1 Update on the Global Deployment of 3GPP Systems Alan Hadden President, GSA Global mobile Suppliers Association

2 About GSA GSA is the representative body for the GSM/3G supplier industry, bringing together all views on GSM/EDGE/WCDMA Objectives   to strengthen promotion of GSM world-wide in new and existing markets   to support operators and promote the evolution of GSM as the platform for delivery of third-generation (3G) multimedia services The leading GSM/3G companies are members of GSA: Aeroflex · Agere Systems · Broadcom · Business Logic Systems Ltd. · Communications Consultants Worldwide Ltd. · Comsys Mobile & Signal Processing Ltd. · Ericsson · EVI Technology · Hewlett Packard - Nokia · Openwave · Panasonic · Philips Semiconductors · RADIXS · Siemens · Talking Eye · Tekelec · Telcordia · TTPCom · Wavecom

3   Deliver market facts, intelligence & data for the mobile industry   GSA website is the industry reference source ( )   Facilitate networking/dialogue cross-industry   Advise policy-makers on most favourable conditions for market development   Inform media & analysts about milestones, drivers, developments, trends   Organize high-level interaction with GSM/3G operators for improved information sharing, case study/success sharing, to assist the evolution to 3G   Opinion Papers broaden understanding/acceptance of the key issues   Deliver at global & regional level: Africa, APAC, Europe, India, Latin America   GSA is a Market Representation Partner in 3GPP Activities

4 GSM/3G Fast Facts 670 commercial GSM networks in over 200 countries/territories Almost 1.8 billion GSM subscribers ( ) - Asia leads the way with 650 million subscribers 387 million GSM subscribers added in 2005, which is 100 million higher than added in 2004 GSM increased market share by 3% in 2005; accounts for 77.7% of the world’s cellular market GSM outsold its nearest competitor cdma by 7.7 times globally in 2005 Approaching 1700 GSM phone models from over 100 vendors Approaching two-thirds of global total of 163 3G/WCDMA license holders launched services 105 commercial 3G/WCDMA networks in 47 countries 315 WCDMA terminal devices launched; 25 also support HSDPA Over 55 million WCDMA subscribers ( ) WCDMA was responsible for over 30% of new mobile subscriptions in Western Europe in WCDMA operators evolving to HSDPA in 43 countries; 14 commercial launches 139 commercial GSM/EDGE networks in 78 countries, from total of 192 EDGE deployments in 102 countries 212 GSM/EDGE terminal devices announced 67 operators are deploying combined EDGE- WCDMA networks: 36 in commercial service 48 terminal devices support EDGE & WCDMA Subscriber numbers source: Informa Telecoms & Media The GSM family of technologies embraces GPRS, EDGE, WCDMA & HSPA, all fully open standards

5 GSM subscribers in Asia Pacific reached 650 million in March 2006 (521 million March 2005 = 24.7% annual growth) The global GSM success story GSM grew 11 times more than cdma in the year to March 2006 China GSM grew over 54 mil subs in past 12 months = over 1 million/week Cdma added under 5 mil subs in the same period

6 The global GSM success story continued … India reached almost 64 million GSM subscribers at GSM has 77.5% market share GSM additions = 22.7 million in 12 months = over 55% growth Cdma added 8 million in same period India

7 Europe: Eastern Europe 289 million (48.9% annual growth) Western Europe 426 million (8.1% annual growth) The global GSM success story continued … Africa: 146 million (62.6% annual growth) Middle East: 51.4 million (63.5% annual growth) Americas: Canada and USA 85 million (35% annual growth) Latin America and the Caribbean 144 million (92.6% annual growth)

8 cdmaOne GSM TDMA 2G PDC CDMA2000 1x First Step into 3G GPRS 90% 10% Evolution of Mobile Systems to 3G - Drivers: capacity, data speeds, lower cost of delivery - for revenue growth EDGE WCDMA WCDMA 3G phase 1Evolved 3G 3GPP Core Network CDMA2000 1x EV/DO HSDPA/HSUPA HSDPA/HSUPA Expected market share EDGE Evolution EDGE Evolution CDMA2000 EV/DO Rev A © GSA

9 105 Commercial WCDMA Operators in 47 countries 40 WCDMA networks launched commercial services during 2005, confirming WCDMA as the leading 3G standard Source: GSA survey published March 24, 2006

WCDMA/HSDPA devices - launched by 38 suppliers Source: GSA survey published February 28, 2006

11 Strong WCDMA subscriber growth Over 55 million WCDMA subs at 31 March 06 Approaching 140% yearly growth Over 3 million adds monthly in last 6 months WCDMA gained over 10% share of mobile growth in Asia Q1 06 WCDMA gained 1 in 3 new connections in Western Europe in Q1 06

12 WCDMA growth outperforming analogue and GSM WCDMA growing at faster rate than GSM at equivalent stage of deployment WCDMA is mature Wide choice and availability of WCDMA devices WCDMA is the leading 3G standard globally

13 EDGE – global, mature technology Two-thirds of the global total of GPRS live networks have committed to the EDGE upgrade Source: GSA survey published March 24, 2006

14 EDGE commercial networks 139 GSM/EDGE commercial networks in 78 countries 45 in Americas and Caribbean 59 in Europe 21 in Asia 14 in Africa and Middle East Source: GSA survey published March 24, 2006

15 GSM/EDGE devices  EDGE is standard in most new data-enabled phones 231% increase in number of GSM/EDGE devices launched in 12 months 33 suppliers in market Source: GSA survey published January 31, 2006

16 Combined WCDMA-EDGE networks Source: GSA survey published March 24, 2006

17 © Global mobile Suppliers Association EDGE GPRS Source of data: GSA, CDG Adoption of mobile standards - Commercial networks by technology

18 HSDPA network rollout HSDPA has achieved significant traction amongst WCDMA operators globally 79 HSDPA deployments in 43 countries globally 14 HSDPA networks launched commercial services Download at Source: GSA survey published April 6, 2006

19 HSDPA devices 25 devices in the market supporting HSDPA Download at Source: GSA survey published February 28, 2006

20 EDGE Evolution – drivers and goals EDGE Evolution - potential benefits: 2 – 3 times increase in EDGE bit rates 2 – 3 times spectral efficiency gain (for voice & data capacity) Halve the latency (roundtrip time) All achieved with low impact on the GSM/EDGE network Operators tell us service continuity is very important: WCDMA evolution to HSDPA a key driver for EDGE Evolution Reducing the performance gap is the priority

21 Conclusions GSM is a huge success in China and throughout the world GSM is a huge success in China and throughout the world Open standards is the key enabler, stimulating market take up, massive economies of scale, competition, innovation, and roaming Open standards is the key enabler, stimulating market take up, massive economies of scale, competition, innovation, and roaming 3GPP roadmap continues the open standards philosophy with EDGE, WCDMA, HSDPA, HSUPA and beyond (LTE) 3GPP roadmap continues the open standards philosophy with EDGE, WCDMA, HSDPA, HSUPA and beyond (LTE) GSM/EDGE is mature, global, and mainstream GSM/EDGE is mature, global, and mainstream WCDMA operators who received UMTS licenses in the first wave during have reached the commercial phase WCDMA operators who received UMTS licenses in the first wave during have reached the commercial phase WCDMA is mainstream and the leading 3G mobile system globally WCDMA is mainstream and the leading 3G mobile system globally Rapidly increasing variety, competitiveness and availability of user devices – phones, PC data cards, are key factors in driving market acceptance Rapidly increasing variety, competitiveness and availability of user devices – phones, PC data cards, are key factors in driving market acceptance The importance of combined WCDMA-EDGE deployments for service continuity (the best user experience) is understood and evident globally The importance of combined WCDMA-EDGE deployments for service continuity (the best user experience) is understood and evident globally 3G/WCDMA operators are moving to HSDPA now – the path to mobile broadband3G/WCDMA operators are moving to HSDPA now – the path to mobile broadband

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