Introducing IMT-2000 in Asia/Pacific A Regulatory Perspective

1. Introducing IMT-2000 in Asia/PacificA Regulatory Perspective Maurice Nunas, Director Regional Government Relations 31 March 2000

2. 3G Enabled 1999 2000 2001 2002 2003 2004 2005 OTA Download Feasibility of High Quality Audio Interactive Games Telebanking, Financial Services, e-Commerce Voice, SMS, e-Mail, fax, low rate data Mobile video Database access, Information Services Quicker & higher quality versions of existing services Location Services Narrowband Multimedia / Internet Infotainment imaging (e-newspapers, etc) Fast Internet/Intranet access Real time video/tele-conferencing Low grade real time video / video telephony 2,000 384 384 192 115 58 9.6 28.8 W-CDMA in Japan IS-95 1X in Korea UMTS Throughout Asia: W-CDMA DS, cdma2000, ……. GSM EDGE GPRS GPRS GSM - HSCSD GSM Services and Technology

3. Regulatory Issues—Services • Seamless service, independent of location and network • Impacts: revenue sharing and ownership paradigms • High speed data services • Impacts: operators of older data-only services • Multimedia services • Impacts: mandates of current statutory bodies • New & innovative applications • Impacts: privacy regulation and access to information regulation • Telemetric • Impacts: operators of older data-only services • Increased choice of services • Impacts: service and rate regulations

4. Regulatory issues—Operators A Change of Paradigm— Who Does What • Network Operators. • Service Providers. • Value Added Service/Content Providers. Impacts: new operators vs. former monopolies & established operators used providing sole access and totally vertical solutions. Recommend: scope of licences within each category be broad and deep; no additional permission to add innovations.

5. Forward Compatible Backward Compatible 2G Operators Migrate to 3G 3G + HSCSD,GPRS, IS95-B + New Freqs & Modes 2.5G 2G Evolution, Not Revolution • Reduces risk • Builds on existing investment • Build on Air Interface Protocols (call delivery, handoff, etc.) • Build on Network Protocols (ANSI-41 and MAP) • Leverage the large industry of 2G equipment suppliers • shorter path to commercialize 3G product • start farther down the cost curve

6. CDMA 3G system that builds on ANSI-41 Build on the existing advantages of the IS-95 CDMA air interface UMTS 3G system that builds on GSM MAP New air interface compatible with GSM Air Interface • Support 3G standards that are good for both current and new operators • Allow operator selection Sure, there should have been one world-wide 3G system. . . . . .but there probably won’t be.

7. Average Data Peak Data Rate Technology Throughput cdma2000 1X Phase 1 153.6 kbps 150 kbps Today’s 1X 614.4 cdma2000 1X Rel. A kbps kbps 415 Release A Mot. Contrib. 1X PLUS (Phase 1) 1.38 Mbps 560 kbps cdma2000 3X MC 2.072 Mbps 1117 kbps WCDMA (5MHz) 2.048 Mbps 1126 kbps HDR 2.4 Mbps 621 kbps Mot. Contrib. 5.184 Mbps 1200 kbps 1X PLUS (Phase 2) 1Xtreme Data Rate Summary

8. 2G 9.6 Kbps 1X Cell Sites 3G 3G 38.4 Kbps 2.2X Cell Sites 384 Kbps 7.7X Sites 3G Coverage • Universal coverage is expensive so Islands of initial 3G deployment with gradual rollout beyond • High speed data uses greater bandwidth, so many more & smaller cells • Inexpensive dual mode phones required with hand down to 2G

9. PCS PCS Base Tx Base Rx Low Power Dev. UMTS UMTS Base Rx PHS Typical Asia UMTS UMTS GSM 1800 GSM 1800 UMTS M1 M1 DECT (MSS) (MSS) (tdd) Base Tx Base Rx Base Tx 1710 1755 1805 1850 1870 1878 1880 1895 1900 1920 1930 1950 1958 1970 1980 2010 2025 2110 2170 1700 1800 2000 2100 2200 Broadcast USA - PCS Unl PCS A D B E F C D B E F C Reserve Reserve A Auxilliary 1865 1870 1885 1890 1895 1910 1930 1945 1950 1965 1970 1975 1990 1850 2200 2110 2150 2160 Spectrum UMTS UMTS GSM 1800 GSM 1800 UMTS UMTS UMTS UMTS EC DECT (tdd) (MSS) (tdd) (fdd) (fdd) (MSS) Base Rx Base Tx tdd Base Rx Base Tx 1920 1710 1785 1805 1880 1980 2010 2025 2110 2170 1700 1800 1900 2000 2100 2200 Note: Necessary guard bands are not certain. Not shown on the chart.

10. 470-806 MHz 2290-2300 MHz 806-960 MHz 2300-2400 MHz 1429-1501 MHz 2520-2670 MHz* 1710-1885 MHz* 2700-2900 MHz Future Spectrum It’s not over! Possible candidate bands for the terrestrial component of IMT-2000 are: *Preferred global IMT-2000 expansion bands

11. Spectrum Per Operator • Minimum WCDMA is 5 + 5 MHz • New systems will be built like this • Practical minimum is 10 + 10 MHz • Extra channel needed for capacity in core areas • Up to 20 + 20 MHz has been suggested • More 3G spectrum is a poor substitute for no 2G spectrum

12. Some Predictions • Multi-band, multi-mode handsets • We really don’t want to do this, but we will do it! • Customer choice—customer in control • Exploit this or plan for churn! • Data…data…data • The applications are finally available

13. Major Recommendations • Technology neutrality • Systems with spectrum diversity • Minimal regulation—broad licences • Require inter-operator “co-opertition” • More spectrum • More IMT-2000 implementation • Additional spectrum (WRC-2000) • Re-farm or update 1G & 2G

14. Implementation Issues (1) • The optimum number of licensees is that which provides true competition. • Existing mobile operators need 3G licences to remain competitive. • New 3G-only operators will have to form alliances for 2G access, which may be difficult. • We cannot see any reason to hold any spectrum in reserve.

15. Implementation Issues (2) Auctions work best in a fully liberalized environment • New operators should have to meet some minimum requirements rather than just auction the spectrum to the highest bidder. • Licensing fees should be kept low. • What about US-PCS CDMA systems? • License as soon as practical. • Allow lots of time for rollout. • But, adopt a use-it-or-loose-it policy.

16. What’s Next? • Fixed / Mobile Convergence • Fixed / Mobile / Broadcasting Convergence • Intelligent Networks

17. Conclusion There is no “end game” in telecommunication—only evolution. I applaud the APT for having taken the initiative to organize this seminar. By working together, regulators, operators and manufacturers can ensure that Asians have access to the widest diversity of services.