CDMA and 1xEV-DO Broadband for All - Now!

Victor J. Agnellini

President, Caribbean and Latin America

Cancun – May 14th, 2008

CDMA and 1xEV-DO Broadband for All - Now!

2 | VAgnellini | May 2008 All Rights Reserved © Alcatel-Lucent 2008

CDMA is Dead - Long Live CDMA!CDMA stands poised at the crossroads of change, change that willimpact the very nature of every network we support. Whether or not LTE appears in our networks as quickly as the pundits and customers would like to believe; CDMA networks will be supporting revenue generating customers and applications for many years to come.

� CDMA will continue to evolve with improved voice and data capabilities

� CDMA will enable operators to gracefully evolve to LTE, maximizing the value of their investment in existing CDMA infrastructure

� CDMA networks will remain in place as operators grow their 4G coverage

WiFi

DorA

WiMax

HSDPA

UMTS

LTE

CDMA Evolution


US Virgin Isle

Argentina

AngolaAngolaCongo

Nigeria

Zambia

Egypt

IsraelIsrael

Mauritius

Chile

Peru

Ecuador

Colombia

Guatemala

Mexico

Uruguay

Mongolia

China

Australia

New Zealand

Indonesia

Japan

S Korea

TaiwanHong Kong

Viet Nam

Thailand

Cambodia

Guam

Philippines

Malaysia

El Salvador

Panama

HaitiJamaica

Dominican Rep

Bermuda

Puerto Rico

Venezuela

Fiji

Nicaragua

China

Australia

Canada

Russia

China

India

Australia

Bangladesh

EgyptEgypt

Kazakhstan

Pakistan

AlgeriaAlgeria

EthiopiaEthiopia

Portugal

UkraineUkraine

RomaniaRomania

BelarusBelarus

PolandPoland

GeorgiaGeorgia Kyrgyzstan

Myanmar

Belize

Czech RepCzech Rep

USA

Brazil

Uzbekistan

MoldovaMoldova

Yemen

KenyaKenya

Honduras Kuwait

SwedenSweden

LatviaLatvia

Azerbaijan

Laos

Nepal

Saudi Arabia

UgandaUganda

Sources: www.cdg.org, www.3gtoday.com, www.3G.co.uk 04/08

NorwayNorway

Cayman Isle

Ghana

RwandaRwanda

Sri LankaTrinidad & Tobago

South AfricaSouth AfricaNamibia

Niger

Tajikistan

Cote D'Ivoire

Madagascar

Mali

Mozambique

Oman

Botswana

BarbadosAntilles

CDMA continues to grow & Lead the Drive to 3G

Bahamas

Cameroon

FinlandFinland

IrelandIreland

DenmarkDenmark

Macau

Aruba

Mauritania

Gambia

306 operators in 103 countries operate 519 CDMA net works supporting >431 M subs280 operators in 99 countries operate 255 CDMA2000 1X (3G) networks supporting >418 M subs

131 Operators in 69 Countries Have Launched or Anno unced for Plans 1xEV-DO Networks72 Commercial 1xEV-DO networks in 49 countries supp ort >91 M subs (04/08)

UK Virgin Isle

IraqIraqMorocco

TanzaniaTanzania

Togo

22ndnd Generation (cdmaOne)Generation (cdmaOne)

33rdrd Generation (CDMA2000 1X)Generation (CDMA2000 1X)

33rdrd Generation (1xEVGeneration (1xEV --DO Rev 0)DO Rev 0)

KEY

33rdrd Generation (1xEVGeneration (1xEV --DO Rev A)DO Rev A)

Surinam

EstoniaEstonia

Afghanistan

IcelandIceland

SudanSudanN Mariana Isles


Top Sub-$50 Handset Models 2007

Global economies of scale driven by low cost devicesThe CDG quotes a Yankee Group report, detailing from Jan - Oct '07:

� 62% of all handsets imported into India were below $50

� 78% of all sub-$50 imports were CDMA models from 13 vendors

� 94% of CDMA imports were below $50

� Total CDMA import volumes exceed GSM by a margin of 52% to 48%.

� The average selling price (ASP) for CDMA handsets is 68% lower than the GSM market average — on average, the cost of CDMA handsets is $72 less than GSM.

� More than 82 very low-end (VLE) CDMA2000 handsets (<$50 USD wholesale) available from 19 suppliers

� Bangladesh, China, Ghana, Indonesia, Mexico, Nigeria, Pakistan, Sri Lanka and Venezuela. Very low-cost CDMA handsets available in developed markets with e.g., “Cricket EZ” handset sold by Cricket Communications in the US for $49.99

Throughout 2008/9 multiple CDMA device manufacturers will launch:

� Low cost DOrA ASICs, Cards and Handsets

� Sub $20 1X phones

� Low cost DO/LTE devicesZTE

CLASSIC 202

ROSE CLASSIC

632

SAMSUNG S229

KINPO CLASSIC

701

HUAWEI C2285

LG 3100


Operator ARPU increases as Subs adopt DO

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

380

400

420

440

YE03 YE04 YE05 YE06 YE07

HSDPA

19M

UMTS178M

1xEV-DO

CDMA2000 1X

(431M incl cdmaOne)

417M

91M

351M

288M

236M

186M

107M

53M18M3M

64M

25M5M

� US Wireless data revenues grew 7.8% Q/Q to $6.9B in Q407.

� For 07, US wireless data revenues were $24.5B, up 55% from 06.

� Strongest growth in 2007 from Verizon (64% YOY jump in data revenues $7.4B), almost 31% of the US industry data revenue for the year.

� The average industry contribution of data to service revenues jumped to 19.34%.

� Verizon one of five global operators who are now generating $2B or more in data revenues/quarter (the others are NTT DoCoMo, China Mobile, ATT and KDDI).

Source Pyramid & CDG 12/07

Source: http://www.chetansharma.com/usmarketupdateq407.htm -

US Wireless Data Market Update - 4Q07 and 2007


CDMA EV-DO Subscribers Breakdown for Leading Network Operators

1. Verizon Wireless (US)

2. KDDI (Japan)

3. SKT (Korea)

5. KTF (Korea)

4. Sprint (US)

6. Vivo (Brazil)

� est. 11.7M subs

est. 6.8M subs

est. 8.2M subs

� est. 6.1M subs7. Others

est. 2.3M subs

est. 35.0M subs

� est. 18.8M subs

Vi vo 3%

Other 7%

KT F 8%

Spr i nt Nextel 9%

SKT 13%

KDDI 21%

Ver i zon Wi r el ess

39%

Alcatel-Lucent Network Infrastructure supports 40% of the worldwide CDMA EVDO subs, and the number keeps growing with more deployment of some customers such as Verizon, Sprint.

(Ovum Data as of 4Q 2007)


Sample List of DOrA ApplicationsContext Aware LBS

• Friend Finder

• Points of Interest

• Point by Point Directions

Entertainment• MiView TV

• Mobile Interactive Music

• Broadcast Video Services

Interactive Advertising• Ad121

• Advertext

• Ad Ringback Tone

• Location based Advertising

• Mobile Ad Studio

• Mobile Kiosk

• Multi-cast Active Wallpaper

• Multimedia Ringback Tones

• Targeted Advertising

Push to Services• Presence Enabled PTT

• Push-to-Conference call

• Push-to-Dispatch

• PTT to full duplex voice

• Push-to-Share

• Push-to-Social Networking

• Push-to-Talk

• Push-to-Video call

Messaging• Instant Messaging

• IP Converged Messaging

• Multimedia Messaging

• Push email

• Safe Content Sharing

• Smart Message Routing

• SMS

• Broadcast SMS

• Video Greetings

• Visual Messaging

• Web Messaging

NG Telephony • Mobile Office / Extensions

• Dual Mode Service

• Residential/Enterprise VoIP

• Video Telephony

• Video Mail


Solutions Adopted by the World’s Growing Countries

1xEV-DORev 0/A/B/UMB

1xEV1xEV--DO DO ModemModem

Backhaul

Backhaul

for for WiFI

WiFI

FixedFixedwirelesswireless

802.11 Hot Spot802.11 Hot Spot

EVDO EVDO ModemModem

Mobile Mobile datadata

Mobile Mobile usersusers


ConclusionsApplications on existing 3G networks will stimulate user demands for faster networks

Trials of 4G will begin in 2009, but it may take several years for commercial deployment on a large scale

� 4G coverage will likely be limited to dense urban areas

� As 4G solutions emerge they will hand-off to existing 3G for extended coverage

3G CDMA networks are viable for many years to come and will offer:

� Improved Data Rates with 1xEV-DO Rev B and Rev A+

� Improved Voice capacity with CDMA2000 1XCITE

� Seamless integration and inter-working with 4G solutions


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CDMA and 1xEV-DO Broadband for All - Now!