> CDMA2000 Differentiators. Superior Voice & Data Technology. Stephane LeDreau, Vice President Business Development

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1 > CDMA2000 Differentiators Superior Voice & Data Technology Stephane LeDreau, Vice President Business Development

2 CDMA2000 Technology Advantages > Improved spectrum utilization compared to UMTS > Unique coverage solutions for rural areas using CDMA450 > 1xEV-DO a proven Superior Data solution available today > Solid foundation from which new technologies will evolve > Application evolution supporting basic to real time needs > CDMA2000 is globally driving the application framework 2

3 Spectrum Utilization > Channel Bandwidth CDMA = 1.2 UMTS = 3.84 MHz > Guard band requirement by FCC CDMA = ~ 625 khz for PCS, khz for Cellular UMTS = ~ 580 khz Spectrum CDMA Channels Spectrum Utilization UMTS Channels Spectrum Utilization 3 75% % 10 MHz % % % % For CDMA, the larger the block of spectrum, the higher the percentage of spectrum utilization 3

4 Unique Coverage Solutions using CDMA450 Voice Capacity Cell Radius (km) Cell Area (km²) CDMA450 vs GSM Capacity CDMA 450 GSM 800 (EVRC8k) (EFR12k) GSM 1900 (EFR12k) CDMA450 coverage GSM900 GSM1800 IMT-2000 > CDMA available for 450MHz today > Rural Coverage with CDMA450 Requires 59% fewer rural/urban cells than CDMA1900 Covers 9 x more area for same capacity as GSM1900 Reduced backhaul requirements typically 30% of OpEx CDMA450 Minimizes CapEx for highest Addressable customers, Coverage, Voice & Packet Data Capacity 4

5 CDMA2000 Leading Data Technologies Today! 1xEV-DO Fastest Wide Area Wireless Technology Available EVDO EDGE 1xRTT GPRS Commercial Network Verizon Wireless San Diego AT&T Wireless Verizon Wireless San Diego AT&T Wireless San Francisco Average Data Rate Observed (FTP) 795 kbps Downlink 108 kbps Uplink 78.3Kbps 110 Kbps Downlink (Uplink not measured) 90 kbps Downlink 50 kbps Uplink 30 kbps downlink 21 kbps uplink Access Terminal AirPrime 1x/1xEV-DO PC Card Sony Ericsson EDGE PC Card AirPrime 1x/1xEV-DO PC Card (1x Mode) Sierra Wireless GPRS PC Card Performance Metric Commercial Availability Channel Width Average Per User Throughput (kbps) Link Downlink Uplink UMTS R99 Now

6 Nortel s Vision of 3GPP2 Evolution With similar throughput performance, 1XEV-DO Rev 0 & Rev A are about 18 months ahead of HSDPA/HSUPA. 3GPP evolution intends to close Gap with HSUPA and lead beyond HSUPA MC-DO provides higher user throughputs than 3GPP and comparable peak rates while preserving investment protection (Mid term recommendation) B-OFDM offers significant performance gain but would require physical layer change. Nortel recommends an aggressive evolution vision, using MIMO OFDM for delivery in the timeframe. 6 1x DO RevA MHz CDMA 3.6x MC-DO 1.25, n x 1.25 MHz CDMA (N=1 3) Ultra Broadband Wireless 3G 4.7x throughput Peak: rates of 16 Mbps B-OFDM OFDM Mix of 1.25 MHz CDMA or OFDM, 5, 10, 20 MHz OFDM 10x/20x throughput Peak: rates of 40 Mbps MIMO-OFDM OFDM (2x2 / 2x4) MIMO OFDM optimized A/I

7 Application Evolution Complexity Basic Internet Browsing (WAP) Text Messaging (SMS) Instant Messaging MMS PTT Location Based Services Enterprise Simple Multimedia: Video on Demand Live Mobile TV Video / Audio Streaming Infotainment: BREW and Java Video Messaging Real-Time: VOIP/Video Conferencing Video Telephony Broadcast / Multicast Advanced PTT (Push to X) Network Gaming 7 1X EV-DO rev 0 Bandwidth EV-DO rev A and MMD

8 CDMA2000 Globally Driving Applications GPRS has overtaken CDMA in terms of numbers of data subs, but CDMA still has a much higher data penetration 18.9% for 1x + EV-DO vs. 5.6% for GPRS Global Data Penetration of voice subscribers Developed Asia appears to be ahead of NA by ~3 years in terms of the percentage of ARPU generated from CDMA data services Majority of data subs in Korea & Japan ~ Half of SKT s 1X subs migrated to EV-DO Source: EMC World Cellular Data Metrics, Sept 2004 Today the Technology of choice to support broadband data services in Asia is CDMA2000 1xRTT & 1xEV-DO Their success selling High End Data services is now enabling CDMA2000 to drive the application framework globally 8

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