1. 1 Cell Phone’s Impact and Its 4G By Dr. William C.Y. Lee Chairman, Treyspan Inc, Formerly VP and Chief Scientist Vodafone AirTouch PLC Chancellor Tien Forum At ITRI- USA Feb. 8, 2007

2. Mobile Communications Had An Uneasy and Shaky Past Caused By Congress Caused By Congress Caused By FCC Caused By FCC Caused By Industry Caused By Industry

3. Why Mobile communications Research Started in 1964 at Bell Labs. Congress took away the satellite communications Business from AT&T Congress took away the satellite communications Business from AT&T New research for Mobile telecommunications was needed New research for Mobile telecommunications was needed Picture Phone market could not be taken off Picture Phone market could not be taken off IC technology for car phones was possible IC technology for car phones was possible

4. The Policy of The USA Congress – Afraid of Monopoly 1% of AT&T annual revenue to support Bell Labs, created IPR used by the industry without pay 1% of AT&T annual revenue to support Bell Labs, created IPR used by the industry without pay 1974: Asked AT&T to open bid its car phone manufacturing to the industry 1974: Asked AT&T to open bid its car phone manufacturing to the industry 1974 OKI won the bid for the first 200 car phones 1974 OKI won the bid for the first 200 car phones 1975 OKI, Motorola, E.F.Johnson won the 1800 car phones 1975 OKI, Motorola, E.F.Johnson won the 1800 car phones 1981: Judge Harold Green was in charge divesting AT&T 1981: Judge Harold Green was in charge divesting AT&T 1983: AT&T’s 22 operating companies became 7 baby Bell companies and were divested 1983: AT&T’s 22 operating companies became 7 baby Bell companies and were divested 1983 Mobile phone business went to Baby Bells 1983 Mobile phone business went to Baby Bells

5. FCC’s Counteractive Rule-Making on Spectrum for Mobile Communications Before 1974: Allocated 82 channels, 6 MHz/ch., in UHF Band to TV Industry. Thus 10 GHz band was only possible for mobile communication Before 1974: Allocated 82 channels, 6 MHz/ch., in UHF Band to TV Industry. Thus 10 GHz band was only possible for mobile communication After 1974: Allocated 70MHzx2 spectrum in 800MHz band. Among them, 40 MHz was put in use and 30 MHz was reserved After 1974: Allocated 70MHzx2 spectrum in 800MHz band. Among them, 40 MHz was put in use and 30 MHz was reserved 1983: Within 40 MHz allocation, 20 MHz went to telephone companies and 20 MHz went to non-telephone companies. 1983: Within 40 MHz allocation, 20 MHz went to telephone companies and 20 MHz went to non-telephone companies. 1983: First USA cellular system operated in Chicago. 1983: First USA cellular system operated in Chicago.

6. The Factors of Delay Deploying Until 1983 Complained by RCC (Radio Common Carriers), an industry group of dispatching and paging Complained by RCC (Radio Common Carriers), an industry group of dispatching and paging Tried to avoid to be divested Tried to avoid to be divested Took time to negotiate among the industry. Took time to negotiate among the industry. A resale policy was created A resale policy was created

7. The Key Factor of Making 1G Successful Requirement Quality Quality No bottleneck as a market product No bottleneck as a market product Handoff feature Handoff feature High capacity High capacity Successful Factors Took a large scale trial at Chicago in 1977-1978 Took a large scale trial at Chicago in 1977-1978 Excellent quality Excellent quality User Friendly, like landline phones User Friendly, like landline phonesDrawbacks Needed rooftop antennas Needed rooftop antennas Transceivers were in the car trunks Transceivers were in the car trunks

8. GSM’s Story An European digital mobile system developed in 1983 and deployed in 1991 An European digital mobile system developed in 1983 and deployed in 1991 Was threatened by UK’s CT-2 Was threatened by UK’s CT-2 Not designed for a high capacity system at the time Not designed for a high capacity system at the time No licensed fee to pay for the manufacturers in European Community No licensed fee to pay for the manufacturers in European Community Accepted by China and fully deployed in 1995 Accepted by China and fully deployed in 1995 Becomes almost a global system Becomes almost a global system

9. Fate of NA-TDMA 1987 CTIA formed a sub-committee to select a 2G system, a high capacity system (10x AMPS) for Northern America1987 CTIA formed a sub-committee to select a 2G system, a high capacity system (10x AMPS) for Northern America FDMA was first tentatively chosenFDMA was first tentatively chosen Decided TDMA because of GSM’s influenceDecided TDMA because of GSM’s influence A poor designed system for high capacityA poor designed system for high capacity CDMA’s superiorityCDMA’s superiority Finally TDMA converted to GSM systemsFinally TDMA converted to GSM systems

10. Why CDMA MILESTONE Qualcomm visited Pactel and asked a study contract for using CDMA in Cellular system in Feb. 1989 but lack of a power control scheme Qualcomm visited Pactel and asked a study contract for using CDMA in Cellular system in Feb. 1989 but lack of a power control scheme In April 1989, Qualcomm returned to Pactel with a new created power control scheme In April 1989, Qualcomm returned to Pactel with a new created power control scheme Pactel knew the NA-TDMA would be failed, challenged Qualcomm to make a demo in six months and funded them one million dollars. Pactel knew the NA-TDMA would be failed, challenged Qualcomm to make a demo in six months and funded them one million dollars.

11. Why CDMA (cont.) MILESTONE (cont.) August 1989 Pactel funded another one millions dollars August 1989 Pactel funded another one millions dollars Nov.3, 1989, a demo was taken place in San Diego; two sites and one car phone. Pactel provided technical assistance and the spectrum for them Nov.3, 1989, a demo was taken place in San Diego; two sites and one car phone. Pactel provided technical assistance and the spectrum for them The 1989 demo was made very successfully and shocked world The 1989 demo was made very successfully and shocked world Nov.1990 Korea bought CDMA techniques from Qualcomm through Pactel’s introduction Nov.1990 Korea bought CDMA techniques from Qualcomm through Pactel’s introduction

12. WHY CDMA (Cont.) REVIEW THE HISTORY REVIEW THE HISTORY Because of having a new high capacity system as quick as possible, only allowed one company to develop the systemBecause of having a new high capacity system as quick as possible, only allowed one company to develop the system Pactel asked FCC to approve a request to buy Qualcomm but was rejectedPactel asked FCC to approve a request to buy Qualcomm but was rejected Before CDMA became a standard, Qualcomm wrote a CAI (common air interface). Most big venders bought itBefore CDMA became a standard, Qualcomm wrote a CAI (common air interface). Most big venders bought it Pactel deployed CDMA in Jan.1995 in LA with a poor performancePactel deployed CDMA in Jan.1995 in LA with a poor performance

13. Why CDMA (Cont. ) REVIEW THE HISTORY ( cont.) REVIEW THE HISTORY ( cont.) In 1992 Korea named CDMA its national standard systemIn 1992 Korea named CDMA its national standard system Jan. 1996 Korean deployed its CDMAJan. 1996 Korean deployed its CDMA Sept. 1996 Korean reached 1M customersSept. 1996 Korean reached 1M customers Korea made CDMA work and saved CDMAKorea made CDMA work and saved CDMA

14. 3G WAS BORN in 1997 In 1997 Ericsson and DoCoMo started promote 3G In 1997 Ericsson and DoCoMo started promote 3G In 1998, ITU received 12 Proposed systems. OHG suggested to reduce to 3 In 1998, ITU received 12 Proposed systems. OHG suggested to reduce to 3 WCDMA: European version, Adapted CDMA with a bandwidth of 5MHz using FDD WCDMA: European version, Adapted CDMA with a bandwidth of 5MHz using FDD CDMA 2000, North America version, used CDMA with 3x 1.25 MHz bandwidth Using FDD CDMA 2000, North America version, used CDMA with 3x 1.25 MHz bandwidth Using FDD UTRA-TDD/TD-SCDMA: adapted CDMA with a bandwidth of 5 MHz or 1.6MHz using TDD UTRA-TDD/TD-SCDMA: adapted CDMA with a bandwidth of 5 MHz or 1.6MHz using TDD Three standard groups were formed Three standard groups were formed

15. 3G System REVIEW THE HISTORY REVIEW THE HISTORY Too hurry to choose the technologyToo hurry to choose the technology CDMA is a powerful technology for voice communications but not for high speed dataCDMA is a powerful technology for voice communications but not for high speed data Standard body could not finish a spec. earlier due to the dispute caused by the protection of each company’s own interestStandard body could not finish a spec. earlier due to the dispute caused by the protection of each company’s own interest Multimedia applications demanded by the users started from 2002Multimedia applications demanded by the users started from 2002 WiMax ‘s OFDM can meet the high speed data requirementWiMax ‘s OFDM can meet the high speed data requirement

16. 3G’s Current Situation India decides to go directly to 4G India decides to go directly to 4G China are evaluating its TD-SCDMA China are evaluating its TD-SCDMA In high speed data transmission, CDMA can not compete with OFDM In high speed data transmission, CDMA can not compete with OFDM Use of CDMA needs to pay a high IPR fee Use of CDMA needs to pay a high IPR fee TD-SCDMA’s performance is not as good as the other two 3Gs due to its started behind TD-SCDMA’s performance is not as good as the other two 3Gs due to its started behind A 4G forum was formed by Samsung in 2003 A 4G forum was formed by Samsung in 2003

17. B3G (Beyond 3G) WiFi and WiMAX are the B3G systems WiFi and WiMAX are the B3G systems Using OFDM technology Using OFDM technology Intel announced WiMAX chip will be imbedded in PC in 2007 and in handset in 2008 Intel announced WiMAX chip will be imbedded in PC in 2007 and in handset in 2008 WiBro, Korean version of WiMAX has been deployed in Korea WiBro, Korean version of WiMAX has been deployed in Korea Sprint-Nextel announced to trial WiMAX in 2007 and deploy in 2008 Sprint-Nextel announced to trial WiMAX in 2007 and deploy in 2008 WiMAX may be an interim system of a 4G system WiMAX may be an interim system of a 4G system

18. Changing the Paradigm Technology Centric Operators A system design Static applications Limited coverage Protected system (walled garden) Service centric Users A common platform design Dynamic applications Ubiquitous Open architecture

19. 4G - The Future Technology Requirement based on ITU Requirement based on ITU 1 Gbps data speed when stationary 1 Gbps data speed when stationary 100 Mbps data speed when moving 100 Mbps data speed when moving Search for 4G technology Search for 4G technology Meeting the requirement with minimum bandwidth will be the winner Meeting the requirement with minimum bandwidth will be the winner User’s Expectation User’s Expectation Multimedia application Multimedia application Operating with long hours Operating with long hours Become a personal mobile office if possible Become a personal mobile office if possible

20. Conclusion Handset’s development went thru an uneasy and shaky past Handset’s development went thru an uneasy and shaky past AT&T did not receive any IPR fee by developing car phones but Motorola did AT&T did not receive any IPR fee by developing car phones but Motorola did TDMA was the first digital system. It can not compete with CDMA for voice capacity nor compete with OFDM for high speed data transmission TDMA was the first digital system. It can not compete with CDMA for voice capacity nor compete with OFDM for high speed data transmission 3G may not be a worldwide system. It has lost its timing 3G may not be a worldwide system. It has lost its timing B3G will be the interim system for 4G B3G will be the interim system for 4G 4G may satisfy the users as a personal mobile office 4G may satisfy the users as a personal mobile office