1. 1 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett The GSM Family of Services The Evolution to 3G Joe Barrett Director, Market Development Nokia Networks

2. 2 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett Facts not Hype Globally GSM today is providing the most growth and providing the best data rates GSM operators are ranked higher than any other operators when it comes to the percentage of data generated from ARPU GSM/EDGE will offer the highest data rates at the lowest cost and the best Quality of Service classes of any technology during 2003 WCDMA will be needed for future capacity, delivery cost, speed and quality of service in mobile networks There is no doubt about this

3. 3 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett GSM is still providing the majority of growth Source EMC Database

4. 4 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett GSM is growing by a different order of magnitude Source EMC Database

5. 5 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett GSM Data Rates are Global GSM data rates with GPRS are in all operator cases across the globe are between 30-40kb/s CDMA 1X user data rates vary from up to 90kb/s in a fragmentated Korean market where they have a mixture of proprietary solutions to 43kb/s in the US, which has been measured by Nokia GSM/EDGE user data rates will be 80-100kb/s with the first handsets and then 160 to 200kb/s by end of 2003 WCDMA networks are already in working trials and the terminals have passed regulatory type approval (dual mode) in Europe and Japan Immediacy of service will have the biggest impact on the network load and impact costs

6. 6 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett GSM is driving data ARPU The top data operators are using GSM technology The top Japanese operators have chosen the GSM evolution path i.e. WCDMA KDDI is the only ranked CDMA operator in the top 40 at 12 th The Korean operators are ranked 42 nd, 47 th & 49 th and will deploy WCDMA Roaming accounts for 7% of Western European Operator’s revenue In Korea roaming accounts for only 0.5% of revenue Source EMC Database

7. 7 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett Nokia EDGE Availability EDGE is an inherent part of Nokia's GSM evolution strategy Nokia EDGE infrastructure mass deployment has started Roll-outs are supported for all continents and markets Full commercial system support in networks in 05/03 for ANSI and 07/03 for ETSI markets Nokia terminals availability First EDGE terminals for US market in 1Q03 (800/1800/1900) Followed by terminals for other markets from 2Q03 onwards (900/1800/1900) EDGE will be introduced progressively to several product categories in 2H03 and through the terminal range in 2004

8. 8 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett Voice Corporate solutions Infotainment Communication Transaction services Advertising Data rate Conversational Background 0 816481284732048 Conversational Interactive Conversational Streaming Conversational Voice FAX Collaborative working Audio clip downl. Video clip downl. Short Messagi ng Corporate Data Access WEB Browsing WAP Applications E-mail Video streaming Multimedia Messaging Video telephony Audio streaming Gaming WCDMA EDGE GPRS Service Quality for Packet Switched Bearers Typical initial data rates and services Mobile Data Evolution

9. 9 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett WCDMA launches Source EMC Database

10. 10 © NOKIA ART October 2002.ppt /October 2002/Joe Barrett Summary We believe that the GSM Family of Services offers the overall best evolution to 3G and the most viably economic business case of any technology that can be deployed today Our analysis is based on facts not hype