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EDGE Update March 2003

Mike Bamburak VP, Technology Strategy & Architecture

Contents
GSM vs. TDMA EDGE vs. GPRS GSM Platform Revenues EDGE Test Progress

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GSM Coverage
GSM same frequency overlay on TDMA No coverage issues because GSM has a 2 dB link budget advantage over TDMA GSM 1900 overlay on TDMA 850 1900 suffers a 10 dB propagation penalty over 850 Coverage issues addressed by:
o o o o o 2 dB GSM link budget advantage 3 dB higher gain / same size antennas 3-5 dB coverage enhancement techniques (tower top amps, air combining, etc.) Selectively add new cells, or Selectively install GSM 850 base stations and use GSM 850/1900 terminals

Limited area GSM roll-out GAIT terminals and Mobile Gateway

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GSM Capacity

3G Americas White Paper July 18, 2002 Voice Capacity Enhancements for GSM Evolution to UMTS Figures 6 & 7: Comparison of analog, TDMA, GSM, 1xRTT and UMTS (in 10 MHz)

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GSM Infrastructure Cost


TDMA Capex per Incr. MOU Baseline

GSM Capex per Incr. MOU

Lower $s Immediate 18% Benefit

Cost Improvement
x x

Based on same volume of minutes Efficiency continues to improve with technology advancement

Significant capital cost improvement between technologies to manufacture MOUs


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GSM Terminal Costs


GSM 850/1900 vs. TDMA 850/1900
15-20% less cost! GSM terminals also include additional functionality:
o GPRS, polyphonic ring tones, Java, etc.

GSM 850/1900 vs. GSM 1900


Same Cost! AWS vendors have migrated to a dual or tri-band strategy
o The original $10 - $20 cost difference has been eliminated

GSM 850/1900 terminal availability AWS was already selling 3 models by the end of 2002

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AWS GSM/GPRS Deployment


Albuquerque Allentow n Atlanta Aus tin B akers field B altimore B os ton C harlotte C hic ago C leveland/Akron C olumbus D allas /F t. W orth D enver D etroit E l P as o F res no F t. Myers G rand R apids G reens boro/W ins ton-S alem H arris burg H artford H onolulu H ous ton Indianapolis J ac ks onville K ans as C ity L as V egas L os Angeles

Sites Installed 14,900+

Markets Launched 67

Launched On Budget

Rogers AT&T Wireless Top Markets: Montreal, Toronto, Vancouver, Edmonton, Calgary

GSM/GPRS market launch ahead of schedule and on budget


* Roam Only

*B uffalo *R oc hes ter *S aginaw *S an J uan, P R

T uc s o n T uls a W .P alm B eac h W as hingto n D C W ic hita W o rc hes ter

Manc hes ter/C onc ord Miami/F t. L auderdale Minneapolis /S t. P aul N ew H aven/W aterbury, C T N ew York O klahoma C ity O maha O rlando P hiladelphia P hoenix P itts burgh P ortland P rovidenc e R aleigh/D urham S ac ramento S alt L ake C ity S an Antonio S an D iego S F O /Oakland/S an J os e S c ranton S eattle/T ac oma S hreveport S pokane S pringfield, MA S pringfield, MO S t. L ouis S toc kton T ampa/S t. P eters burg T oledo

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A T& T W i re l e ss I nt e rn a t i o n a lR o a m i ng M ap

GSM International Roaming Revenue


Launched Carriers/Countries Argentina-Telecom Personal 1900 GSM Austria-Connect Austria 1800 GSM *Austria-T Mobile 900/1800 GSM/GPRS Austria-Telering 1800 GSM Australia -Telstra 900/1800 GSM Australia-Optus 900 GSM Belarus-MDC 900 GSM Belgium-BASE 1800 GSM Bermuda-Telecommunications Ltd.1900 GSM Bolivia-Movil de Entel 1900 GSM Brazil-OI 1800 GSM Brazil-TIM Brasil Sao Paulo 1800 GSM Brazil-TIM Brasil Rio Norte 1800 GSM Brazil-TIM Brasil Centro Sul1800 GSM Cambodia-Cam GSM 900 GSM *Canada-Rogers 1900 GSM/GPRS *China-Mobile 900 GSM/GPRS Chile-Entel PCS (TIM) 1900 GSM Croatian-Telecom 900 GSM Czech Republic-EurotelPraha 900/1800 GSM Denmark-Orange 900/1800 GSM *Denmark-Sonofon 900/1800 GSM/GPRS *Denmark-Telia 900/1800 GSM/GPRS Dominican Republic-Orange 1900 GSM Egypt-MobiNil 900 GSM Egypt-Vodafone 900 GSM Estonia-EMT 900/1800 GSM Faroe Island-Faroese Telecom 900 GSM *Finland-Sonera 1800 GSM/GPRS *Finland-Telia 1800 GSM/GPRS France-Bouygues 1800 GSM France-Orange 900/1800 GSM Georgia-Magticom 900/1800 GSM Germany-D2 Vodafone 900/1800 GSM *Germany-E-Plus 1800 GSM *Germany-O2 GmbH-1800 GSM/GPRS Greece-Cosmote Mobiletel 1800 GSM Greece-Telestat (STET) 900 GSM Greece-Vodafone (Panfon) 900/1800 GSM Guadeloupe-France Caraibe 900 GSM Guernsey-Guernsey Telecoms 900 GSM *Hong Kong-CSL 900/1800 GSM/GPRS G S M V oi ce C ount ri e s Q 1 '0 3 *Hong Kong-Hutchison 900/1800 GSM/GPRS Hong Kong-SmartTone 900/1800 GSM G SM / G P R S D at a C ount ri es Q 1 0 3Hong Kong-Sunday 1800 GSM Pakistan-Mobilink 900 GSM Hungary-Pannon GSM 900/1800 GSM Paraguay-Hola 1900 GSM Hungary-Vodafone 900 GSM Peru-TIM 1900 GSM Iceland-Islandssimi 900/1800 GSM *Puerto Rico 1900 GPRS India-BPL Cellular Kerala 900 GSM Philippines-Smart 900 GSM India-BPL Cellular Maharashtra 900 GSM Poland-ERA 900/1800 GSM India-BPL Cellular Tamil Nadu 900 GSM Poland-Polkomtel 900/1800 GSM India-IDEA Andhra Pradesh 900 GSM Portugal-TMN 900/1800 GSM India-IDEA Gujarat 900 GSM Qatar-Qatar Telcom 900/1800 GSM India-IDEA Maharashtra 900 GSM Romania-Mobifon 900 GSM India-IDEA New Delhi 900 GSM Russia-Ermak RMS 900/1800 GSM India-Sterling Cellular Ltd.900 GSM Russia-KB Impuls (Moscow) 900/1800 GSM Indonesia-Indosat 900/1800 GSM Russia-NCC 900 GSM Indonesia-Telkomsel 900/1800 GSM *Ireland-Digifone (mmO2) 900/1800 GSM/GPRS Russia-North West 900/1800 GSM Russia-Primtelefon 1800 GSM Ireland-Meteor 900/1800 GSM Russia-Uratel 900 GSM Isle of Mann-Manx Telecom 900/1800 GSM San Marino-TIM 900/1800 GSM Israel-Cellcom 1800 GSM Siberia-SCS 900 GSM Israel-Orange Partner 900 GSM Singapore-MobileOne 900/1800 GSM Italy-TIM 900/1800 GSM *Singapore-Star Hub 900/1800 GSM/GPRS Italy-Vodafone 900/1800 GSM Slovakia Rep.-Eurotel Bratislava 900/1800 GSM Italy-WIND 900/1800 GSM Slovenia-Mobitel 900 GSM Ivory Coast-Loteny Telecom 900 GSM Slovenia-Western Wireless (Vega) 1800 GSM Jamaica-Digicel 900 GSM South Africa-MTN 900 GSM Jersey-Jersey Telecom 900/1800 GSM Spain-Airtel (Vodafone) 900/1800 GSM Jordan-Mobilecom 900 GSM Spain-Telefonica 900/1800 GSM Kazakhstan-KCell 900 GSM Sri Lanka-MTN 900 GSM Kenya-Kencell 900 GSM *Sweden-Telia 900/1800 GSM/GPRS Kenya-SafriCom 900/1800 GSM Switzerland-SwissCom 900/1800 GSM Kuwait-Wataniya Telecom 900/1800 GSM Tanzania-Celtel 900/1800 GSM Latvia-LMT 900/1800 GSM Taiwan-Chunghwa Telecom 900/1800 GSM Liechtenstein-SwissCom 900/1800 GSM Taiwan-Far East Tone 900/1800 GSM Lithuania-Bite 900/1800 GSM Thailand-AIS 900 GSM Lithuania-Omnitel 900/1800 GSM Thailand-DTAC 1800 GSM Luxembourg-Tango 900/1800 GSM Turkey-Aria 1800 GSM Malaysia-Maxis 900 GSM Turkey-Turkcell 900 GSM Malta-Vodafone 900 GSM Ukraine-UMC 900/1800 GSM Martinique-France Caraibe 900 GSM *United Kingdom-O2 Limited 900/1800 GSM/ Mauritius-Cellplus 900 GSM GPRS Monaco-Orange 900/1800 GSM United Kingdom-Orange 1800 GSM Morocco-IAM (Maroc Telecom) 900 GSM US-Choice Wireless 1900 GSM (them on us) Morocco-Meditel (Meditelecom) 900 GSM *US-Cingular/California 1900 GSM/GPRS Netherlands-DutchTone 900/1800 GSM *US-Cingular/Carolinas 1900 GSM/GPRS *Netherlands-KPN 900/1800 GSMGPRS US-Triton PCS 1900 GSM *Netherlands-O2 1800 GSM/GPRS Vatican City-WIND 900/1800 GSM Netherlands-Vodafone 900/1800 GSM Venezuela-Digitel 900 GSM New Zealand-Vodafone 900 GSM Vietnam-Vinafone 900 GSM *Norway-Netcom 900 GSM/GPRS *Virgin Islands 1900 GPRS *Norway-Telenor 900/1800 GSM/GPRS

GSM voice Countries Q103

International GSM roaming in 80 countries (200 agreements, 128 carriers in service)

GSM/GPRS Countries Q103

GPRS roaming in 15 countries; 18 carriers

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EDGE vs. GPRS


Internet GPRS
MS

GPRS Protocol

SGSN GGSN GGSN

EDGE BTS radio

PCU

EDGE

MS

EDGE Protocol

No changes

note: EDGE also uses existing GSM/GPRS spectrum and frequency plan
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EDGE Coverage
EDGE protocols, i.e. Link Adaptation and Incremental Redundancy, and vendor proprietary techniques increase data coverage area
S /T s p kb

10

3 dB

10

kb ps /T S

GPRS

EDGE application coverage comparison in a typical urban C/I limited system

~ 3dB

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EDGE Data Rates ~ 3 times GPRS

Data rate (kbps)


MCS9 MCS8

EGPRS MCS

GPRS CS

MCS7 MCS6 MCS5 CS4 MCS2

CS1

CS2

CS3

Distance to BTS GSM Cell Radius

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EDGE Capacity ~ 3 times GPRS


Standard GSM/GPRS Transceiver
voice voice voice voice voice data data data

voice

voice

voice

voice

voice

Free TS

Free TS

data

EDGE Transceiver

Freed up capacity!
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EDGE Infrastructure Cost


AWS GSM/GPRS Capex $15/pop

AWS EDGE Upgrade Capex

$1-2/pop

EDGE Incremental Capex

~10%

AWS GSM capital specific to EDGE is marginal

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EDGE Terminal Costs


EDGE Terminal Impact Linear Power Amplifier for 8-PSK Modulation Greater Signal Processing
o More complex 8-PSK equalization/demodulation o New Protocols, e.g. Incremental Redundancy, etc. o Higher data rates

A Leading Terminal Vendor estimates that EDGE adds ~10% to terminal engine (diminishing with time) and < 10% to terminal product cost (engine cost does not include color display, camera, etc.

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Enterprise Data
Integrated Solutions
Early Data Solutions Advanced Wireless Data

Voice
Global Capabilities Electronic Care, Provisioning, Reporting

Digital One Rate Integrated Corp. Contracts

1997

1998

1999 2000

2001 2002 2003 2004

Network

TDMA CDPD

GSM GPRS

EDGE

UMTS

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At the Forefront of the Enterprise Market


A dedicated business solutions team to orchestrate the Enterprise value chain Software

Orchestrate Distribution Integration

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Broad Range of Enterprise Devices


Enhanced Data Phones Integrated PDAs

Expanding Device Capabilities


! ! ! ! !

Integrated voice / data devices Java, Bluetooth, EDGE, WiFi Multiple browser support SMS client support on all devices E2E security

Specialty Devices

Notebook, Tablet PC

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Leader in Consumer Data


Connecting subscribers to the people and information they care about most

Messaging SMS IM Email

mMode Connect Manage Entertain

Location based services MMS - Multimedia Messaging

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mMode Performance - December 2002 Snapshot

All of GSM subs data enabled

mMode ARPU over $8.00 Additional 25% used data

Over one-third of GSM subscribers bought mMode

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EDGE Concept and Performance


! EDGE adapts the radio modulation to the radio conditions
! Higher speeds under good conditions, slower under adverse

! As a result, EDGE is the most spectrally efficient technology below 100Kbps


4 00

S pec tral E ffic ienc y (K bps /MH z/s ec tor)

60 T hro ughput per TS L [k b/s ] 50 40

Typ icalur b an m acro cell C/ I dis tribution 1 5% 3 5% 3 5% 1 5% 7 5% 2 5%


EG P RS d ata b o os t

WC DM A (10 M Hz)

3 50

c dm a 20 00 1 X (10 M Hz) E G P R S (10 M Hz w B C C H)

EDGE

3 00
E G P R S (1.25 M Hz w/o B C C H)

2 50 2 00 1 50 1 00 50 0

7 5% 30

2 5%

7 5% 20 10 0 0 10 20 C /I [dB ] 30

2 5%

GPRS CS 1-4 GPRS CS 1-2

32

64

96

1 28

1 60

1 92

2 24

2 56

A v erage T hroughput (K bps )

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Field Configuration
" " " " EDGE Infrastructure: Nortel Core, Ericsson RAN EDGE Terminals: Nokia, Motorola BSC: 2 BTS: 12 Total - 850/1900 MHz

Nortel SGSN GPRS 4.0 Software

Ericsson BSC BYB 501:212-30, IOG-20c R9.1 Software Gb Abis

Ericsson BTS 2206 - 1900MHz BTS 9.1B Software

OSS

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Throughput Simulation with IR


Constant coding scheme, Tu3 no FH @ 900MHz 60
MCS9 MCS8

50
MCS7

40

Throughput [kbit/s]

30

MCS6

20

MCS5 MCS4 MCS3

10
MCS1

MCS2

IR unlimited memory no IR 0 0 5 10 15 20 C/I [dB] 25 30 35 40

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EDGE Throughput AWS Lab and Field

LAB MCS9 MCS8 MCS7 MSC6 MCS5 MCS4 MCS3 MCS2 112.0 kbps 100.0 kbps 82.0 kbps 52.24 kbps 39.52 kbps 31.6 kbps 25.3 kbps 20.4 kbps

FIELD 114.2 kbps 105.0 kbps 86.5 kbps 57.2 kbps 43.0 kbps
Average throughput (DL) - 2 Timeslots - Avg RSSI =~50dBm File Size = 500kB No link Quality Control (i.e. no LA or IR) Channel Throughput (On ABIS) via Nethawk

Updated 1/31/03
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LA/IR Throughput AWS Lab


Application: FTP Downloads, Avg File Size: 500k Ericsson RAN with Nokia 6200U Mobile 2 Time Slots / Maximum MCS = 8 / TU3 and TU50 Fading / No Hopping Application Throughput as connected to the OSS server
100 90 T h ro u g h p u t (kb p 80 70 60 50 40 30 20 10 0 5 7 9 11
LA + IR , T U 50

13

15

17

19

21 C /I (d B )

23

25

LA + IR , N O f a d ing

LA + IR , T U 3

Updated 2/6/03
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LA/IR Throughput Field Trial


Application: FTP Download / 500Kb files Test Cluster: On a given sector face: 3 test Points chosen. High: At site: ~25dB Med: mile from site ~15dB Low: 1 mile away ~10dB

100 90 80 70 60 50 40 30 20 10 0 L M C/ Ii n HM L St eps H

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T h ro u g h p u t ( k

Committed to EDGE Deployment

Currentlydeploying deployingall allnew new Currently siteswith withEDGE EDGEtechnology technology sites

79%of ofour ourmarkets marketsfully fullyequipped equipped 79% withEDGE EDGEradios radiosby bythe the with endof of2002, 2002,excluding excludingTelecorp. Telecorp. end

EDGE targeted to be fully deployed by mid-2003


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Key Take Aways


GSM platform is lowest cost service platform GSM 850 is here GSM platform enables international roaming and associated revenue stream GPRS enables packet data and associated revenue stream EDGE provides higher performance and lower costs EDGE on track on all fronts from testing through deployment

welcome to
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mlife.