3G/WCDMA-HSPA Fact Sheet October 15, 2008

GSA regularly surveys the evolution of mobile to 3G and beyond, and confirms:
239 commercial WCDMA operators in 101 countries WCDMA is the leading 3G system globally with 69.5% networks share Over 92% of commercial WCDMA operators have launched HSDPA 235.5 million WCDMA subscribers (Q2 08) 97.9 million WCDMA subscriptions added Q2 07 Q2 08 i.e. 79% growth 250 HSDPA operator commitments in 105 countries 221 HSDPA operators commercially launched in 96 countries 65% of commercial HSDPA operators support 3.6 Mbps peak or higher Over 26% of commercial HSDPA operators support 7.2 Mbps peak or higher Evolution to 14.4 Mbps downlink peak speeds underway in several markets 70 operators committed to HSUPA 55 HSUPA operators commercially launched in 36 countries 805 HSDPA devices launched in the market by 129 suppliers 500 HSDPA devices support 3.6 Mbps peak; 228 devices support 7.2 Mbps peak 97 HSUPA devices launched; total tripled in past year 142 HSPA devices incorporate GPS/navigation capabilities Over 1.5 billion GSM & WCDMA-HSDPA subscribers in HSPA-enabled networks

WCDMA subscriptions worldwide (including HSPA) exceeded 235.5 million by June 30, 2008 (source of subscriber data: Informa Telecoms & Media), for annual growth of almost 98 million subscribers i.e. 79% increase. 50 million HSPA subs was reached during Q308. WCDMA (including HSPA) has over 70% market share of global 3G subscriptions (Q2 08).
Visit the GSA website www.gsacom.com for GSM/EDGE, WCDMAHSPA, LTE updates, market intelligence, charts, maps, etc. Over 54,300 people from 196 countries used the GSA website in the past year. Registered users from mobile and fixed operators and GSA member organisations can access more resources in the Operators Zone and Members Zone respectively.

WCDMA subscribers

3G/WCDMA-HSPA Fact Sheet October 15, 2008

WCDMA is specified by ITU as a 3G standard IMT-2000 Direct Spread, enabling better use of spectrum, and more cost-efficient network solutions. 239 commercial WCDMA operators have launched services in 101 countries. Most WCDMA systems operate in the IMT-2000 core band of 1920 - 1980 MHz paired with 2110 - 2170 MHz. WCDMA systems, including HSPA are deployed today in several frequency bands: 850, 900, 1700, 1800, 1900 as well as 2100 MHz. ITU WRC-2000 identified 2.50 - 2.69 GHz spectrum as an "IMT-2000 Extension Band". Licensing of this band for wireless/mobile services has begun and will continue in 2008-2009. Network operators have an opportunity to expand their business, capacity and broadband services by acquiring spectrum in this band. Strong interest is shown by WCDMA-HSPA mobile device manufacturers to support this band, and WCDMA-HSPA infrastructure products have been announced. The auction in the USA of 62 MHz of spectrum in the 700 MHz band will accommodate WCDMA-HSPA and LTE Long Term Evolution systems. Spectrum in the 700 MHz band will be auctioned in Canada end 2009/early 2010.
GSA Survey: 3G/WCDMA Launches Worldwide (October 2, 2008) http://www.gsacom.com/gsm_3g/wcdma_databank.php4 GSA Information Paper: Mobile Broadband Spectrum www.gsacom.com/gsm_3g/info_papers.php4

High Speed Packet Access (HSPA) The path to mobile broadband which began with WCDMA has moved to a new baseline with High Speed Packet Access, a 3GPP global standard, with High Speed Downlink Packet Access (HSDPA) as the first evolution of WCDMA to boost capacity and user downlink data speeds. HSDPA delivers advanced mobile multimedia services with typical user data throughputs of 0.8 3.0 Mbps, according to individual network capabilities, and user device. Several operators have launched networks supporting 7.2 Mbps peak, and some networks are capable of supporting 14.4 mbps peak downlink speed. GSA confirms 250 HSDPA operator commitments in 105 countries/territories, and virtually all WCDMA operators are deploying HSDPA. 221 commercial HSDPA operators have launched in 96 countries, which means over 92% of commercial WCDMA operators have commercially launched HSDPA. GSA predicts further expansion of the market with more launches planned during 2008. HSDPA delivers fast data access for music and video downloads, file sharing, large email attachments, web surfing, streaming services, more efficient mobile working, and more. HSDPA means a similar customer experience to fixed line broadband, with the added value of mobility. For operators, HSDPA means improved efficiencies, lower cost of delivery, increased revenues and profits, and more competitiveness. The radio access upgrade path to HSDPA is easy; WCDMA base stations require only a software upgrade. HSPA network data speeds are evolving. 143 commercial HSDPA operators i.e. approximately 65%, support downlink data speeds of 3.6 Mbps peak or higher, including 59 i.e. over 26% of operators supporting 7.2 Mbps peak or higher. High Speed Uplink Packet Access (HSUPA) alleviates uplink capacity bottlenecks, increases data throughput typically up to 2.1 Mbps peak, reduces latency, and improves the user experience of existing services e.g. wireless gaming, Voice over IP, while also enabling new services for increased user satisfaction. 55 operators in 36 countries have launched HSUPA service, with 15 additional deployments on-going. In July 2008, 3 Italia became the worlds first operator to commercially launch 5.8 Mbps peak uplink capability, and a number of other operators are also deploying this enhanced HSUPA capability.
See GSA 3G/HSPA Operator Commitments survey (October 2, 2008) www.gsacom.com/gsm_3g/wcdma_databank.php4#HSDPA_Operator_Commitments

3G/WCDMA-HSPA Fact Sheet October 15, 2008

UMTS900 While the majority of todays 3G/HSPA (High Speed Packet Access) mobile broadband networks worldwide operate in the 2100 MHz band, the use of lower frequencies, such as 900 MHz, provides a much larger coverage area when compared to 2100 MHz. Widely used by GSM systems throughout Europe, Asia Pacific, the Middle East and Africa, the use of the 900 MHz band significantly reduces the number of cell sites needed to cover rural and suburban areas, providing major CAPEX and OPEX savings for 3G deployments. Similar cost and coverage benefits apply to UMTS deployments in other lower frequency bands such as 850 MHz, which is widely deployed in Australia, the Americas, and some Asian markets. Deployment of WCDMA-HSPA systems in 900 MHz spectrum requires regulatory approval in many countries. Regulatory actions have been taken or are underway in Europe and the Asia Pacific region to remove GSMs exclusivity in this band, which will lead to further commercialisation of UMTS900 in 2008/9. Five commercial UMTS900 (i.e. WCDMAHSPA) systems are launched - Elisa, Finland; Elisa, Estonia; AIS, Thailand; Optus, Australia; and Vodafone New Zealand. Several more networks are in deployment. UMTS900 delivers improved wide area coverage, improved indoor coverage and significant costefficiencies, and is an important consideration for many operators. 33 UMTS 900 devices have been announced by 9 suppliers (source: GSA survey September 7, 2008) with more products being introduced every week. UMTS900 is on the product roadmap for most manufacturers, and is becoming standard in virtually every new 3G phone and data modem destined for European and Asian markets.
Chart produced using GSAs GAMBOD (see page 5) Updates/developments globally: GSA Information Paper UMTS 900 www.gsacom.com/gsm_3g/info_papers.php4

UMTS900 Operator Case Study of Elisa in Finland On September 22, 2008 GSA published a case study on Elisa in Finland, which shows significant cost and coverage benefits of deploying 3G services with UMTS900. The availability of this first operator-based UMTS900 case study is a significant development, bringing clear business, technical insights and learnings which will greatly assist the extension of mobile broadband services to all. Elisa confirmed in the case study that 3G coverage with UMTS900 can save 50-70% of mobile network costs versus UMTS2100, which includes both CAPEX and OPEX. The study also confirms that end-user data speeds are the same for UMTS900 and 2100 MHz systems, but UMTS900 can provide the same geographic coverage with fewer than half the number of cell sites.
Press release http://www.gsacom.com/news/gsa_252.php4 UMTS900 Operator Case Study on Elisa in Finland www.gsacom.com/gsm_3g/info_papers.php4

UMTS900 Workshops Cannes, Cape Town, Dubai GSA is participating in UMTS900 workshops in Cannes (November 3), Cape Town (November 20) and Dubai (December 17), which will provide information, experiences and insights on the benefits of deploying WCDMA-HSPA in 900MHz spectrum. Cape Town and Dubai are free-to-attend events. More information including how to register at:
Cannes: www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1796 Cape Town: www.comworldseries-africa.com/page.cfm/Link=157/t=m/goSection=3 Dubai: www.comworldseries-me.com/page.cfm/Link=115/t=m/goSection=3

3G/WCDMA-HSPA Fact Sheet October 15, 2008

Evolved HSPA Uplink speed improvements are coming with Evolved HSPA systems (also known as HSPA Evolution or HSPA+). Evolved HSPA will bring user data rates up to 42 Mbps, with the transmission of multiple parallel data streams to a single terminal using Multiple Input Multiple Output (MIMO) technologies. MIMO uses multiple transmit and receive channels and antennas to improve performance and throughput to double downlink data speeds up to 28 Mbps. With further modifications, data rates can reach 42 Mbps on a 5MHz carrier. For the uplink, with 16 QAM instead of QPSK modulation means doubling the rate to 11.5 Mbps peak. Trials of HSPA+ are underway by several network operators including 3, TIM and Vodafone. Telstra plans to launch Evolved HSPA with peak downlink speeds of 21 Mbps across Australia by the end of 2008. Even further evolution of HSPA is foreseen by 3GPP, which may utilize combinations of multi-carrier and MIMO technologies to reach 84 Mbps peak on the downlink, and 23 Mbps peak uplink.
GSA Information Paper HSPA evolution for the mobile handset always on experience www.gsacom.com/gsm_3g/info_papers.php4

WCDMA/HSPA and GSM/EDGE combination GSM/EDGE, a software enhancement to GPRS networks, is a mature global technology supported by a well-developed ecosystem. Most HSPA network operators deploy GSM/EDGE for service continuity; 135 out of 221, i.e. 61% of commercial HSDPA operators also launched EDGE with user data speeds up to 300 kbps, according to network and device capabilities. This strategy ensures that users receive a good experience of most 3G services. There are 363 GSM/EDGE operator commitments in 165 countries, and 313 networks have launched in 147 countries. The first commercial EDGE network was launched in June 2003, and over 75% of GPRS operators have since committed to the EDGE enhancement, delivering significant data traffic and revenue growth. The number of EDGE enabled user devices launched, including phones and PC datacards/modems, is estimated by GSA to have risen to over 1,500 products by September 2008. Over 80% of HSPA devices also support EDGE.
EDGE Fact Sheet (May 13, 2008) www.gsacom.com/gsm_3g/edge_databank.php4#EDGE_Fact_Sheet ALSO see related GSA Information Paper Dual Transfer Mode (DTM) www.gsacom.com/gsm_3g/info_papers.php4

WCDMA evolution to HSPA is the key driver for improving GSM/EDGE to minimize the performance gap. Evolved GERAN (GSM/EDGE Radio Access Network) aims to achieve several benefits with low impact on the GSM/EDGE network, as part of the Release 7 specifications: Downlink speed up to 1.2 Mbps per user initially (the standard enables up to 1.9 Mbps per user) Uplink speed up to 474 kbps per user (the standard enables up to 947 kbps per user). EGPRS-2 UL (HUGE) level B with maximum 118.4 kbps per timeslot. Peak implementation today 4 timeslots per user (standard enables up to 8 timeslots per user) For network infrastructure, EDGE Evolution will typically be a software upgrade of existing equipment.
GSA Information Paper EDGE Evolution www.gsacom.com/gsm_3g/info_papers.php4

3G/WCDMA-HSPA Fact Sheet October 15, 2008

WCDMA-HSPA Devices Regular surveys by GSA of the availability of HSPA devices confirm continuing strong growth in the availability of HSPA devices. HSPA devices are now mainstream. In the HSPA Devices survey published on September 7, 2008, GSA confirmed a large rise in the number of HSPA devices introduced onto the market with 805 HSDPA products launched by 129 suppliers (note: not all devices are released in every market). The number of HSPA devices has virtually doubled in less than 11 months, and the number of suppliers increased from 80 to 129 in the same period, i.e. over 61% growth. This underlines the expanding eco-system for HSPA, and also how the HSPA market has developed much faster than earlier technologies. The number of HSDPA devices is over 2x the number of GSM/EDGE devices, and over 6x the number of 3G/WCDMA devices launched at the same point in their service development. While the majority of WCDMA-HSPA systems and devices operate in internationally designated 3G/IMT2000 core band spectrum (2100 MHz), the 850 MHz frequency band, as widely used throughout the Americas and in Australia, and in some Asian markets, is also well supported. The GSA survey identifies 224 tri-band 850/1900/2100 MHz WCDMA-HSDPA devices now launched, which enables global roaming. The number of HSUPA-capable devices launched in the market tripled in under a year to 97 products. HSPA Devices Survey - device totals by category: Over 1300 WCDMA user devices launched by 130+ suppliers 805 HSDPA devices launched by 129 suppliers 224 HSDPA devices support tri-band 850/1900/2100 for global roaming 500 HSDPA devices support 3.6 Mbps peak 228 HSDPA devices support 7.2 Mbps peak 142 HSPA devices incorporate GPS/navigation capabilities 184 HSPA devices incorporate 802.11 WiFi 97 HSUPA devices launched 384 mobile phones and UMPCs 120 PC datacards (PC cards/embedded modules/ chipsets) 118 notebooks 102 USB modems 73 wireless routers 7 Personal Media Players, and 1 camera with HSDPA
Chart produced using GSAs GAMBOD GSA HSPA Devices survey (September 7, 2008) http://www.gsacom.com/gsm_3g/surveys.php4

GAMBOD (GSA Analyzer for Mobile Broadband Devices) Launched by GSA www.gsacom.com/gambod GAMBOD is a search and analysis tool developed by GSA for HSPA devices, allowing search by supplier, form factor, features, peak downlink/uplink speeds, and operating frequency. Results are presented as a list, or as a spreadsheet, chart, or RSS feed. Charts may be inserted into documents or presentations, subject to accreditation of GSA as the source. GAMBOD is available for use only by GSA website registered users with access to the Operators Zone, or GSA Member companies with access to the Members Zone 3GPP Long Term Evolution in Radio Access Networks LTE 3GPP LTE is the next step for a superior mobile broadband experience, and is an evolution of the GSM/UMTS (comprising WCDMA, HSPA) systems family for the next generation mobile broadband access system. LTE targets capacity and data rate enhancements to support new services and features requiring higher levels of capability and performance. Data rates will be significantly higher for downlink and uplink paths, with the necessary network architecture and technology enhancements. The new system includes support of a full IP-based network and harmonization with other radio access technologies. Commercial service launches are anticipated from 2010. The LTE Terrestrial Radio Access Network technology specifications are approved and under change control, leading to their inclusion in the forthcoming 3GPP

3G/WCDMA-HSPA Fact Sheet October 15, 2008

Release 8. LTE radio technology is optimized to enhance networks by enabling significant new high capacity mobile broadband applications and services, whilst providing cost efficient ubiquitous mobile coverage. LTE is also scalable to allow operation in a wide range of spectrum bandwidths, from 1.4 20 MHz, using both Frequency Division Duplex (FDD) and Time Division Duplex (TDD) modes, thus providing flexibility to suit any operators existing or future frequency allocation. LTE and HSPA are complementary to ensure seamless inter-operability. LTE is firmly on track, attracting global industry support, particularly by GSM/3G WCDMA-HSPA network operators. LTE is

now in the trial phase with commercial LTE deployments anticipated from 2009-2010.
With the strong HSPA eco-system now in place, LTE is the natural migration choice for most mobile operators. LTE is also emerging as the next generation mobile broadband access system of choice for many CDMA operators. The NGMN Alliance has approved LTE/SAE as its first compliant technology. The GSM Association has confirmed its support for LTE, which is expected to dominate global mobile infrastructure markets after 2011, according to ABI Research. In Japan, NTT DoCoMo is expected to be the first in the world to launch a commercial LTE system, and has shown data rates of 250 Mbps downlink and 50 Mbps uplink in field tests and public demonstrations. Verizon Wireless, Vodafone, and China Mobile are currently undertaking joint trial activities of LTE, focusing on frequency-division duplex (FDD) and time division duplex (TDD) modes. Verizon Wireless acquired almost half of the spectrum in the US 700 MHz auction and plans to use this band to launch LTE service. LTE infrastructure deployment will begin in 2H 2009 for planned service launch in 2010. AT&T Mobility was the 2nd largest winner of 700 MHz spectrum and has confirmed plans to deploy LTE across this spectrum, plus spectrum acquired in the 2006 advanced wireless services (AWS) auction, and the 700 MHz spectrum that the company acquired in 2007 from Aloha Partners. AT&T Mobility has a contiguous band of 20 MHz for LTE transition across 82% of the population in the top 100 markets.

Telstra has confirmed LTE is on its roadmap. Telecom Italia plans to deploy LTE. Following the announcement of its purchase of China Unicoms CDMA network, China Telecom has announced plans to migrate to LTE in 2 to 3 years time. TeliaSonera has committed to LTE for its Nordic and Baltic States operations. KDDI is reported to be considering LTE. France Telecom/Orange is engaged in LTE-related studies and trials.

3G/WCDMA-HSPA Fact Sheet October 15, 2008

T-Mobile showcased LTE this year at CeBIT, and recently successfully achieved what the Company claimed to be the worlds first operator-led LTE handover. Data was transmitted to and from a vehicle driving between Deutsche Telekom's headquarters on the left side of the river Rhine and T-Mobile HQ on the rivers right bank in Bonn. On the 4 km test track data transmission went smoothly without interruptions and without loss of quality, including across different cells. Aircell said it will deploy LTE to boost the capacity of its current in-flight network. Bell Canada and Telus confirmed they are to co-operate on deploying a national HSPA network, with later upgrades to LTE. The HSPA network will be available by 2010 and will overlay the CDMA networks of both companies, as well as the iDEN network operated by Telus.

LTE/SAE Trial Initiative (LSTI) 21 leading LTE vendors and 8 operators are working together under the LTE/SAE Trial Initiative (LSTI) to demonstrate the potential of LTE/SAE through joint tests, including radio transmission performance, interoperability, field tests and full customer trials. Results feed into technology developments and standardization, and help define/validate operator network launch plans. It will also help to validate the emerging LTE ecosystem, including mobile broadband devices and applications. LSTI is currently undergoing proof of concept work to show what LTE technology is capable of, including demonstrations of the download speeds needed to support high-bandwidth mobile applications such as HD video streaming. The results show that LTE is delivering on, or exceeding expectations. Initial device-to network interoperability tests will focus on basic connectivity and high-speed data transmission over LTE networks, including more advanced features such as high quality video. This will be followed by cross-vendor interoperability testing. More at www.lstiforum.org IPR Framework for LTE/SAE Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson announced on April 14, 2008, a mutual commitment to a framework for establishing predictable and more transparent maximum aggregate costs for licensing intellectual property rights (IPR) that relate to 3GPP LTE/SAE standards. The framework is based on the prevalent industry principle of fair, reasonable and nondiscriminatory (FRAND) licensing terms for essential patents. It means that the companies agree, subject to reciprocity, to reasonable, maximum aggregate royalty rates based on the value added by the technology in the end product and to flexible licensing arrangements according to the licensors' proportional share of all standard essential IPR for the relevant product category. The companies support that a reasonable maximum aggregate royalty level for LTE essential IPR in handsets is a single-digit percentage of the sales price. For notebooks with embedded LTE capabilities, the companies support a single-digit dollar amount as the maximum aggregate royalty level. The parties believe the market will drive the LTE licensing regime to be in accordance with these principles and aggregate royalty levels.
For regular updates on LTE/SAE technology/market developments see GSA Information Paper:
Long Term Evolution of the 3GPP Radio Technology www.gsacom.com/gsm_3g/info_papers.php4 Download the charts used in this Fact Sheet and many more charts and maps at www.gsacom.com/news/statistics.php4
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