3G Evolution

Joe LawrenceVice President Marketing, QUALCOMM

Making Phone Callsand Sending Short Messages

have Driven the Market for Mobile Services

Wireless Broadband will Drive Future Growth

Voice will Remain an Essential Element

IMTIMT--20002000CDMACDMA

Direct SpreadDirect Spread

IMTIMT--20002000CDMACDMA

MultiMulti--CarrierCarrier

IMTIMT--20002000CDMACDMATDDTDD

IMTIMT--20002000TDMATDMA

Single CarrierSingle Carrier

IMTIMT--20002000FDMA/FDMA/TDMATDMA

WCDMA(UMTS)

CDMA2000family

UTRA TDD &TD-CDMA

UWC-136/EDGE

DECT

IMT-2000 Terrestrial Radio Interfaces

3G CDMA3G CDMA

3G StandardsA family of IMT-2000 Standards

Although there are five terrestrial standards, most of the attention and investment has been placed

towards the 3G CDMA standards

Source: AT&T Wireless, SKT, Cingular, Samsung, Nokia, NTT DoCoMo and QUALCOMMNote: Peak data rates, DL/UL, are “not to scale” and dependent upon different bandwidths.

* Based on QUALCOMM’s chipset (MSM 6800)** Based on QUALCOMM’s 2nd HSDPA chipset (MSM6280)

Peak Data Rates

Peak

Dat

a R

ate

(Mob

ile)

Peak

Dat

a R

ate

(Mob

ile)

Commercial AvailabilityCommercial Availability200220012000 200520042003 200619951993

WWAN Bandwidth in a Mobile Environment

2007

““Always onAlways on””packet data packet data connectionsconnections

IMT-2000Technologies

IMTIMT--20002000TechnologiesTechnologies

20092008 2010 2011

1xEV1xEVEV-DO Rel 0 (Data Optimized)

2.4/ 0.153 Mbps(1.25 MHz)

ISIS--95951X1X

153.6 kbps(1.25MHz)

1xEV1xEV

EV-DO Rev A3.1/1.8 Mbps*

(1.25 MHz)

14.4 - 64 kbps

1xEV1xEVEV-DO Rev B

Scalable Bandwidth EV-DO73.5 / 27 Mbps

(20 MHz)

UMBUMBUMB

291/79 Mbps(20 MHz)

9.6 kbps

384 kbps(5 MHz)

WCDMAWCDMA

< 160 kbpsEDGEEDGE

GPRSGPRS < 60 kbpsGSMGSM

HSDPAHSDPA

3GPP Rel 57.2/ 0.384 Mbps**

(5 MHz) HSUPAHSUPA

3GPP Rel 614.4/5.8 Mbps***

(5 MHz)

LTELTELTE

278/57 Mbps(20 MHz)

Using the lower frequency bands is preferable for providingUsing the lower frequency bands is preferable for providing““universal accessuniversal access”” to telephone, broadband Internet and multimedia contentto telephone, broadband Internet and multimedia content

Providing affordable, ubiquitous, coverage is crucial in mobile Providing affordable, ubiquitous, coverage is crucial in mobile communicationscommunications

11GHz5GHz1GHzCDMA

450

LicensedUnlicensed

GSM1.8

CDMA1.9

GSM900

CDMA800

cdma2000®

450, 800, 1.7, 1.9, 2.1

CDMA1.7

802.15.1Bluetooth

2.4802.11 b, g, n

Wi-Fi2.4

802.11 a, e, nWi-Fi5.8

802.16a, eWiMAX

2-11

802.16a, eWiMAX

5.8

802.15.3aUWB

3.1-10.6LMDS28-29

29GHz

Licensed &Unlicensed

Spectrum Allocations

The warmer (lower) licensed frequencies are best!The warmer (lower) licensed frequencies are best!Greater range (larger coverage areas), less cell sites, better iGreater range (larger coverage areas), less cell sites, better inn--building penetration, better mobile performance, building penetration, better mobile performance,

less power consumption, higher average data throughputs in an NLless power consumption, higher average data throughputs in an NLOS environmentOS environment

2GHz

IMT-20001.9

IMT-20002.1

IMT-20002.5

IMT-20001.8

IMT-2000800

CDMA2000 Competitive AdvantageA solution that provides highA solution that provides high--performance using affordable network coverageperformance using affordable network coverage

>>Valuable Spectrum: Valuable Spectrum: Operation in the 450 MHz, 800 MHz and 1900 MHz bands• 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

>>A 3G technology:A 3G technology: An excellent performance & value proposition• Spectrally efficient and mature technology:

• Economically supports toll-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

• Up to 3.1 Mbps peak data rate per user - More than 20 times that of an EDGE network 3

• Improved security and privacy• SSL 3.0 with 128 bit key encryption and support of digital signatures through public key

infrastructure• No eavesdropping, less static and interference

• Numerous value-added services designed to increase operator revenue• An easy migration path and robust roadmap towards next generation services, that preserves

your investmentNotes: 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 Yallapragada

3 "EDGE Performance Evaluation” Alecsander Eitan and Amir Gazit Qualcomm Israel Ltd March 2003

CostClarityCapacityCoverageCompatibilityCustomer satisfaction

Evolution of 3G Devices:Enabling solutions that meet diverse market

needs

Data UsageData Usage

VideoPhones

KaraokePhones

Voice+SMSBrowserPhonesVoice Only

M2MMeters

Broadband Laptop PCs

PDAPhones

VideoConferencing

Voice Devices

NavigationDevices

TelemetryModules

GamePhones

Mid Tier

High

Entry Level

Price TierPrice Tier

Greater Segmentation to Address All Market Needs

Location Trackers

WorldPhones

Smart Phones

MusicPhones

PC DataCards

3G CDMA addresses all market segments with multiple modes & frequencies

ConsumerElectronics

Mobile TVPhones

Fixed WirelessPhones

BroadbandModems

USBModems

Public Safety Phones

PantechPX-500

Sierra WirelessAirCard 595

Sierra WirelessAirCard 597E

ToshibaW47T

ToshibaDRAPE

Novatel WirelessExpedite E720

PCI Express Mini Card

Sierra WirelessAirCard 595UUSB Modem

Sierra WirelessMC5725(V)PCI Express

Mini Card

Novatel WirelessOvation MCD3000

CDMA2000 1xEV-DO Rev A Devices>> These Rev A devices offer increased data speeds in both directioThese Rev A devices offer increased data speeds in both directionsns

UTStarcom5800 (HTC Libra)

DigiConnect Port

WAN

LinkSysWireless G

Wi-Fi Router

HuaweiEC 360

AxesstelMV110*/140USB Modem

* CDMA450

AxesstelMV410*/420/430/440

3G Broadband Gateway

Sierra WirelessMP 595 GPS

Ruggedized In-Vehicle Modem

Kyocera WirelessKR1 Mobile Router

Novatel Wireless

MerlinTM PC720

Novatel WirelessUSB720

Novatel WirelessPC740

Kyocera WirelessKCP680

HTCP4000

CDMA WLL DevicesPlenty of CDMA2000 WLL devices have been introduced to the markePlenty of CDMA2000 WLL devices have been introduced to the markett

DowTelWS-6110

DowTelWS-2100

Aiji SystemsF20

AnyDataAXW-P1900

AxesstelPX110/120/130

AnyDataAWL-200C

Aiji SystemsAP-210

AxesstelP830

HantelHTP-1901 Westech

DTP-810/1910

AxesstelL-450/800/1900

AxesstelAXW-T450/800/1900

HuaweiETS2000

DowTelWS-8000

WestechDTT-810/1910

HuaweiETS1000/1200/1500

HuaweiCP800 1X

LGLSP-3000

LGLSP-340E

HuaweiETS2051

HuaweiETS2077

HuaweiETS2200/2288/2500

HuaweiSYF 005

LGLST-250

LGLST-2500

LGLST-3000

AnyDataAXW-P1900PCO

RWTFCT-CDMA *

TelularPhonecell XP4P

TelularPhonecell SX4T

TelularPhonecell SX5P

TelularSX6P-200C

ZTEWF520F *

ZTEWP520B/560/920B *

ZTEWP960

AnyDataAWR-E100C

KyoceraKR1 Router

EVEV--DODORev. ARev. A

TelularPhonecell SX4e

Cypress SolutionsCTM-140

•• Aiji SystemsAiji Systems•• AnyDataAnyData•• AudiovoxAudiovox•• AxesstelAxesstel

•• Samsung designSamsung design

•• HantelHantel•• HuaweiHuawei•• Hyundai CuritelHyundai Curitel

•• WestechWestech•• DowTelDowTel

•• KisonKison•• KyoceraKyocera•• LGLG•• MotorolaMotorola•• NECNEC•• RWTRWT•• SynertekSynertek

•• Standard TelecomStandard Telecom•• Sewon (Maxom)Sewon (Maxom)

•• TelularTelular•• TopexTopex•• ZTEZTE

AxesstelMV410*/420/430/440

3G Broadband Gateway

* CDMA450

EVEV--DODORev. ARev. A

LinkSysWireless G

Wi-Fi Router

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

EVEV--DODORev. ARev. A

Sierra WirelessMP 595 GPS

Ruggedized In-Vehicle Modem

EVEV--DODORev. ARev. A

DigiConnect Port WAN

EVEV--DODORev. ARev. A

Novatel WirelessOvation MCD3000

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

SamsungSCH-i830(EV-DO)

Yulong TelecomCoolpad 728

SamsungSCH-W379

AmoiCMA8301(EV-DO)

LGEKW-9200(EV-DO)

UTStarcomT66

SamsungSCH-i819

MotorolaA840/A860

SamsungSCH-A790/W109/A795/IP-A790

LGEW810

LGEW800

SamsungSCH-W219

SamsungSCH-W399

CECTC828

HisenseD806

SamsungSCH-W579

DaxianC8000

Yulong TelecomCoolpad C288

ZTEH350

Yulong TelecomCoolpad 728B

Yulong TelecomCoolpad 858T

SamsungSCH-W569

SamsungSCH-W531

SamsungSCH-V920

AmoiV810

(EV-DO)Ubiquam

U-520

BlackBerry8830

(EV-DO)

CDMA2000 1X/EV-DO/GSM/GPRSWorldMode Devices

AmoiV8107

(EV-DO)

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

35 entry35 entry--level CDMA handsets from 12 supplierslevel CDMA handsets from 12 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: Plenty of Affordable DevicesCompetition and economies of scales are driving CDMA2000 prices Competition and economies of scales are driving CDMA2000 prices downdown

Sub-US$40Sub-US$30

ZTEC160

LG2750

Rose631

Jingpeng101

TCL401

LGRD2650

LGRD2690

LGRD2710

MotorolaW150i

HaierC1000

HuaweiC2205

JingpengC131

JingpengC132

LG2530

LG3330

Legend: Color Screen Handsets

3G CDMA: Sub-US$50 Devices

(Millions)

0255075

100125150175200

2005 2006 2007 2008 2009 2010 2011

Plenty of CDMA2000 devices will be available to deliver affordabPlenty of CDMA2000 devices will be available to deliver affordable 3G servicesle 3G services

SubSub--US$50 3G CDMA2000 Handset ShipmentsUS$50 3G CDMA2000 Handset Shipments

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

Affordability will expand the reach of 3G CDMA

cdmaOnecdmaOne

1X1X

EVEV--DODO

UMBUMB

CDMA2000: Building Economies of ScaleCDMA2000 leverages the evolutionary nature of its technology patCDMA2000 leverages the evolutionary nature of its technology path to build h to build economies of scope and scaleeconomies of scope and scale

Preservation of Existing Economies of Scale

Migration of SubscribersMigration of Subscribersof Evolutionary Technologiesof Evolutionary Technologies

Notes:1. UMB can be deployed in existing 1X and EV-DO spectrum, but will most likely be deployed in new higher bandwidth spectrum allocations.2. Like EV-DO, UMB will be offered as another mode within the mobile device baseband modem, thus UMB devices will be multi-mode and multi-band devices.

>200 million CDMA2000 devices were sold in 2006

>CDMA2000 accounts for over 20% of total handset sales

>635 million 1xEV-DO devices will be sold by 2009

>1xEV-DO handsets represented 28% of total CDMA2000 devices sold in 2006 and their share will grow to 30% in 2007

>Over 91% of CDMA2000 devices will be EV-DO and Rev A capable by 2009

Source: Deutche Bank, February 2007

Evolution of 3G NetworksIncreasing performance,

while lowering costs

CDMA2000: IP-based Network ArchitectureEVEV--DO networks are evolving to a DO networks are evolving to a ““flatflat”” IPIP--based network architecturebased network architecture

Fewer Network Nodes, Lower Latencies and Better Performance

InternetInternet

RNC

PDSN

RF Antennas(BTS)

CircuitCircuit--SwitchedSwitchedNetwork ArchitectureNetwork Architecture

InternetInternet

Gateway

IMS

IP-basedRF Antennas

(Access Points)

IP Network (Ethernet)

PSTN

PacketPacket--SwitchedSwitchedNetwork ArchitectureNetwork Architecture

T1/E1, IP terrestrial, microwave, satellite, or fiber

Secure Phones

Mobile Devices

Mobile Broadband Devices

Backhaul Options:

Fixed Wireless Devices

PTT

Multimedia

Low-end

CDMA2000: IP-Based Cellular SolutionA versatile and affordable cellular system for rural communications

PSTN

Access Point Controller(BSC) BSC, BTS, PDSN, IWF,

Media Switch & Gateway

Managed Packet Network

Access Point(BTS)

IP-basedRF Antennas

SmartphonePoS

Remote IP-based

RF Antennas

CDMA2000: Extended Coverage Base StationsCDMA2000: Extended Coverage Base StationsFlexible micro base station installations that maximize rural Flexible micro base station installations that maximize rural coveragecoverage

Antennas

Base transceiver station (BTS)Power AmplifierTransceiver

Source: ZTE, June 2006

The End Goal

Providing Universal Services 3G is connecting citizens to voice & Internet services

>In India, Reliance will meet universal service obligations by providing 3G service to 48,310 villages that don’t have public phone facilities1

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

>In 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

>In Uganda, MTN and Grameen Bank helped the economy of villages by providing microcredtis to deploy CDMA WLL “Village Phones” @ 800 MHz4

>In Ecuador, Edumasters installed 3G kiosks at several public schools to provide free Internet access. Panama is next.5

>In Chile, BellSouth provided 3G broadband access to 667 shools nationwide6

1. http://www.thehindubusinessline.com/2004/09/20/stories/2004092002090100.htm2. Rainbow, Chalta Firta PCO, http://www.hellorainbow.com/aboutus.asp3. BNAmericas.com, “GEC-Tel, Tricom Partner for wireless Network – Dominican Republic, November 20, 20044. Grameen Technology Center, Village Phones in Bangladesh and Uganda, Tim Wood, November 4, 20035. www.edumasters.net6. http://www.subtel.cl/servlet/page?_pageid=57&_dad=portal30&_schema=PORTAL30&p_language=e, Sept. 3, 2003

Fulfilling Public Safety Initiatives3G is protecting and saving lives

>In the U.S., 3G carriers offer E911 services with accurate (5-30m) position location capabilities1

>In Japan, SECOM launched a nationwide location-based security service2

>In China, Unicom donated 150 kid tracker devices to the Beijing School of the Blind3

>In Korea, SKT and National Police Agency introduced a Missing Children Service4

>In Norway, Nordisk Mobiltelefon delivered a custom push-to-talk GUI for Norwegian Police5

>In Canada, the Ontario Police quickly access vital information (including fingerprints IDs) and respond to emergencies instantly with position location dispatch6

>In Florida, the Broward County Sheriff’s Office uses 3G for child protection services7

1. www.fcc.gov/911/enhanced/2. www.secom.co.jp3. www.chinaunicom.com.hk4. www.cnn.com, Friday October 1st, 20045. Nordisk Mobiltelefon, December 20066-7. CDMA A-List Award Winners

The World is Noticing

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 such as:

• 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.

Conclusion (Cont.)

> CDMA2000 has been widely deployed in developed and emerging markets worldwide

– Universal service: CDMA2000 is bridging the digital divide by providing affordable telephony and Internet access to some of the most remote places on earth.

– Flexibility and Scalability: CDMA2000 has enabled operators to address both sparsely populated rural areas and densely populated urban areas, equally well.

– Return on Investment: The evolutionary and backward compatible CDMA2000 Roadmap enables significant performance and economic advantages, while preserving existing investments.

> The CDG is here to support you!