IMT 2000:

1

• IMT 2000
• Reasons for Success of CDMA2000
• Shawn A. Covell
• QUALCOMM Incorporated
• August 26, 2002

2
About QUALCOMM

• Worlds leading developer of CDMA Technology
• Holder of key CDMA Patents
• Worlds leading supplier of CDMA Chipsets
• Over 100 CDMA licensees
• Over 120 million subscribers of CDMA technology
  worldwide

3
CDMA Worldwide
4
In five years, CDMA has grown to reach over 120
million subscribers
Thousands
Mar-98
Jun-98
Mar-99
Jun-99
Mar-00
Jun-00
Mar-01
Jun-01
Mar-02
Sep-97
Dec-97
Sep-98
Dec-98
Sep-99
Dec-99
Sep-00
Dec-00
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
5
CDMA is one of the leading digital technologies
with presence across all continents
6
CDMA will be the fastest growing technology
platform
CDMA market share will grow from 12 in 2001 to
20 in 2005
Source EMC, Morgan Stanley
7
IMT-2000 in the Marketplace Looking at CDMA2000
8
CDMA2000 Deployment
9
CDMA2000 accounts for more than 98 of the
IMT-2000 market

• In July there were more than 14 million CDMA2000
  subscribers
• More than 2.0 million are added every month

10
CDMA2000 delivering value to consumers and
increased revenue to operators
Applications
Revenue per Subscriber (ARPU)

• Multimedia messaging
• Game downloads
• Telematics
• Camera and motion video

• CDMA2000 delivers nearly 5 fold increase in data
  revenue and more than 50 higher total revenue
  per subscriber

Source Morgan Stanley, June 2002
11
Commercial BREW Service - KTFApplication
Download Statistics
App. Download Count
250,000
1st
1st
1st
1st
1st
KTF LaunchesNov 9, 2001
12
Commercial BREW Service - KTFARPU Growth

• BREW subs have 72 higher total ARPU than 2G subs
• 491 higher Data ARPU
• 45 higher Voice ARPU
• BREW subs have 13 higher total ARPU than
  non-BREW 1x subs
• 67 higher Data ARPU
• 4 higher Voice ARPU

KTF ARPU by customer segment In US Dollars
Source Korea Telecom FreeTel, January 2002
13
Reasons for CDMA2000 success
Devices available today

• Over 100 handset device models
• Over 20 other devices such as PDAs, modem cards
• Offer color displays, MP3 players and photo
  cameras, support high-speed data access
• CDMA2000 devices are backwards compatible with
  cdmaOne devices
• CDMA2000 1X wholesale prices are around 200-400
  and CDMA2000 1xEV-DO are 400-500 (SKT, KFF)
• CDMA2000 1X devices have long battery life (250
  hours)

Source Morgan Stanley, June 2002
14
Reasons for CDMA2000 success

• CDMA2000 is not constrained to only the IMT-2000
  band. Defined to operate in existing and IMT
  spectrum
• 450 MHz
• 700 MHz
• 800 MHz
• 900 MHz
• 1700 MHz
• 1800 MHz
• 1900 MHz
• 2100 MHz

15
Reasons for CDMA2000 success

Source Morgan Stanley, June 2002
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Reasons for CDMA2000 success
NIU
BTS
BSC
MSC
IWF
IP Backbone

• The network is architected to deliver Internet
  and advanced services seamlessly, and without the
  need to build-out a new packet network

PSTN
WWW
VPN
Enterprise Network
17
Offers direct path to 3G for CDMA and TDMA
operators.
18
CDMA2000 offers solutions for consumers and
operators
19
Policy themes for success of CDMA2000
20
Thank You

• For further information
• Shawn A. Covell
• QUALCOMM International
• Unit 1903-04, 19th Floor
• 9 Queens Road Central
• Central, Hong Kong
• 852-2537-1622 direct
• 852-2537-1188 - fax
• scovell_at_qualcomm.com
• www.qualcomm.com