111/1/2004Name of presentation Not for disclosure outside Not for disclosure outside Eurotel PrahaEurotel Praha, s.r.o., s.r.o.

Deploying the World’s First CDMA2000 1xEV-DO at 450 MHz

Eduard EckTechnical Strategy ManagerEurotel Praha, s.r.o.eduard_eck@eurotel.cz

Moscow, October, 2004

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The EV-DO 450 Day: August 2nd 2004

• On the early afternoon of August 2nd the first customers waiting in queues in Eurotel stores proudly took home or to offices blue modem boxes –mostly to install it immediately and to enjoy mobile internet surfing at speeds comparable with entry level aDSL.

• The first European CDMA2000 1xEV-DO network and the first EV-DO network in the 450 MHz band turned from a controversial project into reality.

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Two Months After the EV-DO Day

• More than 13,000 paying subscribers is using the service• The growth steadily continues• 80-160,000 broadband connections are believed to exist in

the country. The Eurotel EV-DO service has reached almost 10% market share quickly after launch.

• The CDMA service co-exist with the legacy NMT system

461 461.5 462 462.5 463 463.5 464 464.5 465 465.5 466

1,25 MHz 1,25 MHz

NMT NMTCDMA CDMA

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The Network• Nortel Networks has delivered and made operation the system in just four

months from contract signature• Pure EV-DO deployment – there are no 1xRTT elements at all• 160 base stations, two carriers where appropriate for capacity

• State of the art „All IP“network, the 450 MHz equipment does not differ from the one for mainstream CDMA bands

• BTS/DOM, support for multiple DO carriers and multiple frequency bands

• RNC, radio control, terminal authentication

•PDSN, user authentication, billing, traffic profiling

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The Coverage

• Initial coverage (at 200 kbps and up): 75% of the population• Planning criteria: quality of service and incremental coverage

growth are prioritized over geographical coverage expansion• Compliant to regulatory requirements for cross/border

coordination and narrowband service coexistence

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The Service – Eurotel Data Expres

• PPP authenticated by username and password• Terminal authentication in place for additional security, each

username/password is bound with terminal IMSI• IP addresses assigned by DHCP, NAT/PAT in place for basic

intrusion protection and to conserve address space• IPSec VPN enabled and tested with main vendors including

Cisco, Nortel, Checkpoint and HP

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How much is it and what would I get?

• 19% VAT is included in all prices• Package contains:

secure envelope with passwordmodembatteryAC chargersmall antennaexternal antenna w/ cableUSB cable w/ extensionCD with drivers and support

modem price service activation fee monthly fee1 year contract EUR 0.03 (1 CZK) EUR 111.4 (3564 CZK ) EUR 33.2 (1069 CZK)monthly contract EUR 281 (8995 CZK) EUR 18.1 (580 CZK) EUR 33.2 (1069 CZK)

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Challenges - Equipment• The EV-DO 450 network infrastructure Eurotel uses is stable and mature

for commercial deployment. • There are many technology options for the future (EVDO Rev.A, OFDM,

MIMO) and uncertainties in spectrum allocation - so the modularity of the base station is a must to protect the investment

• The three most threatening factors for any EV-DO 450 project are:

1) Availability of terminals2) Performance of terminals3) Reliability of terminals

• The stabilisation of the situation we see at the 1xRTT terminal market does not apply to EV-DO yet. However, there is a hope that the next generation of chipsets and related software would be finally delivered to allow healthy multiple terminal vendor environment.

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Challenges – the HDR Technology

• Most annoying issues (latency, session setup time, support for small packets, slow uplink, lack of QoS, lack of multicast ) have been already addressed in the Rev. A of the standard.

• There are some additional problems related to the EV-DO only scenario.

• Current releases of some value added components – most notably Qchat and aGPS do rely on IS-41 signalling to work. Lack of that signalling system prevents deployment in pure EV-DO network - this is going to be addressed by upcoming revisions either.

• There is no intelligent system to distribute load among several carriers – just a random hash

• Terminal authentication standard leaves some open issues related to ESN vs NAI verification.

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450 MHz – A Double Edged Sword

• The real benefit of 450 MHz is in scalability rather than in mere low number of base station.

• In a successful (and thus heavily populated and loaded) network the number of base stations depends on required capacity irrespectively of frequency in most scenarios

• A NMT allocation of 2x4.5 MHz allows for three carriers and guard bands. That means 3s3c –> 9 sectors per site generating 11 Mbps of sustained traffic with peaks up to 20 Mbps. While the cell diameter can easily be say 20 km, the data density of about 10 kbps per square km would be insufficient for most European demographics.

• 450 MHz propagation makes it extremely difficult to comply with international cross/border frequency coordination agreements – in particular with the Vienna/Berlin treaty.

• 450 allocation – despite being commonly discussed as a single band – comes in different subclasses with shifted frequencies. That adds further challenges to terminal procurement and roaming.

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Eurotel EV-DO 450 Experience Conclusions

• EV-DO technology gives realistic and commercially viable tool to deploy a mobile broadband service in the 450 band

• Structuring the EV-DO 450 service as complement to GSM/UMTS providing data connectivity to notebooks and computers rather than to handheld phones is a new concept allowing Eurotel to overcome inherent limitations of the 450 MHz terminal market.

• While head-to-head competition to aDSL soon exposes EV-DO technical limits there are significant market opportunities in complementing the fixed connection with mobile and yet broadbandalternative.

• Results of the first month of real service operation are exceeding plan expectations and Eurotel believes that the service will continue to gain market share and inspire creativity of customers and business partners providing a rich variety of add-on options on the top of Eurotel Data Expres mobile connectivity.