Jack Mar – President, CDMA2000 Division

CDMA2000 - All IP NGN SolutionCDMA2000 - All IP NGN Solution

UTStarcom Corporate Profile

Headquarter: Alameda, California, USA

No. of Employees: 6,000

2003 Revenue: $1.9 B

2004 Revenue Forecast: $2.8 B

Products

• IPAS Wireless Network Solution – PHS Technology

Broadband:

Wireless: • WCDMA• CDMA2000• TDCDMA

• IPDSLAM• GePON• IPTV Media Server• Voice BB

Terminals: • PHS, GSM, CDMA, VoIP

IPAS:

MovingMedia2000

Transmission

Network

MSCServer

HLR/AC

SignalingServer

SignalingGateway

Media Gateway

MediaServer

PrepaidServer

PDSN/HA

IWF

Core Network

UMS

Mobile & Fixed Terminals

• 800 MHz.• 1900 MHz.• 450 MHz.

CDMA RAN

• CDMA20001X

• CDMA2000 EVDO

UTStarcom - End to End CDMA2000 Solution

Market FocusMarket Focus

• Low Density/Rural

• Enterprise Campus

Market Segments:

All IP CDMA Network Solution

And Applications

TDM

Network

Mobility Core Network

PSTN

MSC

MSC

AC

HLR

SMSC

SCP

VMS

PDSN

OTA

BSC

BSC

Transmission NetworkRadio Access Network

Basestation

Traditional Mobile NetworkTraditional Mobile Network

LocalPSTN

CDMA BTS

PacketNetwork

Wireless Local Service

Rural Communities

IMG

LocalPSTN

CDMA BTS

PacketNetwork

Wireless Local Service

Rural Communities

Packet Network

All IP CDMA NGN All IP CDMA NGN -- Solution for Rural ServiceSolution for Rural Service

Mobility Core NetworkDistributed Rural Wireless Access Networks

ISUP/SS7 E1

Managed

Packet

Network

IMGIMG

PSTN

MW, Fiber and Satellite

Voice Packet

Packet

Packet

MSCServer

PLMN

ISUP–MAP/SS7 E1

Signaling

CDMA BTS

LAN

Enterprise/Campus

IMG

PSTN

CDMA BTS

LAN

Enterprise/Campus

Packet Network

All IPAll IP CDMA NGN CDMA NGN -- Enterprise SolutionEnterprise Solution

Mobility Core NetworkDistributed Enterprise Networks

ISUP/SS7 E1

Managed

Packet

Network

IMGIMG

PSTN

MW, Fiber and Satellite

Voice Packet

Packet

Packet

MSCServer

PLMN

ISUP–MAP/SS7 E1

Signaling

PBX

Wireless Enterprise Service

Value Proposition - Transmission Cost Savings

TraditionalBandwidth Required: 22 T1

Annual cost $1,056,000

MSCServer

IMG

PSTN

LocalPSTN

iCell

IMG

Managed

Packet Network

563Kps

UTStarcom’s All IP NetworkBandwidth Required: Partial T1

Annual cost $17,592

A transmission cost comparison of UTStarcom’s All IP NGN vs. traditional wireless solutions indicates potential savings of 98%.

BSCPSTN

5 T1

17 T1

BTS

LocalPSTN

MSC

Value Position - Solution

• Cost Effective Mobile/Fixed Network Solution•

- Reduce Infrastructure Cost

- Eliminate the need for backhaul

- Efficient bandwidth usage

- Adaptable for all Transmission networks including satellite

- 3GPP2 Network Compatibility

- Next Generation Network Technology

• Ideal Markets - Exceptionally Well Suited for:

- Rural/Low Density

- Wireless Enterprise/Campus

Current Service Applications:

• Rural/Low Density

• Enterprise/Campus

New Service Applications:

• Aviation/Marine

• Rapid Deployment/Disaster Recovery

All IP CDMA Network ApplicationsAll IP CDMA Network Applications

Qualcomm American Airline in Flight DemoQualcomm American Airline in Flight Demo

CDMA BTS

LAN

Qualcomm San Diego /Campus

PSTN PBX

MSCServer

To Pico BTS in plan

e via S

atellite

IMG

To San Diego via Satellite

CDMA BTS

On Board AA

San Diego Dallas

CDMA BTS

LAN

Qualcomm San Diego /Campus

PSTNPBX

MediaServer

To Pico BTS in plane via S

atellite

IMG

To San Diego via Satellite

CDMA BTS

On Board AA

MSCServer

To Sprint HLR

GlobalstarSat Modem

GlobalstarSat Modem

Aviation and Marine Global Networks

Rapid Deployment / Disaster RecoveryRapid Deployment / Disaster Recovery

Packet Network

All IP CDMA NGN All IP CDMA NGN -- Enterprise Solution IP Phone SupportEnterprise Solution IP Phone Support

Managed

Packet

Network

MW, Fiber and Satellite

CDMA BTS

LAN

Enterprise/Campus

Wireless Enterprise Service

Wi Fi

IP Phone

Wi Fi Terminals

CDMA Enabled WiFi

CDMA Enabled IP Phone

Mobility

Network

OpEx Analysis – Rural Application

TDM vs All IP NGN

IMG

LocalPSTN

IMG

LocalPSTN

IMG

LocalPSTN

IMG

LocalPSTN

IMG

MSCServer

PLMN

Managed

Packet

Network

A

B

C

D

E

Network ModelNetwork Model

Assumptions:

• Local Traffic (L-M, M-L,): @40%

• LD Traffic: @60%

• Satellite Transmission Cost: $10,000 per E1 per month

• TDM Traffic: Calculated based on ADPCM 32K per channel (60 calls per

E1)

• Local Traffic (L-M, M-L,): @40%

• LD Traffic: @60%

• Satellite Transmission Cost: $10,000 per E1 per month

• TDM Traffic: Calculated based on ADPCM 32K per channel (60 calls per

E1)

Network ModelNetwork Model

OpEx Savings

Transmission Backhaul Cost

Traditonal Solution: $842,340

UTStarcom All IP: $120,000

Savings: $722,340

Region A

Transmission Backhaul Cost

Traditonal Solution: $939,120

UTStarcom All IP: $240,000

Savings: $699,120

OpEx Savings

Region B

OpEx Savings

Transmission Backhaul Cost

Traditonal Solution: $1,443,510

UTStarcom All IP: $240,000

Savings: $1,203,510

Region C

Transmission Backhaul Cost

Traditonal Solution: $1,540,240

UTStarcom All IP: $360,000

Savings: $1,180,290

Region D

OpEx Savings

Transmission Backhaul Cost

Traditonal Solution:

UTStarcom All IP:

Savings: Est. $2-3M

Region E

OpEx Savings

Region A

Savings: $722,340

Region A

Savings: $722,340

Region C

Savings: $699,120

Region C

Savings: $699,120

Region B

Savings: $1,203,510

Region B

Savings: $1,203,510

Region D

Savings:$1,180,290

Region D

Savings:$1,180,290

Region E

Savings: Est. $2M

Region E

Savings: Est. $2M

OpEx Savings

Overall Annual Transmission Savings: $5M+

Thank You!