1. Evolution Towards Beyond 3G June 27, 2005 Seoul Dr. Fumio Watanabe General Manager, Wireless Broadband System Development Department "au" Technology Division, KDDI Corporation EV-DO W31S 1X talby 3GPP2 Evolving to Future Wireless Technology

2. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 2 1. Japan’s Mobile Market

3. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 3 IMT-2000 Subscriber Growth in Japan 0 2 4 6 8 10 12 14 16 18 20 2001/102001/122002/022002/042002/06 2002/08 2002/102002/122003/022003/042003/062003/082003/102003/122004/02 2004/04 2004/062004/08 2004/10 2004/122005/02 Year/Month Number of Subs. ( Million) W-CDMA CDMA2000-1X End of May 2005 Total32,550,100 au18,494,500 DoCoMo12,882,700 Vodafone1,172,900 01.10 DoCoMo launch 02.4 KDDI launch 02.12 Vodafone launch W-CDMA CDMA2000-1X The Telecommunications Carriers Association (TCA) Number of 3G Subscriber 37% Subscribers already migrated to IMT-2000, May 2005 Number of 2G & 3G Subs. 87,744,200

4. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 4 KDDI Seamless Migration to 3G - Successfully in Progress - 0 2 4 6 8 10 12 14 16 18 20 2000/032000/052000/072000/092000/112001/012001/032001/05 2001/072001/092001/112002/012002/032002/052002/072002/092002/112003/012003/032003/052003/072003/09 2003/112004/01 2004/03 2004/052004/072004/092004/112005/012005/03 Number of Subscribers (Million) PDC cdmaOne CDMA2000 (Incl. EV-DO) Apr. 2002 1X S-in Nov. 2003 1xEV-DO S-in End of May 2005 Total Subs. 19,962,400 CDMA2000 18,494,500 cdmaOne1,467,900 CDMA2000 cdmaOne PDC “au” Subscribers Growth 93% subscribers already migrated to 3G

5. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 5 2. Essence of “Beyond 3G”

6. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 6 Heterogeneous Network allows a variety of terminals, protocol, interconnectivity. Services provided seamlessly independent to access network. Complementary Access System (from ITU-R Recommendation M.1645) Services and applications Download channel Digital broadcast New radio interface WLAN type Other entities Cellular 2nd generation Wireline xDSL Packet-based core network Short range connectivity IMT-2000 IP Centric Heterogeneous Network

7. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 7 “4G air interface” (100Mbps / 1G bps) would be an element of “Beyond 3G” “4G air interface” will not replace 3G radio, and it is complement to 3G radio and other access subsystems MMD/IMS is essential toward “Beyond 3G”  Various access systems (e.g. 3G cellular, a new radio Interface, W-LAN, Short range radio, and wired access, etc.) will be connected via flexible core networks.  User can be connected via a variety of different access systems to the networks.  “Access Independent Service”: Network services are provided seamlessly through variety of access supported with horizontal and vertical handover. Network comprising a variety of interworking access systems connected to a common packet-based core network Essence of “Beyond 3G”

8. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 8 Enhanced CDMA2000  Improve system voice capacity (VoIP)  Increase peak transmission rate to 100Mbps (FL:100M~1Gbps, RL:50Mbps)  Improve spectrum efficiency  Reduce set-up time and round-trip delay  Reduce cost per bit  Backward compatibility with existing system 3GPP2 TSG-C has approved to initiate development of system requirements and technology specifications for Enhanced CDMA2000 air interface based on proposal by 29 members (2005/5/20, Portland). Evolution of Air Interface -Enhanced CDMA2000-

9. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 9 3. KDDI “Ultra 3G” Concept

10. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 10 Evolution of KDDI Systems CDMA2000 1X 100kbps 1Mbps 10Mbps 100Mbps 1xEV-DO Rev. 0 1xEV-DO Rev. A NxEV-DO Enhanced CDMA2000 3.1Mbps Peak Rate in FL 20022005 2010 Approximately 10Mbps Over 100Mbps ? Year CDMA2000 Evolution April 2002~ October 2003~Scheduled from mid 2006 154kbps 2.4Mbps

11. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 11 What is “Ultra 3G”? Ultra 3G: A convergent network including Fixed accesses and Mobile accesses (3G/B3G) to offer attractive Ubiquitous services and applications seamlessly Ultra 3G: A convergent network including Fixed accesses and Mobile accesses (3G/B3G) to offer attractive Ubiquitous services and applications seamlessly 1G Analog Voice 2G Voice Low-speed Data 3G Voice High-speed Data Multimedia Ultra 3G Access Independent FMC Network Analog VoiceV.90/ISDNADSLFTTH B3G Super High-speed Data Multimedia Wireless Low Cost Always ON

12. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 12 Services and applications Download channel Digital broadcast New radio interface WLAN type Other entities Wireline xDSL Packet-based Core network Short range connectivity IMT-2000 Source: Rec. ITU-R M.1645 Bluetooth ZigBee etc.  MMD based  IPv6 Network  Enhanced CDMA2000 IEEE802.16e, etc.  ADSL FTTH  IEEE802.11 a/b/g + n, e, i  CDMA2000 + EV-DO Rev.A + NxEV-DO, etc. Enhancement of the 3G network to offer the attractive services and applications seamlessly over the packet-based core network with a variety of access systems which compliment each other KDDI “Ultra 3G” Concept A variety of access systems Integrated services Cellular 2nd generation

13. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 13 NGW Analog Phone SIP Phone SIP Handset CDMA IP RAN PDSN VoIP NW SBC HSS/AAA 802.11 MG/SG (Media Gateway/Signaling Gateway) HSS （ Home Subscriber Server) SBC （ Session Border Controller ） B3G (Beyond 3 rd generation) Service Servers Access IP Core MMD PLMN PSTN MMD Legacy Handset LMSD MG Circuit Switch NW SBC Converged IP Core Network CDMA 1x RAN Enhanced CDMA2000 WLAN SG/MG/MGC MG MSC MSCe Modem ” 802.16e etc Network Convergence

14. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 14 IPv4 PacketOne (existing) HA IPv6 PacketOne (Always ON NW) EVDO RAN New Radio Access Management / MMD (IPv6) DION IPv6 / IPv6 Internet PDSN IPv4/v6 HSS EZweb/Email (IPv4) Dual Stack mobile (e.g. Packet only) Conventional mobile IPv6 & Always ON network IP push MMD Service VoIP P2P

15. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 15 Use as Mobile Phone outside In house, use TV set as Video Phone FTTH KDDI FMC Network Video Phone for receive only, use text for transmission not disturbing others in bus How are you? ^^v (example 1) Seamless Communications on FMC Network

16. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 16 ? (example 2) Thin Client & My Data Bank Home GW Thin Client Thin Handset Broadband Access My Data Bank My DRM Benefit of Broadband Access: “My Data Bank” stores every personal data. Thin clients access “My Data Bank” through various types of broadband access. Wireless KDDI FMC Network HomeRemoteMobile

17. F. Watanabe, “Evolution Towards Beyond 3G”, June 27, 2005, KDDI Proprietary 17 KDDI, by setting “mobile & IP” as a core competence of the business and responding to the customers’ further reliance and satisfaction, aims to become a “Ubiquitous Solution Company” “Thank you” www.kddi.com