The GSM Family of Services The Evolution to 3G

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The GSM Family of ServicesThe Evolution to 3G

• Joe Barrett
• Director, Market Development
• Nokia Networks

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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

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GSM is still providing the majority of growth
Source EMC Database
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GSM is growing by a different order of magnitude
Source EMC Database
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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

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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 12th
• The Korean operators are ranked 42nd, 47th 49th
  and will deploy WCDMA
• Roaming accounts for 7 of Western European
  Operators revenue
• In Korea roaming accounts for only 0.5 of revenue

Source EMC Database
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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

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Service Quality for Packet Switched
BearersTypical initial data rates and services
Mobile Data Evolution
Voice
Conversational
Video telephony
FAX
Collaborative working
Video streaming
Streaming
Conversational
Audio streaming
Gaming
Corporate Data Access
E-mail
Interactive
Conversational
WEB Browsing
WAP Applications
Multimedia Messaging
Background
Audio clip downl.
Conversational
Short Messaging
Video clip downl.
Data rate
0 8 16 48 128 473 2048
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WCDMA launches
Source EMC Database
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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