Eriko Hondo KDDI Corporation March 17, G Service Launch using CDMA2000 1x in Japan

© 2003 KDDI Corporation 2003/3/17/Page 2 What is 3G Mobile ?

© 2003 KDDI Corporation 2003/3/17/Page 3 Service Quality Multimedia Terminal ’80s’90s’00s 3G （ 2001 ～） Multimedia CDMA2000 W-CDMA （ UMTS ） cdmaOne GPRS 2G Digital (voice) GSM, PDC, D-AMPS Commodity Analog AMPS, TACS, NMT, NTT Hi-Cap For VIP 1G What is 3G Mobile ?

© 2003 KDDI Corporation 2003/3/17/Page 4 CDMA2000 1x Service launch  cdmaOne: operated in 32 countries  CDMA2000 1x: launched in 8 countries, examined in 12 countries Japan, Korea* America*, Canada* Mexico Brazil, Chile, Puerto Rico Venezuela, Jamaica, Dominica Rumania Russia, Ukraine South America Europe China*, Taiwan, Thailand, Vietnam, Indonesia, Australia*, NZ* Asia, the Pacific North America * International roaming countries with cdmaOne system (as of August, 2002)

© 2003 KDDI Corporation 2003/3/17/Page 5 W-CDMA Service launch  W-CDMA: operated only in Japan (NTT DoCoMo 、 J-PHONE ）  : examined in other countries  : be delayed launch in Europe Japan Korea, Singapore North AmericaAmerica UK Germany, Italia, France, Spain, Sweden, Finland, etc. Asia, the pacific Europe (lead-time)

© 2003 KDDI Corporation 2003/3/17/Page 6 3G Service launch in Japan

© 2003 KDDI Corporation 2003/3/17/Page 7 Japan’s Mobile Subscriber Growth No. of Subscribers (x1000) end March of Year end February ,369 Ｋ cdmaOne/ CDMA2000 1x 13,649K PDC 60,517K W-CDMA 201K PDC Analog cdmaOne/CDMA2000 1x W-CDMA /February

© 2003 KDDI Corporation 2003/3/17/Page 8 Mobile Internet Subscriber Growth No. of Subscribers (Millions) Date (End of Month) i -mode 36.93M EZweb 12.13M J-Sky 11.88M Note: The number of subscribers for EZweb or i -mode is counted based on the paid contract, while that for J-Sky represents that of browser enabled phones M in total 60.95M 479% in 32 months Since ‘99/02 Since ‘99/04

© 2003 KDDI Corporation 2003/3/17/Page 9 CDMA x Subscribers Penetration of Mobile Internet Service in CDMA x 92% 5,891,900 (end February 2003) 82% Total Mobile Subscribers 74,368,600

© 2003 KDDI Corporation 2003/3/17/Page 10 CDMA2000 1x ’s Data ARPU ARPU (JYE) (cdmaOne/CDMA2000 1x) Voice Data CDMA Total 1x Only Total CDMA2000 1x Only Total 2001/Q12002/Q22002/Q32002/Q4

© 2003 KDDI Corporation 2003/3/17/Page 11 3G Subscriber Growth in Japan No. of Subscribers Month 3G Total at end February ,093,300 CDMA2000 1x (KDDI) 5,891,900 W-CDMA (NTT DoCoMo, Vodafone) 2,014,000 CDMA2000 1x W-CDMA The number of subscribers surpassed 6 million in February, 2003

© 2003 KDDI Corporation 2003/3/17/Page 12 Drivers to au’s Success of CDMA2000 1x Launch ～ CDMA2000 1x & EV-DO ～

© 2003 KDDI Corporation 2003/3/17/Page 13 Movie Mobile & GPS Mobile ････ ezwebmulti(WAP2001)/ezplus/ezmovie/eznavigation Movie Mobile & GPS Mobile ････ ezwebmulti(WAP2001)/ezplus/ezmovie/eznavigation 1st STEP （ 2001 ） CDMA2000 1x ････ 144kbps(best effort)/high-speed ezweb service 2nd STEP （ ～） CDMA2000 1xEV-DO ････ 2.4Mbps(best effort)/high-speed & high-volume data transmission in reasonable price CDMA2000 1xEV-DO ････ 2.4Mbps(best effort)/high-speed & high-volume data transmission in reasonable price 3rd STEP （ 2003 Autmn ～） “au” Business Strategy - Toward 3G Mobile

© 2003 KDDI Corporation 2003/3/17/Page 14 LaunchApril, 2002 (Major several cities in Japan) Coverage –the end of July 2002 ： 917 cities in 44 out of 47 prefectures –the end of September 2002 ： 90% of Kanto, Cyubu and Kansai Area 85% of all over Japan –the end of December 2002 ： 90% of all over Japan Upgrade existing equipment of cdmaOne - enabling rapid roll-out at low cost CDMA2000 1x Coverage Completion

© 2003 KDDI Corporation 2003/3/17/Page 15 CDMA2000 1xcdmaOne around 100g 200 hours weight battery life time 144kbps (data) Movie GPS Digital Camera screens on 2 sides etc. 64kbps (data) － △ － － feature 10,000 ～ 20,000 Yen price Operational stability same as for cdmaOne plus new features Terminal Specification

© 2003 KDDI Corporation 2003/3/17/Page 16 CDMA2000 1x Advantage: Backward Compatibility with cdmaOne cdmaOne BTS cdmaOne Handset cdmaOne - mode CDMA2000 1x BTS CDMA2000 1x Handset CDMA2000 1x - mode (i)graceful 1x network rollout without service area shortage ･ continued use of existing handsets without any service degradation cdmaOne - mode that enables;

© 2003 KDDI Corporation 2003/3/17/Page 17 Movi Keitai Amusement Movi Keitai A5302CA by Casio High-performance Movi Keitai A5303H by Hitachi “Chaku-Uta”-capable Add a message to an original video image Smooth and beautiful video images

© 2003 KDDI Corporation 2003/3/17/Page 18 Color Sub-display GPS- Keitai A3013T by Toshiba GPS Keitai Replaceable-Cover GPS - Keitai A3014S by Sony Ericsson More accurate location-based services Practical applications - vehicle-mounted navigation systems, emergency notification service.etc.

© 2003 KDDI Corporation 2003/3/17/Page 19 Movie demonstration- CDMA2000 1x etc. Music Education Movie Sports

© 2003 KDDI Corporation 2003/3/17/Page 20 IP-based packet transmission at high-speed (max. 2.4Mbps) in downlink - offering wireless solutions for Internet access to both consumer & enterprise markets Compatibility with CDMA2000 1x in spectrum usage and base station topology - enabling rapid rollout by overlaying CDMA2000 1x network Simple IP-based network architecture - minimizing CAPEX EV-DO PDA PC ITS/Telematics system Digital Camera Game Consoles CDMA2000 1x EV-DO

© 2003 KDDI Corporation 2003/3/17/Page 21 Household Network ・ SOHO ・ B to C ・ Communication through Mobile Internet ・ Notification of robbery Personal Use Intranet and Extranet Intra-automobile Network “Ubiquitous Society”, Anytime, Anywhere, Any Information Fleet management Freight management Car Multimedia for Personal Use ・ Schedule ・ e-news paper

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