3G Broadband and Beyond A Success Story

September 2008

3G Offers Mobile Broadband Today

Global Mobile Broadband connections have risen by more than 850 percent year-on-year (Q1 CY07 Q1 CY08), driven primarily from 3G (EV-DO and HSPA) Wireless Intelligence HSPA helped drive mobile data revenue growth of 46.1 per cent and wireless broadband revenue growth of 205 per cent in the first half of 2007/08. -Dr. Hugh Bradlow, CTO, Telstra StarHub consumer and corporate customers will now be able to experience high-speed access in Singapore of up to 7.2Mbps downlink and up to 1.9Mbps uplink with the use of HSDPA and HSUPA technologies respectively. -3G.co.uk, 2nd August, 2007

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3G Offers Fixed/Nomadic Broadband Today

Source: 2

3G Operators Provide a Wide Range of Services

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Growth of 3G is Surpassing That of 2G

Western Europe sees surge in WCDMA subscriber growth, while GSM continues to decline
Millions
16 14 12 10 8 6 4 2 0 -2 -4
Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

Western Europe Net Subscriber Additions by Quarter

WCDMA GSM

14.6 14.6 million million

-2 million -2 million

Q1 2007 saw the first decline in GSM net additions in Western Europe Q1 2007 saw the first decline in GSM net additions in Western Europe
Source: Wireless Intelligence, Dec 2007
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Wireless Broadband Evolution Trends

Network Evolution

Mobile Device Evolution

Service Evolution

Co-existence of multiple wireless technologies Common IP-based core networks

Convergence of Computing, Communication, & CE Multimode devices

Trends from wired to wireless Same rich IP apps everywhere

Convergence of Computing, Communication and CE

Verizon is a registered trademark of Verizon. All other trademarks are the property of their respective owners. Note: Products sold for use in U.S. are in compliance with recent ITC and Federal Court rulings.

CE Market Opportunities are Here Today

Computing Gaming Books User-Generated Content Entertainment

Samsungs Q1 Ultra UMPC

Nintendos DS

Amazons Kindle & Polymer Visions Librofonino

Samsungs VLUU i70

Cowons Q5 PMP

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Sprint & Amazon eBook Example of a New Service Model

Kindle Launched in November, 2007 Service
- A wireless portable reading device providing access to books, blogs, magazines, and newspapers using high-speed EV-DO network. - Over 300 newspapers, blogs, and magazines, and 90,000 books are available and can be downloaded in less than a minute. - Delivers new content wirelessly, without a PC, Wi-Fi hot spot, or syncing. - No monthly subscriptions or commitments for the service. - Built in dictionary and Wikipedia.

Price:
- $9.99 per book - $399 for the device - Subscriptions: -Kindle magazines: $1.25 - $3.49 per month -Kindle newspapers: $5.99 - $14.99 per month -Blogs - 99 each per month
9

Convergence of Devices & Services

1G 2G 3G & Beyond

+
Mobile Communication Information

+
Entertainment / CE

+
PHONE EVOLUTION

+
Rich Communication

+
User Generated Content/ Social Networking Computing

Connected Devices

Bluetooth Headsets Multi-Function CE Mobile Computing

CONVERGENCE OF DEVICES & SERVICES

Connected Applications
Rich Content Computing Applications High-Speed Access

PC EVOLUTION

+
Computing Simple Communication

+
Information

+
Entertainment

+
Rich Communication

+
User Generated Content/ Social Networking

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Choice of Layered Networks with Common IP Core

Opportunities abound for many technologies in the broadband future
4G Is Less about Performance than Ubiquitous Broadband Experience and Seamless Interoperability between Successful Wireless Technologies

High-performance 3G-WANs, with greatest coverage & scale, will provide ubiquitous broadband to billions of users
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Ecosystem

Economics

Evolution

Successful mass-market mobile broadband technologies excel at the 3 Es

1) Ecosystem

A thriving ecosystem includes successful operators generating revenue for their services, and innovative vendors/developers creating products/services that meet operators needs and fuel customer demand.

670 Million+ Subscribers on 3G Networks Today

492 Commercial Networks

127 EV-DO (35 Rev. A) 276 CDMA2000 1X 194 HSDPA (34 HSUPA) 216 WCDMA
Source: Wireless Intelligence
14

Growth of 3G Broadband Subscribers Is Explosive and Accelerating

3G will drive the majority of mobile broadband connections well into the next decade
3G HSPA Family 3G EV-DO Family WiMAX Others, including TD-SCDMA, LTE and UMB

825

25%

67%
551

5%

3G will command 92% of the Mobile Broadband market in 2012

332 218 176 181 138 91 24 4 67 8 15 25 40 261

307

60

2007

2008

2009

2010

2011

2012

Sources: Strategy Analytics, July 2007; Informa, September 2007. HSPA Family includes HSDPA, HSUPA & HSPA+. EV-DO Family includes Rel. 0, Rev. A and Rev. B.

15

Vendors and Operators Are Realizing Significant Revenues from 3G

2009 Worldwide Revenue Estimates (Billions)

Sources: Blended forecast from Strategy Analytics (2006), Gartner (2006) and Forward Concepts (2005)

16

3G Offers Great Diversity Across All Segments

535 EV-DO devices / 107 vendors; 420 HSPA devices / 94 vendors

All Market Segments

Mobile/Nomadic/Fixed Enterprise/Consumer
Ethernet/Cable/DSL-Class Performance

Handsets and PC cards Consumer Electronics Ultra mobile devices Embedded laptops Desktops

All Device Segments

Sources: CDG, GSA. 17

2) Economics

As operators evaluate options for rolling out wireless data services, they carefully assess each competing technologys potential to maximize revenue while minimizing cost.

3G Supports the Entire Range of IP Services

Video/Music Telco-quality VoIP Low-Latency Gaming Push to Talk / Push to Media Multimedia Upload/Exchange High-Speed Web Browsing Streaming/Downloads Video Telephony Service Tiering Multicasting

Enabled by 3Gs Integrated Quality of Service (QoS) support, high capacity and low latency
19

Operators Worldwide Show Data YoY Growth

Source: Verizon, Vodafone Group, AT&T, Telstra

20

3G Device Cost Declining as Scale Increases

$90
$82 $83 $77

CDMA2000 Handsets Costs

$70

$70

$68

$69

$68 $59 $55

$57 $50

$50

$49

$55 $51

$49$48 $43$42 $41 $35 $37 $35 $35 $24 $26 $24 $28 $23 $20
$20

WCDMA & CDMA2000 Worldwide Handset Shipments

(Millions)
800 700 600 500 400

$30

53%*

$10
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Lowest 10%

Lowest priced

683
300 200 100 0 2005 2006 2007 2008 2009 2010

730

22%*
351 193 267

565 454

$450
$407 $367

WCDMA Handset Costs

$341 $311 $295 $290 $287$290 $270 $272 $270 $254

$350
2011

$250
* Percentage of total handset shipments Source: Average of Gartner Group (Dec 2006), Strategy Analytics (Oct 2006), ABI (Q1 2007), IDC (Dec 2006) and Yankee Group (Dec 2006) handset forecasts

$228 $217 $197

$221 $198

$231 $195 $191 $181

$176

$150

$141 $129

$141 $128 $128

$135 $105

$124

$50
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Lowest 10%

Lowest Price
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Minimizing Number of Sites Is Important

Cost of each cell site is similar for all broadband technologies Technologies requiring fewer sites have lower overall network cost
3G Network Example: Fixed/Nomadic Voice + Data Service
600 MOU /Sub/Month 1000 MB /Sub/Month

Ancillary Equipment Installation/Shipping Internet Interconnect Site Acquisition

Capital Expenses

Project Mgt. RF Eng / Test Equip Backhaul BTS

Capital (% of Total Network Expense) Ancillary Equipment Installation/Shipping Site Acquisition Project Management RF Eng / Test Equip BTS BSC MSC Core Network Other Operating Expense (% of Total Network Expense) Site Rental Operations Utilities Spares Training Software Upgrade Backhaul Internet Interconnect

38% 1% 11% 1% 0% 1% 12% 8% 0% 3% 1% 62% 12% 13% 3% 2% 1% 1% 25% 5%

Software Upgrade Training Spares Utilities

BSC

MSC Core Netw ork

Notes: Urban morphology (10K Pops/SqKm) Wireless penetration: 50% Operator market share: 25% Local call termination charges and long distance transport costs are not included in the network expense calculations Spectrum available: 2X10MHz @ 800MHz

Other Operations

Operating Expenses

Site Rental

22

3) Evolution

As with preceding generations, 3G technologies will continue to evolve, with timely improvements for greater capacity, lower cost, and higher data rates to support a myriad of voice and data services.

3G Technologies Have Strong Evolution Paths

Excellent Mobile Broadband
Voice and Full Range of IP Services
CDMA2000

Enhanced User Experience

Improved voice and data capacity

1X
EV-DO

1x Advanced

EV-DO

EV-DO

EV-DO

Rel 0

Rev A

Rev B
Phase I

Rev B
Phase II

DO Advanced

Rel-99

Rel-5 (HSDPA)

Rel-6 (HSUPA)

Rel-7

Rel-8

Rel-9 & Beyond

WCDMA

HSPA

HSPA+ (HSPA Evolved)

OFDMA complements 3G Leverages wider bandwidths

Rel-8

Rel-9

LTE

UMB
Created 7/01/08

Backward and forward compatibility

Cost effective upgrades that leverage existing assets
24

Peak Data Rates Achievable in Optimal Conditions

Peak Data Rate Enhancements
Shared channel
(downlink and uplink)

EV-DO

EV-DO

Rev. B
Phase I

Rev. B
Phase II

Rev. A
DL: 3.1 Mbps

DO Advanced
DL: 34.4 Mbps3
>5 MHz

DL: 9.3 Mbps1

5 MHz

14.7 Mbps2
5 MHz

16/64QAM
Higher order Modulation

Rel-6 (HSUPA)

Rel-7

Rel-8

Rel-9 & Beyond

HSPA
DL: 1.8-14.4 Mbps
5 MHz

HSPA+ (HSPA Evolved)

DL: 28 Mbps DL: 42 Mbps4
5 MHz

2x2 MIMO
Multiple Input Multiple Output

DL: 84 Mbps5
10 MHz

Rel-8
Wider bandwidth
Multi carrier and/or OFDMA

Rel-9

LTE
DL: 71 - 143 Mbps6
10 MHz to 20 MHz
1Peak

Combinations
of HOM, MIMO and Multi carrier

Even Higher order

MIMO and HOM

rate for 3 EV-DO carriers supported by initial implementation. 2Peak rate for 3 EV-DO carriers with 64 QAM in the DL. Standard supports up to 15 aggregated Rev. A carriers. 3DO Advanced peak rate for 4 EV-DO carriers as expected for initial implementation, assumes 2x2 MIMO and 64QAM in the DL. 4R8 will reach 42 Mbps by combining 2x2 MIMO and HOM (64 QAM) in 5MHz, or by utilizing HOM (64 QAM) and multi carrier in 10 MHz. 5R9 and beyond may utilize combinations of multi carrier and MIMO to reach 84 Mbps peak rates. 6Peak rates for 10 and 20 MHz FDD using 2x2 MIMO, the standard supports 4x4 MIMO enabling peak rates of 278 Mbps for LTE and 288 Mbps for UMB. TDD rates are a function of up/downlink asymmetry

UMB
DL: 71 - 135 Mbps6
10 MHz to 20 MHz

Created 7/1/08

Enhancements available to both CDMA and OFDMA

25

Many Technologies Needed to Economically Deliver Broadband Experience Everywhere

26

LTE Complements Existing 3G Networks

Address high-traffic areas with LTE

3G provides ubiquitous coverage

LTE HSPA+ Multimode

Seamless service continuity with 3G

Seamless handoffs through multimode devices

Industrys first LTE/3G multimode solutions

LTE LTE Rev. B Multimode

Evolved 3G provides similar user experience outside the LTE coverage

HSPA+/Rev. B

Multimode

LTE
3G Coverage (HSPA/HSPA+ or EV-DO Rev A/B)
27

Qualcomm Business Model

28

Qualcomm Invests Significantly in a Complete Technology Roadmap

Qualcomm Yearly R&D Expenditures

29

Qualcomm Has Helped to Enable a $350+B Industry

Industry:
- CDMA/WCDMA Infrastructure Revenues - CDMA/WCDMA Handset Revenues - CDMA/WCDMA Service Revenues
Sources: Qualcomm Revenues Company reports Handset, Infrastructure and Service Revenues Strategy Analytics, 2007

30

Qualcomm Provides Broadest Solutions for Every Mobile Device Segment

TECHNOLOGY
Industry leader in modem technology Best-in-class RF & PMIC Highest level of system integration Modem, Multimedia, RF, PMIC, Software Leading-edge process & packaging

QSD

Wireless & Consumer Convergence

MSM 7K

HLOS Phones VGA/WVGA

CUSTOMERS
Over 50 customers Launched ~300 devices in 2007 More than 350 devices in design and production Launching >30 phones per month

MSM 6K

Mainstream MM Broadcast QVGA/WQVGA

QSC

Single Chip Entry Level

31

Highly-Integrated Chip Solutions

Software
+
CDMA, DO GSM/GPRS, Edge, WCDMA, HSPA DSP DSP Memory MicroProcessor GPS 3D Graphics Video Audio Imaging

Smaller Form Factor Longer Battery Life Lower Overall Costs

32

Summary 3G offers excellent wireless broadband today

Supports all services, market/device segments with excellent economics

3G has a strong evolution path

Higher capacity, peak and user data rates, enhanced user experience

CDMA and OFDMA will provide similar performance

Topology will provide gains beyond technology

LTE complements 3G and its evolution

Leverages new and wider spectrum up to 20 MHz

Qualcomm is a key contributor to 3G and beyond

Significant investments in EV-DO, HSPA(+), LTE, 1X-Advanced
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Thank You