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1
Contents 1. US PCS Update 2. US Cellular
Update 3. Survey 4. Country Development 5.
Standard Development 6. Other Development
Wireless Industry Newsletter November 1999
2
  • 1. US PCS Update
  • 1.1 Sprint PCSA Account Spending
    LimitNationwide Wireless Calling Plan with
    following benefits
  • Prepaid Services that allows customers to
    monitor their spending with all calling plans
    and features. Works like an American Express Card
    (expected to pay off the limit at the end of the
    month)
  • Receive the benefits of Sprint PCS Free Clear
    plan including long distance, regardless of a
    customer credit status
  • Customers will be assigned a monthly credit
    class with an attached dollar amount (125 or
    200) - Depending on assigned credit class,
    customers may be acquired to pay a 125
    deposit, which is refundable after 12 months with
    6 interest
  • After credit class assigned and deposit paid,
    customers will sign up for any Sprint PCS
    service plan or promotion and will be able to
    roam using dual- band Sprint PCS Phone
  • When a customer reaches 80 of the monthly
    spending limit, a text message is sent to the
    customers phone that reads, Spending Limit
    Alert. (Customer do not need to subscribe to
    Text messaging to receive this notification,
    nor is the customer charged for the message)
  • As long as customers pay down the balance, they
    can continue using airtime
  • Help the operator increase airtime, ARPU and
    reduce churn (big issues for traditional prepaid
    service)B MapQuest.comSprint PCS has selected
    MapQuest.com to provide driving directions to
    users of its Wireless Web service. The service
    will support both the NeoPoint smart phone and
    the Qualcomm pdQ device.C MCI WorldComMCI
    WorldCom sealed a 129 billion deal to acquire
    Sprint Corp. The new combined company will be
    called WorldCom and will control 32 of the U.S.
    Long Distance market D New MexicoLaunched its
    New Mexico market with voice service and
    Internet-ready phone service to follow in
    November.

Account Spending Limit
Web services from Map Quest
MCI WorldCom acquire Sprint
New PCS launch in New Mexico
3
1. US PCS Update 1.2 Leap Wireless A
PCSDeVro IncWill purchase the Dayton, Ohio PCS
license from PCSDeVro Inc. and will offer Limited
mobility CDMA service under the name Cricket. B
3Q99 numbers 3Q99 Net Add Total- Total
Subscribers 17,500 60,000 - Chile 42,000 -
U.S. (ChaseTel) 3,700 12,400 - Mexico
5,600 C NashvilleThe Cricket local service in
Nashville is underway and expected to launch
early 2000 D Cricket ServicesPlans to offer
Cricket services in following markets-
Albuquerque, New Mexico- Dayton, Ohio-
Greensboro, North Carolina- Little Rock,
Arkansas- Salt Lake City- Spokane, Washington-
Tucson, Arizona- Tulsa, Oklahoma- Wichita,
Kansas 1.3 OmnipointAcquiring East/West
Communications Inc. who holds five licenses
covering about 22.2 million pops in Los Angeles
Washington, D.C., Sarasota, FL Reno., Nev and
Santa Barbara, Calif.
Acquiring PCS license from PCSDeVro
3Q99 numbers
Cricket in Nashville
Future locations for Cricket services
Acquire East/West Communications
4
1. US PCS Update 1.4 PowertelA
International RoamingAdd International roaming,
available in 30 countries. Will offer Dual-band
phones (900/1900 MHz). B Two-numbers, One
PhoneAllows customers to use two numbers on one
wireless handset. Appear Local Two local
numbers in two different area codes. - This
will appeal to customers who want a local
presence in two markets - Great for families
with relatives, especially college students - in
another Powertel service area. The calling
party incurs no long distance charges and both
numbers draw from the customers primary rate
plan - The cost of Appear Local is 4/month Call
Tracker - Gives customers two numbers that will
be separated call-by-call on the customers
billing statement and is designed to allow a
customer to easily separate business calls from
personal calls through a distinctive ring or
separate display for each number - The cost
for Call Tracker is 6/month 1.5
VoiceStreamTo buy Aerial Communications Inc.
for 2.96 billion. VoiceStream will have about
1.5 million subscribers after completing the
acquisitions of Omnipoint and Aerial. Share
holders- TDS 14- Hutchinson 30- Sonera
8 1.6 BellSouth Mobility DCSWill begin WAP
trial in their GSM network in a partnership with
Saraide.com and InfoSpace.com. Services include
e-mail, news, weather, sports scores, traffic
reports, stock quotes and scheduling/calendar
management
International roaming available in 30 countries
Two numbers on one wireless handset
VoiceStream to acquire Aerial Comm.
WAP trial on BellSouth GSM network
5
  • 2. US Cellular Update
  • 2.1 ATT Wireless
  • A Family PlanDesigned to keep family members
    connected even when they are not together
  • With the ATT Family Plan the customers receive
  • 1. ATT Family Plan Residential Long Distance
  • With No monthly fees
  • With 7cents/min state-to-state ATT residential
    Long Distance calls
  • Receive ATT Calling Card with - 25cents/min
    for ATT Calling Card calls in the U.S. to Canada
    and Northern Mexico that the customer dial
    themselves using 1 800 CALL ATT
  • Receive an ATT Family 800 number - 25
    cents/min for ATT Family 800 number calls made
    in the U.S.
  • 2. ATT Personal Rewards Program
  • Earn points for those ATT charges that appear
    on the combined bill, such as Long Distance
    calls, Wireless calls or surfing the web.
  • The points can be used for ATT merchandise,
    hotel and airline discounts, certificates from
    popular retailers, U.S. Savings Bond, and more
  • The 19 annual fee is waived for the first year
    in the program and qualifying customers can have
    the fee waived in subsequent years.
  • 3. Wireless ATT Family Plan (All members must
    have Digital multi-network phones)
  • One ATT Family account consists of up to five
    family members with their own wireless numbers
  • Unlimited wireless-to-wireless calls for up to
    five family members on one account within the
    Family Plan Calling Area
  • Unlimited calls between wireless numbers on the
    account and the home number within the Family
    Plan Calling Area
  • Calling options - 60 minutes of non-family
    calling for 24.99/month, additional minutes 35
    cents/min - 400 minutes of non-family calling
    for 49.99/month, additional minutes 35
    cents/min - 600 minutes of non-family calling
    for 69.99/month, additional minutes 35
    cents/min - Roaming 69 cents/min - Long
    Distance 15 cents/min - No airtime charges for
    retrieving Voicemail messages within the Family
    Plan Calling area
  • At least one family member must choose either
    the 49.99 or 69.99 plan

6
  • 2. US Cellular Update
  • 2.1 ATT Wireless
  • B Group CallingATT Group Calling allows
    unlimited, local wireless calls within business
    groups of 5 to 50 co-workers while inside their
    Group Calling area - all at a flat monthly rate.
  • All members must have Digital multi-network
    phones or a PocketNet phone (CDPD)
  • Each ATT Workgroup Calling account can select
    up to five GROUP NUMBERS (wireless or landline
    numbers) in addition to those in the workgroup.
    Airtime will be waived when placing calls to any
    Group number from the Group Calling area while
    on the ATT network. Applicable Long Distance
    will apply.
  • Calling options Monthly Access 49.99 69.99
    89.99
  • - Group Calls Unlimited Unlimited Unlimited
  • - Home area Wireless 0 300 600 Airtime
    minutes
  • - Home Area 0.30/min 0.25/min 0.20/min
    Additional Wireless Airtime minutes
  • - Roaming 60 cents/min
  • - Long Distance 10 cents/min
  • C BTThe two companies will form an alliance
    of their cellular operations to target more
    lucrative business clients, by offering services
    geared toward international travelers such as
    global billing and by supporting the convergence
    of different mobile standards.
  • D American CellularATT and Dobson
    Communications Corp. agreed to buy cellular
    company American Cellular Corp. for 2.32
    billion (477/customer) through a joint venture,
    equally owned and Dobson will manage operations.
    American Cellular has about 398,000 customers in
    10 states and covers a population of 4.9 million.

ATT and BT alliance
Acquiring American Cellular Corp together with
Dobson Comm.
7
  • 2. US Cellular Update
  • 2.1 ATT Wireless
  • D The new National Prepaid Wireless Service
    offers
  • No credit checks
  • No deposits
  • No activation fee
  • No annual contracts
  • No monthly bill
  • Usage across the U.S. for calls to anywhere in
    North America and to some 200 countries around
    the world
  • NO additional charges for roaming or domestic
    long distance - International long distance
    rates vary depending on the destination
  • Domestic directory assistance calls are billed
    at 2 minutes per actual minute of airtime
  • Once a phone number is entered to place a call,
    a voice prompt will let the subscriber know the
    available talk-time based on the account balance
    and call destination.The National PrePaid
    Wireless Package priced at 129.00 comes with-
    Digital multi-network phone- Preloaded with 15
    minutes of airtime- 15 minute refill card -
    Mail-in coupon good for another 60 minutes of
    airtimeRefill cards are available with 30, 60,
    120 or 240 domestic airtime minutes- The Prepaid
    account is valid for six months- The phone will
    remind the subscriber when they have less than 10
    minute of talktime left- Refill cards can be
    purchased at ATT Authorized National PrePaid
    wireless dealers or via toll free 800 number
    with a major creditcard, 24 hours a day, 7 days a
    week.- Cards with more minutes offer a lower
    per-minute effective rate for airtime - 240
    minute refill card charges 0.42/min on all
    domestic calls (incl. L.D. and roaming

8
2. US Cellular Update 2.2 Price
Communications Corp. 2Q 1999 Company Update-
POPs 3 million- Subs. 417,630 (2Q99 net
19,088)- ARPU 48.88- Sub. Minutes 235
minutes/month- Oper. Cash Flow 33.5 million-
Retail stores 40- Brand Cellular One- Service
Area Rural areas in Georgia, Alabama, Florida and
South Carolina- Standard TDMA 2.3 Western
WirelessAgreed to buy three service-area
licenses for 195 million that covers parts of
Texas, Arkansas and Utah. The three markets
served 27,000 subscribers. 2.4
VodafoneAirTouchCalling Party Pays (CPP)Will
implement CCP in Colorado in October 1999. Today
VodafoneAirTouch has CCP available in nine
states, but only 5 of its customer base has
signed on to use the service. Part of the problem
with CCP implementation is getting customers
comfortable with the change in billing. Callers
have to be told somehow what they will be paying
extra to reach a cellular phone. In some trials,
a caller hears a recording before the call goes
through. In others, the mobile number simply
appears on a bill as a long distance call. 2.5
SBCFCC approved the deal between SBC and
Ameritech with the understanding that the
combined companies would meet unprecedented
conditions. Some of them calls for the combined
companies to step up their competitive pace by
entering 30 new metropolitan markets outside
their 13-state home region in 30 months instead
of 36 months. In related events, SBC sold the
Ameritech license in Chicago to GTE Corp., as a
condition of the acquisition. SBC says GTE has
the right to use the Ameritech name for up to one
year. For its own properties, and the new ones,
added through buying Ameritech, SBC will continue
using the Cellular One brand name in Illinois
Price Comm. 2Q99 update
Western Wireless to acquire three cellular
licenses
Implementation of CCP in Colorado
The deal between SBC and Ameritech received FCC
approval
9
2. US Cellular Update 2.6 Bell Atlantic and
VodafoneAirTouchThe two companies agreed to a
merger of their Mobile business in a deal that
will give Bell Atlantic 55 and VodafonAirtouch
45 stake in a new company, unnamed at this
time. The new company will serve 20 million
subscribers, which compares to ATTs 11.5
million, Sprint PCS 4 million and Nextels 3.6
million. Some market overlaps will have to be
resolved, notably in California and Texas (GTE
and AirTouch). The companies will combine assets
from Bell Atlantic Mobile, AirTouch Cellular, GTE
Corp., PrimeCo and AirTouch Paging, which will
cover 90 of the U.S. population in 49 of the top
50 markets. The new company will have 26 of the
national market. The new company will be managed
by Bell Atlantic and the board will have seven
members, with four designated by Bell Atlantic
and three by VodafoneAirTouch. Bell Atlantic
Seidenberg and Vodafone Gent will be board
members and once the Bell Atlantic/GTE merger
closes, GTE Lee will also become one of the seven
board members 2.7 AlltelOffering free
unlimited incoming calls for its Jacksonville,
Fla., PCS customers, adding four new wireless
plans that range from 46/month for 400 minutes,
to 150/month for 2,000 minutes. Incoming calls
do not apply toward the rate plans packaged
minutes, but customers may incur roaming and toll
charges on incoming calls received outside their
local Jacksonville calling area.
Merger of the mobile business of Bell Atlantic
and VodafoneAirTouch
Free unlimited incoming calls
10
  • 2. US Cellular Update
  • 2.8 BAMA Online PaymentOffering online bill
    payment through the companys Web site. Customers
    have two options in paying their bills.
  • Customers can choose to
  • View their monthly bill statements via the
    Internet and still receive a paper copy of the
    bill
  • Pay online and be notified by e-mail each month
    when their new bill is available to view.B
    New Group Wireless Calling PlanUnveiled a new
    wireless calling plan that lets as many as four
    family members or co-workers share minutes and
    get a single bill. The plan to be called
    Share-A-Minute, will be available in selected
    markets beginning Nov. 3 and all East Coast
    markets by Nov.9. The new calling plan is BAM
    response to ATT Family Plan and Sprint PCS Clear
    Wireless Workplace plan.
  • Share-A-Minute will offer two users
  • 200 local minutes a month for 49.99
  • 500 local minutes a month for 79.99
  • 800 local minutes a month for 99.99
  • The plan also offer each user 200 minutes a
    month for calls to the other users cell phone
    (mobile-to-mobile)
  • Third and fourth users can be added for 15 each
    per month and each additional user get each 200
    minutes to call the other customers in the
    group
  • Customers can also send e-mail messages to each
    others phones for an additional fee

Online Payment through the companys web site
New family plan from BAM
11
  • 2. US Cellular Update
  • 2.9 BellSouthA new restructuring plan will
    organize the company into five separate groups
  • Customer Markets Group Responsible for all
    sales, marketing and customer care activities
    across domestic retail and carrier customer
    markets for voice, data, Internet and Video
    services
  • Wireless Business Group - PresidentMark
    Feidler Responsible for all domestic wireless
    customer operations, including wireless data
    and cellular properties outside of BellSouths
    traditional operating region.
  • Network Service Group Will handle development
    and operations of BellSouths networks,
    advanced data technologies, Internet-based
    services and companys field operations
  • BellSouth International International
    operations, including wireless business outside
    the United States, will be included in this
    group.
  • Advertising and Publishing Group Responsible
    for the companys domestic and international
    electronic and printed directory
    advertisingAll the groups will remain under a
    corporate umbrella and report directly to Duane
    Ackerman, Chairman and CEO and will be effective
    January 1, 2000.
  • 3. Survey
  • No data this issue

New BellSouth organization
12
4. Worldwide Country Developments 4.1
Europe 4.1.1 UK A Prepaid- Cellular carriers
nearly doubling the price for prepaid packages-
Cellular carriers pulled the plug on high
commissions paid to their prepaid handsets
distributors starting September 1, 1999- Asda,
U.K. supermarket giant, protesting the price hike
and commission issue and taken the issue to the
British Government - Before price hike, Asda
sold 4,000 prepaid handsets/day at 79 each-
Credit card fraud seem to be increasing in UK,
with both BT Cellnet and Orange been hit with
subscribers using someone elses credit card
number to buy airtime. To top up units, the
phone owner can key in a credit card number and
expiry date. Some operators accept direct debit
to users bank account, and in some cases, direct
debit was set up on a customers bank account
without his authorization. B BTInternet
DataExpects new wireless network products that
let users connect devices to the Internet or
other online services will generate sales of more
than 35 million pounds in the first year. BT is
betting that that more than 5 million U.K.
consumers and 10 million small businesses will
start using so-called home networks in the next
five years. Internet ShopBT Cellnet launching a
new Internet phone shop through Martin Dawes, the
mobile phone services provider bought by BT
Cellnet in March 1999, called phonefactory.com.
The customers will e able to window shop and if
they want, buy phones and accessories online,
with free next-day delivery. Customers will be
able to receive their bills via Internet. C
VodafoneAirTouch Plc. 3Q99 Results 3Q99 Total
Net Add-Worldwide 2,600,000 31,400,000 -
Europe, Middle East, Africa 1,400,000 - UK
701,000 6,900,000 - USA/Asia
Pacific 1,000,000 - USA 186,000
Prepaid in UK
BT and Internet
VodafoneAirTouch 3Q99 results
13
4. Worldwide Country Developments 4.1
Europe 4.1.1 UK D Orange D1 HSCSDWill
launch a new service using HSCSD technology in
October 1999, that will boost current data speeds
from 9.6 kbps to 28.8 kbps. Using compression
techniques, orange says it can achieve rates of
up to 57.6 kbps. Sometime next year, Orange will
introduce a new Videophone. D2 Orange 3Q99
Results 3Q99 TotalNet Add 520,000 3,482,000
- Postpaid 267,000 (51) 2,256,000 (65) -
Everyday 50 125,000- Prepaid 253,000
(49) 1,226,000 (35) D3 Worldwide
ExpansionExpect to do business in 50 countries
by 2003 by renting surplus transmission capacity
from network owners. Today, Orange operate in 9
countries and will expand its operation by
winning new licenses and by licensing its brand
name abroad, as it currently does in
Israel. Orange is starting Internet service and
adding other data services, including
videoconferencing, weather, travel, sports and
news information. In the next few years, Orange
will start selling airtime to banks and other
industries at night, enabling them to transfer
data without wires more cheaply than over
traditional copper or fiber-optic wires. D4 3G
(Colin Tucker)Based on comments from board
member Colin Tucker at Telecom 99, 3G is not
likely to arrive as quickly as many people
expect. People talk about 2002 (as start date).
Colin Tucker best guess is more likely 2004 and
he see a step between where they are now and
3G. Orange plans in the first half of 2000 to
launch a videophone with web browser, organizer
and other applications to make it a complete
business tool. The new phone will using existing
technology with planned enhancements.
Orange to offer high speed data
Orange 3Q99 results
Orange future worldwide expansion
14
  • 4. Worldwide Country Developments
  • 4.1 Europe
  • 4.1.1 UK (cont.)
  • D Orange (cont.)
  • D5 Mannesmann TakeoverMannesmann to buy Orange
    for 21 billion pounds (34.7 billion).D6
    Prepaid update
  • Orange will cut call prices for some of its
    prepaid packages by more than 50 to encourage
    higher mobile usage and grab market share from
    rivals.
  • Will also scrap expiration dates for
    pay-as-you-go call voucher
  • Will introduce a text messaging service for
    prepaid users
  • In the first six month of 1999, Oranges prepaid
    revenue per subscriber fell to 186 pounds
    (308) from 231 pounds, while average revenue per
    contract customer was 485 pounds
  • Expect to boost its share of the prepaid market
    to more than 20 by YE99, from about 11 in
    3Q99
  • Prepaid packages account for about 40 of the
    U.K. mobile market. As many as 5.3 million
    prepaid phones have been bought in the U.K. this
    year, with a further 3.5 million expected to be
    sold in the Christmas selling season
  • 4.1.2 Romania
  • MobiFonTIWs MobiFon surpassed 500,000
    subscribers after 28 months of commercial
    operations.
  • 4.1.3 Austria
  • MobilkomMobile phone subscribers can pay for
    their train ticket via the mobile phone. The
    train operator will send an SMS message to the
    phone and the subscribers show the message to the
    train conductor. The price of the train ticket
    will show up on the customer mobile bill from
    Mobikom.

Mannesmann to acquire Orange
Orange prepaid update
MobiFon surpasses 500,000 subscribers
Buying train tickets via mobile phone
15
4. Worldwide Country Developments 4.1
Europe 4.1.4 Sweden Telia-Telenor MergerThe
above gets EU ok after agreeing to sell assets to
preserve competition in Nordic phone and cable TV
markets (shed their cable business, boost rivals
access to their local phone networks and reduce
their share of the Irish mobile phone
market). The merger will create Europes sixth
largest telecoms group. 4.1.5 Hungary Westel
450 and Westel 900The Deutsche Telekom will
acquire 49 each of Westel 450 and Westel 900
from MediaOne Group. 4.1.6 France Cegetel (2nd
biggest phone company)Will cut charges for
calls from fixed line to mobile phones using its
SFR service by 20 to comply with a French
regulatory request. SFR will progressively raise
the fee to handle calls from abroad to 1.38
French francs a minute on July 1, 2000 from 20
centimes a minute today SFR will also offer its
Business clients a sliding scale of tariffs,
based on volume, for calls from fixed phones to
its mobile service users. 4.1.7
Poland PolkomtelVodafoneAirTouch increasing its
stake to 24.75 in Polkomtel by buying Stalexport
SA 5.5 stake for 145 million, making
VodafoneAirTouch the operators largest single
shareholder. Other shareholders are- KGHM
Polska Miedz SA 19.5- Polski Komcern Naftowy
SA 19.5- Tele Danmark 19.5 Polska Telefonia
Cyfrowa SADeutsche Telekom will acquire 22.5
from MediaOne Group, doubling its stake in
Eastern Europes biggest cellular service provider
The final merger of Telenor and Telia
DT to acquire 49 of Westel 450 and Westel 900
Price cut in calls from fixed line to mobile
VodafoneAirTouch to increase its stake in
Polkomtel
DT to acquire another 22.5 in Polska Telefonia
16
4. Worldwide Country Developments 4.1
Europe 4.1.8 Finland A Sonera HSCSDOffering
the worlds fastest GSM data service using HSCSD
(High Speed Circuit Switch Data), supporting up
to 38.4 kbps using 4 timeslots each supporting
9.6 kbps. Later in the year the speed will be
increased to 43.2 kbps. PortalAnnounced it
plans to enter the wireless portal business with
initially focus on Western Europe and the United
States, competing head to head with U.S. firms
such as Phone.com. Called Sonera Zed, the service
will allow mobile users to personalize the SMS
service and WAP information they receive on
mobile handsets. The company initially targeting
corporate users, allowing Sonera Zed to be the
gateway to a companys corporate intranet and
allow Sonera to become a services company, vs.
only an operator, within the next five to six
years. ByeDeskSonera bought the business
activities of ByeDesk, a mobile remote access
product that extends e-mail, corporate contact
list and Internet information to the mobile
environment. ByeDesk will be integrated into the
above portal business. SmarTrustSonera
announced a digital signature solution for secure
wireless e-commerce using WAP enabled phones.
B TeliaHas agreed to use Radiolinjas
cellular network and Telia will suspend all its
previous complaints against Radiolinja
Offering High Speed data (up to 38.4 kbps)
Sonera will enter the wireless portal business
Sonera bought the business activities of ByeDesk
Announced Digital signature solution
Telia to use Radiolinja network for roaming
17
4. Worldwide Country Developments 4.1
Europe 4.1.9 Italy A Win5To provide free
internet access to Yahoo!. The two companies will
also work together to develop additional services
focusing on Internet access through mobile
phones. Internet subscribers in Italy-1998
640,000-1999 1,550,000 (YE)-2000 3,000,000
(Forecast) B TIMTIM will start paying
customers for calls they receive using their
mobile phone. User on the AutoRicaricable prepaid
pricing plan will be credit 72 lira (3.9 U.S.
cents) per minute for all calls they receive on
their mobiles in Italy. Users do not get a
refund, instead they enjoy a discount on outgoing
calls. Once a user has received 100 minutes of
incoming calls, clocking up a 7,200 lira credit,
they receive a 72 lira per minute discount on
outgoing call charges for the next 100 minutes.
This reduces call charges from 300 lira per
minute to 228 lira (24 discount). TIM is trying
to increase the mobile-to-mobile calls within the
network, because they make more money of these
calls (dont have to share revenue with other
service providers)
Free Internet access to Yahoo!
TIM will start paying customers for calls they
receive using their mobile phone
18
4. Worldwide Country Developments 4.1.10
Germany A E-PlusReached 3 million subscribers
at the end of August, 1999. This compares to
Mannesmann AG 7.3 million and Deutsche Telekom
7.1 million subscribers. Share HoldersVeba
AG 30.00 Up for SaleRWE 30.25VodafoneAirTou
ch 17.24 Up for SaleBellSouth 22.50 B
France TelecomWill buy VodafoneAirTouch 17.24
stake in E-Plus 1.7 billion euros C
SiemensBought a 15 stake in U.S.-based
NeoPoint, maker of CDMA based WAP phones D
Deutsche TelekomAnnounced it will sell its
stake in Sprint after the news MCI has concluded
a deal to buy Sprint E Mannesmann D2Just
passed 8 million subscribers end of September,
beginning of October and soon will be launching
Germanys first GPRS network F Viag
InterkomThe BT-backed fixed-wireless venture
has managed to attract just 500,000 customers
E-Plus reached 3 million subscribers
France Telecom to acquire 17.24 in E-Plus
Siemens to acquire 1 15 stake in NeoPoint
DT to sell its stake in Sprint
Mannesmann 8 million subscribers and will soon
launch GPRS service
Viag Interkom just passed 500,000 subscribers
19
4. Worldwide Country Developments 4.1
Europe 4.1.11 Russia A VimpelcomTelenor and
Vimpelcom in talks of further investment of 300
million, to be used in regional projects, from
Telenor, who already bough a 25 stake in
Vimpelcom in May 1999. Vimpelcom has about a 38
share of the Moscow mobile phone market and
approx. 173,000 subscribers as of August
1999. B Leap WirelessCeased support of two
Russian operations (Transworld, 21 and
Metrosvyaz 35) in which it holds non controlling
minority interest. C Russian
Telecommunications Development Corp.Deutsche
Telekom will acquire a controlling stake in
Russian Telecommunications Corp, which has
holdings in nine regional wireless companies,
from MediaOne Group.
Telenor to invest more in Vimpelkom
Leap Wireless ceased service in Russia
DT to acquire controlling stake in Russian
Telecommunications Corp.
20
4. Worldwide Country Developments 4.2 Unites
States 4.2.1 Frontier Corp.Accept 10.5
billion takeover offer from Global
Crossing 4.2.2 FCCRaised the ownership
limited to 55 MHz in rural areas, from 45
MHz. 4.2.3 ATTThe new global venture with BT
will be called Concert, the same name now used by
a wholly owned BT unit. 4.2.4 MCI WorldComMCI
WorldCom sealed a 129 billion deal to acquire
Sprint Corp. The new combined company will be
called WorldCom (Sprint PCS will be called
WorldCom PCS) and will control 32 of the U.S.
Long Distance market 4.2.5 InternetThe
Internet has evolved rapidly from its genesis as
a provider of static information to todays
offerings of transactional capabilities. Today,
30 of Americans have a mobile phone. What will
it mean when more than 70 have one within the
next few years? (as in Finland today). Today, 65
of American Teenagers are online, and they expect
everything online Only 3 of the world population
has logged onto the Internet today. What will it
mean when that number grows to 25 within a few
years?
Frontier accepted Global Crossing takeover
FCC raise spectrum limited to 55 MHz for rural
areas
ATT/BT global venture will be named Concert
MCIWorldCom acquisition of Sprint
Internet background data
21
  • 4. Worldwide Country Developments
  • 4.2 Unites States
  • 4.2.6 Palm VIIThe PDA launched in October for
    500 offer out-of-the-box wireless connectivity
    to Internet via BellSouth Wireless Data L.P.s
    Mobitex packet data network. By extending the
    antenna, the PDA automatically logs onto the
    Mobitex network. From there, users may send or
    receive e-mail, access various personal
    information management applications, conduct
    e-commerce transactions or obtain other Internet
    based information. Following online content
    providers have agreed to make their information
    available to the Palm VII, using a technology
    called Web clipping, which allows users to access
    specific information from pre-determined Internet
    sites featuring language coded specially for
    transmission to the Palm VII.
  • - ABCNEWS.com- ESPN.com- ETrade- Fodors-
    MapQuest- MasterCard- Movirfon- Ticket
    Master- UPS- USA Today- The Wall Street
    Journal Interactive Edition- The Weather
    Channel- Fidelity Investment's InstanBroker
    online trading service- Amazon.com with online
    retail service- Women.com (health, fitness, home
    and garden and horoscopes)- K2 Technologies
    (Insurance risk trader)- OAG Worldwide (travel
    service)- Bank of America (California wireless
    banking service)- Rovenet.com (Faxing)
  • Users pay airtime charges based on the amount of
    information they download then connected to the
    Mobilix network. Palm introduced three service
    plan levels.
  • The Basic Plan 10/month for 80 transactions
    or 50 kilobytes
  • The Expanded Plan 25/month for 240 transactions
    or 150 kilobytes
  • The Volume Plan 40/month for 480 transactions
    or 300 kilobytes

Palm VII online content providers
22
4. Worldwide Country Developments 4.3
Canada4.3.1 MicrocellWill begin offering
carry over minutes for its 40/400 minutes and
100/1000 minutes plans. Customers can bank up to
the total number of minutes included in their
monthly plan. Microcell said it will upgrade all
of its customers at no cost. 4.3.2 Wireless Data
in CanadaYankee Group forecast that data will
make up 25 of all Canadian wireless calls by
2003, up sixfold from its current 4.. A Rogers
CantelOffering Research in Motion (RIM) pagers,
a pager crossed with a laptop. Using Rogers
Mobitex packet data network, these keyboard
equipped RIM pagers can send and receive e-mails
and faxes up to five pages long. Theyre even
able to send voice messages as well, by phoning
text into a Cantel AYT computer. It then phones
the desired location, and delivers a
voice-synthesized message. The RIM service is old
under the brand name BlackBerry and is
available across North America for a monthly, 35
flat rate. B MicroCellLaunched FidoPro and
FidoData. FidoPro delivers e-mail to Fido branded
PCS handsets, while FidoData delivers two-way
connectivity to laptops and PDAs. C Bell
MobilityLaunched in May 1999 its Digital DATA
to Go service in Canada. It allows laptop and
PDA users to connect to the Internet using their
PCS Phones and a connector cable, at a cost of
just 10 cents/min. In addition it has also
launched PCS Mobile Browser, letting customers
receive and send e-mail, plus access real-time
stock quotes, news headlines and 411-style
directory services. The service is based on
Phone.coms HDML D Clearnet PCSIntroduced
phones that allows subscribers to connect laptops
and PDAs to the Internet.
Microcell to offer carry-over minutes
Wireless Data in Canada
FidoPro and FidoData
Digital DATA to Go
Connecting laptops and PDAs to the Internet
23
4. Worldwide Country Developments 4.3
Canada4.3.3 Prepaid in CanadaA Rogers
CantelPay As You GoUsing an orangutan
advertising as their spokesperson for their
prepaid offering Pay As You Go. Starter
Package - 150 and includes - Nokia 918 phone
with battery and charger - 120 minute of bonus
airtime valid for 60 days from date of
activation Calling Rates- 42 cents/min for
calls throughout Canada- 75 cents/min for calls
to the U.S.- and low rates to 10 international
countries Calling CircleNo charge for calls
received from other Pay As You Go
phones Prefill Cards- 25 for 60 additional
minutes, including any long distance charges
across Canada Since the introduction of prepaid
in May 1998, the company has signed up 200,000
prepaid customers and prepaid counts for about
25 to 33 of Rogers Cantel business B
MicroCellIn 2Q99, 70 of new subscribers signed
up for Fidomatic prepaid service. The average
cost per min for Fidomatic is around 23
cents/min, compared to 7 cents/min for their
lowest post-paid tariff. C Bell
MobilityClaims 525,000 prepaid subscribers in
Ontario and Quebec. One reason for the success
of prepaid in Canada is that they are better
promoted than subscription plans and are more
accessible.
Fidomatic
Bell Mobility prepaid numbers
Why is prepaid a success in Canada ?
24
4. Worldwide Country Developments 4.3
Canada4.3.4 Rogers CantelWill be selling
Wireless Office systems and solutions to
corporate customers. The service will include
wireless office dialing, one number/one
voice-mail call delivery, office zone pricing and
enhanced in-building coverage. The subscribers
will have one wireless handset that operates as
an extension of the office PBX or Centrex service
and automatically connects to the macro network
when taken outside the office.
Digital Wireless Office systems and solutions
25
4. Worldwide Country Developments 4.4 Latin
America4.4.1 MexicoA Pegaso PCSBegin
commercial service in Guadalajara and Monterrey,
which follows Tijuana earlier in the year. B
UnefonDelaying start-up from January 2000 to
some tine in the second quarter. Unefon will pay
its its suppliers, advertising agency and
distributors on a percentage of sales, instead of
paying major start-up costs. 4.4.2 BrazilA
Price Increase (October 1999)Brazils National
Telecommunications Agency (Anatel) authorized the
countrys mobile phone providers to increase
rates by as much as 9.9 effectively immediately.
The increases will vary from as much as 7.6 up
to 9.9 in different regions of
Brazil. Examples- Telefonica 7.6 in Rio de
Janeiro and Espirito Santo States- Americel SA
9.9 (Federal districts)- CRT 9.9
(Southernmost regions)- Telesp 12.0 (approval
to boost charges to 12 in September) B
CRTTelefonica will be allowed to retain
ownership of its wireless telephone business in
the Brazilian state of Rio Grande do Sul.
Telefonica plans to segregate CRTs wireless
business from its traditional phone business and
hopes to sell the fixed-line business to Portugal
telecom SA. Telefonica owns 45 of CRT, together
with its Brazilian partner, Rede Brazil Sul. CRT
has about 1.3 million subscribers and serves 23
cities in the Southern State of Rio Grande do
Sul. 4.4.3 JamaicaPhone ServiceCable
Wireless Jamaicas monopoly on phone service will
be phased out in 2002 instead of 2013, as granted
in a 25-year exclusive license in 1988. 18 Months
before the exclusivity period ends, the
government will grant two new licenses for cell
phone service to the Islands 2.6 million
residents.
Pegaso PCS update
Unefon delay of service
Mobile prices to increase in Brazil
CRT update
Jamaica phone service update
26
4. Worldwide Country Developments 4.4 Latin
America4.4.4 Puerto RicoMovistarTelefonica
is now offering its Movistar CDMA service in
Puerto Rico. 4.4.5 Argentina A August 1999
subscriber numbers 8/99 Market Share Total
Argentina 3,221,604 - Telecom personal 1,044,536
32.4 - Telefonica Unifon 785,039 24.4 -
Movicom-BellSouth 1,107,994 31.6 - CTI (GTE)
374,036 11.6 Source Argentinas National
Communications Commission B Argentina in
General- Fixed Line penetration 22- Expect
one digital rate across Argentina with no
roaming charges- Prepaid expected to account for
a high of net additions in Year 2000- Average
income in Buenos Aires is 25,000 4.4.6
ChileChilesat PCSLeap Wireless acquire 100
of Chilesat PCS and is now starting over,
re-launching Chilesat PCS service with a renewed
marketing focus. 4.4.7 GuatemalaPCS
MoviStarTelefonica launched PCS MoviStar
digital wireless service in Guatemala City
metropolitan area. The operator plans to extend
its mobile services by year end to other
Guatemalan cities, including Antigua, the
Atlantic port city of Puerto Barrios and the
Pacific port city of Puerto Quetzal
New CDMA service in Puerto Rico
Argentina mobile update
Argentina in general
Chilesat PCS to start over with renewed marketing
focus
New Digital service in Guatemala
27
4. Worldwide Country Developments 4.5
Japan 4.5.1 Nissan sell Out. A IMT-2000
Planning Corp.Japan Telecom will buy Nissans
8.5 stake in IMT-2000 Planning Corp. (a joint
venture to develop a next generation cellular
phone) increasing its stake to 54. Other share
holders in IMT-2000 Planning Corp are BT (20)
and AirTouch International (26). B Digital
Tu-Ka- Japan Telecom will buy Nissan holdings in
six of nine Digital Tu-Ka companies- DDI will
buy the remaining three Digital Tu-Ka
companies 4.5.2 Japan Telecom.A DataAims to
raise revenue from its data transmission services
to 40 of its total revenues in five years, up
from 12 at present. B Consolidate Operations of
nine cellular phone unitsOn October 1, 1999
Japan Telecom will consolidate operations of nine
cellular units - the six Digital Tu-Ka units and
three Digital Phone companies - under the J-Phone
brand name. The nine companies now have a total
of 7.32 million subscribers with a 15.8 market
share (total market 46.3 million end of September
1999 and NTT DoCoMo has 26.3 million users).
Total penetration rate in Japan is 36.5. Japan
Telecom will improve the Sky Walker service to
compete with NTT DoCoMos popular I-mode service
(1.47 million subscribers since Feb. 1999), which
allows users to reserve plane tickets and make
bank transfers from their mobile phone. Sky
Walker needs to increase the number of content
providers and must be able to transfer larger
volumes of information to compete with the i-mode
service. 4.5.3 VodafoneAirTouchBought the
entire equity stake owned by Cable Wireless Plc
in nine regional cellular companies, called
J-Phone, in which Japan Telecom has majority
control. The company now owns about 20 in each
of the nine companies after Japan Telecom sold
some of its own stake to AirTouch in six of the
nine companies.
IMT-2000 update
Digital Tu-Ka update
Data forecast
Japan Telecom consolidations of its wireless
cellular phone units
VodafoneAirTouch Japan update
28
4. Worldwide Country Developments 4.5
Japan 4.5.4 DDI.Is considering a merger with
cellular carriers IDO, a unit of Toyota Motor,
cementing its position as the nations
second-biggest telecoms company. 4.5.5
Bandai.Japans largest toymaker, will next year
begin distributing its Internet game software to
users of a new I-mode cellular phone being
developed jointly by NTT DoCoMo and Sun
Microsystems. Currently, Bandai provides services
for the i-mode, a service which allows users to
check stock prices and conduct banking
transactions. 4.5.6 NTT DoCoMo.Plans to start
delivering music to its mobile phone subscribers
by summer 2000 with field trial to begin in April
2000. The first network to get access to music
will be PHS.
DDI update
Internet game software on I-mode cellular phones
Delivering of music to mobile PHS handsets
29
4. Worldwide Country Developments 4.6 Asia
Pacific Rim 4.6.1 Australia A Subscriber
dataAustralia reached 6.5 million subscribers
at the end of June 1999. (approx. 33 penetration
rate) B TelstraLaunched commercial cdmaOne
service in Sydney and Melbourne, with plans to
to launch in Adelaide, Brisbane, Perth and
Canberra in October 1999. 4.6.2 China Market
update2Q99 Total Subscribers 30 million-
China Telecom 28 million- Unicom 1.8
million China Telecoms listed arm, China Telecom
(Hong Kong) or CTHK is preparing to buy assets
from its parent in three more of Chinas
provinces (Hainan in the South, Fujian on the
east coast and Henan, a poor inland province)
adding about 8.8 million subscribers at a cost
around 5.5 billion. If the deal goes through,
CTHK will run mobile phone operations in six
Provinces and have a subscriber base in excess of
18 million (50 of total market). 4.6.3
Singapore SingTel Deutsche TelekomIn talks
to jointly operate their Asian wireless
businesses. The two companies hold minority
stakes in businesses in Indonesia, Thailand and
Philippines. 4.6.4 Thailand Digital
PhoneTelekom Malaysia International increased
its stake in Digital Phones to 46 from 33.33.
Australia market update
Telstra launched commercial cdmaOne service
China market update
DT in talk with SingTel
Telekom Malaysia to increase its stake in Digital
Phone
30
4. Worldwide Country Developments 4.6 Asia
Pacific Rim 4.6.5 Philippines Globe
TelecomSMSHandles 17 million messages/day on
its SMS service. The service is so popular among
kids, that the government has banned the use of
mobile phones in schools, because they fear it
will be used to cheat on exams.
SMS success in Philippines
31
  • 4. Worldwide Country Developments
  • 4.7 Africa
  • 4.7.1 South Africa
  • Prepaid
  • A VodacomHas introduced the lowest prepaid
    charges anywhere in the world on its Vodago
    service and has about 1.2 million prepaid
    subscribers
  • B MTN70-80 of its customer base is prepaid
  • C In general
  • Only 30 of citizens have a bank account
  • Street vendors sell prepaid cards to motorist at
    traffic lights

Vodacom Prepaid update
MTN prepaid customer base
South Africa in general
32
  • 5. Standard developments5.1 GSM
  • 5.1.1 WAPMotorola demonstrated its first GSM
    1900 WAP handset equipped with Phone.coms
    microbrowser
  • 5.1.2 SIM ToolkitTwenty-four (24) operators in
    15 countries have deployed advanced GSM service
    such as mobile banking based on the SIM Toolkit
    protocol. Over the next year, this will grow to
    60 of all 350 GSM operators worldwide, according
    to executives at Schlumberger, France.
  • 5.1.3 RoamingDuring August, more than 400
    million roaming calls were handled by GSM network
    operators (390 GSM mobile carriers in 141
    countries).
  • 5.1.4 GSM Worldwide Forecast
  • 1/11/99 215.0 million - Asia-Pacific 53.5
    million (fastest growing market) - Africa
    5.0 million (75 increase over 1998) - Prepay
    66.0 million (79 of all the worlds prepay
    subs.)
  • YE99 250 million (forecast)
  • YE2003 600 million (forecast)
  • YE2005 700 million to 1 billion (forecast)

33
5. Standard developments5.2 cdmaOne 5.2.1
BrazilLucent to expand Telesps Sao Paulo CDMA
system with 3 switches and 100 cell sites 5.2.2
JapanDDI launched IS95B, the initial cdmaOne
upgrade that offers downlink speeds up to 64
Kbps., this compares to NTT DoCoMo i-mode mobile
data package, which offers speeds up to only 28.8
kbps. NTT DoCoMo had 524,000 i-mode subscribers
by end of June and forecasts 3 million users by
March 2000. 5.2.3 New ZealandTelecom Corp. is
building a new cdmaOne network with service to
begin in 2001 with existing cellular customers
switched over as they choose. Telecom is 25
owned by Bell Atlantic. 5.2.4 AustraliaAAPT
selects Samsung to build a CDMA network under a
205 million turnkey contract. The focus of the
CDMA network will be to target the migration from
fixed networks to local wireless access and to
develop a range of Value Added Services,
including data and Internet packages. 5.2.5
CDMA GrowthCDG states that cdmaOne subscribers
increased 171 from June 1998 to June 1999,
reaching nearly 35 million global subscribers.
Asia continues to drive cdmaOne Subscriber growth
with a 138 increase, bringing the regions total
to more than 20 million users. Growth in North
America increased 205 by adding 7 million
subscribers 5.2.6 CDMA RoamingCDG announced
expanded automatic roaming throughout Asia.
Hutchison Telecom in Hong Kong, DDI Corp and IDO
in Japan and Shinsegi Telecomm in South Korea
have signed agreements to provide comprehensive
automatic roaming service for subscribers in Hong
Kong, Japan and South Korea.
34
5. Standard developments5.3 NMT450NMT450
operators can choose to deploy GSM or CDMA
technology in their migration to digital
technology. Carriers that already operate 900
and 1800 MHz GSM networks may choose to leverage
their investment in GSM technology and deploy the
same technology in their 450 MHz band. Other a re
taking a serious look at IS95 either for market
differentiation or capacity reason. Hungarys
Westel radio Telephone Ltd. And Romanian operator
TeleMobil have indicated their interest in
deploying CDMA technology. Some NMT450 operators
never received permission from their
telecommunications ministries to migrate to
digital technology and will have to convince the
regulatory bodies to allow them to offer digital
service.
35
  • 6. Other developments6.1 WAPPhones.com14
    GSM carriers are now using phones equipped with
    UP.browser.
  • 6.2 HSCSDSonera ready with HSCSD network but
    waiting for handsets. HSCSD will allow data
    transmission up to 38.4 kbps, using multiple
    time-slots of 9.6 kbps. Phones will be available
    end of 1999, that improves that can handle
    transmission speed up to 43.2 kbps.
  • 6.3 Wireless PortalsPortals have graduated
    from being simply a window to the Internet, to
    providing a whole suite of value-added services
    such as e-mail, push content and e-commerce
    services.
  • The portals, not the carriers, are currently
    driving wireless data. A new better name for
    these portals could be Commerce Service
    Providers or CSPs.
  • Some issues for the wireless carriers are
  • Carriers risk becoming wholesale commodity
    providers. Carriers customers begin to see the
    CSPs as their source of new data service
  • Portal alliances, such as Nextel and MSN, even
    prevent the carrier from investigating the
    usage patterns of its customers, such information
    being proprietary to the CSP.
  • The carriers can end up being a low margin,
    unbranded wholesale commodity byte provider, a
    world of Yahoo! Everywhere, carrier nowhere.
    A good example is in wireline, with AOLs use of
    wholesale minutes and its offering of wire-free
    domain through Palm.nets hidden use of
    BellSouth Mobile Datas network.
  • Wireless carriers need to think less towers and
    technology and more products and channel. With
    increased focus on value-added product design,
    branding, marketing and sales and services.
  • The carriers need to to develop their own
    portals to host applications and aggregate - but
    rarely originate - content

WAP update
HSCSD update
Wireless Portals update
36
  • 6. Other developments6.4 The importance of
    listening to the customer
  • The man who has done all of this work has a sense
    of ownership of it. We are not here to take away
    that ownership. Our job today is to listen to him
    and learn what he believes his needs are -
    nothing more.
  • He may genuinely need what we have got to offer.
    But if he doesnt come to see that for himself,
    we wont be able to give it to him.
  • If we dont listen to him first, well never be
    able to share what we have.
  • 6.5 Short Messaging
  • SMS is taken off, because of the growing
    popularity of Internet in Asia and Europe. With
    new smart phones (WAP), text messaging will get
    even more popular, special among teenagers.
  • The latest thing in Europe is SMS push services -
    broadcasting a single message to multiple
    subscribers using using a closed user group list.
  • Currently SMS users are charged by message, there
    access to Internet is in many cases a flat fee
    with no telephone charges (U.S.), compared to
    Europes point-to-point, time dependent model.
  • In the future, GPRS can turn mobile devices into
    another node in the local network, and wireless
    applications will turn the smartphone into a
    remote-access device.
  • 6.6 The future is mobile
  • Mobile phones are expected to outnumber
    traditional phones within the next 10 years.
  • A U.N. report says there are nearly 400 million
    mobile phones in use globally, with another
    250,000 new users being added every day
  • In Finland mobile phones accounted for 51 of
    all telephone lines last year, and 20 of
    households no longer have a fixed line
  • In Rwanda, cellular phones account for 58 of
    the market, and in Cambodia the number is 72.
  • Prepaid services are helping to speed the
    cellular revolution

Why listening is so important
SMS on a global perspective
Mobile vs fixed line
37
  • 6. Other developments6.7 The phone of the
    future
  • The wireless phone of the future will let the
    subscriber
  • Forward all e-mail to the phone
  • Instruct the car stereo to play mobile calls
  • Authorize a gas pump to charge credit card for
    fillup
  • Get a coke from a vending machine by dialing a
    special number and the cost added to the phone
    bill
  • Use GPS in the phone to identify traffic jams
    and recommend alternatives
  • Use toll plaza express lane and charge the cost
    to the bill
  • Open the garage door then pulling into the
    driveway
  • Turn of burglar alarm
  • Start a CD player before entering the house
  • Check electronic households, like refrigerator,
    dish washer, furnace, tank for heating oil and
    the system will order more oil via e-mail if
    getting under 20 gallons.The above can happen
    because of a new technology standard called
    Bluetooth, named after the 10th-century Danish
    King Harald. The first Bluetooth product will hit
    the market in year 2000 and Philips predict hat
    by year 2002, more than 600 million
    Bluetooth-capable devices could be communication
    with each other around the world. Bluetooth
    devices communicate with each other through
    low-power, 2.4 Ghz radio signals that might reach
    just 100 feet., but could penetrate briefcases
    and house walls.

The phone of the future
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