Headquarters: San Diego, CA

cdma2000VOICE & DATA ENHANCED

As voice services become a commodity in todays wireless industry, operators need to differentiate their services in order to attract new subscribers and to reduce churn. There are two predominate approaches to differentiating services: offering packages with increased minutes of voice and offering packages which include data services. These two approaches are fueling the demand for increased minutes of use and the need for additional capacity. For years now, it has been stated that the large rush for data is imminent. This rush is finally beginning to occur. Previous limitations on data growth have been attributed to network capacity and a lack of enabling user devices and limited applications. As new data-capable devices have become smaller, more economical, and diverse in their form factors, the limitations to data growth are quickly disappearing. People are using the Internet for data services on wired lines and becoming more comfortable and familiar with data usage. Faster data speeds, capacity increases, and a family of new browser phones are opening the doors to allow wireless data to become an additional revenue stream for operators. Operators are changing their business models to accommodate new data services and bundle increased minutes of use with a new era of packaged services. There is a need for increased capacity and data capabilities to accommodate the increased demands on carriers networks.
CDMA has the solution to meet the growing and changing demands of the wireless industry. The cdma2000 evolution path offers benefits to both voice and data users with increased voice capacity and increased data speeds. For the operator, the cost of upgrades can be shared between voice and data, as there is value in having data capability within the system while doubling voice capacity at the same time. Data can be used as a value-added service in order to entice new subscribers, offer differentiated services to an existing subscriber base, and reduce churn. High Date Rate (HDR), also known as cdma2000 1xEV, can further differentiate data service offerings by providing data rates of up to 2.4 Mbps in a cost-effective way for fixed, portable, and mobile services.

w w w. q u a l c o m m . c o m

cdma2000 OVERVIEW

Nasdaq: QCOM

Founded: 1985

CDMA Roadmap
C D M A C C D M A D M A C D M A

cdma2000 3xMC
1x HDR ph2

WCDMA

cdma2000 1xMC cdma2000 1xEV (HDR) cdmaOne 95B cdmaOne 95A

cdmaOne 95A
14.4 kbps data AMPS overlay Voice quality Spectral efficiency/capacity

WCDMA
M A
cdma2000 1xMC
Up

C
cdmaOne 95B
Up to 115 kbps data

M
5

cdma2000 3xMC
MHz Channel & Data Up to 2 Mbps data
Voice

Approximately 70 million cdmaOne users worldwide

64 kbps deployed today Advanced soft handoff Access handoff Mobile-assisted interfrequency hard handoff Q4 '99 Korea and Japan deploy cdmaOne 95B systems

to 307 kbps data kbps in trials today Double voice capacity Double standby time 1.25 MHz standard channel
153

April 2000 Lucent and QUALCOMM complete first high-speed packet data cdma2000 1xMC call

WCDMA
5

cdma2000 1xEV (HDR)

2.4

MHz Channel & Data Up to 2 Mbps data

Voice

Mbps in trials today to support over 5 Mbps peak per sector Optimized for packet data 1.25 MHz standard channel
Expected

July 2000 IDO and Hitachi began a High Data Rate (HDR) technology field trial in Japan

The CDMA Roadmap In order for operators to offer a seamless range of services for various customer segments, a network with the ability to grow and expand to meet customer demands is required. The CDMA roadmap offers maximum flexibility in choosing spectrum and service allocations which best meet business needs. Approximately 70 million cdmaOne users worldwide experience the benefits of CDMA technology, including excellent voice quality, data services, spectral efficiency, and fewer dropped calls. cdmaOne users in some regions are experiencing packet data speeds up to 64 kbps today, and have peak capabilities of up to 115 kbps.
third-generation CDMA2000

>

cdma2000 1x Multi-Carrier (1xMC) Existing cdmaOne operators can upgrade their current systems to handle up to 307 kbps data services and twice their current voice capacity with 1xMC which will be commercially available in 2001. 1xMC can be deployed by adding channel cards to existing cdmaOne base stations and offers both forward and backward compatibility with cdmaOne. The cdma2000 handsets will be backward compatible with cdmaOne networks and cdmaOne handsets will be forward compatible with cdma2000 networks. Forward and backward compatibility reduces timetomarket for 3G deployments and allows operators the benefits of the CDMA evolution including internet access, increased data speeds, increased capacity, and a network based on the worlds only commercially deployed CDMA system. cdma2000 can also be overlayed on an existing GSM system to offer data capabilities today and protect existing network investments.

FORWARD AND BACKWARD COMPATIBILITY

95A 95B cdma2000 3x MC

1995

1999

2000

2001

2002

2003

Benefits of cdma2000 1xMC (1xMC): Utilizes Existing Spectrum cdma2000 offers thirdgeneration capabilities in todays standard 1.25 MHz channel and can also be used in new IMT-2000 spectrum. Capacity 1xMC Doubles existing voice capacity for existing cdmaOne voice networks. Compatibility Since cdma2000 is based on the cdmaOne family of chips, 1xMC systems will be forward and backward compatible with other cdmaOne networks. Todays phones will work on cdma2000 systems and cdma2000 phones will work on todays systems. Leveraged Investment For existing cdmaOne operators, the required network upgrade investment for 1xMC is limited to software changes and channel card upgrades but allows for a substantial increase in capacity and data benefits. cdma2000 handsets will require a new chipset. QUALCOMM is shipping a 1xMC chipset and system software which is pin-compatible with the MSM3000 chip and its software architecture. Handset manufacturers using the MSM3000 can introduce 3G handsets rapidly by reusing existing handset designs and software applications. Battery Life 1xMC effectively doubles the battery life of existing handsets, allowing for increased flexibility and increased subscriber usage. Increased Data Speeds Because data capability is embedded in cdmaOne chipsets and system software, there is no need for an external modem card in order to connect to the Internet when in digital mode. Network Independent 1xMC is able to work on both
ANSI-41 networks as well as GSM-MAP networks.

cdma2000 1xEV (HDR) QUALCOMM offers the industry a wireless data solution: High Data Rate (HDR), which has been standardized as cdma2000 1xEV. HDR is compatible with 1xMC networks, enabling existing cdmaOne operators to obtain higher capacities and superior performance by optimizing voice and data spectrum separately, serving both voice and data applications from the same network. HDR can overlay an existing wireless network or work as a stand-alone system. 1xEV offers a high speed, spectrally-efficient, costeffective wireless data solution that will change the way people access the Internet. Benefits of cdma2000 1xEV: Utilizes Existing Spectrum 1xEV offers a spectrally efficient 2.4 Mbps and third-generation capabilities in todays standard 1.25 MHz channel. Optimized for Data 1xEV meets third-generation requirements by offering 2.4 Mbps in a mobile, portable, and/or fixed environment. Cost Effective 1xEV offers wireless data services at the lowest cost per Mbps. Compatible 1xEV has identical RF characteristics same chip rate, link budget, and power requirements as cdmaOne and 1x MC. These identical characteristics enable seamless deployments at a reduced cost. Leveraged Investment 1xEV builds on experience of CDMA technology and IP networks. 1xEV systems can utilize the same RF components as cdmaOne and 1xMC systems, with changes to the digital portion.

Data applications, such as e-mail, accessing databases, large file transfers, and videoconferencing are bursting in nature. A packet data solution is ideal for these applications offering seamless connectivity with TCP/IP networks. With packet data, there is no need to tie up an entire channel end-to-end for one user. CDMA uses standard IP router configurations. There is no need to re-invent packet data elements in the backbone and operators are able to speed up their time tomarket with packet data services. With CDMA, it is not necessary to buy special packet-data phones, cdmaOne phones are IP packet data terminals today. Also, since CDMA utilizes standard Internet Protocols that the Internet uses, carriers can benefit from the economies of scale of the Internet and offer more cost-effective Internet services than other technologies.
QUALCOMM has received strong worldwide support from several manufacturers for its cdma2000 chipset and system software solution. QUALCOMMs cdma2000 and HDR chipset and system software solution will enable operators to increase their overall system capacity and to offer the 2.4 Mbps capabilities of HDR. Additionally, the company has announced development plans for its WCDMA chipset and system software. These solutions will enable manufacturers and operators worldwide to easily and effectively evolve their products and services based on local market requirements and deliver a new breed of feature-rich, voice and data-centric wireless devices, furthering the growth of the wireless industry.

GLOSSARY

>

>

>

>

>

Code Division Multiple Access (CDMA) A digital wireless technology that uses a spread spectrum technique which spreads a signal across wide-frequency bands. CDMA offers increased system capacity, increased t e c h n o l o g y f o r t o d a y, tomorrow and far into the future. voice quality, fewer dropped calls, and IP data services. CDMA is the technology of choice for third-generation systems. High Data Rate (HDR) Wireless Internet access technology that provides up to 2.4 Mbps in a standard bandwidth 1.25 MHz channel for

>

An integrated cdma2000 solution (1xMC and 1xEV) will provide enhanced capacity for voice users plus a cost-effective data offering of 2.4 Mbps, fully realizing the convergence of the Internet and wireless technologies. This integrated solution offers operators accelerated timetomarket for voice and data products with significant deployment cost savings. Integrated cdma2000 System Benefits: > Single handset > Same network plans > Same towers and antennae > Same RF components > Same back-office equipment > Same PPP and higher layers > Same IP back-bone > Handoffs to IS-95/1x modes

fixed, portable, and mobile applications. 1xEV (cdma2000 High Rate Packet Data Air Interface Specification) Accepted by standards
bodies representing Japan, China, Korea and the US. This is the standard for HDR technology.

Third Generation (3G) Advanced generation of systems which combines high-speed data

cdma2000 Family
SAME:

transmission with Internet Protocol (IP) based services in fixed, portable, and mobile environments. International Telecommunications Union (ITU)

1xMC

Handsets Network Plans Towers & Antennas IP Backbone

1xEV

Agency of the United Nations with the goal to establish standardized communications practices.
IMT-2000 The process undertaken by

T H I R D G E N E R AT I O N c d m a 2 0 0 0

the International Telecommunications Union designed to coordinate global third-generation wireless standards.

cdma2000 3x Multi-Carrier (3xMC) 3xMC allows operators to offer integrated voice and data services with speeds up to 2 Mbps and satisfies all IMT-2000 requirements for data speeds and capabilities. 3xMC is designed to operate in either new or existing spectrum. Benefits of 3xMC: > Leverages experience and data capability of cdmaOne the only commercial CDMA system widely available today > Offers integrated voice and data services in 5 MHz band > Simple solution for any operator, using any existing technology > Secure investment in proven technology Summary The flexible evolution of cdmaOne and cdma2000 offers operators a choice in system upgrades. With CDMA, operators can upgrade their system to meet market demands. Whether individual markets demand 3G capabilities or simply require increased capacity for voice minutes of use, CDMA has the solution for all business models. Users in markets with dense urban centers demand advanced feature sets for voice and data needs, and these users are ready for high-speed wireless Internet access. CDMA offers solutions for operators serving these areas that involve minimal investment in upgrades. CDMA also offers a cost-effective evolution for markets that have low bandwidth requirements today but may require advanced data services and increased voice capacity in the near future.

Operators Harmonization Group (OHG) A group of industry operators established to meet on harmonization issues. The first meeting of the OHG agreed on a modular approach for a single standard for 3G CDMA with three modes: Multi-Carrier (MC), Direct Spread (DS), and a Time Division Duplex (TDD).
cdma2000 1x Multi-Carrier (1xMC) A CDMA

mode in the International Telecommunications Union IMT-2000 family of standards which offers third-generation capabilities within a standard
1.25 MHz channel. cdma2000 doubles the voice

capacity of existing cdmaOne systems and offers data speeds up to 307 kbps.
cdma2000 3x Multi-Carrier (3xMC) A CDMA

mode in the International Telecommunications Union IMT-2000 family of standards which utilizes three standard 1.25 MHz channels within a
5 MHz band offering data speeds up to 2 Mbps. 3xMC leverages network plans, deployment

experiences, and manufacturers learning curves of todays only widely-adopted, commerciallyavailable CDMA system.
WCDMA/UMTS/Direct Spread A CDMA mode

in the International Telecommunications Union

IMT-2000 family of standards which utilizes one 5 MHz channel offering data speeds up to 2 Mbps.

Time Division Duplex (TDD) A CDMA mode in the International Telecommunications Union
IMT-2000

family

of

standards

in

which

transmission and reception of signals use the same RF band. This is achieved by alternating transmission periods with reception periods.

2000 QUALCOMM Incorporated. All rights reserved. www.qualcomm.com. 10/00 CCL0074-2