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December 2009 Ten Reasons: Ten Reasons: Why it makes sense Why it makes sense to upgrade to EV to upgrade to EV - - DO DO

Why Upgrade to EV-DO CDG 22DEC2009cdg.org/resources/files/fact_sheets/Why Upgrade to EV-DO_CDG...Global roaming enabled by multi-mode/multi-band devices CDMA2000 1X & EV-DO ... Multi-Carrier

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December 2009

Ten Reasons:Ten Reasons:Why it makes sense Why it makes sense to upgrade to EVto upgrade to EV--DODO

Reason #1:Reason #1:

To deliver affordable To deliver affordable broadband accessbroadband access

www.cdg.org

Lower CapEx:• Covers same footprint as other 3G broadband technologies with 50% less sites• Deploying & maintaining CDMA2000® network is up to 23% lower than GSM/EDGE• Scalable, modular and low-cost IP network elements

Reduced OpEx:• Fewer base stations and backhaul connections• Reduced O&M staff can support twice the number of IP network elements than

traditional networks

Lower Spectrum Costs:• EV-DO operates in the lower and more affordable frequency assignments• Increased spectral efficiency delivers broadband data packets at a lower cost per bit

Affordable Devices• USB broadband data modems are available for <$35 USD (wholesale)• More than 775 competitive EV-DO devices from more than 60 suppliers

EVEV--DO offers an economical solution for generating substantial reveDO offers an economical solution for generating substantial revenuenue

Lower Total Cost of OwnershipLower Total Cost of OwnershipLower Total Cost of Ownership

Reason #2:Reason #2:

To Offer a Large Selection To Offer a Large Selection of Affordable Devicesof Affordable Devices

www.cdg.org

Large Selection of Affordable DevicesLarge Selection of Affordable DevicesLarge Selection of Affordable DevicesPersonal

MessagingPhones

Smartphones

Wi-Fi RoutersPersonal ComputersUSB Modems WorldModeTM

Global RoamingPhones

Entry-levelVoice-centric

Handsets

Consumer ElectronicDevicesFixed Wireless

TerminalsFixed Wireless

Phones

More than 2,3202,320 devices from 123123 suppliers

Television PhonesWatch TV

on a large screenfrom your

mobile phoneusing TV Out cables

Reason #3:Reason #3:A LowA Low--risk,risk,

Proven Business CaseProven Business Case

www.cdg.org

EV-DO provides seamless connectivityacross all topologies

EV-DO providessuperior performance and an enhanced user

experience

A large selection of EV-DO device and service offerings are satisfying user demand in all market environments

At lowest CAPEX & OPEX

EVEV--DO offers an economical solution for generating substantial reveDO offers an economical solution for generating substantial revenuenue

A Strong Value PositionA Strong Value Position

EV-DO: A Proven Business Case

EVEV--DO: A Proven Business DO: A Proven Business CaseCase

www.cdg.org

Carrier-grade broadband Internet, VoIP and multimedia access

Large coverage areas

Centralized and distributed IP-based core networks

A broad selection of affordable devices

A large selection of services

Low cost per minute, message, and megabyte

Network flexibility and scalability

Privacy and security

Rapid deployment

Robust and future-proof technology roadmap

Large economies of scale

Reliable and mature

EVEV--DO offers a competitive solution for developed and emerging markDO offers a competitive solution for developed and emerging marketsets

EV-DO: Competitive AdvantageEVEV--DO: Competitive AdvantageDO: Competitive Advantage

A mature and affordable solution for delivering broadband servicA mature and affordable solution for delivering broadband serviceses

Reason #4: Reason #4:

To Drive Subscriber GrowthTo Drive Subscriber Growth

www.cdg.org

Adoption of industry leading EVAdoption of industry leading EV--DO broadband exceeded industry expectationsDO broadband exceeded industry expectations

*Source: Actual CDMA Development Group**Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008),

iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008

EVEV--DO Subscribers WorldwideDO Subscribers Worldwide(Cumulative)(Cumulative)

136 million 136 million people use EV-DO broadband data

services offered by 168 168 service providers

worldwide

Global EV-DO Subscriber ForecastGlobal EVGlobal EV--DO Subscriber ForecastDO Subscriber Forecast

www.cdg.org

105% in 3 yrs

Movilnet (Venezuela)

IUSACELL (Mexico)

150% in 3 yrs

980% in 2 yrs

LGT (S. Korea)

Terracom (Rwanda)

150% in 3 yrs

Telecom New Zealand

500% in 4 yrs

Movicel (Angola)

1160% in 3 yrs

350% in 4 yrs

SkyLink (Russia)

Cell South (USA)

380% in 3 yrs

ACS Wireless (USA)

335% in 3 yrs

Sprint (USA)

112% in 4 yrs

Verizon (USA)

154% in 5 yrs

180% in 6 yrs

KDDI (Japan)

Source: CDG, operator websites and press releases Note: Compound Annual Growth Rates (CAGR) shown

EV-DO Subscriber GrowthEVEV--DO Subscriber GrowthDO Subscriber Growth

Reason #5: Reason #5:

To Drive Revenue GrowthTo Drive Revenue Growth

www.cdg.org

Revenue Generating ServicesRevenue Generating ServicesRevenue Generating Services

www.cdg.org

EVEV--DO Users DO Users (Millions)(Millions)

Data ARPU Data ARPU (USD)(USD)

Data % of Total Data % of Total RevenueRevenue

60%

Early Data Growth MetricsEarly Data Growth MetricsEarly Data Growth Metrics

30%Data ARPU Data ARPU (USD)(USD)

Data % of Total Data % of Total RevenueRevenue

4.3%

EVEV--DO Users DO Users (Millions)(Millions)

31%

EVEV--DO Users DO Users (Millions)(Millions)

Data ARPU Data ARPU (USD)(USD)

Data % of Total Data % of Total RevenueRevenue

65%

28%

29% 15%32%

Source: CDG, operator websites and press releases Note: Compound Annual Growth Rates (CAGR) shown

Reason #6:Reason #6:To Offer To Offer

Broadband AccessBroadband AccessAnywhere in the WorldAnywhere in the World

www.cdg.org

EV-DO: Strong Global PresenceEVEV--DO: Strong Global PresenceDO: Strong Global Presence165165 EV-DO operators globally, 78 78 of which are Rev. A

Another 7373 EV-DO networks are being deployed

137 million EV-DO Subscribers

www.cdg.orgSource: CDG, December 2009

165165 EV-DO operators globally,78 78 of which are Rev A.

Another 7373 EV-DO networks are being deployed

Commercial Rev. A Networks78

Rev. A Networks in Deployment38

Rev. A Devicesfrom 30 vendors226

Commercial Rel. 0 Networks115

Rel. 0 Networks in Deployment35

Rel. 0 Devicesfrom 50 vendors548

EV-DO Rel. 0 EV-DO Rev. A

Serving 136 million people worldwideServing 136 million people worldwide

EV-DO Network GrowthEVEV--DO Network GrowthDO Network Growth

www.cdg.org

CDMA2000 1X/EV-DO/GSM/GPRS/WCDMA/HSDPAWorldMode Devices

Global roaming enabled by multiGlobal roaming enabled by multi--mode/multimode/multi--band devicesband devices

CDMA2000CDMA20001X & EV1X & EV--DODO

GSM/GPRSGSM/GPRSWCDMA/HSPAWCDMA/HSPA

AnyDATAADU-630WH

(1X/EV-DO/GSM/WCDMA/HSDPA)

LGKH-1000

(1X/EV-DO/WCDMA/HSDPA)

LGSH-100

(1X/EV-DO/HSDPA)

RIM BlackBerry9500 Storm(1X/Rev. A/

GSM/GPRS/HSDPA)

SamsungSCH-W200(1X/EV-DO/

HSDPA)

SamsungSCH-W210(1X/EV-DO/

HSDPA)

SamsungSPH-W2100(1X/EV-DO/

HSDPA)

SamsungSCH-W210(1X/EV-DO/WCDMA)

Novatel WirelessUSB 1000

(Rev. A/EDGE/HSDPA/HSUPA)

RIMTour 9630

(1X/EV-DO/GSM/GPRS/EDGE/WCDMA/HSDPA)

HTCImagio

(1X/EV-DO/GSM/GPRS/EDGE/WCDMA/HSDPA)

LenovoThinkPad Series(EV-DO/HSPA)

HP6XXX Series

(EV-DO/HSPA)

PanasonicToughbook Series

(EV-DO/HSPA)

DellLatitude & Precision Series

(EV-DO/HSPA)

AcerAspire One

(EV-DO/HSPA)

SonyVAIO VGN-TXN10HP

Elitebook Series(EV-DO/HSPA)

CDMA2000 WorldModeTM DevicesCDMA2000 WorldModeCDMA2000 WorldModeTMTM DevicesDevices

Reason #7:Reason #7:

To Leverage Enormous To Leverage Enormous Economies of ScalesEconomies of Scales

www.cdg.org

Adoption of industry leading EVAdoption of industry leading EV--DO broadband exceeded industry expectationsDO broadband exceeded industry expectations

*Source: Actual CDMA Development Group**Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008),

iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008

EVEV--DO Subscribers WorldwideDO Subscribers Worldwide(Cumulative)(Cumulative)

136 million 136 million people use EV-DO broadband data

services offered by 168 168 service providers

worldwide

Global EV-DO Subscriber ForecastGlobal EVGlobal EV--DO Subscriber ForecastDO Subscriber Forecast

www.cdg.org

1G1G

2G2G

With an increasing number of subscribers the migration process iWith an increasing number of subscribers the migration process is lengthenings lengthening

The generational migration process will take many years.The generational migration process will take many years.Voice will remain the Killer Application.Voice will remain the Killer Application.

Migration of SubscribersMigration of Subscribers

199519901985 2000 2005 20132010

2G subs exceed 1G subs –Roughly 15 years after inception of industry.

Growth of 2G peaks3G3G

4G4G

Source: Net growth average of Strategy Analytics (Jun 2008), ABI (Aug 2008), Wireless Intelligence (Jul 2008), WCIS+ (Jul 2008), iGR (Mar 2008) and Yankee Group (Jun 2008) for subscriber forecasts (2008 and beyond) summed with CDG actual numbers of 2008

Migration TimelineMigration TimelineMigration Timeline

Reason #8: Reason #8:

To Improve the EconomyTo Improve the Economy

www.cdg.org

Source: Telecommunications Management Group, Inc (TMG) and ITU World Telecommunications Database Statistics; 2007

The social and economic impact is far reachingThe social and economic impact is far reachingWhy Wireless Connectivity MattersWhy Wireless Connectivity MattersWhy Wireless Connectivity Matters

Reason #9: Reason #9: To Leverage a LongTo Leverage a Long--termterm

Evolution PathEvolution Path

www.cdg.org

CDMA2000 RoadmapCDMA2000 Roadmap

DL: 2.4 MbpsUL: 153 kbps

(1.25 MHz, FDD)

DL: 3.1 MbpsUL: 1.8 Mbps

(1.25 MHz, FDD)

4X increasein voice capacity2

DL & UL: 307 kbps

CDMA2000 offers a strong longCDMA2000 offers a strong long--term path forwardterm path forward

DL: 14.7 Mbps4

UL: 5.4 Mbps(5 MHz, FDD)

DL: 32 Mbps5

UL: 12.4 Mbps(4x1.25 MHz, FDD)

DL: 9.3 Mbps3

UL: 5.4 Mbps(5 MHz, FDD)

DO Advanced

1X Advanced

H/WUpgradeRev B

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

New Channel Card

1 Capacity increase is primarily due to new EVRC-B codec, handset interference cancellation (QLIC) and Quasi-Orthogonal Functions (QOF)2 Capacity increase is primarily due to UL and DL interference cancellation, mobile receive diversity and several radio link enhancements.3 Peak rate for 3 EV-DO carriers with software upgrade. Doubles network capacity or triples peak data speeds. 4 Peak rate for 3 EV-DO carriers with hardware upgrade supporting 64 QAM in the DL. Standard supports up to 15 aggregated 1.25 MHz carriers5 DO Advanced includes smart network techniques, new device enhancements, 2x2 MIMO support, 64 QAM in the DL and 16 QAM in the UL6 Operators have the option to only implement software upgrades

1xEV-DO Rev. A

1xEV-DORel. 0

1.5X increasein voice capacity1

DL & UL: 153 kbps

33-40 ErlangsDL & UL: 153 kbps

(1.25 MHz, FDD)

EVRC-B + QLIC + QOF

1XEnhancements

CDMA2000 1X

Multi-Carrier

EV-DO

CDMA2000 RoadmapCDMA2000 RoadmapCDMA2000 Roadmap

www.cdg.org`̀

EV-DO Rev AEV-DO Rev A

DO Advanced: More network capacity and speed

– DL: 32 Mbps– UL: 12.4 Mbps

EV-DO Rev. A

EV-DO Rev. AMulticarrier EV-DO

(channel aggregation)

Add carriers as demand increases

EVEV--DO offers a practical solution to satisfy the real demand for brDO offers a practical solution to satisfy the real demand for broadband dataoadband data

DO Advanced

Add more carriers or channel cards

as demand increases

Rev. A: High sector capacity, very good link budget and user-experience

– DL: 3.1 Mbps– UL: 1.8 Mbps

Multicarrier EV-DO: A software upgrade that aggregates up to three Rev. A channels

– Triples peak data rates / Doubles network capacity

Rev. B: New channel card - more capacity– DL: 14.7 Mbps– UL: 5.4 Mbps

EV-DO Evolution PathEVEV--DO Evolution PathDO Evolution Path

Operators can improve network capacity and user experience withOperators can improve network capacity and user experience withIncremental software upgrades and network optimizationsIncremental software upgrades and network optimizations

www.cdg.org

CDMA2000 is complemented with several OFDMCDMA2000 is complemented with several OFDM--based solutionsbased solutions

CDMA2000 1X

CDMA2000 Evolution PathCDMA2000 Evolution Path

OFDMAOFDMA--based Technologiesbased Technologies Mobile WiMAX

LTE

1X Advanced

1xEV-DO Rel. 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

1xEV-DORev. A

H/\WUpgrade

Rev. BMulticarrier

EV-DODO Advanced

oror

CDMA2000 and OFDMA SolutionsCDMA2000 and OFDMA SolutionsCDMA2000 and OFDMA Solutions

Reason #10: Reason #10: To Maximize and PreserveTo Maximize and Preserve

Return on Existing Return on Existing InvestmentsInvestments

www.cdg.org

CDMA2000 is strongly positioned to serve operator requirements fCDMA2000 is strongly positioned to serve operator requirements for the long runor the long run

High spectral efficiency in all environments

Lower Total Cost Lower Total Cost of Ownershipof Ownership

CapacityCapacity

Robust mobility support with

seamless handoffs across multiple air

interfacesBetter user Better user experienceexperience

MobilityMobility

SpeedSpeedUltra-high data

speeds in downlink and uplink across

entire coverage areaBetter user Better user experienceexperience

Large non-contiguous or

ubiquitous coverage.

Lower Total Cost Lower Total Cost of Ownershipof Ownership

CoverageCoverage

DevicesDevicesMultimode

devices supportmultiple radio

interfacesEconomies of ScaleEconomies of Scale

EcosystemEcosystemLarge client base and experienced global suppliers.

Economies of Economies of ScopeScope

Lower end-to-end latency to support

delay sensitive applicationsBetter user Better user experienceexperience

LatencyLatency

TimeTime--toto--MarketMarketRevenue-generatingbroadband services

are commercially available now

Improved EarningsImproved Earnings

VoIPVoIPLarge numbers of VoIP calls coexist with high capacity

data services.Improved EarningsImproved Earnings

IPIP--basedbasedFlat IP-based core network

interconnectivityImproved Improved

Performance &Performance &ConvergenceConvergence

CDMA2000: Long-Term Value PositionCDMA2000: Long-Term Value Position

Substantial Long-term Industry Value