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Contents 1. US PCS Update 2. US Cellular
Update 3. Survey 4. Country Development 5.
Standard Development
Wireless Industry Newsletter May 2000
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1. US PCS Update 1.1 Tritel Inc. and TeleCorp
PCS Inc.The two companies, affiliates of ATT
Wireless, agreed to merge in an all-stock, tax
free transaction, in a deal valued at 5.3
billion. TeleCorp is ATT Wireless largest
affiliate with 142,231 subscribers at YE99 in
markets covering 16.7 million POPS in Louisiana,
Tennessee, Arkansas, New Hampshire, Massachusetts
and Puerto Rico. Tritel is ATTs second largest
affiliate with licenses covering 14 million POPS
in Mississippi, Tennessee, Alabama, Kentucky and
Georgia. Both companies market their service
under the SunCom brand name. The combined
company, which will have a licensed service area
of 35 million POPS in 14 states and Puerto Rico,
will be called TeleCorp PCS and will have a
presence in 16 of the top 100 U.S. markets with a
subscriber base of 245,000. TeleCorp and ATT
Wireless agreed to swap certain markets. TeleCorp
is trading 1.9 million POPS in its New England
markets for 1.9 million ATT Wireless POPS in
Wisconsin. In addition, TeleCorp is acquiring 4
million POPS from ATT Wireless covering other
areas of Wisconsin, as well as areas around Des
Moines, Iowa, for about 410 million in TeleCorp
stock, and it secured rights to develop another
1.4 million POPS in Wisconsin and Iowa if it is
able to secure the needed spectrum. In total, the
transactions will make TeleCorp the ninth-largest
wireless carrier in the U.S. and the
third-largest pure PCS player. The merger is
expected to close during 4Q99. ATT will have a
23 stake in the new company. 1.2 SOL
CommunicationsSmall D- and F-block GSM
operator in Texas with- 38,000 subscribers-
churn rate less than 2- ARPU of 53- Affiliate
agreement with VoiceStream- Focused on Local
services with excellent customer service- Edward
Horner President CEO
Tritel and TeleCorp PCS merging
VoiceStream affiliate
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1. US PCS Update 1.3 Sprint PCS 1.3.1 Web
ServicesWill offer comparison shopping service
from ecompare.com for its WAP Internet enabled
phones. The service allows users to compare
products and prices in a variety of categories
and access the information they need to make
informed purchasing decisions on the move. 1.3.2
New tariffSprint 1000 Nights Customers are
allowed to make 1,000 min of state-to-state long
distance calls from 7PM to 7AM every night for
20/month. Customers who exceeds 1,000 minutes
or makes long distance calls during the day pay
10 cents/min. In-state calls can be included in
the 1,000 minutes for an additional monthly fee,
5, 10 or 15, depending on the state. Sprint
1000 WeekendOffers customers 1,000 minutes of
state-to-state long distance from midnight Friday
to midnight on Sunday for a 20/month. Customers
who exceeds 1,000 minutes pay 5 cents/min and 10
cents/min on calls made during the week.
In-state calls can be included in the 1,000
minutes for 5 more per month. 1.3.3 Atlanta
Nights Weekend promotion2,000 minutes for
75/month- 1,000 anytime minutes- 1,000 Night
Weekend minutes - Monday - Thursday 8PM-7AM
8PM Friday to 7AM Monday- Additional minutes
will be charged at 25 cents/min- Long distance
15 cents/min- For the first six months, the
included minutes can be used for access to
Sprint PCS Wireless Web in addition to voice.
After six months a charge of 9.99 will be added
for Wireless Web, unless customer deactivate the
service- The price plan is good as long you
are a customer 1.3.4 1Q2000 FeedbackChurn
decreasing driving by - Addition of services
like wireless Internet access - Continue
expansion of network - Customer service
improvement - More mature customer base -
Aggressive move toward contract offerings -
More incentives if willing to make long-term
commitments
Comparison shopping
New tariff from Sprint PCS
New tariff in Atlanta
1Q2000 churn update
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1. US PCS Update 1.3 Sprint PCS 1.2.5 New
Wireless Data Access tariffCan now add wireless
web service to their monthly calling plans for
10/month and use their buckets of minutes for
voice calls or Internet access. Previously, the
carrier charged 10/month for 50 minute of data
usage in addition to customer voices voice
plans Almost 3 million handsets were Web-enabled
at the end of 1Q00. Wireless Web service nearly
doubled among business customers 1.4
VoiceStreamThe thing that differentiates
VoiceStream from Bell Atlantic, ATT and
BellSouth, is that they are the only one to view
wireless as a replacement for wireline. VoiceStrea
m is focused on Generation X and other members of
the crossover segment, who see and use their
wireless phone as their only phone. Its strategy
is based on the projection that this group will
account for 2/3 of all new customers in the next
two years. During 4Q99, its subscribers racked up
1.5 billion minutes, an average of 450 MOU per
month (3x the domestic industry average)
Wireless data tariff
Wireless as replacement for wireline
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2. US Cellular Update 2.1 SBC and
BellSouth The two companies agreed to combine
their wireless operations, boasting a 16.2
million subscriber base, reaching 19 of the
nations top 20 markets and 40 of the top 50, and
generating annual revenues of 10.2 billion. SBC
will own 60 of the new, unnamed venture, with
BellSouth owning the rest. The new venture
feature almost no overlap, except for markets in
New Orleans and Indianapolis. The use both the
same technology, TDMA and GSM. The joint venture
will be structured so that it can sell telephone
services of the parent companies, including DSL,
Internet access or caller ID The new venture
would actively look to expand its network,
initially concentrated primarily in the
Southwest, Midwest and California. That leaves
gaping holes in the lucrative Northeast and
Northwest markets. The companies will share
management control of the new company through an
independent four-member board, and are conducting
an internal and external search for a CEO to run
the operation. 2.2 Alltel To eliminate the
overlapping of wireless operations that would
have existed following completion of Alltel's
pending wireless property transactions with Bell
Atlantic, GTE and Vodafone AirTouch, Alltel will
sell all its PCS operations in Mobile, Ala, and
Pensacola, Fl. To Telapex, Inc., a privately held
company based in Jackson, Miss., that markets its
wireless service under the name Cellular
South. After all the transaction with Cellular
South, Bell Atlantic, GTWE and Vodafon AirTouch,
ALLTEL will have almost 5.8 million
subscribers. 2.3 AirTouch Rolled out Select
Pay, its calling party pays plan. Callers will be
charged 29 cents/min to speak with subscribers
who choose the 2.95/month option.
SBC and BellSouth merger
Alltel market adjustment
CPP from AirTouch
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2. US Cellular Update 2.4 ATT 2.4.1
PocketNet - Wireless DataIntroduced flat-rate
pricing for wireless data retrieval for users of
its mobile phone service. The PocketNet
flat-rate pricing will let people obtain
information from corporate databases and get
e-mail on screen of their wireless phone. The
service is available in over 3,000 U.S. cities.
The charge will be 14.99/month for unlimited
access to ATTs wireless IP network when it is
combined with ATTs DOR or Group Calling voice
pricing plans. With other voice pricing plans,
the price will be 19.99. PocketNet require a new
CDPD phone ATT also found out from their earlier
CDPD offerings, that ubiquitous coverage is
more important than raw speed. 2.4.2
AtlantaIntroduced additional minutes (only to be
used at home calling area) on their existing
Digital price plans AdditionalCalling
Plan Incl. Min anytime min Total min 24.99
100 200 300 49.99 600 200
800 69.99 1,000 500 1,500
PocketNet update
ATT Atlanta update
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2. US Cellular Update 2.5 Verizon
wireless 2.5.1 New NameBell Atlantic Corp
announced it will take on the new name of Verizon
as soon as it completes its planned merger with
GTE Corp. As a precursor, Bell Atlantic renamed
its wireless unit Verizon Wireless (cellular,
paging, PCS), marking the completion of the
companys merger with Vodafone AirTouch Plc.
Then approved, the planned merger with GTE Corp.
will mean that Verizon Wireless will reach 90 of
U.S. population and 96 of the 100 largest
wireless markets in the country an have approx.
24 million subscribers. Verizon Data- Voice
Data Subscribers (pre-GTE merger) 16 million-
Paging customers Nearly 4 million-
Employees 30,000- U.S. Pops coverage Nearly
90- Company stores and kiosks 1,100 2.5.2
New Nationwide single-rate tariffThe plan
features price ranges from 35/month for 150
minutes nationwide to 150 for 1,500 minutes. The
plan is Verizon Wireless answer to ATT Digital
One Rate (DOR). 2.5.3 Web and Two-way SMS
serviceSingleRate customers will also be
eligible to purchase one of two Web-ready digital
phones, as well as a coast-to-coast two-way SMS
service the company plans to unveil later this
year. 2.5.4 GM OnStar serviceVerizon Wireless
will support GM OnStar in-vehicle technology,
providing personal calling services for the 4
million vehicles equipped with OnStar. 2.5.5
Over-the-Air Provisioning (OAP)Verizon also
plans to implement Over-the-Air provisioning of
service on its CDMA network, which offers both
wireless voice and CDPD. Using CDPD, subscribers
will be able to use the OAP feature to remotely
activate service or to change their phone numbers
or area codes.
Verizon
Verizon answer to ATT DOR
Web service and two-way SMS
GM OnStar service
OAP from Verizon
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3. Survey No Data this issue
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4. Worldwide Country Developments 4.1
Europe 4.1.2 UK 4.1.2.1 Vodafone
AirTouchExpect to have a single rate plan for
Europe in the second half of 2000. 4.1.2.2 BT
Global Mobile Internet unitThe new unit will
set up a mass-market mobile portal based on BTs
Genie Internet service, in conjunction with
locally-based partners. Today Viag Interkom
(Germany), BT Cellnet (UK), StarHub (Singapore)
and SmarTone (H.K.) have signed up as
partners. 4.1.2.3 BT Cellnet - WAP
servicePrepaid WAPUnveiled a pre-pay WAP phone
to be on sale in U.K. April 3. Prepaid phones
will start at 99.99 Postpaid WAPThree new price
plans with bundles including between 100 and 500
minutes. WAP pricing10p/min for WAP access.
This price is closer to BTs off-peak voice rate
t still represent a substantial premium to the
1-2p/min rate that most UK Internet users are
charged over the fixed network. WAP serviceThe
service will use Circuit Switch until GPRS is
deployed in 2Q2000 . At the time GPRS is
available, the WAP phones will have to be
upgraded to use the GPRS technology. 4.1.2.4 3G
Auction final result (round 150)Here are the
winners in the 3G auction in UKLicense A TIW
4.384 billion 6.90 billionLicense
B Vodafone 5.964 billion 9.40
billionLicense C BT3G 4.030 billion 6.35
billion License D One2One 4.003 billion
6.30 billionLicense E Orange 4.095 billion
6.44 billion Total Bid 22.476 billion 35.39
billion TIW UMTS is 90.1 owned by Hutchinson
Whampoa Ltd. and 9.9 by TIW, who will build the
network which is expected to cost approx. 7.9
billion. Hutchison has a 5 stake in TIW and 5
in Vodafone.
Single rate plan for Europe
BT mobile portal
BT Cellnet WAP services- prepaid- pricing-
service
Winners of the UK 3G auction
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4. Worldwide Country Developments 4.1
Europe 4.1.2 UK 4.1.2.5 eBayIts European
sites will be able to accept bids placed via WAP,
standard SMS services and other cellular phone
platforms by 3Q2000 starting with UK and Germany
with France, Italy and Scandinavian to follow.
4.1.3 Germany E-PlusLaunched Germanys first
cellular ISP operation. The key feature of
E-Plus Internet strategy is that users have
access to the same set of services from their
mobile phone, laptop PC (via GSM data), and their
regular PC/Internet platform. MobilcomFrance
Telecom SA won Germany approval to buy a 28.5
stake in Mobilcom AG for 3.4 billion and got
clearance to bid for 3G. Mobilcom and France
Telecom plan to create a joint venture called
Mobilcom Multimedia GmbH to offer mobile phone,
fixed network and Internet services to private
and industrial customers in Germany. 4.1.4
Russia VimpelcomPlans to introduce SMS to make
up for a drop in ARPU and point the customers
toward mobile Internet. It is important to teach
people about value added service before the usage
will increase. Vimpelcom has seen its ARPU drop
from 99 in 1999 to 35 for 2000. The subscriber
forecast for Vimpelcom combined GSM and TDMA
networks are 700,000. 4.1.5 Norway TelenorWill
be testing the Ericsson WISE Portal in their
wireless network. The WISE portal will bundle
communication and information to and from mobile
phone user and drive the development of a whole
new range of personalized services (Olav Henrik
Kjorstad, Director of Mobile Future, Telenor)
eBay in Europe
E-Plus Internet strategy
France Telecom stake in Mobilcom AG
Vimpelcom to introduce SMS
Wireless Portal
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4. Worldwide Country Developments 4.1
Europe 4.1.6 Finland Sonera SMS
growth Year Subscribers SMS SMS/sub/month 1995
253,203 700,000 0.4 1996 586,612
5,800,000 1.2 1997 1,032,121 63,900,000 6.6 1998
1,596,897 206,000,000 13.1 1999 1,938,644 439,000
,000 20.7 4.1.7 Italy TIMSees the SIM card
that links each customer to its network as a key
to its control over an expanding array of
wireless and wireline services. All
authentication goes through the SIM Network
first. We own the customers because we control
the SIM card. The SIM is portable, personalized
processor, a PC without display and keyboard. It
is proactive. It can start or propose actions. In
the spring of 2000, TIM plans to introduce
dual-slot mobile handsets, which contain one SIM
card for wireless communications and another for
e-commerce. At the year end, TIM wont need two
SIM cards because of the increases in processing
capacity in the SIM (up to 32 kbps). As the
capacity of the SIM card increases, more personal
information can be included, such as credit and
debit cards, driver license numbers, health care
information, marriage licenses, etc. The mode of
access does not matter because you can use the
same SIM card for your PC, wireline phone, Web
phone, television, etc. Bluetooth will allow
wireless customers to extract information from
their handset SIM cards and transmit it to their
PCs or other devices supporting the Bluetooth
standard. The combination of Bluetooth and SIM
can pay for tolls, parking fees, pay for sodas,
train tickets, shopping at the super market,
etc. The most important difference is not between
2G and 3G, but between circuit-switched and
packet-switched technologies.
SMS growth at Sonera
Innovated use of SIM card at TIM
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4. Worldwide Country Developments 4.1
Europe 4.1.8 France Had 22.6 million
subscribers at the end of March (37.7
penetration rate). - France Telecom 48.3 market
share- SFR 35.6 market share- Bouygues 16.1
market share Source ART France
TelecomGPRSPlans to launch its GPRS
Internet-capable mobile phone service across the
whole France by end-2000. Similar services will
also be launched in Netherlands, Belgium,
Denmark, Italy and Portugal. Wireless
PortalHas unveiled Voila Mobile, a new wireless
Internet portal site which will start operating
in May 2000, offering wireless access to email,
the Internet and other applications.The company
hopes to have 1 million WAP service users by the
end of 2000 and projects that its turnover from
mobile phone operations will increase by 25-30
after its WAP launch.
Mobile update
GPRS launch by France Telecom
Voila Mobile wireless portal
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• 4. Worldwide Country Developments
• 4.2 Unites States
• 4.2.1 AmazonCreated a new Web portal specially
  designed for wireless devices, allowing shoppers
  to monitor the status of purchases, access more
  in-depth search information and check shipping
  availability worldwide.
• 4.2.2 GlobalstarAnnounced introduction of
  full service throughout the U.S., Canada and
  Mexico for those who buy a special cellular phone
  (1500).
• Airtime pricing is separated into three domestic
  plans Monthly fee Satellite Airtime Free Min.
• The Beyond Basic Plan 30 1.69/min 0
• The beyond 100 Plan 170 1.50/min 100
• The Beyond 250 Plan 370 1.40/min 250
• The charges do not include international tariffs
  originating from the U.S.
• International roaming rates for
  terrestrial-based airtime while in cellular or
  digital mode, available at this time only in
  Canada and Mexico, roaming charges will be
  1.80/min, plus long distance and local
  termination fees.
• 4.2.3 Andersen ConsultingUnveiled a new
  wireless portal (Mobile Corporate Portal)
  designed for the businesses it serves and will
  allow field personnel access to the Internet and
  corporate databases via mobile phones with
  microbrowser.
• The firm is using the portal in a pilot program
  involving hundreds of its employees who can
  access the company directory, update daily
  contact information, check travel information and
  flight status, and reserve office space.
• 4.2.4 Leap Wireless
• Nashville Cricket updateIn 29 days, Cricket
  acquired 13,000 customers for a 1.4 penetration
  of its coverage area.

Amazon new wireless web portal
Globalstar pricing
New wireless portal from Anderson Consulting
Nashville cricket update
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4. Worldwide Country Developments 4.2 Unites
States 4.2.5 Nextel 4.2.5.1 Global
ServiceLaunched a global wireless service with
one dual mode iDEN/GSM phone (i2000), with one
number. The new service will facilitate roaming
between its iDEN and GSM networks around the
world (available in 65 countries). Nextel has
signed more than 100 roaming agreements. Tariff
are calculated on a flat rate basis, from
0.99/min to 4.99/min, depending on the country
the caller is calling from- About 1/min for
Europe - 1.99/min for Asia, South America and
Middle East- 2.99-4.99/min for Africa, Eastern
Europe and Southeast Asia The i2000 cost 349
(promotion 249), and the service cost 5/month
above Nextels standard charges. 4.2.5.2 Free
incoming callsSign up for Nextel National
Business Plan by March 31, 2000 and receive free
incoming calls at any time and anywhere on Nextel
Digital network. 4.2.6 Palm VIIPalm Computing
Inc. has begun providing a 44.95/month flat rate
for the Palm.net service plus access to e-mail
from other Internet accounts (allow users to
access their POP3 and IMAP e-mail from other
Internet service providers). Palm.net use
BellSouth Mobitex network. 4.2.7 FCCApproved
the merger between Bell Atlantic Corp. and
Vodafone AirTouch Plc and VoiceStream Wireless
Wireless Corps purchase of Aerial
Communications. 4.2.8 eWonders.comLaunched a
store search and merchant rating application for
wireless users of Palm VII and WAP enabled mobile
phones. Palm VII users need to download a small
file from ratingwonders.com and sync their unit.
WAP enabled phone users simply dial the name of
the web site. The technology allows users to
search for online stores selling a particular
product, and provides objective ratings from
ratingwonders.com and consumer ratings.
New global service from Nextel
Free incoming minutes
New flat rate for Palm VII
FCC approve mergers
New store search and merchant rating service
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4. Worldwide Country Developments 4.2 Unites
States 4.2.8 AOLMyAOL wireless portalHave
announced deals with Sprint PCS, BellSouth and
others in a bid to catch competitors like
Yahoo!. AOL customers will be able to tap into
e-mail, instant messages (chat) and other
services from wireless devices. AOL estimate that
their 21 million members send 110 million e-mails
each day Their wireless strategy is to partner,
compared to cable there AOL decided to purchase
Time Warner. Digital CityThis entertainment
guide provides lists of bars, restaurants and
shows in various cities. Choose the city on the
menu and then the entertainment option and the
subscriber will get a list of restaurants, short
reviews and the address. If not sure how to get
there, go to AOLs Mapquest on your phone to get
directions and a map. The key to these services
is Ease of Use and it must be something people
want to do while theyre on the go. It has to be
priced in a way that wont make people afraid
they are running up large bills. 4.2.9
CPPWill Calling Party Pays (CPP) be implemented
in U.S. ??? With most tariff plans including a
big bucket of free minutes, they need for CCP
seem to decrease. Many people today do not care
about giving out their telephone number. Below
some pricing examples Sprint PCS 50 with 500
min included (10 cents/min) and free long
distance. This is just slightly higher than 7
cents/min for long distance on the fixed
line AirTouch Cellular Select Pay (CPP offering)
charges 29 cents/min for calls to a wireless user
from fixed line (nearly 3x todays wireless
price, there the call is paid by the wireless
subscriber) Many subscribers do not like the
recorded message warning callers of the high
price for CPP (appear cheap)
AOL respond to Yahoo!
New entertainment guide for mobile users
Update on CPP
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4. Worldwide Country Developments 4.2 Unites
States 4.2.10 ATT 4.2.10.1 Project
angelSystemWill begin offering Forth Worth
residential customers high-speed Internet access
and all distance voice service through Digital
Broadband fixed wireless service. ATT provides
one free network interface card required for
high-speed data services and allows customers to
use their current phones and keep their existing
phone numbers. The system supports up to four
phone lines. Voice and data signals are
transmitted between nearby base stations and a
small antenna (12x13) installed on the exterior
of a customers home. Line-of-sight between a
base station and customers home is not
required. A wire connection is made from the
antenna to a control unit in the home. The
control unit is then connected to an existing
inside phone wiring jack and an AC power
supply Homes connected to the service also have
the capability of enabling a LAN that can link up
to five computers installed with a compatible
network interface cards. Customers selecting the
high-speed data service can make voice calls even
when they are surfing the Internet. PricingCust
omers can select a single voice line with Caller
ID, call waiting and three-way calling services
for 25.95/month. The service includes-
unlimited local calling, - in state long
distance rates of 7 cents/min, and- 7 cents/min
for all direct-dialed state-to-state calls. -
Additional phone lines are available for
7/month High speed data service is available for
34.95/month including ATT WorldNet Internet
access service. The service is always-on,
provided the customer initiates one Internet
action within each 24-hour period. Working on
agreements with other ISPs so customers will have
a choice of up to six ISPs
Project Angel update
Project Angel pricing
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• 4. Worldwide Country Developments
• 4.2 Unites States
• 4.2.10 ATT
• 4.2.10.1 Project angel (cont.)ExpansionATT
  expects to have towers and radio capacity to
  reach- YE2000 1.5 million homes- YE2001 10.0
  million homes- YE2002 15.0 million homes
• Installation CostToday 750 per
  homeIn five years 550 per home
• Most of the costs are related to installation
  (approx. 2 hour) and labor. ATT figures it needs
  only a 10-12 penetration rate to pay for the
  project, which might be achieved within two
  years.
• 4.2.10.2 Net2PhoneAn ATT -led consortium,
  which includes Liberty Media and BT will take
  take a 39 voting stake and a 32 economic stake
  in Net2Phone, which provides Internet telephony
  and Web communications services
• 4.2.11 BellSouth
• MyBizRenamed its old interactive paging service
  to MyBiz and added features to better serve
  corporate users. The new service includes
• Interactive messaging plus a feature that lets
  users with a RIM handheld device instantly
  communicate with one another and receive
  notification that messages have been received
  and read
• Messaging users will also be able to exchange
  e-mails with Internet users, send messages to a
  fax machine and text-to-voice messages to a
  telephone
• MyBiz will allow corporate users to extend
  access to company e-mail systems to wireless
  users, with remote access to Microsoft Corp.s
  Exchange e-mail system.

Project Angel expansion and cost
Net2Phone
MyBiz, new name for interactive paging service
18

• 4. Worldwide Country Developments
• 4.3 Canada4.3.1 The Canadian Market
• The Mobile phone market is expected to grow
  between 20 and 30 a year to reach 16.6
  million subscribers in 2003
• 41 of households owned or had access to a
  wireless phone in 1999
• Canadian average 185 wireless phone minutes per
  month
• 4 use wireless Internet service, and 24 say
  they are likely to purchase service in
  2000Source Canadian Wireless
  Telecommunications Association
• 4.3.2 Bell Mobility
• Web data service
• Is targeting the business sector for Web data
  services, because thats where the money is
• The No. 1 application is checking stocks
• Domestic contents is most important and using
  Yahoo! Canada to deliver much of its domestic
  contents and financial data from both Canadian
  and U.S. markets
• Will be pushing e-mail to the general public,
  because it is the No. 1 driver on the fixed
  Internet

Canadian update
New web data service
19

• 4. Worldwide Country Developments
• 4.4 Latin America
• 4.4.1 MexicoIusacell
• 4Q ARPU - Contract customers From 85 to 94
  in 4Q99 - Prepaid customers From 12 to 11
  in 4Q99
• 4Q99 Valued Added Services - VAS including SMS
  represent 6 of Iusacell revenues
• Operator Data 1998 1999e 2000e 2001e 2002e 2
  003e 2000eTotal Subs. 755K 1,322K 1,742K 2,192K 2
  ,642K 3,032K 3,422K - Contract 37 27 29 29 2
  8 27 26- Prepaid 63 73 71 71 72 73 74
  Net Adds 355K 547K 440K 450K 450K 390K 390KMarke
  t Share 22.6 17.1 15.0 15.1 15.4 15.4 15.5
  Source Company reports and J.P. Morgan
  estimatesPegaso PCSSprint Corp. has invested
  200 million in Pegaso PCS of Mexico in a deal
  that will allow cross-border wireless telephone
  services. Pegaso PCS is owned 51 by Grupo Pegaso
  and Mexican broadcaster Grupo Televisa and 28.6
  by Leap Wireless International Inc.
• 4.4.2 VenezuelaThird LicenseThe tender for a
  third license has been delayed until after the
  countrys May 28 political elections.
• Telcel (owned 78 by BellSouth) has 2.22 million
  subscribers
• Movilnet (owned by CANTV, a unit of GTE) has 1.18
  million subscribers
• Digital has 20,000 subscribers (new operator)

Iusacell update
Pecaso update
Delay in tender for third license
20
4. Worldwide Country Developments 4.4 Latin
America 4.4.3 BrazilTelefonicaYE99
Subscribers and growth rate Subs. Growth CRT
Celular 968K 78.3 Tele Sudeste
Celular 1,852K 139.9 Tele Leste Celular 535K
98.5 Total Brazil 3,355K 105.6 TIWTelemig
finished its first in Brazil WAP trial with big
success. The new service will be actively
promoted once WAP handsets are readily
available. Telemig was the first cellular
operator to offer SMS service, celul_at_r on line,
in the country, and this service now offers
two-way SMS service. Carried out jointly with
Ericsson the first 3G call in Brazil using EDGE
at the Telecom America 200 show. Portugal
TelecomAnnounced a bid to gain control of its
Brazilian affiliate, Telesp. The deal is valued
at 1.7 billion. 4.4.4 PeruPCS LicenseTelecom
Italia won the countrys third mobile license in
the 1900 MHz frequency band and includes an
obligation to service at least nine cities
outside Lima within the next two years. The
company will use GSM. Telecom Italia will compete
with- BellSouth with TDMA and 302,560
subscribers - MoviLine (Telefonica) with CDMA
and712,120 subscribers 4.4.5 ArgentinaNextel
Will complete its network expansion by October
2000, allowing the operator to double its current
subscriber base of 70,000
Telefonica update
TIW WAP trial
Portugal Telecom to gain control of Telesp
TIM won third license
Nextel network expansion
21
4. Worldwide Country Developments 4.4 Latin
America4.4.6 HondurasCPPHonduras
introduced CPP on March 1, 2000, setting a 30
cents/min rate for calls from state-owned
wireline operator Hondutel to customers of
state-owned wireless operator Celtel. Other
wireless operators can set their own CPP
rates. 4.4.7 ColombiaCelcaribeMillicom
International Cellular (MIC) increased its stake
in Celcaribe from 41.63 to 51.93 Mobile
usageThe Communication ministry has announced
that mobile use in 1999 rose 9 and that the
total number of wireless subscribers reached 1.9
million at the end 1999. Comcel subsidiary had
the greatest increase of 28.3 and finished 1999
with 241,900 subscribers PCS licenseLegislation
has been approved for upcoming PCS licensing that
will exclude current mobile operators from
bidding on three, 10-year renewable regional PCS
concessions in the 1.8 GHz band. Bandwidth in the
1.9 GHz band will be left open for future
licensing of 3G PCS. 4.4.8 Puerto RicoSprint
PCSSet to begin CDMA construction by
2Q00. Centennial Puerto Rico Corp.Covers 3.9
million people and have 169,000
subscribers4.4.9 GuatemalaTelguaTelmex of
Mexico acquiring 49 of Telgua, the monopoly
carrier in Guatemala. Telmex has been operating
Telgua since last year. YE99 subscriber
numbers- Mobile 76,000 - Internet 17,800
CPP introduction
Millicom increase stake
Mobile usage
New PCS license update
Puerto Rico update- Sprint PCS CDMA- Centennial
Telmex acquire 49 of Telgua
22
4. Worldwide Country Developments 4.4 Latin
America4.4.10 Internet in Latin AmericaWith
low penetration of Internet in Latin America, how
will wireless executives implement Wireless
Internet access. Will they follow North America
or will they look toward Japan (low penetration
of Internet usage) and its success with I-mode.
Below are some quotes from operators operating
in Latin America GTE Corp., Scott HarrisWere
really thinking the Internet revolution will
happen through wireless devices Bell Atlantic,
Steve FleischerIn Mexico PC penetration is less
than 4 BellSouth International, Jim BaconIn
the U.S., the cost of a PC is about 3 of the
average GDP. In Latin America, its about 20,
and wireless will be a lot of peoples first
experience with the Internet BellSouth
International will offer WAP services by year end
at some of the Latin America properties. Leap
Wireless International Inc., Dan PeggOwn stakes
in Mexican Pegaso PCS and Chilean operator
Smartcom PCS. They see their offering as a
combination of SMS and WAP based on the
subscriber ability to pay for the services. They
will launch commercial SMS push service in April,
offering sports, news, headlines and weather
information. Many markets have announced
pre-WAP service and SMS information services.
Two-way will be announced as handsets are
available. Telet in Brazil, announced limit
two-way service in April. Many operators will
also announce their own wireless portal in 2000.
One example is Movilnet in Venezuela. Their
portal called tun-tun.com will focus initially on
SMS push services and later move into WAP type
access. Movilnet will use SMS and WAP for
different segments. With prepaid increasing in
popularity in Latin America, prepaid Internet/SMS
services could help stop the decline in ARPU
Latin America and Internet and quotes from some
operators- GTE- Bell Atlantic- BellSouth-
Leap Wireless
23

• 4. Worldwide Country Developments
• 4.5 Japan
• 4.5.1 NTT DoCoMo.I-mode update
• About 50 of current I-mode users subscribe to
  at least one content service that charges fees
• At least two of the 242 content providers for
  I-mode reportedly are earning more than 10
  million yen (96,000) a month
• By paying NTT DoCoMo to do the billing, these
  content providers can concentrate on what they
  do best - providing content - and still get
  earnings
• Reached 5 million users mid March, making NTT
  DoCoMo the largest Internet provider in the
  Country. The service has been disrupted several
  times since its launch in Feb. 1999, because of
  its incredible growth rate. NTT DoCoMo is
  looking into how to limits its growth in the
  short term giving it time to boost its capacity
  (same problem AOL run into in U.S.)
• 50 of the 170,000 DoCoMo customers who apply
  for I-mode service every week are users who
  switch to I-mode from older phone models3G
  LicenseNTT DoCoMo was the first to apply for a
  license to provide 3G services. The ministry
  intends to issue the 3G licenses by the summer of
  2000. Plans to starts its new 3G cellular phone
  services in Tokyos 23 wards, Yokohama and
  Kawasaki in spring 2001, and to expand the
  service coverage to the Osaka and Nagoya areas in
  December 2001.
• 4.5.2 Mobile vs Fixed line subscribers.
• Mobile - End of February 55.5 million
  subscribers - End of March 56.9 million
  subscribers - Cellular 51.2 million
  subscribers - DoCoMo 29.4 million subscribers
  (57.4) - PHS 5.7 million subscribers -
  DDI 3.3 million subscribers (57.7) -
  DoCoMo 1.4 million subscribers (25) -
  Other 1.0 million subscribers
• Fixed Line - End of March 55.5 million
  subscribers

I-mode update
3G update
Mobile vs wireless
24
4. Worldwide Country Developments 4.5
Japan 4.5.3 DDITo consolidate seven of its
eight regional cellular units, before its merger
with KDD and IDO in October 2000. The seven units
are Kansai, Kyushu, Chugoku, Tohoku, Hokkaido,
Hukwiku and Shikoku. The other unit, Okinawa
Cellular Telecom, is publicly traded and so
excluded from the deal. DDI has stakes of between
52 to 66 in the units, which all operates CDMA
networks. DDI has agreed to purchase IDO and KDD
for Yen 2.7 trillion (25 billion) in December
1999. 4.5.4 TokyoThe Tokyo metropolitan
government has decided to ban the use of cellular
phones on its transport systems to prevent the
devices from harming passengers with
pacemakers 4.5.5 Japan TelecomApplied for 3G
license 4.5.6 PrepaidPolice in Tokyo renewed
their request for the NTT DoCoMo and three other
prepaid cellular phone companies to carry out
strict identification checks on new subscribers
after the phones were found to have been used in
a recent kidnapping case. Prepaid cellular phones
have been used in more than 100 crimes since
their debut in the fall of 1998.
DDI consolidation
Tokyo ban of cellular usage in its transport
system
Japan Telecom 3G application
Identification of prepaid users
25
4. Worldwide Country Developments 4.5
Japan 4.5.7 J-PhoneJapan Telecom Co and its
partners will merge its nine cellular phone units
into three in October 2000. The nine companies ,
know as J-Phone group, has about 8.16 million
subscribers compared to NTT DoCoMo 29.35
million. The three new companies are J-Phone
West Co Ltd.- Four units in eastern Japan will
be merged into J-Phone Kansai Co., which will
be renamed J-Phone West Co. - J-Phone
Communications Co will own 51.22J-Phone East
Co Ltd- J-Phone units in the Northern island of
Hokkaido and Tohoku, the north of Japan main
island, will be absorbed by J-Phone Tokyo, which
will be called J-Phone East Co- J-Phone
Communications Co will own 50.57J-Phone Tokai
Co Ltd- Will remain as is and cover central
Japan J-Phone Communications Co (J-Phone
Group)Japan Telecom 54- East Japan
Railway 15.1- ATT 15.0- BT
Plc 15.0Vodafone 26BT 20
Three new J-Phone companies
26
4. Worldwide Country Developments 4.6 Asia
Pacific Rim 4.6.1 Australia Number
portability The date of March 30, 2001 has been
set for implementation of Number portability in
Australia. 4.6.2 India The merger of Birla
ATT, Tata Communications The cellular
properties of Birla ATT and Tata will merge and
will result in a new joint venture company with
following stake holders- ATT 33- Tata
Industries Limited 33- The Aditya Birla
Group 33 The new company will provide cellular
services in Maharastha (excluding Mumbai),
Gujarat, Andhra Pradesh and Goa, covering nearly
25 of national telecom subscribers.
Number portability
India mobile update
27
5. Standard Development 5.1 CDMA 5.1.1 SIM
Standard TIA will approve the CDMA SIM standard,
allowing worldwide roaming as CDMA SIMs enable
mobile users to personalize their handsets and
access service regardless of the operators
digital technology choice.
CDMA SIM