• DO for the year MMX

Dr. Paul JacobsChief Executive Officer, QUALCOMM

PAGE 22

EV-DO VoIP

BluetoothTM

GPS

EV-DO VoIP

EV-DO Data

BluetoothTM

EV-DO VoIP

EV-DO Data

BluetoothTM

Voice call to sales manager

While on call, checks email and

downloads presentation with

latest sales figures

Checks location and directions to

client’s office

Watches game on MediaFLO and has a group chat with

friends

At home, playing multiplayer 3D

game, using Wi-Fi to send video to nearby display

MediaFLO

EV-DO VoIP

EV-DO Data

BluetoothTM

Wi-Fi

EV-DO VoIP

EV-DO Data

PAGE 33

Convergence requires Concurrence

PAGE 44

Multilink Multilink eXtensionseXtensionsMatching the Optimal Airlink with the Appropriate Application

For mobile voice and data• VoIP• Multiplayer online gaming• Push to talk• Video telephony• Video and music on demand

For portable, data-intensive applications• High-rate EV-DO channel or multiple channels• Better user experience• Enterprise applications

Embedded EV-DO

• Cost-effective media delivery to mobile devices• Platinum and FLO• OFDM based

Mobile Broadband EV-DO

Complementary Airlinks

• GPS for location services and emergency fixes• Bluetooth for cordless connection to peripherals• Wi-Fi for cordless local connections

E911

Mobile Multicast

PAGE 55

DMMX: EVDMMX: EV--DO DO MulticarrierMulticarrier Multilink Multilink eXtensionseXtensionsPlatform to Increase the Capabilities of CDMA2000 Through 2010

EV-DO Evolution including Rev. A and Rev. B (Multicarrier)

+Performance techniquesdeveloped by QUALCOMM

+Multilink eXtensions: key complementary airlinks

PAGE 66

HMMX: HSDPA HMMX: HSDPA MulticarrierMulticarrier Multilink Multilink eXtensionseXtensionsPlatform to Increase the Capabilities of WCDMA Through 2010

HSDPA/HSUPA

+Performance techniquesdeveloped by QUALCOMM

+Multilink eXtensions: key complementary airlinks

PAGE 77

Wide-Area Multiple Access Technologies

EV-DORev A

200620052004200320022001 2007 2008

EV-DORev B*

2009

CDMA20001xEV-DO

CDMA20001X

for cdmaOne/CDMA2000 operators

for WCDMA/GSM/GPRS operatorsRel-99

WCDMA

Wide-Area Multicast Technologies

Dedicated multicast network for 3G operators

EV-DOGold

In-band 3G multicast for CDMA2000 operators

In-band 3G multicast for WCDMA operators

Local-Area Technologiesfor home, enterprise, campus and hotspot access

Rel-5HSDPA

Rel-6HSUPA*

WCDMAMBMS*

FLO

802.11b

EV-DOPlatinum Multicast*

802.11a/g 802.11n (Full)**

Timeline depicts initial commercial availability of each technology. *These technologies are in process of standardization/commercialization - timelines are not certain.

Wireless Roadmap Wireless Roadmap -- The Right Technology for the Right ServiceThe Right Technology for the Right Service

802.11n**

** Expected mid-2006 initial availability of EWC 802.11n basic version, early-2008 for full featured version.

PAGE 88

Wide-Area Multiple Access Technologies

EV-DORev A

200620052004200320022001 2007 2008

EV-DORev B*

2009

CDMA20001xEV-DO

CDMA20001X

for cdmaOne/CDMA2000 operators

for WCDMA/GSM/GPRS operatorsRel-99

WCDMA

Wide-Area Multicast Technologies

Dedicated multicast network for 3G operators

EV-DOGold

In-band 3G multicast for CDMA2000 operators

In-band 3G multicast for WCDMA operators

Local-Area Technologiesfor home, enterprise, campus and hotspot access

Rel-5HSDPA

Rel-6HSUPA*

WCDMAMBMS*

FLO

802.11b

EV-DOPlatinum Multicast*

802.11a/g 802.11n (Full)**

Timeline depicts initial commercial availability of each technology. *These technologies are in process of standardization/commercialization - timelines are not certain.

Wireless Roadmap Wireless Roadmap -- The Right Technology for the Right ServiceThe Right Technology for the Right Service

802.11n**

** Expected mid-2006 initial availability of EWC 802.11n basic version, early-2008 for full featured version.

EV-DORev A

EV-DORev B*

CDMA20001xEV-DO

CDMA20001X

Rel-99WCDMA

EV-DOGold

Rel-5HSDPA

Rel-6HSUPA*

WCDMAMBMS*

FLO

802.11b

EV-DOPlatinum Multicast*

802.11a/g 802.11n (Full)**802.11n**

OFDMCDMA/TDMCDMA

PAGE 99

CDMA2000 1xEVCDMA2000 1xEV--DO RoadmapDO Roadmap

Gold MulticastPlatinum MulticastData-rate media delivery

Quality of Service (QoS)Multiple QoS concurrent flowsSelected by user or application

Rev. A – Higher Data Rates3.1Mbps FL1.8Mbps RL

Avg 600-1300Kbps DL

VoIP1X-like spectral efficiency/

voice capacity/quality

Equalizer Interference cancellationVoice/data capacity gains

Low Latency30-50ms

Rel. 02.4Mbps FL153Kbps RL

Avg 300-600Kbps FL

Push To TalkInstant MessagingInstant Multimedia

Audio and video<750ms PTT

Video TelephonyPacket voice and video

Rev. B – MulticarrierUp to 73.5Mbps in 20MHz

Fully backward compatible

PAGE 1010

EVEV--DO DO MulticarrierMulticarrier: More Capacity and Broadband Rates: More Capacity and Broadband RatesCombines VoIP and Peak Rates of 73.5Mbps

With Moore’s Law, handsets become more capable and replace larger computing platforms.

• Aggregates more spectrally efficient EV-DO channels for broadband rates

• Offers a mix of simultaneous VoIP and IP-based data services

• Allows devices to use one or more channels depending on application

• Offers tiering/bundling of differentiated offerings for various segments

• Provides power efficiency enhancements for improved battery life

PAGE 1111

Continue to Drive Air Interface ImprovementsContinue to Drive Air Interface ImprovementsEV-DO Rel 0, Rev A, Rx Diversity, Equalizer and Interference CancellationTechniques

Forward Link sector throughput gains

830Kbps

1240Kbps

1500Kbps

~50%

~20% Increase

EV-DO Rel. 0

Rel. 0 + 2-Rx Handset

Diversity

Rev. A + 2-Rx Handset Diversity + Equalizer

~275% Increase

~70%

2030Kbps

539Kbps316Kbps

EV-DO Rel. 0

EV-DO Rev. A

EV-DO Rev. A + 4-Rx BTS Diversity + SIC*

Figures are per sector for a single RF carrier. *SIC: Successive Interference Cancellation.

Reverse Link sector throughput gains

PAGE 1212

Mobile Receive Diversity Improves Performance Mobile Receive Diversity Improves Performance

• Doubles voice capacity of 1X and EV-DO• Significantly increases data rates • Significantly increases sector capacity• Backward compatible • No new standards required

Commercial 2-Rx Diversity Handsets

MSM

RF

Rx1

Tx1 Dup

lexe

r

RF

Rx2

Mobile Receive DiversityDevice with two Rx chains

Two Antennas in the Mobile Phone

PAGE 1313

Two pairs of spatially separated cross-polarized antennas provide 4-branch Rx diversity.

• Yields much higher sector capacity – even larger than gain from device diversity

• Same network topology and RF plan

• No new standards

• Can be rolled out incrementally as needed

Base Station Receive Diversity Improves PerformanceBase Station Receive Diversity Improves Performance

Tx1

Rx1

Rx2

X-Pol

Rx3

Rx4

RF

RF

RF

RF

RF

X-Pol

V-Pol

Cha

nnel

Car

ds

PAGE 1414

Capacity Loss (-ve)/Gain (+ve) (%)

4GV 4GV –– Fourth Generation Fourth Generation VocoderVocoderIntegrating Narrow Band, Wideband and VOIP Speech Codec Solution

[Capacity vs Quality] of EVRC vs. 4GV vs. AMR at 1% FER

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

3.80

3.90

4.00

-60 -40 -20 0 20 40 60

MO

S EVRC-1%4GV-1%AMR-1%

Lower QualityHigher Capacity

Higher QualityLower Capacity

Continuous Range of COPs

4GV

PAGE 1515

Pilot Interference Cancellation (PIC)Pilot Interference Cancellation (PIC)

• For low data-rate applications (e.g., VoIP, PTT), where many devices transmit at the same time, a significant portion of BTS received power is from reverse link pilots

• Removal of pilot interference increases capacity

• For example, VoIP experiences ~15-20% reverse link capacity gain

• No standard changes required

• Can be rolled out incrementally as needed

PAGE 1616

Increasing Peak Data Rates and Throughput Increasing Peak Data Rates and Throughput

1. CDMA2000 simulation methodology, 10 users per sector.2. CDMA2000 simulation methodology, 10 users per sector, equalizer gain simulated. * Estimates.

Kbps/SectorSpectral EfficiencyFrequency Reuse

2,450Kbps

FL 1Rx

3,675KbpsFL 2Rx

2,450 - 3,6750.25 - 0.37

1/1

6,090Kbps

FL 1RxRel. 0

7,350Kbps

FL 2Rx

Rel. 0

10,500KbpsEqualizerFL 2Rx, Rev. A

6,090 - 10,5000.61 - 1.05

1/1

Data Throughput Per Sector(2x10MHz)

Assumes 100% loading of data traffic

1

10

100

1,000

10,000

100,000

1995 1998 2000 2002 2006* 2008*

cdmaOneCDMA2000 1XEV-DO

Peak Data Rates Implemented(Forward Link in 5MHz)

Kbp

s(in

loga

rithm

ic s

cale

)

Year commercially launched

EV-DO Rel. O EV-DO Rev. A

EV-DO Rev. B

1X1

CDMA2000 1X

IS-95A

IS-95B

EV-DO Rev. A

PAGE 1717

Growing Voice CapacityGrowing Voice Capacity

1. "Further Capacity Improvements in CDMA Cellular Systems," QUALCOMM Inc., Roberto Padovani. Assumes two-way Rx Diversity at handset and four-way Rx Diversity at BTS. 4GV Capacity Operating Point 2.

2. QUALCOMM simulation, 4GV Capacity Operating Point 2.

2% GOS for all calculationsAssumes 100% loading of voice traffic

12xAMR

12.2 kbps

EFR 3/9

27xAMR

5.9 kbps

37 31 - 9047 120-298

Base

AMPS916

7/21

15x

cdmaOne1341471/1 1/1

32xEVRC2FL Rx26x

EVRC

36x4GV

33xEVRC

2FL Rx

42xPIC

50x4RL Rx

1X1 EV-DO Rev. A VoIP2

231 - 297 287 - 448245-462 301-462

1/1 1/1

Erlangs/SectorUsers/SectorFrequency Reuse

Erlangs Per Sector(2x10MHz)

PAGE 1818

Dual CPUs400MHz - 1GHz270MHzup to 180MHzup to 100MHzuPROCESSOR

VGA [640 x 480]QVGA [320 x 240]QCIF [176 x 144]sQCIF [128 x 96]DISPLAY

A-GPS Mode Standalone Mode

Car Navigation

A-GPS Mode Standalone Mode

Car Navigation

A-GPS Mode Standalone Mode

Car NavigationA-GPSLOCATION (LBS)

Bluetooth, WLANMediacast

Bluetooth, WLANMediacast

BluetoothMEDIACAST & comp wireless

15fps QCIF

3MPixel

50k poly/sec,400 pix/sec

MP3/WMA/REAL/E-AAC+Surround Sound

Multimedia Platform Convergence PlatformEnhanced PlatformValue Platform

30fps VGARec: 15fps QVGAPlay: 30fps QVGA

VIDEO

5MPixel1

100k tri/sec,7M pix/sec

MP3/WMA/REAL/E-AAC+Surround and Positional

Sound

1.3MPixel

MP3

8MPixelCAMERA

4M tri/sec,133M pix/sec

3D Graphics

MP3/WMA/REAL/E-AAC+Surround and Positional

SoundMUSIC

Multimedia Segmentation StrategyMultimedia Segmentation Strategy

Footnote 1: Depends on MSM.

PAGE 1919

New New ““ScorpionScorpion”” Mobile Microprocessor Core Mobile Microprocessor Core • Scorpion – low power, high performance superscalar CPU developed by QCT

• First to develop 1GHz CPU for battery powered wireless applications • Low power, low leakage, 65-nm process • Specifically designed and optimized for MSM solutions• ARM v7 compliant; QCT is an ARM architecture licensee

• VeNum – low power, high performance multimedia coprocessor• Up to 2X performance boost for multimedia applications• Example of one of QCT’s new developments

NOTE: in low-power 65nm technologies. Uses Dhrystone 2.1 (DMIPS)

240 mWatts300 mWattsPower @ 1200 DMIPS

2100 DMIPS1200 DMIPSPerformance

1GHz>600MHzFrequency

ScorpionCortex-A8Feature

ARM9 ARM11 Scorpion Scorpion + Neon0

5

10

15

20

Rel

ativ

e Pe

rfor

man

ce

CPU Delivers Up To 16xPerformance Over Previous QCT Generations

Collaboration Between QCT and ARM on v7 Architecture

NOTE: Scorpion is based on ARM v7 architecture.

How Scorpion stacks up

World’s Most Advanced Mobile Microprocessor for Handheld Devices

PAGE 2020

MediaFLO: Integrated Service Across Multiple NetworksMediaFLO: Integrated Service Across Multiple Networks

Content Providers

(Shared Content)

Content Providers

(Unique Content)

MediaFLO MDS

MediaFLO MDS

Managed by FLO Operator

Managed by Wireless Operator

3G

FLO

SAME SUBSCRIBER

MediaFLO Client

PAGE 2121

Wholesale CDMA2000 vs. GSM ASP ConvergenceWholesale CDMA2000 vs. GSM ASP Convergence

GSM Wholesale ASP Source: 1993-1999 Strategis, Strategy Analytics and Dataquest average; 2000-2004 Yankee Group.

GSM Volume Source: 1993-2000 Strategis, Strategy Analytics and Dataquest average, and 2001-2004 Strategy Analytics.

• cdmaOne/CDMA2000 price does not include Japan and Korea, where there is no GSM service

• GSM and cdmaOne/CDMA2000 handset average pricing curves have converged despite considerable volume disparities

$0

$100

$200

$300

$400

$500

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Calendar Year

ASP

($)

GSM Average

CDMA2000 Average

Est

Cum. Volume through CY2004:

GSM 2 Billion Devices

CDMA 565 Million Devices

Cum. Volume through CY2004:

GSM 2 Billion Devices

CDMA 565 Million Devices

PAGE 2222

Actual Handset Price Trend by TechnologyActual Handset Price Trend by Technology

Sources• GSM 1998-1999 - Strategis, Strategy Analytics and Dataquest average.• GSM 2000-2004 - Yankee Group.

Handset ASP(Wholesale)

$100

$200

$300

$400

$500

$600

0 700 1,400 2,100Cumulative Volume (M)

GSM

CDMA (excludingJapan & Korea)

WCDMA(excluding FOMA)

PAGE 2323

0

100

200

300

400

500

600

700

800

900

1000

1996Q11996Q2

1996Q31996Q4

1997Q11997Q2

1997Q31997Q4

1998Q11998Q2

1998Q31998Q4

1999Q11999Q2

1999Q31999Q4

2000Q12000Q2

2000Q32000Q4

2001Q12001Q2

2001Q32001Q4

2002Q12002Q2

2002Q32002Q4

2003Q12003Q2

2003Q32003Q4

2004Q12004Q2

2004Q32004Q4

2005Q12005Q2

Handset ASP

(US$ Wholesale)

OEM Count

Handset ASP

OEM Count

0

5

10

15

20

25

30

35

40

45

50

Over the past decade, QUALCOMM licensees have commercialized more than 1,000 phone models spanning all price points, providing operators with maximum flexibility to meet customer demands.

CDMA2000 Competition Provides Operators a Wide ChoiceCDMA2000 Competition Provides Operators a Wide Choice

Includes CDMA2000 phones and modules.

PAGE 2424

Note: Vendors with a market share under 5% have been placed in the “Other” categorySources: Analog & TDMA – Gartner Group, 2000; CDMA, GSM & WCDMA – Strategy Analytics, 2004, 2005

Increasing Market Competition in 3G Handset Market(Market Share)

Large number of handset OEMs with lack of dominant market share helps to create a competitive marketplace

Kyocera

Motorola MotorolaMotorola

Motorola

Motorola

NEC

Nokia

Nokia

Nokia Nokia

Nokia

Other

Samsung

Samsung

Ericsson / SEMCEricsson / SEMC LG

LG

LG

8 Other

36 Other

OtherOtherPanasonic

Samsung

SanyoSiemens

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AMPS 1999 TDMA 2000 GSM 1H'05 CDMA2000 1H'05 WCDMA 1H'05GSM 2001

Motorola

Siemens

Ericsson

Motorola

Nokia

Other

Samsung

Ericsson / SEMC

Siemens

PAGE 2525

2000 2001 2002 2003 2004 2005

HSUPA, MBMS,Tri-band

WCDMA RF,Lower Cost

HSDPA,OFDMA 802.11n,

Scaleable Bandwidth EV-

DO,OMA DRM v2,

MDDI,HSDPAEDGE

MediaFLO USA, OFDM

multicast (FLO & EV-DO…

WCDMACDMA2000 1X

gpsOne (A-GPS)BREW

radioOne (ZIF)HDR

Tri-modecdmaOne…

1xEV-DOGSM/GPRS

JAVABluetooth

R-UIMWCDMA

CDMA2000 1XgpsOne (A-GPS)

BREWradioOne…

Integrated multimedia

(video, audio, CMX, storage,

3D, etc),World phone,GSM/GPRS1xEV-DOJAVA…

BluetoothR-UIM…

EV-DO Rev. A (VoIP, QoS, etc)

RF CMOSQChat,

CDMA450Integrated

multimedia,World phoneGSM/GPRS1xEV-DO

JAVABluetooth…

HSDPAEDGE

MediaFLO, OFDM multicast (FLO & EV-DO

Platinum),iWAN including

In-Cabin,UI / Trigenix,

MEMs / Iridigm,RF CMOS

QChat,CDMA450Integrated

multimedia,World phoneGSM/GPRS…

Technologies listed for each year are based on initial press releases. R&D typically began substantially earlier.

$340M$415M

$452M$523M

$720M

$1BAggressively Investment in a Complete Technology Roadmap

More Than $4.8B Cumulative R&D Expenditure to Date

QUALCOMM Yearly R&D Expenditures

Execution Innovation Partnerships

PAGE 2626