CDMA in Latin America, the present and the future Latin America Conference São Paulo April 17, 2002
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1 CDMA in Latin America, the present and the future 2002 Latin America Conference São Paulo April 17, 2002
2 CDMA today and tomorrow 2
3 In five years, CDMA has grown to reached over 111 million subscribers 120, , ,000 90,000 80,000 Millions 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Sep-97 Dec-97 Mar-98 Jun-98 Sep-98 Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Asia Pacific North America Caribbean & Latin America Europe, Middle East & Africa Note: prior to March 1998 the Caribbean and Mexico are included in North America; after March 1998 they are included in Caribbean & Latin America 3
4 CDMA is one of the leading digital technologies with presence across all continents North America 48 million Is the dominant technology with 41% market share Caribbean and Latin America 20 million Has 20% market share Growing at 5 million subscribers per year Asia Pacific 42 million Now deployed in China Birthplace of 3G 4
5 CDMA will continue to gain market share iden 4% Technology Share 2001 TDMA 10% Analog 4% CDMA 12% Technology Share 2005E Analogue 1% CDMA 20% GSM 70% GSM 68% iden 1% TDMA 10% Source: EMC CDMA market share will grow from 12% in 2001 to 20% in
6 CDMA is one of the leading technologies in Latin America Mexico Baja Iusacell Unefon Pegaso Honduras Celtel Haiti Haiti Telecommunications Dominican Republic Centennial Guatemala Telefonica Telgua El Salvador Telefonica Puerto Rico Centennial Venezuela Telcel 13 countries 21 operators 20 million subscribers Peru Telefonica Chile SmartCom Argentina CTI Movil Movicom Brazil Telesp Telefonica Global Telecom Vesper Uruguay Movicom 6
7 CDMA will continue to expand in Latin America 250, ,000 US TDMA 49% Analog 3% CDMA 37% Millions 150, ,000 50, * 2003* 2004* 2005* Analogue CDMA GSM US TDMA CDMA in Latin America will represent 37% of the market in 2005 Source: EMC GSM 11% *Estimate 7
8 CDMA2000 Delivering on 3G 8
9 CDMA2000: Delivering on 3G The world s first commercial IMT G systems were launched in October Thirteen CDMA2000 networks are currently in live deployment in Europe, Asia and the Americas. Fourteen more networks will be deployed by end of the year. SK Telecom launched the first CDMA2000 1xEV-DO network in January 2002, achieving data speeds of up to 2.4 Mbps. Launch 2002 Launch 2Q 2002 Commercial 1Q 2002 Commercial 4Q 2001 Commercial 4Q 2001 Commercial 1Q 2002 CST Invest Ltd. Launch 1H 2002 Launch 2H 2002 & Affiliates* Launch Mid 2002 Launch 4Q 2002 Limited Commercial 3Q 2001 Commercial 4Q 2001 Commercial 2Q 2001 Commercial 2Q 2002 Commercial 1Q 2002 Trial 2Q 2002 Launch 1H 2002 Commercial 2Q 2002 Commercial 4Q 2000 Launch 3Q 2002 Commercial 4Q 2000 Launch 1H 2002 Trial 1H 2001 Hutchison-CAT Launch 3Q 2002 Launch 2H 2002 Commercial 4Q 2001 Trial 3Q 2000 Launch 1H 2002 Launch 2H 2002 Commercial 2Q 2002 Launch 2Q
10 CDMA2000: delivering on 3G Today there are more than 7 million CDMA2000 subscribers More than 1.5 million are added every month 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Millions 10
11 CDMA2000 is here in Latin America Telesp launched the first commercial CDMA2000 network in December Telefonica launched services in Rio de Janeiro in April, Centennial Puerto Rico launched services on April 2, Five other operators will follow in Launch 3Q 2002 Commercial 2Q 2002 Trial 2Q 2002 Launch 1Q 2002 Launch 1H 2002 Trial 1H 2001 Commercial 2Q 2002 Commercial 4Q 2001 Launch 1Q 2002 Launch 2H
12 CDMA2000 1X deployment Brian O Shaughnessy Vice President, Wireless Technology
13 Bell Mobility $1.5 billion total revenue for 2000 > 4 million subscribers largest in Canada 3.5 M cellular, 755K paging 3,000 employees Postpaid mix: 74% North American industry-leading churn at 1.5% First in the Americas to launch wireless internet & 1st in Canada to launch 1xR TT Note:These num bers relate to BellM obility,aliantmobility,northern Mobility,Telebec Mobility and NorthW estel.m obility *BellM obility/bellcanada internalestimate
14 Data Results to Date Registered Data Users Mobile Browser Categories # Of Subs 800, , , , , , , ,000 0 Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct ,000 Nov-01 Financial & Biz 5% Entertainment 55% All Others 3% Communication s 32% Information Services 4% M-Commerce 1% More than three quarters of a million customers have tried Bell Mobility data services Active weekly Mobile Browser users over 100,000 Registered Data users over 800,000 (December 2001) Total Mobile Browser hits almost 36 million Gaming and entertainment represents more than half of Mobile Browser hits Data represents 2% of all digital minutes Active monthly data users reached a 25% penetration of all dot com ready phones 14
15 Why Launch 1xRTT Now? Key Drivers: Demand and Opportunities of the Wireless Internet Need for high-speed, wireless data access to support next generation of devices and services New revenue opportunities as wireless network access shifts from voice to data Capacity Constraints on Current Digital Network Need for more spectrum-efficient technologies to alleviate current network congestion in major service areas Desire to Leverage Existing Network Infrastructure Migration path must be smooth, to capitalize on existing network investments Maintain and Strengthen Leadership Position Controls churn and market share Work with m-commerce partners, application developers and data device suppliers Deliver enhanced data solutions 15
16 Network Benefits Faster transmission speeds up to 86kbps! Instant on connection Always-on connection Volume based billing Backwards compatibility I ve tried GPRS and 1xRTT beats it hands-down. Improved color and graphics Support for enhanced applications & devices 16
17 1xRTT Stress Test Results Multi-User, Multi-Application Mix (Over 1/2 Hour Period): 3 1xRTT Voice Calls 2 File Downloads (FTP) Avg. User Tput = 50kbps 2 Sessions (VPN) 2 Web Surfing - Tethered Kyocera (WWW) 4 Mobile Browser Sessions 1 Web Surfing - IPAQ & Sierra Wireless (WWW) 17
18 1X-Ready Phones 1X-ready Internet ready and data capable Two-way text messaging capability Downloadable ring tone and screensaver capability 18
19 Sierra Wireless AirCard 555 Available April, 2002 Dual mode (1.9GHz & 800MHz) Voice capabilities Start-Up Kit includes auto-install software
20 Data to Go Start-Up Kit with Dashboard Software New Name, New Packaging
21 CDMA2000 1X deployment Brian O Shaughnessy Vice President, Wireless Technology
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