3G World Congress

Next generation technology and services

Charles LevinePresident, Sprint PCS

3G World Congress

3G overview

• Technology– Comparison of digital platforms– Evaluation of cost and timing

• Marketability– 3G appeal to the customer– How to make 3G profitable

3G World Congress

3G technology

Who will get there first, and how much will it cost?

3G World Congress

Why 3G?

• Speed– 14.4 kbps up to 3-5 Mbps

• Efficiency– Increased voice and data capacity

• Integration– IP-based packet data network

• Innovation– Enhanced applications and devices

3G World Congress

Studies of bandwidth use in homes

• Online 75% more than dial up users– 20.3 hours per week vs. 11.6 hours

• Usage shifts from communication and information to pleasureapplications– Download music– Watch streaming video– Participate in online gaming

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Most users increase activity with broadband

Source: The Strategis Group

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New online activities with broadband

0%

5%

10%

15%

20%

25%

30%

Downloadmusic

Personalresearch

Video clips Send pics ShoppingSource: The Strategis Group

3G World Congress

Is the world ready?

• Recently announced delays– Europe – Far East– U.S.

• Concerns about cost– Spectrum– Network

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TDMA:

GSM:

CDPD

19.2 kbpsEDGE

384 kbps

W-CDMA

2 Mbps

GPRS

115 kbps

EDGE

384 kbps

W-CDMA

2 MbpsGSM

9.6 kbps

2000 2001 2002 2003

CDMA:IS-95A

14.4 kbps

3G 1X

144 kbps

3G 1X-EV DO

2.4 Mbps

3G 1X-EV DV

3 to 5 Mbps

GSM/

GPRS

115 kbps

The race to reach 3G

20043G 1X

307 kbps

?

?

3G World Congress

Capital cost comparison

TDMA & GSM

CDMA

GSM/GPRS28%

EDGE51%

WCDMA/UMTS90%

3G 1X<10%

3G 1X-EV<10%

TimeSource: Yankee Group

Upgrade costs as a percentage of 2G network cost

Source: Sprint PCS

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1999 - 14.4 kbps

2000 - 56 kbps

Late 2001/Early 2002 - up to 144 kbps

Late 2002 - up to 307 kbps

2003 - up to 2.4 Mbps3G 1xEV- DO (Data Only - Phase 3)

3G 1x (Phase 1)

2G - Compression

2G IS-95A

Evolution of CDMA2000 Platform

3G 1x (Phase 2)

Early 2004 – 3-5 Mbps3G 1xEV - DV (Data & Voice - Phase 4)

* Color indicates backward compatibility

Sprint PCS’ clear migration path

3G World Congress

3G marketing strategies

Making next generation technology meaningful to the

customer

3G World Congress

Wireless paradigm shifts

• From luxury to necessity• From person to person to anywhere

access to information

3G World Congress

Phone

MP3 Player

Telematics

MessagingMachine

PDA

Digital Camera

Mobile Wallet

Laptop

Television Programming

World Wide Web

Next paradigm shift: mobile companionMobile phone:communications

Mobile companion:communication, information, entertainment and transactions

Marketing

Apps, devices and network synchronized

Devices Netw

ork

Applications

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Robustness increases with speed

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What do consumers want?

• To communicate with others, share• To have fun, be entertained• To be accepted, be popular, in style• To feel better, smarter advantaged• To save time, to make time• To avoid pain

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Consumer marketing approach

• What do consumers get with 3G?– E-mail with attachments and graphics– Short messaging for the U.S.– Downloaded ring tones– Color and graphics within games– Downloaded color pictures– Video or slide show of news or sports

highlight– Graphical content of stock quotes– Location-based services

3G World Congress

What do business customers want?

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

Customer Credit records

Auctions

Product catalog

Human Resources

Customer data/profiles

Scheduling

Order Entry

Web site w/ transactions

Network Applications

Order Status

Electronic Newsletters

Intranet Access

Company E-mail

Source: Information Week

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Business marketing approach

• What do business customers get with 3G?– E-mail with attachments– High speed intranet/internet access– Video/audio streaming– Digital imaging– Rich messaging– On-demand conferencing– Voice over IP– Location-based applications

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A look into the future

• Next generation wireless technology will continue to change the way people communicate

• Sprint PCS’ vision for the future:

3G video

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Question & Answer