CDMA2000:

Insight into Ultra-Low Cost 3G Devices Live Webcast

CDMA Development Group

February 1, 2008
As an Industry We Have Come A Long Way

US$1,000 (Circa 1995)

<US$30 (Circa 2008)
Yet, we still have more opportunities ahead to expand global wireless penetration with Ultra-Low Cost 3G CDMA Handsets

www.cdg.org

Elements that Create an Ultra-Low Cost Handset
Global Standard Large Economies of Scale (Volume Production)
Common Handset Requirements (GHRC)
Direct to Carrier Distribution
Reduced Non-Recurring Engineering (NRE) Reduced Bill of Materials (BOM)
Aggregation of Handset Purchases
Streamlined Test & Certification (CCF)

3G For All

Economies of Scale
The growing 3G subscriber base is creating enormous economies of scale

Migration of Subscribers

3G 2G 1G
More than 275 operators in over 100 countries have deployed or are planning to deploy CDMA2000
CDMA2000: Wide Range of Affordable Devices
Competition and economies of scales are driving prices down

Sub-US$30

Sub-US$40

Sub-US$50

ZTE C 160

Kimpo C 701

Kimpo C 731

Jingpeng 101

Motorola W150i

Rose 631

Kimpo 761

Haier C1000

Haier Huawei Huawei Jingpeng Jingpeng Jingpeng Kyocera C132 D1000 C218 C2205 Spektra 101 C131 K112

Kimpo C 702

Kimpo C 732

Kimpo C 703

Motofone F3C

Haier D1600

Rose 632

LG RD2330

LG LG LG 2530 RD2670 3330
ZTE Motorola Nokia Samsung Samsung C150 CN500 N 380
BREW-enabled low-end phones BREWlow-

ZTE 202

ZTE 203

LG 2750

ZTE 204

Huawei C2285

TCL 401
LG LG LG LG RD2650 RD2690 RD2710 RD 3100

Kyocera KX 17

LG RD2340

LG RD2430

LG RD2530

LG RD2535

LG 3470

Huawei C2801

Huawei 361
LG Kimpo Huawei Kyocera C2286 KX 122 RD 3000 C762
Huawei Huawei C2201 2900i

Nokia 1325

Samsung Samsung UTStarcom S109 Champ 269 C1122
2 Notes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$50. 2. Only devices shipped in volumes above 10,000 units are shown.
59 entry-level CDMA2000 handsets from 14 suppliers
Legend: Color Screen Handsets www.cdg.org
India: Very-Low Cost CDMA2000 Handset Trend
Market is responding favorably to availability of low-cost CDMA2000 handsets
Sub-US$50 CDMA2000 Handsets

(Millions)

Monthly Shipment Volume and Average Wholesale Import Price

$32.34

$33 $32

$31.10

Shipment Volume
2.5 2.0 1.5 1.0 0.5 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct
$28.89 $29.10 $28.44 $29.47 $29.89 $29.31 $28.85 $28.65

$31 $30 $29 $28 $27 $26

Handset Volume
2 Source: Yankee Group, India VLE Handsets, January-October 2007

Avg. Wholesale Price

Price Elasticity of Very-Low Cost Handsets is High

Wholesale Price Trends

CDMA has reached price parity with GSM
2 Source: CDMA Development Group, May 2007
CDMA is Well-Positioned to Meet Future Market Requirements For Ultra-Low Cost Handsets
3G CDMA: Sub-US$50 Devices
Plenty of CDMA2000 devices will be available to deliver affordable 3G services
Sub-US$50 CDMA2000 Handset Shipments

2010 2011

Affordability will continue to expand the reach of 3G CDMA
2 Source: Shailendra Pandey, Research Analyst, Mobile Wireless, ABI Research, March 2007

CDG Device Industry Initiatives
CDMA Development Group May, 2008

Topics

Device Strategy Council Global Handset Requirements for CDMA (GHRC) Team Ongoing work New Open Market Handset (OMH) SIG Certification and Test moved to CDMA Certification Forum (CCF) Aggregation of device procurement

www.cdg.org

CDMA2000: The Largest Selection of 3G Devices
Over 1980 CDMA2000 devices have been introduced to the market
Entry-level Personal Voice-centric Messaging Handsets Mobile Phones Fixed Wireless Phones PDAs EV-DO Fixed Wireless Terminals
Interactive Multimedia CE Devices

EV-DO PC Cards

WorldModeTM Global Roaming Phones EV-DO USB modems

Television Phones

Watch TV on a large screen from your mobile phone using TV Out cables
EV-DO PCexpress Embedded Modules for PC Notebooks

* CDMA450

91 million people use 1xEV-DO broadband data services offered by 82 service providers worldwide
CDG Device Strategy Council (DSC)
DSC Coordinates CDMA Device Efforts
CDG Exec Board Infra Vendors (IOT Labs) Independent Test Labs

Operators

Device Strategy Council (DSC)
DSC provides leadership and strategic direction for the commercialization of CDMA devices www.cdg.org
Device Strategy Council Objectives
DSC is chaired by Verizon and Telus and priorities are CDMA carrier driven Support deployment of New Applications and Technologies
Provide Strategic Direction
Recognize Existing Industry Standards
Coordinate CDG Device Activities
Reduce Test & Acceptance Time
Align with Industry Best Practices
Accelerate Time-to-Market

Evolve Test Paradigm

Replicate Proven Formulas
Verizon hosted last DSC meeting on May 5 in Bridgewater, NJ
Device Strategy Council Priorities
Overall GHRC prioritization of technical requirements Test Process Convergence within CCF Kicking off CDGs Open Market Handset (OMH) initiative

Certification and Test

System Test Team (STT) effort transferred to an ad-hoc working group in CCF All former STT-generated reference documents transferred to CCF for maintenance Separation of CDGs GHRC requirements generation and CCFs certification is maintained
Global Handset Requirements for CDMA (GHRC)
GHRC Definition and Objective
Defines a common set of open standard specifications that will meet a shared set of carrier requirements and device functionality
So that a group of carriers can use them to source and deliver CDMA2000 devices faster and more economically than before.

GHRC Value Proposition

Common Requirements Fewer SKUs Reduced NRE Costs Streamlined Production Volume Aggregation Economies of Scale Faster Delivery Global Compatibility
With common well defined and prioritized requirements, device and application suppliers face fewer operator-specific variants for their device designs

GHRC Leadership

Steve Werden, Verizon Wireless, Co-chair Stephen Ospalak, Telus, Co-Chair Asif Hamidullah, Telus, Technical Co-Chair David Tokunaga, Nokia, Co-Chair Doug Martel, Qualcomm, Co-Chair Device Programs Admin: Mary Beth Saboe Sanyogita Shamsunder, Verizon Juan Ranuarez, Telus Matthew Tasooji, Nokia Aaron Konvisser, Nokia Somin Park, Nokia James Person, CDG Bill Dahnke, CDG* David Hind, CDG*

Sean Casey, Sprint Nextel Eric Fradette, Alltel Gaurav Lamba, Qualcomm Saravana Kannan, Qualcomm Patricia Feng, Gemalto Naidu Mullaguru, Qualcomm Walid Hamdy, Qualcomm
Supporting Open Device Initiatives, such as at Verizon Wireless

Step 1

Customer Identified Need Statement

Step 9

Launch and Promote Handset Availability

Step 2

Define Common Handset Requirements (GHRC)

Step 8

Distribute to Carrier

Step 3

Design and Build Prototype Handset

Step 7

Production of Handsets

Step 4

Test and Certify Handset in CCF Lab

Step 6 Step 5

Test and Certify Handset in the Field CCF Carrier Acceptance Friendly User Trials
Open Market Handset (OMH) SIG
Executive Board and DSC reviewed and authorized OMH kick-off in December What it is: a SIG of GHRC for R-UIM card-based open market distribution What it does: Solves packet data issue by locating all PD parameters on the R-UIM
Aggressive schedule and efforts since January Kick-off in Mumbai and Jakarta Proof of concept trials Most recent meeting in Mumbai on April 18 Operators, chipset, R-UIM and device vendors actively involved Working devices shown
Changes to an Open Market Handset Open Market Handset

HANDSET PROVISIONING

OMH R-UIM PROVISIONING
IMSI-M/T MIN/MDN MCC/MNC Full-featured R-UIM A-key supports a richer set UIM ID / ESN of value added PRL services SPN (service provider name)
Handset specific configuration
Model ESN/MEID Handset Customization OEM applications
Packet data configuration
NAI profiles PAP/CHAP Authentication Simple IP / Mobile IP MMS, WAP/Browser, BREW, JAVA

Operator ABC

Application configurations

LBS configuration

Aggregation: An Example

< 10 Months

GHRC specs statement

RFP to 10 OEMs

Decision taken Candidates Selection Individual Certification Process by carriers
Carriers Issue POs to vendor

Delivery

Generic customization Acceptance

W - 385

Competition and economies of scales are driving prices down
CDMA2000: Wide Range of Affordable Devices
Sub-US$50 Sub-US$40 Sub-US$30

Haier C1000

Haier Huawei Huawei Jingpeng Jingpeng Jingpeng Kyocera C132 D1000 C218 C2205 Spektra 101 C131 K112

Jingpeng 101

Motorola W150i

Rose 631

Kinpo 761

ZTE C 160

Kinpo C 701

Kinpo C 731

LG RD2330
LG LG LG 2530 RD2670 3330

ZTE Motorola Nokia Samsung Samsung C150 CN500 N 380

Motofone F3C

Haier D1600

Rose 632

Kinpo C 702

Kinpo C 732

Kinpo C 703
BREW-enabled low-end phones BREWlow-

Kyocera KX 17

LG RD2340

LG RD2430

LG RD2530

LG RD2535

LG 3470

Huawei C2285

TCL 401
LG LG LG LG RD2650 RD2690 RD2710 RD 3100

ZTE 202

ZTE 203

LG 2750

ZTE 204

Nokia 1325

Samsung Samsung UTStarcom S109 Champ 269 C1122
LG Kinpo Huawei Kyocera C2286 KX 122 RD 3000 C762
Huawei Huawei C2201 2900i

Huawei C2801

Huawei 361
2 Notes: 1. Mobile devices shown are sold in India at an ex-factory wholesale cost below US$50. 2. Only devices shipped in volumes above 10,000 units are shown.
59 entry-level CDMA2000 handsets from 13 suppliers
Legend: Color Screen Handsets
CDMA2000 WorldModeTM Devices
Global roaming enabled with CDMA2000 1X/GSM multi-mode/multi-band devices`

CDMA2000 1X GSM

Apple Vista CG239

Apple Vista CG288

Apple Vista AV-V2

HKC W1000

CECT C828

Daxian C8000

LGE W800

LGE W810

Hisense D806
H.K. Tone Land Technology 688 TV Phone
H.K. Tone Land H.K. Tone Land HK Teniu Intl Group TY0052 Technology Technology 860 6680

KBS Industrial K680

KBS Industrial KBS Industrial GC668 W5
KBS Industrial Motorola Y767 A840/A860
Qingdao Createk Qingdao Createk DICI CG100
Samsung SCH-A790/W109/ A795/IP-A790

Samsung SCH-i819

Samsung Samsung SCH-W219 SCH-W379

Samsung SCH-W399

Samsung SCH-W531

Samsung SCH-W569

Samsung SCH-W579

Samsung SCH-V920

Shenzhen KDI D58
T-Link T-Link SAM-W399 SAM-W109
TechFaith Gallic Ubiquam U-520 UTStarcom T66 Yulong Telecom Yulong Telecom Coolpad 238 Coolpad 269
Yulong Telecom Coolpad 728
Yulong Telecom Coolpad 728B
Yulong Telecom Coolpad 858T
Yulong Telecom Coolpad C288

Zaxid C303

Zaxid C208a

www.cdg.org H350

Global roaming enabled with CDMA2000 1X/EV-DO/GSM/GPRS multi-mode/multiband devices
CDMA2000 1X & EV-DO EVGSM GPRS
CDMA2000 1X/EV-DO/GSM/GPRS WorldMode Devices

Amoi V810 (EV-DO)

Amoi CMA8301 (EV-DO)

BlackBerry 8830 (EV-DO)

LGE KW-9200 (EV-DO)

Samsung SCH-i830 (EV-DO)

Amoi V8107 (EV-DO)

Motorola Z6c (EV-DO)

Samsung SCH-i325 (EV-DO)

Motorola Z6tv (EV-DO)

Motorola Z6cx (EV-DO)

Industry Support

GHRC has already achieved critical mass and broad industry support. If your company is not yet participating, you should. Next GHRC meeting in September, hosted by Telus.