Why invest in the HSPA evolution?

Where is HSPA today

Contents

Where is HSPA today

What Next – the LTE Story

Continued investment still needed today

Brief History of the GSMA

� Founded in 1987 by 15 operators committed to the joint development of a cross border digital system for mobile communications.

� Became the global trade group for the mobile industry, representing the vast majority of mobile phone networks across the world

– Now encompassing commercial, public policy and technical initiatives, ensuring mobile services work globally

� The Association’s members now serve more than 3.5 billion customers

– More than 750 operator Members across 218 countries

– Over 200 Associate Members (manufacturers and suppliers)

Why invest in the HSPA evolution?Why invest in the HSPA evolution?

The GSM Family - Delivering on PromisesGSM technology holds nearly two decades of proven development, proving a reliable future

for investment decisions

HSPA+42 Mbps

HSPA

HSPA in 2005

3G in 2001

EDGE in 2003

HSPA+ in 2008 LTE172 Mbps

HSPA14.4 Mbps

GSM9.6 kbps

GPRS in 2000GSM First call made in 1991

3G in 2001

Source: Wireless Intelligence, January, 2009

HSPA+ peak theoretical data rate reaches up to 42 Mbps when using single carrier with QAM 64 and 2x2MIMO

EDGE473 kbpsWCDMA

384 kbps

GPRS

114 kbps

3G

HSPA: 80 million subs

WCDMA: 290 million subscribers

2G GSM: 3.3 billion subscribers

HSPA Around the World - Today

HSPA Subscriptions Continue to Grow

HSPA Today� Networks

– HSDPA

• 244 in service with a further 60 in deployment or planned rollout

• 151 of the in-service networks offer 3.6Mb/s and above (with 11 operators offering 14.4Mbps)

HSUPA– HSUPA

• 53 in service with a further 24 in deployment or planned rollout

• Over 300 devices also support HSUPA as well as HSDPA

� Devices• Handsets - 409

• Embedded Notebooks - 353

• USB modems - 141

• Data cards – 98

• Wireless routers - 126

Networks Need to Meet Data DemandEnormous growth in consumer demand for data, places significant pressure on data networks to upgrade to

deliver a quality data experience

9

7

Relative Network Load

WCDMA & HSPA world average

Source: Ericsson

5

3

1

Jan07

Mar07

May07

Jul07

Sep07

Nov07

Jan08

Mar08

May08

Voice

Packet data

LTE

HSPA+HSPA

Other technologies

What Are The Criteria To Upgrade?

� What’s the ROI on my investment?

� What spectrum do I have?

� What spectrum do I need?

TimeOther technologies

Key factors in determining when to move:

� What’s my business case

� What’s my technology evolution path?

� What’s my market demand?

No single answer, but all roads compatible with LTE

Increasing Data Speeds with HSPA+As an upgrade to HSPA, HSPA+ more than doubles the speed

15 codes

Downlink

3.6 Mbps

14 Mbps

Multi Carrier

Uplink

20-40 Mbps

12 Mbps

2x2 MIMO64QAM

Multi Carrier

Combinations of Multi Carrier,64QAM + MIMO

64QAM + 2x2 MIMO

14 Mbps

21 Mbps 28Mbps

42 Mbps

80-160 Mbps

2 ms TTI

16QAM

HSPAon the uplink

12 Mbps

5.8 Mbps

1.4 Mbps

0.4 Mbps

Source: Ericsson

HSPA+: The Natural Evolution at Lower CostProviding an incremental and cost-effective Upgrade

SW upgrade to RNC

Many features requireonly SW upgrade to NodeB

Backward compatibleHSPA+ devices

An evolution path that leverages existing investmentsLeverages existing cell sites, RAN, core network and spectrum

Backward compatibility enables smooth introductionWCDMA, HSPA and HSPA+ devices operate on the same network

Mobile Broadband Technology Evolution

3GPP Release

HSPA(HSDPA)

HSPA(HSUPA)

Rel. 5 Rel. 6

HSPA+ HSPA+ Future

Rel. 7 Rel. 8

Performanceenhancement

Technical enhancement

Add 64 QAM Add 2x2 MIMO Add Multicarrier

14.4 Mbps DL 5.76 Mbps UL 21 Mbps DL42 Mbps DL11.52 Mbps UL

80-160 Mbps DL20-40 Mbps UL

High-speed downloads

High-speed uploads

Faster speedGreater capacity

Faster speedGreater capacity

Enhancing Mobile Broadband

More than doubles Speed - 42 Mbps Peak Data Rates

Doubles Data and More Than Doubles Voice CapacityProviding next generation performance today, through greater spectral efficiency

H

Enhances User ExperienceLower latency, higher data rates and better ‘always-on’ experience, enabling richer applications

Reduced power consumption>50% longer talk times

The Natural Evolution at Lower Cost Incremental and cost-effective upgrade that leverages existing assets

Backwards and forwards compatibilityLower cost per kilobyte

HSPA +

HSPA+ peak theoretical data rate reaches up to 42 Mbps when using single carrier with QAM 64 and 2x2MIMO

HSPA+ Global Momentum - Technology Endorsed by Operators

LTE Commitments

� Verizon

� AT&T

� Bell Canada

� Rogers Wireless

Telus

� Smartone Vodafone

� China Mobile

� Hutchison (Ireland)

� Telstra

NZ Telecom� Telus

� Vodafone Group

� NTT DoCoMo

� KDDI

� China Telecom

� KTF

� SKTelecom

� NZ Telecom

� Telia Sonera (Sweden & Norway)

� T-Mobile (Germany)

� Telecom Italia

� Orange France

� mobilkom austria

Sources: GSMA & GSA

What’s Needed Next

The Future for Mobile Broadband

� Frequency bands

– HSPA / LTE

• Extension bands (2.5-2.6Hz)

• 700MHz / 850MHz / 900MHz – refarming / digital dividend

1700MHz• 1700MHz

� Embedded Mobile

� Backhaul

<700MHz

708MHz

Effect of frequency on range (SCF study)

6

810

Cell Radius (km)

708MHz

850MHz

2,100MHz2

4

6

5,800MHz

Source: BBC R&D

The propagation characteristics of spectrum

Comparing device availability today

40%35%

16%9%

handsets

USB modems

data cards

notebooks

850MHz 900MHz

1700MHz 1800MHz

1900MHz 2100MHz

850MHz band – the demand continues

� 3G 850 Ecosystem Development

– 850 User group established with Telstra, AT&T, GSMA & interested operators Feb 2006

– 850 Supported in Embedded Wireless Broadband Competition Feb 2008

– GSMA Horizon Series award for 850/1900/2100 MHz 3G devices Feb 2008.– GSMA Horizon Series award for 850/1900/2100 MHz 3G devices Feb 2008.

� 850MHz 3G Today has 22 networks in operation + 6 planned

– Existing operators include AT&T, Rogers, Telstra, Vivo, Telecel

– Recent new announcements by Telus, Bell Canada, Telecom NZ, Telefonica LA

� HSPA at 850 MHz a natural evolution for

– GSM, CDMA, AMPS & Other technologies at 850 MHz

– Total market potential* of over 600M in services across 290 networks

* source data – Cellular Info Services

AWS – Advanced Wireless Service

� Prices paid for AWS spectrum reveal high market demand, with Canada being the most recent example

� AWS band is sufficiently similar to other frequency bands and HSPA gear is ready today.

� Production cost curves are comfortable and improving

� Small addressable market is poised for rapid growth

� Meaningful growth in AWS subscribers and handset volumes are projected for the Americas

Growing AWS Market

Forecast AWS Subscribers and Devices for the Americas

140.0

160.0

180.0

200.0

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120.0

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EOP Subs

Implied AWS Device Unit Sales/Year

Still need

-

20.0

40.0

60.0

80.0

100.0

120.0

2008 2009E 2010E 2011E 2012E 2013E

Esti

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Still need multi-frequency devices

Embedded Mobile

� Starting with 2G and increasing penetration to all new industry segments such as:

– Consumer Electronics

Clean technology/environment

Consumer

electronicsUtilities

M2M

GSMA market expansion goals

– Clean technology/environment

– Healthcare

– Transport

– Utilities

Clean

technology

Health

Transport

“Devices Everywhere”

NOTE: Segment proportions are illustrative and do not

indicate a measure of relative market opportunity

Growing the Demand

Growing the Demand – introducing the Service Mark

� Significant un-tapped market for Mobile Broadband devices

– 79.5 million unit opportunity in 2008 – a US$50 billion untapped market

(GSMA / Microsoft / Pyramid Research)

� Consumers are confused about what and how to buy � Consumers are confused about what and how to buy

� Led by the GSMA, the industry united to create a simply identifying mark that helps to

– Reduce confusion

– Provide reassurance

– Drive demand for Mobile Broadband enabled devices by simplifying

the buying decision

Initiative backed by leading industry players

Creation of a new category of always-connected Mobile Broadband devices

The operator participants serve more than 795 million connections (Wireless Intelligence)

Thank YouThank You

www.gsmworld.com/HSPA

Supporting SlidesSupporting Slides

Connecting the World to the InternetDelivering broadband access to urban and rural, developed and developing countries

Urban

Rural

Residential

Business

Students

Government

Entertainment, user

generated content

Communities,

Social interaction

Personal

freedom

Personal

efficiency

Rural

Bottom of the pyramid

Farmers

Villages

Industrial

Construction

generated content

Broadband

Penetration

Industrial growth

(GDP and jobs)

Efficient

organization

Business

opportunities

Sustainable

society

A word on WiMAX…

� Financial Times, 2nd April 2009

‘Nokia has dismissed the prospects of the WiMax wireless mobile

standard, claiming it is doomed to meet the same fate as Betamax…’

� NGMN Alliance has not yet ratified WiMAX as a ‘Next Generation’ mobile technologymobile technology

– LTE ratified in June 2008; prompted Sprint to leave NGMN

� The LTE vs WiMAX debate will rumble on, but major operators and vendors are now backing LTE in increasing numbers

� Wireless Week April 2nd 2009 - From CTIA 2009: “WiMAX Vendors Accept Niche Role”

Future Mobile Broadband Deployment Scenarios

Source: Qualcomm, April, 2009