1. Presentation Name NORTEL NETWORKS CONFIDENTIAL PG 1 Considerations for a successful CDMA 450 Deployment September 2004 Stephane Le Dreau EMEA CDMA Business development VP

2. Nortel Networks Proprietary & Confidential The challenges CDMA 450 operators face today Minimize Costs – Future Proof Solution, Vendor Experience & Viability – Operational Efficiency, Deployment Flexibility – High Density Solutions Maximize Revenues – Compelling Services Offering – Easy Feature and Applications Deployments – Leverage Investment for different business models – Feature Differentiation & Early Time to Market Ensure High Network Performances and Reliability – Quality: Network Performance & Reliability – Personalized User Experience Specific CDMA challenges in Europe – Marketing CDMA in Europe – Terminal availability

3. Nortel Networks Proprietary & Confidential Minimize Costs Investment Protection Investment Protection Vendor Experience & Viability Vendor Experience & Viability Operational Efficiency Operational Efficiency Deployment Flexibility Deployment Flexibility High Density Solutions High Density Solutions Operator Buying Criteria Quality: Network Performance & Reliability Quality: Network Performance & Reliability 450 MHz Terminals 450 MHz Terminals Network Performance & Terminal Availability Maximize Revenues Compelling Services Offering Compelling Services Offering Easy Feature and Applications Deployments Easy Feature and Applications Deployments Leverage Investment for different business models Leverage Investment for different business models Feature differentiation Feature differentiation

4. Nortel Networks Proprietary & Confidential Investment Protection One solution for diverse business applications: Mobility, FWA, Wireless DSL Multi band support 450/800/1900/2100 Support of CDMA2000 1X and 1XEV-DO Migration from 1X to 1xEVDO, 1xEVDO Rel A and 1XEV-DV by simple plug-ins Plug-in Capacity Increase Common Digital & Radio equipment in all BTS models Scalable BSC and MSC

5. Nortel Networks Proprietary & Confidential Deployment Flexibility Extended coverage option for rural sites - BOOMER CELL – Cost effective solution to address low capacity markets – Reduced BTS count Cell coverage up to 200km – Reduced CapEx for larger coverage Remote Radio deployment – Hot spot and highway coverage – Capture untapped revenues due to coverage difficulties Flexible BTS portfolio – Macro BTS for high capacity requirement – Micro BTS for low capacity requirements – Stand alone 1xEV-DO solution 40 km

6. Nortel Networks Proprietary & Confidential Operational Efficiency Native Radio modules – Designed as dedicated/standalone radios – Eliminates the need to add frequency shifter hardware resulting in reduced site deployment costs. Software controlled carrier & capacity growth – Eliminates site visit when subscriber grow Maximize backhaul capacity – Unchanellized E1 – ATM backhaul Reduced Power Consumption

7. Nortel Networks Proprietary & Confidential Minimize Costs Future Proof Solution Future Proof Solution Vendor Experience & Viability Vendor Experience & Viability Operational Efficiency Operational Efficiency Deployment Flexibility Deployment Flexibility High Density Solutions High Density Solutions Operator Buying Criteria Maximize Revenues Quality: Network Performance & Reliability Quality: Network Performance & Reliability 450 MHz Terminals 450 MHz Terminals Network Performance & Terminal Availability Compelling Services Offering Compelling Services Offering Easy Feature and Applications Deployments Easy Feature and Applications Deployments Leverage Investment for different business models Leverage Investment for different business models Feature differentiation Feature differentiation

8. Nortel Networks Proprietary & Confidential Understanding the Economics of Wireless Revenue =  ( ARPU, Penetration, Subscriber Mix) ARPU, Penetration =  ( Handsets, Content, Applications) Handsets Enable Content Content /Applications Drives Traffic Traffic Drives ARPU Wireless Operators looking for: – Compelling Services Offering – Easy data application Deployment – How to introduce wide range of applications in short time frame and still insure good end-user experience?

9. Nortel Networks Proprietary & Confidential CDMA 450 Marketing opportunities Premium Voice Quality State of the art noise cancellation High speed data offering Up to 156 kbps available, faster than dialup Average 70 kbps when network is loaded VPN services to the corporate network from any covered area Data applications & services PTT, LBS –gpsOne, Brew 1000’s of applications targeting all consumers Flexible data billing models 3G Ready!

10. Nortel Networks Proprietary & Confidential Online Game (e.g. Tetris Competition) NATE AccessGame CategorySelect TetrisSelect LevelSelect PartnerCompete ARPU & Penetration =  (Applications) Traffic Information (Updated every 5 min.)Music Video & Movie Clips Powered by NATE Media Player (Supports H.26L technology) Content drives traffic

11. Nortel Networks Proprietary & Confidential Global 1X Data Subscribers (3Q03) Approx 27.5M 1X data subs (GPRS ~26.8M) Majority of 1X data subs in Korea & Japan Data is becoming a significant % of ARPU Source: EMC, 3GToday North America 8% CALA 5% Asia Pac 87% Broadband Wireless is the Future

12. Nortel Networks Proprietary & Confidential Two Generations of Data Applications Innovation (Devices +Content +Applications) = Enhanced User Experience  Voice/Text messaging  Text [news/browsing]  Take Picture (still image)  Email Pictures  Single Media  Dial-up Speed Corporate access  Gaming  Music Downloads  Text based directions  Video messaging  Video [News/TV] on Demand  Record & send Video Clips  Email Video Clips  Multi-media messaging  DSL-like Corporate access  Interactive Gaming  Music Video Downloads  Interactive Map & Location Services 1X 1xEV-DO Enhanced interactive, multi-media and video applications to deliver superior end-user experience Customer Service RECORD REPLAY

13. Nortel Networks Proprietary & Confidential Multimedia Services Email with Large Attachments Video/Audio Streaming Interactive Color Gaming Mobile Office Infotainment On Demand 1xEV-DO Delivers A Superior Data User Experience 2.4 Mbps 3x – 6x Capacity Increase over 1X 9.6 kbps 154 kbps Web Browsing Screen Savers Bookings/ Transactions Stock Quotes Broadband mobility Up to 2.4 Mbps peak data Dedicated data- optimized carrier complimentary to 1X Data and voice resources don’t compete 1.25 MHz spectrum 1X and 1xEV-DO functionality Comparable to UMTS with much less spectrum High Speed Thrills and Delivers

14. Nortel Networks Proprietary & Confidential 1xEV-DO Wireless Residential Broadband Expand subscriber base and usage Leverage existing installed mobility network investment One device – home and on the road Always On Broadband 2.4 Mbps peak downlink One bill, one account Secured Access Easy to install No truck roll Reliable Wireless Wide Area Network Profitable Up Sell

15. Nortel Networks Proprietary & Confidential PTT Application for CDMA 450 in Europe – PMR/PAMR is key requirement for CDMA 450 in Europe – PTT (Push To Talk) provides for PAMR like functionality One way broadcast of voice (Half-duplex) Packetized voice over wireless data network Supports person to person (i.e. 1 to 1 walkie-talkie) as well as person to group messaging (1 to many broadcast) Instantaneous connection Simple user interface (select called party via buddy list or short code, push a button and talk) Speak Release Push Respond Push Application Service Delivery Platform + CDMA Infrastructure += PTT Solution

16. Nortel Networks Proprietary & Confidential Enabling Applications via Solution Partners E-Mail Mobile Device Manager VPN’s Middleware Content Management Acceleration MMS Packet Streaming Video Telephony Push-to-Talk Brew

17. Nortel Networks Proprietary & Confidential Minimize Costs Future Proof Solution Future Proof Solution Vendor Experience & Viability Vendor Experience & Viability Operational Efficiency Operational Efficiency Deployment Flexibility Deployment Flexibility High Density Solutions High Density Solutions Operator Buying Criteria Maximize Revenues Compelling Services Offering Compelling Services Offering Easy Feature and Applications Deployments Easy Feature and Applications Deployments Leverage Investment for different business models Leverage Investment for different business models Quality: Network Performance & Reliability Quality: Network Performance & Reliability 450 MHz Terminals 450 MHz Terminals Network Performance & Terminal Availability

18. Nortel Networks Proprietary & Confidential Network Performance Performance Robustness Maintainability Coverage + Dependability + Acceptability = Adoption & Usage COVERAGE & CAPACITY % Pops Covered # Basestations BHCA DEPENDABLEOutagesAccessibility ACCEPTABLEPriceMobilitySimplicity Good Subscriber Experience Nortel Optimization

19. Nortel Networks Proprietary & Confidential Factors Impacting Network Quality Spectrum Clearance – Interference Must be Controlled – Use of Filters Increases Link Budget Losses and Affects Overall Performance Network Design – Must be Adequate to Provide Coverage/Capacity – Based on Customer Provided Call Model/Traffic Distribution/Services Offered – Provisioning is Key Element in Ensuring GOS is Maintained Optimization – Key Parameters Must be Optimized for Maximum Efficiency (data and Voice) Maintenance – Ensure All Network Resources are Available to all Subscribers – Latest Software Releases provide New Features/Capacity and Performance enhancements Growth – Carrier Additions and Site Sectorization Ensures Resources are Available to Subscribers

20. Nortel Networks Proprietary & Confidential Terminal Availability Required to purchase of large number of handsets Required long-term and exact forecasting of volumes of purchases Extensive testing to insure – Voice Quality – Data Applications – Local Market Customization How to attract wide range of terminals? How to avoid the need to purchase of large number of handsets ?

21. Nortel Networks Proprietary & Confidential Nortel’s 450 Terminal Alliance Program Terminal Interoperability Leadership Compatibility with commercially deployed terminals Nortel infrastructure + Multivendor Terminal portfolio solution Establish process for ongoing interoperability assurance Alliance with various terminal vendors Best solution pricing (incl. terminal pricing) Interoperability assurance program/process Bi-Annual Roadmap Planning meeting Establish ‘Turn Key’ solution Business alliance with key terminal vendors

22. Nortel Networks Proprietary & Confidential InvestmentProtection Why Nortel Networks CDMA? Why Nortel Networks CDMA? The Solution for all challenges presented previously! Expertise&Innovation Performance&Reliability