1. 11 Dennis Roberson SVP – CTO 3G and Hot Spot Networking

2. 22 1 Billion + Subscribers World Market Trend (circ fall 2000) 1 Billion Subscribers INTERNET 380 Million Subscribers WIRELESS 580 Million Subscribers 20002004 “WIRELESS INTERNET” Market Size Source: Commerce Net Research, NUA.NET, Motorola

3. 33 Advertising in The Economist

4. 44 Wireless Will Surpass Wired Access Source: Salomon Smith Barney, Motorola Estimates. Wireless Internet Wired Internet Wireless Voice Wired Voice *Estimate

5. 55 Worldwide Cumulative Subscribers Source: Motorola Forecast 2G 1G 3G 2.5G 2G 19992000200120022003200420052006 0 500 1,000 1,500 2,000 Cumulative Subscribers (Millions)

6. 66 3G Candybar Voice, Data 3G Candybar Voice, Data, Video Voice Voice/Data Voice/Data/Image/ Video 3G Clam Voice Data Data/Voice 3G Clam Voice, Data iMode Voice, Data Mini Computer Data PDA/PHS Data, Voice 2-Way Communicator Data/voice Card Phone Electronic Wallet Embedded 3G Candybar Voice New devices are being introduced Enhanced Devices

7. 77 3G 2.5G 2G Data Transmission Speed - kbps 9.632641281443842,000 20->200K Still Imaging Video Streaming Voice Audio Streaming Text Messaging E-mail Mobile Radio Mobile Television Mobile Video Conferencing E-Commerce Video On Demand Increasing Value Wireless bandwidth is increasing... 3.5G 4G Shared Environments

8. 88 Technology Evolution

9. 99 0 32 64 9.6 128 144 384 2,000 1G 2G 3G Voice Text Messaging Video Streaming Still Imaging Audio Streaming Data Transmission Speed - k bps Electronic Newspaper Remote Medical Service (image) Video Conference (High quality) Telephone (Voice) Voice Mail E-Mail Fax Electronic Publishing Karaoke Video Conference (Lower quality) JPEG Still Photos Mobile Radio Viideo Surveillance, Video Mail, Travel Image Audio Voice-driven Web Pages Streaming Audio Data Weather, Traffic, News, Sports, Stock updates Mobile TV E-Commerce Video on Demand: Sports, News Weather The Promise of 3G

10. 10 0 32 64 9.6 128 144 384 2,000 1G 2G 3G Voice Text Messaging Video Streaming Still Imaging Audio Streaming Data Transmission Speed - k bps Technology Data Rates cdma2000 GSM, IS-136, IS-95A GPRS EDGE WCDMA

11. 11 User Peak Data Rate

12. 12 What has happened to 3G Expectations? Spain Licensing With early TTM Bumper UK Licensing Bumper German Licensing Limited WAP Success Slippage Of commercial GPRS Italian + Swiss Auction Failures Terminal Restrictions Huge New Entrant Interest Industry Financial Impact Expectations For Early 3G Deployment High Low DecJulJan 2000

13. 13 Evolution driven by…

14. 14 3G Challenges…

15. 15 2G Cellular Volume Deterioration Shipments [Millions]

16. 16 Cellular Subscriber Growth USA China Estimates India Japan Germany Italy / UK

17. 17 3G Spectrum Costs Estimated Cost per Licence in $Bn = Already Issued Before Forecast Auction Hybrid Beauty Contest Raised Half Of expectations Actual Raised Raised only 20% Of expectations Postponed Because of lack of interest Baskerville Forecast: Q200 Raised only 33% of Expectations

18. 18 ITU Japan Europe China USA 3G 1885 2025 2110 2200 MSS 1850 DECT 18801900 18951918.1 PHS 19802010 19802010 Broadcast Auxiliary 1930 191019301990 PCS Unl. PCS Reserve MSS All Frequencies in MHz * Region 2 MSS 3G MSS MSS* 21702120 2170 199620102186 2150 MSS DCS 1800 DCS 1800 171017851805 ADBEFCADBEFC 3G Spectrum Availability

19. 19 3G - Operator Slippages Original PlanLatest PlanSlippagePublicly announced reason Vodafone UKNov-01Nov-0212-16 monthsHandsets SK TelecomMay-02May-0312 monthsHandsets, infrastructure TelefonicaAug-01Jul-0211 monthsLicensing relaxation Japan TelecomNov-01Oct-028-11 monthsGain 3GPP standards BT CellnetDec-01Sep-0210 monthsInfrastructure France TelecomFeb-02H2-025-10 monthsHandsets NTTMay-01Oct-01*6 monthsHandsets, software, interference BT Cellnet SK Telecom Japan Telecom Vodafone UK Telefonica Q4Q1Q2Q3Q4Q1Q2 Planned LaunchRevised Launch May Nov Aug 200120022003 Q3 July Oct DecSep France Telecom FebSep/Oct NTT Oct* Delay in Roll Out

20. 20 Bandwidths Trends Compared (early adopters, highest bandwidths) bps Office LAN Home/WAN Personal Wireless Internet Backbone WLAN

21. 21 Bandwidth Trends - Personal Wireless (Mobile/Portable) bps GPRS 3G 4G 2G 3.5G

22. 22 Wireless Data Trends 10 100 1000 10000 100000 1000000 199619982000200220042006 Year Max Data Rate (Kbps) Wide Area B’tooth/802.15.3 HiperLAN2 Median2 IEEE 802.11 W-CDMA EDGE GPRS HSCD WLAN (~Fixed) WAN (Fully Mobile) PAN (Nomadic)

23. 23 Key WLAN / PAN Radio Technologies EnterpriseBroadbandHomeNomadic 20002003200220012004 802.11b HomeRF2 or 802.11a/e or HL2 Bluetooth/802.15.1802.15.3 Speed: 11 - 22Mbps Technology:2.4GHz, DSS Speed: 22 - 100Mbps Technology:5.XGHz, OFDM Speed: 1.1 Mbps Technology:2.4GHz, FH Speed: 10 - 22 – 54 Mbps Technology:5.XGHz, OFDM Speed: 700Kbps Technology:2.4GHz, FH Speed: 20+ Mbps Technology:2.4 GHz Strategy:Transistion to 5GHz WPAN; UWB Products: Set-top box, etc Driver: Reduce setup costs new markets/services Products: Cell-phones, etc Driver: Competition, new markets & products All Speeds at RAW bandwidth. Delivered payload varies Products: Vertical Driver: Competition Bluetooth2 Speed: 2-10 Mbps Technology:2.4GHz FH *Hotspots may use Enterprise or Nomadic technologies 802.11a or HiperLAN2 HomeRF

24. 24 Wide Area coverage Provided by 2G Carriers Greater Washington DC Area Broadband 802.11x Pentagon, coverage provided by “US Military Telecom” 2.5G GPRS Broadband 802.11x Reagan Airport, coverage provided by 3rd Party Vendor Broadband 802.11x Mall area coverage provided by Verizon Requires a multi-mode device (GPRS and 802.11) Requires a new billing model Broadband “Island” Scenario slide courtesy of Les Eastwood

25. 25 Enterprise Wireless Mobility Model Campus R Level 3 - Regional Low Speed Wireless (56Kbps) Level 2 - Campus High Speed Wireless LANs (100Mbps) Level 1 - Personal Area Network (.5- 10Mbps)

26. 26 WLANs and PANs Enhance Cellular Timeliness: 11Mbps available now Low Cost for Operator/Owner and User –Free Spectrum: 300-500MHz of unlicensed spectrum –Low equipment cost –Enables low cost/flat fee Wireless to consumer Superior End User Experience –54Mb/s vs. 1-2Mb/s –All existing and future Internet applications already work slide courtesy of Les Eastwood (and Could Threaten 3G)

27. 27 Wireless Internet Local Access & Control Data Only No Roaming Private Network WLAN Today High Speed – Point Coverage Technologies Geared toward Data in the Enterprise Slow Data Rates Global Roaming High Speed Mobility Cellular Today Low Data Rate – Wide Coverage Technologies Geared toward Consumer Voice and Data WLAN & Cellular Convergence Is there opportunity here?

28. 28 802.11 Or Any WLAN Technology Internet Benefits: Local Access, Common Control Data & Voice Point to Point Roaming VPN over Public Network Increasing Data Rates in More Places Seamless Roaming and Billing High Speed Mobility … Integrate Cellular with WLAN Common Features/Capabilities Authentication Billing Preferences/Call Control Access Capable (802.11, BT, Cellular) iMGWPlatform Technology Tailored for a Seamless Solution Enterprise or Hot Spot Nomadic Home

29. 29 Beyond 3G (B3G) 1G WLAN Hotspots GPRS +802.11 3G4G2G 1980’s2000’s 2010’s UMTS + HiperLAN Cellular+ WLAN+ Bdcast GPRS +DVB  B3G key attributes:  interworking and cooperation between different Radio Networks  user as the focus, opportune delivery of the content/services  multi-mode terminals free to camp on any available network  fully IP based  disruptive technology  potentially complementary to 3G  potentially competitive to 3G 1990’s

30. 30 DVB-T UMTSGPRS Hiperlan2 AP Ipv6 Backbone(s) Internet IPv4  IPv6 Services Management domain A moving IP- subnet B3G Vision Composite Radio Ressource management (Spectrum utilization, links/traffic optimization) Composite Domain Management (mobility, QoS, multicast, AAA) Composite Service Delivery management (Billing, …) Management Functions Main Attributes:  Core network IPv6 based  Better support of mobility, security and “unlimited” address space  Wireless access points become IP gateways  Different radio access technologies deployed within a domain  Optimization of the radio resources

31. 31 US Japan Europe BRAN/Hiperlan U-NII 52005400560058005100530055005700 MMAC 5.15 - 5.35 5.725 -5.825 5.470 - 5.725 BRAN/Hiperlan 5.15 - 5.25 Unlicensed 300 MHz License- exempt 455 MHz 100 MHz Spectrum Allocation at 5 GHz 200mW1W 50mW 250mW

32. 32 WLAN Standards & Technologies HiperLAN 2 802.11b 2.4 GHz 4ch. (80MHz) 5 GHz US: 12 ch. (300MHz) EU: 19 ch. (455MHz) JP: 5 ch. (100MHz) 54 Mbps/channel net bit rate Simple and adapted to corporate apps “Wireless Ethernet", no QoS, limited for multimedia Future 802.11e, h incl. QoS, DFS+TPC, security, roaming 54 Mbps/channel net bit rate Multimedia ready (supports QoS, Ethernet, ATM, 1394) Not widely adopted - pushed by Europe Better suited to Home & Multimedia applications 11Mbs/channel net bit rate First on market, market education Limited in data rate, and capacity (spectrum, interference) 802.11a 802.11a+e+h ≈ HL2 Japan is going 11a for Corporate, and HiSWAN (NTT) for Home & Public IEEE802.11a evolutionary approach ↔ HiperLAN2 support of multimedia

33. 33 Forces affecting the Future of 5 GHz WLAN Economy/Industry Downturn Consumer Confusion 22 Mbps 2.4 GHz solutions Technical Challenges Enabling Applications Cost Capacity collapse 2.4GHz Speed/Media needs Quality of Service 2.4 GHz interference Security Range VOLUMEVOLUME T I M E

34. 34 Wireless System Landscape Data Rate to the User High Mobility speech, some data Limited Mobility: Speech, data Fixed Access, High speed data In-Home / In-Building 3G Mobility, Functions WLAN / PAN 4G 1Kbps10Kbps100Kbps1Mbps10Mbps100Mbps 2G 1G