ of voice and multimedia services. The GSM

family of technologies consists of GSM, General Packet Radio Service

(GPRS), Enhanced Data rates for GSM Evolution (EDGE), and third

generation GSM services (3GSM) also known as WCDMA (Wideband

Code Division Multiple Access) and its evolution, HSPA (High Speed

Packet Access). Together these technologies underpin the GSM platform,

the world’s fastest growing communications technology of all time and

the leading global mobile standard, spanning over 2�0 countries. The

deployment of GSM technology provides both backward and forward

compatibility, future proofing carrier network investment.

Technology Focus

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GSM Technology Family

GSM

The GSM standard is an open, digital cellular technology used for transmitting mobile voice and data services. It supports data transfer speeds of up to 9.6 kbit/s, allowing the transmission of basic data services such as SMS (Short Message Service). A major benefit is its international roaming capability, allowing users to access the same services when travelling abroad as at home.

GSM technology is in use by over one in four of the world’s population - by June 2006 there were more than 2 billion GSM subscribers, representing over 80% of the world’s cellular market.

GPRS

GPRS-enabled networks offer ‘always-on’ data rates of up to 40 kbit/s, giving users a similar access speed to a dial-up modem, but with the convenience of being able to connect from anywhere. GPRS customers enjoy advanced, feature-rich data services such as colour Internet browsing, and powerful visual communications such as multimedia messaging and location-based services.

EDGE

Further enhancements to GSM networks can be achieved by deploying EDGE technology. EDGE provides up to three times the data capacity and throughput of GPRS. EDGE therefore enables the delivery of advanced mobile services such as the downloading of video and music clips, full multimedia messaging, high-speed colour Internet access and e-mail on the move.

3GSM

3GSM enables the global provision of mobile multimedia services such as music, TV and video, rich entertainment content and Internet access. The technology on which 3GSM services are delivered is based on a GSM network enhanced with a Wideband CDMA (WCDMA) air interface – the over-the-air transmission element. Global operators, in conjunction with the 3G Partnership Project (3GPP) standards organisation, have developed 3GSM as an open standard. This interoperability of systems and services will ensure the continuation of the worldwide roaming experience users have enjoyed with GSM technology.

3GSM Evolution

The 3GSM Evolution describes the seamless, compatible evolutionary path of enhancements to the existing 3GSM technology family that will offer GSM operators higher data transfer speeds and greater system capacity. The 3GSM evolutionary path has a series of well defined technology enhancements. The first to be realised is the downlink performance improvement – High Speed Downlink Packet Access (HSDPA).

HSDPA already delivers a 4-5 fold increase in downlink data speeds, enabling high-speed Internet access and rapid download of emails with attachments, as well as access to wireless audio and full-motion video services. Enhancements to the uplink data speed are also part of the evolutionary path. This will be known as High Speed Uplink Packet Access (HSUPA). Jointly, downlink and uplink enhancements are referred to as HSPA (High Speed Packet Access) services, and will further enhance user experiences especially where data is shared between users, for example interactive multi-player games.

GSM Association Events

The GSM Association manages many different events with both internal and external focuses. These range from the GSM industry fl agship event – the 3GSM World Congress – to the prestigious & dynamic GSM Association Awards.

For further information on GSM Association events, please contact conf@gsm.org or visit the events page of www.gsmworld.com

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3GSM World Congress

For the first time in 2007, the 3GSM World Congress will be produced and managed by GSM Conference Ltd., a wholly owned subsidiary of the GSM Association. The 3GSM World Congress is the world’s leading mobile communications conference and exhibition. The Congress is now the most recognised event on the telecoms calendar.

In 2006, the event re-located to Barcelona in response to rising attendance and growing demand for exhibition and conferencing space as Cannes reached full capacity. In 2006, the Congress attracted more than 962 exhibitors, over 5�,000 visitors, and nearly �,200 media.

The GSM Association’s Leadership Summit – the industry’s strategy-setting gathering of CEOs – takes place on the eve of the 3GSM World Congress, while its annual Awards ceremony, recognizing the latest industry innovations, is another highlight of Congress week.

For more details please go to: www.3gsmworldcongress.com

GSM Association Leadership Summit (AGM)

The Leadership Summit is a CEO level event with a very different and unique program, designed exclusively for mobile industry leaders exclusive to the GSM Association Membership. It provides an opportunity to hear directly from leading operator CEOs on the issues that they believe really affect the mobile business around the globe.

For more details, please go to: www.gsmworld.com/events

GSM Association Awards

In 2006, Barcelona’s National Palace was the new setting for the GSM Association’s exclusive Awards Dinner. The Palace is an opulent and historic building, located beside the venue for the 3GSM World Congress, the world’s premier mobile industry event.

The presentation of Awards in categories that include Applications, Entertainment, Handsets, Marketing, Mobile in the Community and Technical will take place during the 3GSM World Congress 07.

Full details can be found on www.gsmworld.com/awards. In the meantime, our Awards team (awards@gsm.org) are happy to answer any questions you may have.

3GSM World Congress Asia

This event attracts key operators, vendors and industry players from across the Asia Pacific region and beyond. Alongside this event the GSM Association also runs a number of key events and meetings, such as the GSMA Members’ Forum.

For more details please go to: www.3gsmasia.com

GSM Association Members’ Forum

The GSMA Members’ Forum is exclusive to Full & Associate Members of the GSMA. It provides the opportunity for members to be updated on GSMA initiatives, to learn about upcoming priorities identified by the GSMA Board and to collectively take part in discussions about issues that will affect the industry as a whole in the future.

For more details please go to: www.gsmworld.com/events

GSM Association Roamfest

The GSMA Roamfest provides a truly unique platform to enable Roaming Executives from GSM Association member operators to meet, discuss and reach bilateral agreements on GSM roaming. Roamfest is the perfect place to fast-track GSM roaming agreements.

For more details please contact: marketing@gsm.org

Sponsorship Opportunities

The GSMA offers a number of exciting sponsorship opportunities. These have been designed to give companies the chance to gain unique and significant brand profile across the global operator community and the broader industry.

If you would like further information on how your company can avail of these opportunities please contact: sponsorship@gsm.org

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Participation & Networking

Members and Associate Members are invited to share their expertise and knowledge in the various Working Groups, Task Forces, Regional Interest Groups and Fora which collectively contribute to the GSMA business plan. Members can actively participate in the exchange of information and debate, leading to the development and creation of new ideas and benefits.

GSMA events offer valuable networking opportunities, whether specific to your region or peer level. See the events section on previous page.

Information, Education & Training

The Infocentre – an exclusive members-only website This web-based ‘one-stop-shop’ has the most up-to-date and comprehensive sets of technical and meeting documents, papers and presentations on topics such as 2G, 3GSM, GPRS, roaming, data, handsets and terminals, billing, security and environmental issues.

The Infocentre hosts the following information:

• Membership Directories & Contact details

• Calendar of meetings & documents

• GSMA Groups, Task forces/Projects, Regional Interest Groups

• Knowledge bases, technical information and guidelines

• Notice board with latest news and updates

Training & Seminars

GSMA Certified Fraud Training - The GSM Association, in partnership with Focus Group, offer a fraud training programme designed to help equip members with the skills needed to protect their company from the growing incidence of mobile fraud. Contact gsmatraining@gsm.org for more details.

Seminars - The GSM Association has developed a new series of seminars to brief and educate its member companies on important industry initiatives in which it is engaged. Topic experts share with participants the knowledge they have gained working on issues that are crucial

to the GSM community. Contact gsmaseminars@gsm.org for more details.

Profile & Promotion

There are many ways in which companies can use their membership to enhance their profile and promote their brands and products.

• Events – Discounts, advertising & meeting facilities

• Valuable speaking opportunities

• Special Sponsorship Opportunities

• Advertising on members-only e-bulletins, GSMA publications & www.gsmworld.com

• Group meetings and Specialist Workshops

• Use of GSM Logo & Trademark

• Press releases and success stories published on www.gsmworld.com

Global Roaming

Members have access to standard roaming agreements, relevant network databases and participation at Roamfest. A comprehensive range of algorithms is available to Members and relevant Associate Members of the GSM Association. These algorithms are used for

Benefits of Membership

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authenticating subscribers with the network authentication centre, generating keys for ciphering or as part of the speech (and data) encryption process between the mobile terminal (handset) and the networks base station.

Areas of Activity for 2006

The GSMA is working on a number of initiatives and projects which fall into the following categories:

• Commercial Interoperability

– IP Interworking

– Service Aware Roaming

– Open Connectivity

• Service Interoperability

– Service Definitions/Guidelines on Voice, Video & Messaging

– Enabler Definitions/Guidelines on DRM, SIP/IMS, Addressing Numbering

• Technical Interoperability

– SIP/IMS Trials

– Seamless Access (WLAN)

– IMS Applications

• Regulation & Public Policy

– Content Classification

– IP Regulation

– Health related issues

– IPR

– Spectrum Management

– Bridging the digital divide

For further information on the above please see www.gsmworld.com.

Wireless Intelligence (joint venture with Ovum)

Wireless Intelligence is a global database of mobile market information containing data across a wide range of key performance indicators. It includes industry & aggregated market data and statistics on subscribers, operations & financials. See www.wirelessintelligence.com

How to Join the GSM Association

The GSM Association offers two types of membership, Full Membership and Associate Membership.

Full membership is open to licensed 2G and 3GSM mobile network operators committed to implementing any or all of the GSM family of technologies (GSM, GPRS, EDGE & 3GSM) for digital wireless communications.

Associate Membership is open to suppliers and manufacturers of the GSM Family of technology platforms (GSM, GPRS, EDGE & 3GSM). Applicants can apply under one or more of the following categories:

• Application Providers• Mobile Terminal Suppliers• Billing Systems Suppliers• Roaming Brokers• Data Clearing Houses• Security Systems Suppliers• Financial Clearing Houses• Signaling Providers• GRX Carriers• SIM Card Suppliers• GSM Standards Supporters• Simulators Suppliers• Infrastructure Suppliers

Application forms for both full and associate membership can be downloaded from www.gsmworld.com/membership and emailed to membership@gsm.org.

Benefits of Membership

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Billing, Accounting & Roaming Group – BARG

BARG supports international roaming through the on-going evaluation and assessment of the specification, focusing on financial, administrative and procedural issues. This work includes the definition and implementation of charging principles for international roaming, together with the related inter-operator procedures, billing harmonisation, credit control and liaison with other groups regarding fraud control.

Email barg@gsm.org

Transferred Account Data Interchange Group – TADIG

The main focus of TADIG is the development and maintenance of data interchange specifications facilitating inter-operator billing, financial settlement and fraud monitoring, for international roaming purposes. TADIG is responsible for the following specifications:

• Transferred Account Procedure (TAP3), the exchange of wholesale billing information. The TAP3 specification is available from www.gsmworld.com/using/billing/index.shtml.

• The Roaming Agreement Electronic eXchange (RAEX) - the exchange of international roaming agreement (AA.�4) data.

• Electronic Invoice Data (EID) – the exchange of inter-operator invoice data.

• Near Real Time Roaming Data Exchange (NRTRDE) – the exchange of roaming usage details.

Email tadig@gsm.org

Inter-working Roaming Expert Group – IREG

IREG specifies technical, operational and performance issues supporting inter-working and roaming. IREG studies the compatibility and interoperability perspectives of the signalling and interworking of

roaming issues between PLMNs (Public Land Mobile Networks), PSTNs (Public Switched Telephone Networks), ISDNs (Integrated Services Digital Networks) and PPSNs (Public Packet Switched Networks) modes, to define the end-to-end functional tests of bearer services, teleservices, and supplementary services.

Email ireg@gsm.org

Fraud Forum – FF

The main focus of the Fraud Forum is to identify and analyse the various techniques that are used throughout the world to perpetrate fraud against member networks and to recommend practical, cost effective solutions. In conjunction with the Security Group, the Fraud Forum monitors and reports on all types of cellular fraud and security breaches throughout the world.

Email ff@gsm.org

Working GroupsWorking Groups of operator and supplier members from around the world

oversee the practical aspects of running wireless services today and for the

future. The scope of these groups is considerable, reflecting the sophisticated and

thorough approach to the maintenance and growth of the GSM family of wireless

communication platforms. Each group has a section in the Infocentre (Members-

only website), which allows Members to register to join a group, communicate

between Members of that group and access relevant information such as current

issues, output documents, meeting schedules and contact details.

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Security Group – SG

SG maintains and develops GSMA algorithms and protocols, and has responsibility for maintaining the technical security aspects of network infrastructure and customer apparatus. The group also works closely with the Fraud Forum by examining and recommending infrastructure solutions to combat fraud. The Group consists of technical representatives from Association members who study the security threats to GSM technology, its interfacing with 3rd Generation and converging technologies, and advises members of possible security issues, or required countermeasures.

Email sg@gsm.org

Services Review Group – SRG

The main focus of the Services Review Group (SRG) is the prioritisation of services work from a roaming and inter-working perspective within the GSM community in order to ensure a consistent service offering to mobile customers on a worldwide basis.

Email srg@gsm.org

Devices Working Group – DG

The DG is actively involved in all Device matters covering issues such as:

• Specifying device requirements, resolving interoperability, and quality issues

• Working with SDOs for device testing and certification

Email dg@gsm.org

Smart Card Working Group – SCaG

The SCaG group addresses all issues related to Smart Cards (SIM/USIM)

• Smart Card and SIM development issues

• The role of Smart Cards in future services

• The role of Smart cards as an enabler for connecting the unconnected

Email scag@lists.gsm.org

Interconnect Working Group (IWG)

IWG has overall responsibility for Interconnection related matters aimed at improving the quality of GSM Operator Interconnection relationships worldwide. This includes development of Service Level Agreements, Key Performance Indicators and generally improving Quality of Service for Interconnection.

Email: IWG@gsm.org

Regional Interest Groups

Whilst the reach and impact of the GSM family of wireless communications is by every definition global, there are always particular issues that may be of higher importance or relevance within a specific region. Accordingly, the GSM Association has set up Regional Interest Groups to focus and work on common issues that are affecting operators in a particular region.

Each of the nine Regional Interest Groups aims to represent the interests of GSM operators at the highest level. They focus on the key issues of the GSM business and the future of the GSM platform that are most appropriate to the region. The sub-structure of the regional groups may vary according to the issues addressed.

The primary objectives of the Regional Interest Groups are to:

• Promote and facilitate development of the GSM family of wireless communication platforms within a particular region or country

• Support the evolution of the GSM family of wireless communications and inter-operator relationships

• Represent regional issues and concerns at an international level

• Facilitate, enhance, protect and support the investment in network infrastructure within the geographical area

• Lobby regulatory bodies

• Identify and pursue future directions and opportunities

Regional Interest Group e-mail contact

Africa gsmaf@gsm.org

Arab World gsmaw@gsm.org

Asia Pacific gsmap@gsm.org

Central Asia gsmca@gsm.org

Europe gsme@gsm.org

India gsmin@gsm-india.com

North America gsmna@gsm.org

Russia gsmru@gsm.org

Latin America gsmla@gsm.org

The GSM Association’s agenda for responsible growth

To represent the public policy views of the mobile community more efficiently, the GSM Association has established a dedicated Public Policy Committee to work with governments and regulators around the world. The role of this group is to proactively lead the policy debate, representing the mobile industry to governments and regulators, and deliver a regulatory environment that maximises the opportunities for members and the benefits for users.

The agenda of the Public Policy Committee is broad and diverse. It has therefore created two Advisory Groups, receiving dedicated and high-level resources from a number of experts, to address specific issues. Firstly, the Spectrum Management Group is responsible for issues related to the allocation and management of spectrum; secondly, the Regulatory Advisory Group addresses issues such as the control of inappropriate content over mobile networks, general regulatory matters and health-related issues.

Spectrum Management Group (SMG)

Radio spectrum is the essential resource for all GSM and 3GSM (mobile) networks. However, spectrum is a finite resource and as such must be managed effectively across all technologies and every region of the world, an objective the GSMA has defined as vital to the long-term growth of the industry.

The SMG is engaged with industry and regulators in this area through an ongoing work programme that aims to define spectrum management policies that ensure a successful delivery of services. Its current agenda includes work streams on spectrum harmonisation, 3G extension bands and alternative technologies.

Regulatory Advisory Group (RAG)

The GSMA works tirelessly to ensure that the regulatory environment remains fair and transparent and therefore helps to maintain the confidence of investors in the mobile industry and maximise growth.

Comprised of senior regulatory and public policy executives, the RAG considers a broad range of major regulatory issues including health, environment and general regulation to identify priorities for action. It recommends key regulatory objectives, and associated sub-elements, for operators and the industry, which are then implemented by the relevant sub-committee.

Regulation

The GSMA believes that given the innovative nature of 3GSM, it’s embryonic status and the current lack of market and legal certainty, regulatory forbearance is advisable. One of the key areas for policy debate in the coming year will be the rollout of IP interconnection in next generation mobile networks. Increasingly, mobile services will be IP-based, from basic voice telephony to content-rich multimedia services. The GSMA Public Policy Committee is therefore currently assessing IP regulation and its impact on IP interconnection.

Mobile Content

Whilst the development of new multimedia content services brings great benefits, opportunities and empowerment to users, convergence also brings challenges. The GSMA seeks to promote the positive, creative and responsible use of new technology and content services whilst working to facilitate international co-operation between its members, governments and regulatory stakeholders. Through its Content Group, the GSMA is working with its member operators to address

many of the current issues and continues to examine the ways in which it can facilitate best practice in these areas on an international and cross industry level.

Socio-Economic Benefits of Mobile

To ensure that the benefits of mobile communications are understood and available to everyone who needs them, the GSMA has developed an integrated programme aimed at better identifying the value of mobile communications. At the forefront of our efforts to “Bridge the Digital Divide” is the Emerging Markets Handset (EMH) initiative, aimed at driving down the wholesale cost of mobile handsets, thus making them more affordable. A contribution from the sale of every EMH handset will be donated to a Development Fund initiated by the GSMA. This has been set up to promote shared access voice and data services in markets with the lowest teledensity.

As part of its Bridging the Digital Divide initiative the GSMA is also working to tackle the costs of ownership in addition to encouraging ways to flatten the user payment curve. This has led to four major studies: Tax & the Digital Divide, Regulation & the Digital Divide, Micro-payment Systems, and The Role of Mobiles in Disasters and Emergencies.

Health & Environment

The GSMA’s Public Policy committee is supporting the World Health Organization (WHO) in the study of mobile communications and health. The GSMA believes that the provision of clear and independent answers based on sound scientific research will ensure that mobile communications continue to work for the social and economic benefit of all. Based on the conclusions of the extensive body of independent research, the GSMA believes that there is no convincing scientific evidence of a health risk associated with either the proper use of mobile phones or with living near a base station.

Public Policy

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IMEI Database (IMEIDB)

The GSM Association maintains the IMEI Database as a centrally-located database of valid and stolen handset IMEIs to which operators may connect to upload and download data. The hosting of the IMEIDB, which is a unique application to facilitate the exchange of handset data, plays a key role in supporting the operator community. The sharing of stolen handset data helps to reduce theft levels.

Security Accreditation Scheme (SAS)

The Security Accreditation Scheme is a unique industry initiative that aims to further enhance the integrity of the GSM family of technologies by having key industry suppliers voluntarily subject themselves to rigorous audits, which are conducted by independent third parties. Participation in the scheme provides operators with peace of mind knowing that accredited suppliers have demonstrated their ability to work to a strict set of standardised security criteria.

Members of the GSM Association also participate in various industry standards bodies and fora. To ensure that GSMA strategies are focused and championed, the GSMA, on behalf of its operator members, coordinates member input and organizes activities in some of these external groups:

Global Certification Forum – GCF

GCF is a partnership between network operators and terminal manufacturers that provides an independent programme to ensure global interoperability of 2G and 3G mobile wireless terminals. Participation in the Global Certification Forum is voluntary and open mainly to mobile operators and manufacturers placing their products on the market.

For further information please visit the GCF website at http://gcf.gsm.org

Open Mobile Alliance – OMA

This organisation develops open standards and specifications for service enablers running on all

mobile technologies, regardless of the air interface. It has become a catalyst for the affiliation into OMA of other standards bodies working on a broad array of innovative services.

For further information please visit the OMA website at www.openmobilealliance.org

3rd Generation Partnership Project – 3GPP

3GPP is a collaboration agreement which brings together a number of telecommunications standards bodies which are known as “Organizational Partners”. The current Organizational Partners are ARIB, CCSA, ETSI, T�, TTA, and TTC.

3GPP is tasked to produce globally applicable Technical Specifications and Reports for a 3rd Generation Mobile System based on evolved GSM core networks and the radio access technologies that they support. The scope also includes the maintenance and development of GSM Technical Specifications.

For further information please visit the 3GPP website at http://www.3gpp.org

Fora & Standards BodiesThe GSM Association has been instrumental in the development of a number

of industry fora.

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2005 Achievements2005 saw signifi cant progress in three

key areas: subscriber growth, service

enhancement and reputation management.

The following is a selection of just some

of the initiatives spearheaded by the GSM

Association in 2005.

GSMA in Action

Emerging Market Opportunity

The Emerging Market Handset Programme created genuine momentum in emerging markets, fi rst by delivering a sub $40 terminal and then announcing a sub $30 handset. By substantially reducing the cost of handsets, which was identifi ed as the single largest barrier to take-up, this programme has lowered the entry level to communications for a signifi cant proportion of the world’s unconnected people. The London

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Business School concluded that a �0% increase in mobile phone ownership could boost GDP per capita by 0.6% per year, demonstrating that the activities of the GSMA can have a direct impact on both the value of the mobile industry and on national economies.

In addition, research from the GSMA also highlighted the fact that high taxes in many developing countries have made mobile communications unaffordable for hundreds of millions of people, holding back social and economic development. According to the study, taxes represent more than 20% of the total cost of owning and using a mobile phone. By exempting low cost handsets from import duties and sales taxes, sales of such handsets could potentially increase by 930 million between now and 20�0.

Public Policy

The GSMA is now established as the leading voice for the mobile operator community on public policy issues such as spectrum management, regulation and health. Concrete results have been seen in India, where stability in the country’s long-term spectrum policy was maintained and in Pakistan, where restrictions on the level of mobility offered by Wireless Local Loop service providers were upheld, reinforcing the government’s established licence framework.

Elsewhere, the GSMA has championed a level playing field on the subject of Intellectual Property Rights (IPR). The GSMA fully supports an IPR licensing process based on open standards and licensing on fair, reasonable and non-discriminatory terms as this is central to a dynamic industry environment of innovation and competition.

Value-Added Services

Much progress has been made in the area of value-added services where a global hubbing structure has been developed for Multimedia Messaging Services (MMS). This provides a global interconnection capability that delivers the cross-network functionality that MMS customers demand. In addition, it dramatically reduces the complexity of interconnection and offers the potential of considerable cost savings for the set-up and maintenance of network interconnection for all operators deploying MMS. This hubbing structure is now being enhanced to support IMS-based SIP services, and trials have been undertaken to prove its capabilities for many services including multi-player gaming, PoC, Instant Messaging, email and video-sharing.

Defining the 2006 agendaFollowing on from the proven success of 2005 that clearly demonstrated the value and capability of the GSM Association to drive growth, the GSMA Board began a comprehensive process to identify the action areas for 2006. The Board identified a prioritised agenda of core projects, which fall into six areas of activity:

• ensuring effective spectrum management

• creating seamless connectivity

• creating an effective IP service environment

• ensuring core services are delivered at market speed

• maintaining a positive regulatory environment

• maintaining a level playing field

Some of these build on 2005’s achievements, while others address newly defined challenges and opportunities. They are widely divergent but all have been identified because they deliver new initiatives to the market and have the potential to impact top line growth, have a direct impact on the reputation of the mobile industry and require a collective approach that can only be achieved through the GSMA. Through the fulfilment of these projects, the GSMA will deliver even greater value to its membership and the wider mobile industry throughout 2006.

1982 Groupe Speciale Mobile (GSM) is formed by the Confederation of European Posts and Telecommunications (CEPT) to design a pan-European mobile technology

1984 GSM Project endorsed by the European Commission

1985 West Germany, France, Italy and the UK sign a joint development agreement for GSM

1986 EU Heads of State agree to reserve 900MHz spectrum band for GSM

1987 Basic parameters of the GSM standard agreed in February. GSM Memorandum of Understanding (MoU) formed, comprising �5 members from �3 countries committed to deploying GSM• Pan European Digital Conference (PEDC) held

in London, U.K. (later rebranded as the GSM World Congress)

1988 GSM technology proven in validation trials

1989 Groupe Speciale Mobile (transferred to an ETSI technical committee) defines the GSM standard as the internationally accepted digital cellular telephony standard

1990 GSM adaptation work started for the DCS�800 band

1991 First GSM call made by Radiolinja in Finland

1992 Telstra Australia becomes the first non-European operator to sign the GSM MoU• First international roaming agreement signed

between Telecom Finland and Vodafone (UK)

1993 32 networks on air in �8 countries or territories• First truly hand portable terminals are

launched commercially

1994 GSM Phase 2 data/fax bearer services launched• GSM MoU membership surpasses �00

operators

1995 GSM MoU is formally registered as an Association with ��7 networks on air• Fax, data and SMS services are launched• GSM World Congress held in Madrid, Spain

1996 First GSM networks in Russia and China go live• Pre-paid GSM SIM cards launched• GSM World Congress moves to Cannes, France

1997 �5 GSM networks on air in the USA using the �900MHz band• First tri-band handsets launched

1998 Global GSM subscribers surpass �00 million

1999 WAP trials begin in France and Italy• Contracts placed for GPRS systems

2000 First commercial GPRS services launched• 3G licence auctions commence• First GPRS handsets enter the market• Five billion SMS messages sent in one month

2001 First 3GSM network goes live• GSM Association launches M-Services Initiative• Fifty billion SMS messages sent in first

three months• GSM subscribers exceed 500 million• 3GSM World Congress held in Cannes, France

2002 GSM introduced for 800MHz band• First Multimedia Messaging Services go live• 95% of nations worldwide have GSM networks• 400 billion SMS messages sent in the year• GSMA creates new CEO-level Board

2003 First EDGE networks go live• Membership of GSM Association breaks

through 200-country barrier• Over half a billion handsets produced in a year

2004 GSM SURPASSES ONE BILLION CUSTOMERS• More than 50 3GSM networks live• GSM Association and Ovum announce market

data venture: Wireless Intelligence

2005 GSM surpasses �.5 billion customers• GSM dominates over ¾ of wireless market• First HSDPA network goes live• Over �00 3GSM networks launched• �20+ 3GSM handset models launched

or announced• First ever sub-$30 mobile phone announced

for emerging markets

2006 GSM SURPASSES TWO BILLION CUSTOMERS• Further HSDPA network launches• 3GSM World Congress Barcelona breaks

record attendance

Brief History of GSM & the GSMA

�6

2006GSM Association

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