LTE Market overview beyond 2010 Bill Tsao / 曹維陵 Sales Manager Rohde & Schwarz Taiwan, Ltd.

Sep | LTE Market View | 2 l Wireless technology evolution path l Wireless Broadband Market status Agenda

Sep | LTE Market View | / /2010 Wireless technology evolution path GSM/ GPRS EDGE, 200 kHz DL: 473 kbps UL: 473 kbps EDGEevo DL: 1.9 Mbps UL: 947 kbps HSDPA, 5 MHz DL: 14.4 Mbps UL: 2.0 Mbps HSPA, 5 MHz DL: 14.4 Mbps UL: 5.76 Mbps HSPA+, R7 DL: 28.0 Mbps UL: 11.5 Mbps 2005/ / /2012 HSPA+, R8 DL: 42.0 Mbps UL: 11.5 Mbps cdma xEV-DO, Rev MHz DL: 2.4 Mbps UL: 153 kbps 1xEV-DO, Rev. A 1.25 MHz DL: 3.1 Mbps UL: 1.8 Mbps 1xEV-DO, Rev. B 5.0 MHz DL: 14.7 Mbps UL: 4.9 Mbps HSPA+, R9 DL: 84 Mbps UL: 23 Mbps DO-Advanced DL: 32 Mbps and beyond UL: 12.4 Mbps and beyond LTE-Advanced R10 DL: 1 Gbps (low mobility) UL: 500 Mbps Fixed WiMAX scalable bandwidth 1.25 … 28 MHz typical up to 15 Mbps Mobile WiMAX, e Up to 20 MHz DL: 75 Mbps (2x2) UL: 28 Mbps (1x2) Advanced Mobile WiMAX, m DL: up to 1 Gbps (low mobility) UL: up to 100 Mbps VAMOS Double Speech Capacity HSPA+, R10 DL: 84 Mbps UL: 23 Mbps LTE (4x4), R8+R9, 20MHz DL: 300 Mbps UL: 75 Mbps UMTS DL: 2.0 Mbps UL: 2.0 Mbps

Sep | LTE Market View | 4 Wireless Broadband Worldwide Customers by Technology

Sep | LTE Market View | 5 Mobile Broadband Market Real mobile broadband is happening now Q2/2010: 530 million mobile broadband subscriptions (WCDMA, HSPA)** German mobile data increase * 71% of the German internet users own an internet capable mobile user device*** Sources: *Bundesnetzagentur **GSA (Global mobile Supplier Association) ***Accenture Mobile Web Watch

Sep | LTE Market View | 6 Wireless Broadband Worldwide WiMAX operator/manufacturer broaden scope to (TD-)LTE Yota chooses LTE over WiMAX for new market rollouts, May 2010 US WiMAX service provider Clearwire announced plans to trial LTE technology this year, August 2010 Beceem Ends 4G Debate with integrated 4G LTE/WiMAX Chip, February 2010 Sequans’ LTE solutions feature high performance category 3 throughput, TDD and FDD for global compatibility, August 2010

Sep | LTE Market View | 7 l Up to 22 LTE networks in service by end 2010 l Up to 45 LTE networks in service by end 2012 Strong rising LTE commitments A global operator community is ready to start Source of data: GSA Information Paper “Evolution to LTE” – June 7, 2010Slide

Sep | LTE Market View | 8 LTE Commitments (status in Dec.2009)

Sep | LTE Market View | 9 LTE Commitments (status in Jun.2010)

Sep | LTE Market View | 10 LTE commitments

Sep | LTE Market View | 11 LTE is commercially available l LTE commercial launch on Dec 14, 2009 l Two city networks in Stockholm and Oslo l Gothenburg added in August 2010 l Population coverage at launch: 400,000 l Initially modems/USB dongles for 4G only l Limited number of modems to start with

Sep | LTE Market View | 12 Germany – Digital Dividend LTE Broadband Access in rural areas l Deutsche Telekom starts nation wide LTE-Deployment l Around 500 LTE-Sites on Band 20 planned until end 2010 l No mobility in the beginning l Further Band 7 deployment will start in 2011 l Vodafone Germany to deploy LTE network l Nation wide LTE coverage by 2013 starting with Band 20 l Plans to have 1,500 base stations upgraded by the end of 2011 in rural areas without access to broadband services.

Sep | LTE Market View | 13 LTE - front runners pushing the wireless industry l Verizon providing coverage to about 100 million people by the end of Verizon Wireless expects to have same coverage with LTE as they do have now with their 3G network based on 1xEV-DO Rev. A l NTT DOCOMO is verifying its new commercial LTE network in the Tokyo area, prior to the full-scale launch of a commercial extra-high-speed LTE service in December l China Mobile TD-LTE trials currently running, challenging timescales established for prototype, dual-mode and multimode devices

Sep | LTE Market View | 14 Seattle, WA Boston, MA Verizon Wireless Market update l During the Verizon web case on June 15, 2010 Verizon Wireless Vice President, Tony Lewis, was concrete about their plans to launch LTE in 25 to 30 markets providing coverage to about 100 million people by the end of 2010, –Verizon will initially roll-out 10 cell sites in multiple key locations and will increase the number of cell sites towards the end of the year to provide more coverage, –By 2013 Verizon Wireless expects to have same coverage with LTE as they do have now with their 3G network based on 1xEV-DO Rev. A, which is covering today approximately 95% of the US population, l Verizon Wireless announced that Rohde & Schwarz has been selected to provide test solutions for LTE device certification, –

Sep | LTE Market View | 15 NTT DoCoMo Market update l NTT DOCOMO is the world’s leading mobile operator and provider of advanced mobile services. The company serves over 56 million customers in Japan, including 49 million using i-mode™, the world’s most popular mobile /Internet platform, and 54 million using FOMA™, the world’s original 3G mobile service based on W-CDMA. l TOKYO, JAPAN, June 8, 2010 – NTT DOCOMO, INC. announced today that on June 8 it will begin verifying its new commercial mobile network system based on the Long Term Evolution (LTE) protocol in the Tokyo area, prior to the full-scale launch of extra-high-speed LTE commercial service in December. l TOKYO, JAPAN, July 29, NTT DOCOMO, INC. today unveiled the brand name and logo of its forthcoming LTE next-generation mobile service for the Japanese market, which is scheduled to launch in December. The brand name is written Xi™ and read “crossy.”

Sep | LTE Market View | 16 LTE ETWS application Source: 3GPP TS version 8.1.0

Sep | LTE Market View | 17 China Mobile Market update l Li Yizhong, Minister of Industry and Information Technology, stated that TD- SCDMA subscribers in China are expected to reach 80 million by The China Mobile TD-SCDMA system covered 284 cities by end China Mobile had 7.69 million 3G/TD-SCDMA subscribers total at end March l China Mobile internet page: „We undertook efforts to upgrade our core network to become fully IP-based, and established a 2G and 3G soft switch IP network that offers superior quality and is the world's biggest. We are committed to network quality improvement and TD technology innovation.... We also promoted the international standardization of TD-LTE in several international organizations, paving the way for the continuous and healthy development of the TD industry. We will debut our TD-LTE showcase network at the World Expo Shanghai 2010.” l TD-LTE trials now l Timescales established for prototype, dual-mode and multimode devices l In-service estimated as

Sep | LTE Market View | 18 The LTE eco-system is building up LTE FDD and TD-LTE l Several LTE platforms have been announced by device and chipset manufacturers and were demonstrated to carriers and at trade shows, l 1st commercial LTE handsets are data cards, majority LTE-only, limited to one frequency band/bandwidth, l Next wave is going to be dual-mode or even triple, supporting several frequency bands, l Various field trials are ongoing, using selected infrastructure provider and device manufacturer, Close to 20 chip set and terminal manufacturers reported platforms into GSA

Sep | LTE Market View | 19 LSTI Activities - Progress Source: LSTI

Sep | LTE Market View | 20 LSTI – Initial Results

Sep | LTE Market View | 21 Certification test status GCF&PTCRB l GCF on schedule to start the LTE certification test l Estimate to start with GCF CC V3.40 before the end of 2010 l Certificate band includes: ~~ MHz Band 13Band 20Band 3Band 1 Band 38 ~ 2350 ~ Band 40 ~ Band 7 GCF FDD GCF TDD

Sep | LTE Market View | 22 Certification test status GCF&PTCRB ~ Band 12 Band 17 Band 4 Band 13 MHz PTCRB FDD l PTCRB plans to start the LTE certification test in Q1/2011 l Certificate band includes:

Sep | LTE Market View | 23 E ‑ UTRA Operating Band Uplink (UL) operating bandDownlink (DL) operating band F UL_low – F UL_high [MHz]F DL_low – F DL_high [MHz] 11920– – – – – – – – –849869– –840875– – – –915925– – – – – – – –716728– –787746– –798758– –716734– –830860– –845875– LTE/LTE-A Frequency Bands (FDD/TDD) E ‑ UTRA Operating Band Uplink (UL) operating bandDownlink (DL) operating band F UL_low – F UL_high [MHz]F DL_low – F DL_high [MHz] – – – – – – – – – – – – – – – –2400

Sep | LTE Market View | 24 Voice over LTE l LTE is likely deployed focus on data service only l Voice service of LTE will be introduce in second step l One Voice initiative l Introduce by GSMA in Feb.2010 l Using IP Multimedia System (IMS) base one 3GPP spec. l GSMA is driving both SMS and Voice service

Sep | LTE Market View | 25 What Analyst say about LTE l Strategy Analytics forecasts the global LTE handset market will reach 150 million by l ABI Research forecasts by 2013 operators will spend over $8.6 billion on LTE base stations infrastructure. l IDATE Consulting & Research “LTE subscribers to reach 380 million by 2015” l Pyramid Research predicts LTE will grow faster than 3G.

Sep | LTE Market View | 26 Thank you for your attention!