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Cell Phones Impact and

Its 4GByDr. William C.Y. Lee

Chairman, Treyspan Inc,Formerly VP and Chief Scientist

Vodafone AirTouch PLC

Chancellor Tien Forum

At ITRI- USA

Feb. 8, 2007

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Mobile Communications Had

An Uneasy and Shaky Past

Caused By Congress Caused By FCC

Caused By Industry

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Why Mobile communications

Research Started in 1964 at Bell

Labs.

Congress took away the satellitecommunications Business from AT&T

New research for Mobiletelecommunications was needed

Picture Phone market could not be takenoff

IC technology for car phones was possible

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The Policy of The USA Congress

Afraid of Monopoly 1% of AT&T annual revenue to support Bell Labs,

created IPR used by the industry without pay

1974: Asked AT&T to open bid its car phone

manufacturing to the industry 1974 OKI won the bid for the first 200 car

phones

1975 OKI, Motorola, E.F.Johnson won the1800 car phones

1981: Judge Harold Green was in chargedivesting AT&T

1983: AT&Ts 22 operating companies became 7

baby Bellcompanies and were divested 1983 Mobile phone business went to Baby Bells

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FCCs Counteractive Rule-Making on

Spectrum for Mobile Communications

Before 1974: Allocated 82 channels, 6MHz/ch., in UHF Band to TV Industry.

Thus 10 GHz band was only possible formobile communication

After 1974: Allocated 70MHzx2 spectrumin 800MHz band. Among them, 40 MHz wasput in use and 30 MHz was reserved

1983: Within 40 MHz allocation, 20 MHzwent to telephone companies and 20 MHzwent to non-telephone companies.

1983: First USA cellular system operated

in Chicago.

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The Factors of Delay

Deploying Until 1983

Complained by RCC (RadioCommon Carriers), an industrygroup of dispatching and paging

Tried to avoid to be divested

Took time to negotiate amongthe industry.

A resale policy was created

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The Key Factor of Making 1G

Successful

Requirement Quality No bottleneck as a market product Handoff feature High capacity

Successful Factors Took a large scale trial at Chicago in 1977-1978 Excellent quality User Friendly, like landline phones

Drawbacks Needed rooftop antennas Transceivers were in the car trunks

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GSMs Story

An European digital mobile systemdeveloped in 1983 and deployed in 1991

Was threatened by UKs CT-2

Not designed for a high capacity system atthe time

No licensed fee to pay for themanufacturers in European Community

Accepted by China and fully deployed in1995

Becomes almost a global system

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Fate of NA-TDMA

1987 CTIA formed a sub-committee toselect a 2G system, a high capacity system(10x AMPS) for Northern America

FDMA was first tentatively chosen

Decided TDMA because of GSMs influence

A poor designed system for high capacity

CDMAs superiority Finally TDMA converted to GSM systems

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Why CDMA

MILESTONE

Qualcomm visited Pactel and asked astudy contract for using CDMA in Cellularsystem in Feb. 1989 but lack of a power

control scheme In April 1989, Qualcomm returned to

Pactel with a new created power controlscheme

Pactel knew the NA-TDMA would befailed, challenged Qualcomm to make ademo in six months and funded themone million dollars.

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Why CDMA (cont.)MILESTONE (cont.)

August 1989 Pactel funded another onemillions dollars

Nov.3, 1989, a demo was taken placein San Diego; two sites and one carphone. Pactel provided technicalassistance and the spectrum for them

The 1989 demo was made verysuccessfully and shocked world

Nov.1990 Korea bought CDMAtechniques from Qualcomm through

Pactels introduction

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WHY CDMA (Cont.)

REVIEW THE HISTORY Because of having a new high

capacity system as quick as possible,

only allowed one company to developthe system

Pactel asked FCC to approve a requestto buy Qualcomm but was rejected

Before CDMA became a standard,Qualcomm wrote a CAI (common airinterface). Most big venders boughtit

Pactel deployed CDMA in Jan.1995 in

LA with a poor performance

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Why CDMA (Cont. )

REVIEW THE HISTORY ( cont.)

In 1992 Korea named CDMA its

national standard system Jan. 1996 Korean deployed its CDMA

Sept. 1996 Korean reached 1Mcustomers

Korea made CDMA work and savedCDMA

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3G WAS BORN in 1997

In 1997 Ericsson and DoCoMo startedpromote 3G

In 1998, ITU received 12 Proposed systems.OHG suggested to reduce to 3 WCDMA: European version, Adapted CDMA

with a bandwidth of 5MHz using FDD

CDMA 2000, North America version, usedCDMA with 3x 1.25 MHz bandwidth UsingFDD

UTRA-TDD/TD-SCDMA: adapted CDMA witha bandwidth of 5 MHz or 1.6MHz using TDD

Three standard groups were formed

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3G System

REVIEW THE HISTORY Too hurry to choose the technology

CDMA is a powerful technology forvoice communications but not for

high speed data Standard body could not finish a spec.

earlier due to the dispute caused bythe protection of each companysown interest

Multimedia applications demanded bythe users started from 2002

WiMax s OFDM can meet the highspeed data requirement

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3Gs Current Situation

India decides to go directly to 4G

China are evaluating its TD-SCDMA

In high speed data transmission, CDMA cannot compete with OFDM

Use of CDMA needs to pay a high IPR fee

TD-SCDMAs performance is not as good asthe other two 3Gs due to its started behind

A 4G forum was formed by Samsung in 2003

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B3G (Beyond 3G)

WiFi and WiMAX are the B3G systems

Using OFDM technology

Intel announced WiMAX chip will beimbedded in PC in 2007 and inhandset in 2008

WiBro, Korean version of WiMAX has

been deployed in Korea Sprint-Nextel announced to trial

WiMAX in 2007 and deploy in 2008

WiMAX may be an interim system of a

4G system

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Changing the Paradigm

Technology Centric

Operators

A system design

Static applications

Limited coverage

Protected system(walled garden)

Service centric

Users

A common platformdesign

Dynamic applications

Ubiquitous

Open architecture

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4G - The Future Technology

Requirement based on ITU 1 Gbps data speed when stationary

100 Mbps data speed when moving

Search for 4G technology Meeting the requirement with minimum

bandwidth will be the winner

Users Expectation Multimedia application

Operating with long hours

Become a personal mobile office if possible

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Conclusion Handsets development went thru an

uneasy and shaky past AT&T did not receive any IPR fee by

developing car phones but Motoroladid

TDMA was the first digital system. Itcan not compete with CDMA for voicecapacity nor compete with OFDM forhigh speed data transmission

3G may not be a worldwide system.It has lost its timing

B3G will be the interim system for 4G

4G may satisfy the users as apersonal mobile office