Industry News

TRICOM Launches PCS Offering; Announces Cellular Market Share Leadership

SANTO DOMINGO, Dominican Republic, Apr. 30, 1999 -- TRICOM announced today the launching of its Millennium PCS digital wireless service. The service will utilize CDMA technology enabling cellular customers in the Dominican Republic to enjoy unmatched sound clarity and call quality.

The announcement marks the completion of the first phase of TRICOM's PCS deployment, which will initially serve 80% of the nation's capital city of Santo Domingo, covering a population of approximately 2.5 million people. The second phase of the Company's digital mobile expansion program is scheduled to be completed by the end of the second quarter of 1999, expanding coverage to five additional cities and addressing a total population of over 4 million.

Arturo Pellerano, Chairman and CEO of TRICOM, commented, "We are very pleased to add yet another innovative service to our product line. Our aim is to provide our customers with a state-of-the-art, high-quality, digital service that is second to none. Our Millennium will offer our customers a combination of value, voice clarity, and the most extensive coverage in the nation."

TRICOM will offer a variety of custom-tailored packages designed to better serve its customers' digital communication needs. To help promote its Millennium PCS digital wireless service, the Company, in a joint-promotion with a North American tour agency, will offer a two-person three-day, Caribbean cruise to everyone who subscribes to this service. The PCS service is expected to further boost the Company's successful cellular program.

"The introduction of our PCS offering will help us strengthen our position as the leading cellular provider in the country," added Pellerano. Pellerano went on to mention that TRICOM captured 89% of the Dominican cellular market growth in 1998, signing up over 67,000 new subscribers, and positioning the Company as the leading wireless provider, with a 52% share of the market.

The technology underlying the Company's PCS service is Code Division Multiple Access (CDMA IS-95), operating in the 1900 MHz frequency. This technology provides for added security and privacy versus traditional analog systems, also offering greater capacity. The network equipment, consisting of a EMX-5000 switch and 51 cell sites for the first phase, is provided by Motorola, with Qualcomm manufactured handsets.

Millennium customers will be able to receive all of the benefits related to a digital service, including digital messaging, caller ID and voicemail. In addition, TRICOM will offer a dual-band service, allowing customers to use their mobile phones nationwide over both digital and analog networks.

SK Telecom unveils high-speed wireless data service; Develops first high-speed Internet gateway system in Korea - Cut rates by doubling the transmission speed

April 29, 1999 -- High-speed wireless data service that allows Internet access anywhere anytime is now available. SK Telecom said today that it will start high-speed wireless Internet service (free Internet service) from May 1, and the new service will double the current speed of 14.4Kbps as the company applies its new high-speed Internet gateway systems to the wireless data transmission network of Speed 011 cellular service.

The high-speed Internet gateway system enables Internet access at high speed in an wireless environment and offers such major features as regular caching, text compressing and image conversion, dramatically improving the transmission speed on the mobile service network. In addition, the system offers "intelligent" services that allow users to choose features appropriate to their individual communications environment or optimize functions for a specific type of communications terminal such as smart phones, PDA and notebook PCs. SK Telecom is known to be the first company in Korea to provide services using the system. The company started working on the system in last October and succeeded in building it based on its own technology. Anyone who is using a commercial Web browser on his or her notebook PCs, smart phones or PDA can now use the service.

Speed 011 users subscribing to this service can enjoy free access to the Internet with a click on the mouse while they are on the move and can also benefit from the reduced service charges as the transmission speed improves.

Thanks to the new system, Speed 011 users will enjoy additional benefits as follows:
1. Free internet access with a click on the mouse : Users can download SK Telecom's Internet access program 011 Access One Click (also free) at www.jubsok.com and install it on their notebook PCs. This program will allow users to access the Internet with a click on the mouse through mobile wireless data network by automatically activating their Web browser. SK Telecom's high-speed Internet gateway system will enable users to enjoy free and easy Internet access.
2. Improved access speed : The transmission speed between mobile base stations and mobile handsets will be dramatically improved thanks to the technologies for data compression, conversion and recovery. In addition, while using the Internet, the service minimizes the time needed to access the Web contents allowing users to enjoy quick Internet service.
3. Menu-based easy internet surfing : Considering that the mobile terminals such as PDA and smart phones have limitations as data-entering devices, SK Telecom offers an access page that includes a set of icons representing Web sites users frequently visits, enabling easy Internet surfing.
4. Optimization of services for a variety of mobile communications devices - notebook PCs, PDA and smart phones : The new service allows users to choose the screen size, LCD resolution or data processing capacity appropriate for their devices so that they can view the Web contents in their best condition.
5. Reduced service charges as the transmission speed improves : The improved transmission speed helps users save their communications costs. SK Telecom says that it will lower the wireless data service rates and introduce a new flat rate program in May. Users can use the service by downloading 011 Access One Click program at SK Telecom Wireless Data Service Web page www.jubsok.com and install it on their notebook PCs. The Web browser must be Explorer 4.0, Netscape 4.0 or their higher versions. SK Telecom said, "The company has finalized its mid- and long-term development plan to deliver wireless data transmission service at 64Kbps in the third quarter and upgrade it to 144Kbps by 2000."

Telgua Launches PCS Using cdmaOne Digital Wireless Solution From Nortel Networks

GUATEMALA CITY, Guatemala, Apr. 28, 1999 -- Telecomunicaciones de Guatemala S. A. (Telgua) today launched PCS Digital, the first company in Guatemala to offer Personal Communications Services (PCS).

This new network uses an integrated 1900 MHz cdmaOne* mobile wireless solution from Nortel Networks* [NYSE: NT/TSE: NTL]. This network represents the first phases of a contract signed last year, and underscores Telgua's aggressive effort to address Guatemala's significant pent up demand for modern telephone service.

This network enables Telgua to provide voice, data and enhanced calling services to new subscribers in the cities of Guatemala City and Antigua and in the future, in key regions throughout Guatemala including Puerto Barrios, Quetzaltenango, Escuintla and Puerto Quetzal.

Sprint, Nortel Networks Demonstrate High-Speed Wireless Internet Data, Video Services Delivered 25 Times Faster Using 3G Radio Technology

DALLAS, Apr. 28, 1999 -- Sprint's wireless division and Nortel Networks* [NYSE: NT/TSE: NTL] have provided a glimpse of future Wireless Internet services by demonstrating high-speed data, voice and video applications using CDMA2000* third generation (3G) radio technology.

Staged recently at the Nortel Networks Wireless Solutions Lab in Richardson, Texas, the demonstration included voice over IP (Internet Protocol), web browsing, data transfers and video conferencing at speeds up to 384 kilobits per second (kbps) - more than 25 times faster than today's typical 14.4 kbps wireless data services.

This was accomplished using an advanced wireless system prototype using Nortel Networks Metro Cell modular CDMA base stations, and Nortel Networks wideband software radio technology based on 3XRTT - phase two of the CDMA2000 3G evolution.

"This shows how our Unified Networks* solutions can seamlessly deliver voice, video and data - and offer new sources of revenue for operators like Sprint - through a cost-effective path from today's CDMA technology to CDMA2000," said Richard Lowe, vice-president and general manager, Wireless Solutions, Nortel Networks.

"Sprint PCS is dedicated to providing its customers with high-speed wireless data services," said Oliver Valente, vice-president, technology and advanced systems development, Sprint PCS. "As the nation's largest all-digital, nationwide cdmaOne* PCS provider, Sprint PCS is in a unique position to help drive the development of this technology to best serve the future wireless needs of its consumer and business users. Nortel Networks is a key player in making sure we reach our goals."

Sprint Announces Contract with Lucent Technologies to Expand Nationwide PCS Wireless Network

Contract Worth at Least $780 Million Over Three Years

KANSAS CITY, Mo., Apr. 21, 1999 -- Sprint today announced it has awarded Lucent Technologies (NYSE: LU) a new three-year contract worth at least $780 million to supply equipment and services for the next phase of Sprint PCS' nationwide wireless network development and expansion. The contract is in addition to the previously announced $2.5 billion in contracts between the two companies for the first two phases of Sprint PCS' national roll-out of its 100-percent digital, 100-percent PCS nationwide wireless network.

Under the new contract, Lucent will provide additional equipment and services that will enable Sprint PCS to expand coverage and increase network capacity to meet rapidly growing customer demand. In the first quarter of this year, Sprint PCS recorded the second largest quarter for subscriber growth in U.S. wireless industry history. This followed the company's U.S. wireless industry record in the fourth quarter of last year for the most new subscribers added in any one quarter.

Sprint and Lucent Announce Contract
"The Sprint PCS network is among the largest, most sophisticated and feature-rich wireless networks in the world," said Keith Paglusch, senior vice president of Operations for Sprint PCS. "Almost from our inception more than four years ago, Lucent Technologies has proven itself as one of our highly valued technology vendors. We look forward to working with Lucent in the future to expand the reach of Sprint PCS and the many technical advances coming to our network."

Similar to its previous two agreements with Sprint PCS, Lucent will supply and install CDMA (Code Division Multiple Access) network infrastructure equipment and services, including base stations and switches. The agreement also provides upgrades for Lucent's wireless intelligent network software, enhancing Sprint PCS' existing network services such as Flexible Alerting, Stand-alone Home Location Register (SHLR) and Over-the-Air Service Activation. Sprint also will continue to receive Lucent Technologies NetCare® professional and network support services.

Nina Aversano, president of Lucent's North America Service Provider business, said: "Lucent is proud of this latest Sprint PCS contract and views it as a strong vote of confidence from a demanding, sophisticated customer. The Lucent team is committed to developing and implementing the most advanced CDMA technology on the market today so Sprint PCS can offer its customers reliable, quality wireless service enhanced by such useful features as Over-the-Air Service Activation and Flexible Alerting."

Leap Wireless International Operating Company Metrosvyaz Launches Affordable Wireless Phone Service in its First Russian Market

*Wireless Carrier Metrosvyaz's Joint Ventures Expect to Provide Service in Eight Russian Regions in 1999

SAN DIEGO, Apr. 19, 1999 -- Wireless communications carrier Leap Wireless International, Inc. today announced that a joint venture formed by Metrosvyaz has launched state-of-the-art Wireless Local Loop (WLL) telephone service in its first Russian market. Metrosvyaz, a wireless carrier and an operating company partially owned by Leap, forms joint ventures with local telephone operators in Russia to bring high-quality, affordable wireless communications to some of the millions of people who have been waiting for phone lines. The launch, which is expected to add up to 10,000 new phone lines initially in the area around St. Petersburg, is the first of at least eight regions in which Metrosvyaz joint ventures plan to provide service in 1999. The next operations scheduled to launch are in Tartarstan, Saratov and Krasnodar. Metrosvyaz joint ventures will target Russian families who want basic phone service as well as the business community.

"We believe the demand for phone lines in Russia remains strong, and improving infrastructure-including telecommunications, transportation and power-is the cornerstone to building a healthy, stable economy," said Tom Bernard, executive vice president of Leap and a director of Metrosvyaz.

"Through Metrosvyaz, Leap is dedicated to adding much-needed phone lines more quickly and cost-effectively than expanding Russia's wireline network." In Russia, teledensity - the number of phone lines per 100 inhabitants- is only 19%, compared to 64% in the United States. The Russian government has set an aggressive goal of adding 30 million telephone lines over the next 10 years. To help meet this demand, Metrosvyaz offers a total wireless telecommunications solution to local telephone operators with Code Division Multiple Access (CDMA) licenses. The Metrosvyaz solution encompasses every aspect of the business from network planning, financing, installation and operation to business functions such as customer care and billing.

In a typical joint venture Metrosvyaz and the government news agency ITAR-TASS hold 50% ownership, while 50% is held by the local telephone operator.

"For local operators, the ability to offer new phone lines requires access to capital and the right technology," said Anthony N. Georgiou, chairman of Metrosvyaz. "Metrosvyaz joint ventures give progressive local operators a highly effective means of extending their telephone networks with digital wireless technology."

Metrosvyaz is forming or in negotiations to form joint ventures in 26 regions in Russia. Metrosvyaz plans to raise and invest $500 million in the joint ventures in the next two years, of which $175 million has been committed. Leap is providing $72.5 million in working capital. QUALCOMM Incorporated is the equipment supplier for the first eight regions.

Metrosvyaz is in discussions with other vendors and strategic investors to obtain equipment and financing commitments for future rollouts.

Metrosvyaz's service currently is priced in rubles, but indexed to U.S. dollars with each monthly bill. Metrosvyaz keeps costs low by using advanced CDMA WLL technology, where a wireless link is used to replace traditional copper line to connect apartment buildings, homes or businesses to the central switching office.

About Metrosvyaz
Metrosvyaz, an operating company and a wireless carrier, is dedicated to bringing high-quality, affordable wireless communications to millions of Russians who have been waiting for phone lines with its state-of-the-art Wireless Local Loop phone service. Metrosvyaz partners with local telephone operators to add much-needed telephone lines more quickly and cost-effectively than expanding Russia's wireline network.

Metrosvyaz was formed in 1996 in close cooperation with Russian telephone holding company Svyazinvest to make a significant contribution to Russian telecommunications infrastructure under the initiative of the People's Telephone Programme. The shareholders in Metrosvyaz are Teletal, a company affiliated with the official Russian news agency ITAR-TASS, Leap and Tiller International Limited, a privately held company with offices in Moscow and London with diversified operations including telecommunications, data communications and financial services.

Through a holding company, Leap indirectly owns 35% of Metrosvyaz.

Leap Wireless International Agrees to Pay $18.7 Million for 36 Markets Won in U.S. Government's PCS Reauction

*Low Price per POP to Facilitate Deployment of Leap's Unique Cricket Concept

SAN DIEGO, Apr. 15, 1999 -- Wireless communications carrier Leap Wireless International, Inc. today announced that it was the highest bidder on 36 licenses covering 11.2 million potential customers (POPs) for $18.7 million, or $1.66 per POP, in the U.S. government's reauction of PCS spectrum. The low price per potential customer is expected to facilitate Leap's deployment of its unique Cricket service, which brings wireless to an untapped consumer market by offering unlimited local wireless calls for a low, flat monthly rate. Leap is awaiting a ruling from the Federal Communications Commission (FCC) on whether it qualifies as a designated entity, a status that would enable Leap to acquire licenses for PCS spectrum in the C and F blocks. The licenses can transfer to Leap only if it qualifies as a designated entity and obtains approval of its long form application with respect to the auction.

"These acquisitions of spectrum in mid-sized markets will enable Leap to roll out our new Cricket concept bringing affordable, simple wireless communications to people in select markets across the United States," said Harvey P. White, chairman and CEO of Leap. In March, Leap and Chase Telecommunications Inc. launched the Cricket wireless service in Chattanooga, Tenn. under an agreement that provides ChaseTel's management controls the business until Leap's proposed acquisition of ChaseTel is complete.

The largest markets in which Leap agreed to acquire spectrum are Salt Lake City, Utah (1.3 million POPs), Little Rock, Ark. (852,000 POPs), Tulsa, Okla. (836,000 POPs), Albuquerque, N.M. (688,000 POPs), Tucson, Ariz. (666,000 POPs), Spokane, Wash. (612,000 POPs) and Wichita, Kans. (597,000 POPs). The complete list of Leap's acquisitions includes: Anchorage, Alaska; Blytheville, Fayetteville, Fort Smith, Hot Springs, Little Rock, Pine Bluff and Russellville, Ark.; Nogales and Tucson, Ariz.; Merced, Modesto and Redding, Calif.; Pueblo, Colo.; Boise, Idaho Falls, Lewiston and Twin Falls, Idaho; Coffeyville and Wichita, Kan.; Bozeman, Mont.; Fargo and Grand Forks, N.D.; Grand Island and North Platte, Neb.; Albuquerque, Gallup and Santa Fe, N.M.; Tulsa, Okla.; Salem, Ore.; Provo and Salt Lake City, Utah; Kenewick, Spokane and Yakima, Wash.; and Casper, Wyo. Note: These POPs are 1990 figures.

Leap Wireless International Reports Results for Second Quarter

* Cricket and PEGASO Launches Exceeding Initial Expectations

SAN DIEGO, Apr. 14, 1999 -- Wireless communications carrier Leap Wireless International, Inc. today reported substantial progress in network deployment and subscriber growth during the second quarter of fiscal year 1999, ended February 28, 1999. By the end of the quarter, Leap's Mexican operating company, PEGASO PCS, had launched service and Leap's operating companies in the U.S. and Chile had reached approximately 32,000 subscribers. Leap's equity share is approximately 13,500 subscribers.

Subscribers at Chilesat PCS, Leap's Chilean operation, grew by 59% during the second quarter to 27,000 subscribers, despite funding issues related to the financial condition of Telex-Chile, Leap's former partner in the operating company. Subscriber numbers do not include PEGASO PCS, which launched commercial service in Tijuana on February 25, 1999.

In January 1999, Leap announced its planned acquisition of Chase Telecommunications, Inc. (ChaseTel), which launched service in Chattanooga, Tenn. last fall. Leap currently owns 7.2% of Chase Telecommunications Holdings, Inc., the parent corporation of ChaseTel. On February 1, 1999, in anticipation of the re-launch of wireless service in conjunction with Leap under the Cricket brand name, ChaseTel ceased selling conventional PCS service. ChaseTel had approximately 4,900 subscribers at that time.

In March, Leap and ChaseTel launched Cricket service in Chattanooga using the ChaseTel infrastructure and under an agreement that provides that ChaseTel's management controls the business until Leap's proposed acquisition of ChaseTel is complete. Targeted to the mass consumer market, Cricket lets customers make unlimited local calls for one low, flat monthly rate. The monthly rate, payable in advance, covers unlimited local calls, a voice mailbox and caller ID.

"The initial consumer response in Chattanooga to Cricket's simple, worry-free wireless service has substantially exceeded our expectations and tells us that we have a product that is in high demand and that we want to expand as quickly as possible. We hope to launch the Cricket concept in a second market by the fall of 1999," stated Harvey White, chairman and CEO of Leap.

Pending approval from the Federal Communications Commission (FCC), Leap will acquire ChaseTel licenses in Tennessee and AirGate licenses in North and South Carolina that will enable Leap to offer Cricket service in other markets. Leap is currently bidding in the federal government's re-auction of PCS spectrum and is exploring the possibility of acquiring additional U.S. spectrum outside of the auction process.

Subsequent to the end of the quarter, PEGASO announced that it had obtained a commitment for a $100 million working capital facility, bringing its total commitments to $1.1 billion in equity, debt and vendor financing. The facility is expected to complete the financing necessary to build out and launch PEGASO's network in Mexico's four largest cities-Tijuana, Mexico City, Monterrey, and Guadalajara.

"Launching commercial service in Mexico was a major milestone for Leap. We believe that PEGASO's 100% digital network, innovative service offerings, and strong marketing and distribution channels make it uniquely positioned to compete aggressively in the Mexican market," White said. "We are excited about the initial reaction in the market to PEGASO's service and expect the third quarter to be marked by strong subscriber growth in Tijuana and continued progress on the build-out of the network into Mexico City, Monterrey, and Guadalajara," Mr. White continued.

Also subsequent to the end of the quarter, Leap announced that it has signed an agreement to increase its ownership of Chilesat Telefonia Personal S.A. (Chilesat PCS) from 50% to 100%. In a $50 million transaction, Leap will purchase the remaining 50% of Chilesat PCS from Telex-Chile, a Chilean telecommunications company, and its affiliate, Chilesat S.A. Leap's purchase of Telex-Chile's interest resolves key issues for Chilesat PCS, which was experiencing short-term funding problems related to Telex-Chile's financial condition.

Upon completion of the acquisition, Leap will take steps to recapitalize Chilesat PCS, increase marketing efforts, and aggressively grow the business. The transaction is subject to certain conditions and is expected to close within a week.

INTERVIEW-Taiwan to get U.S. cell phone standard

By Angus Chuang

TAIPEI, Apr. 14, 1999 (Reuters) -- Taiwan state-owned Chunghwa Telecommunications plans an eventual launch of U.S.-bred CDMA technology in the island's booming mobile phone sector, dominated by the European GSM standard.

"There are still vast opportunities in what is already a competitive market," Chunghwa's Senior Vice President Hsieh Chun-ming told Reuters in a telephone interview.

The Global System for Mobile Communications (GSM) standard is widely used in Asia outside of Japan, but CDMA or Code Division Multiple Access got a boost in March when U.S. officials said China agreed to allow a nationwide rollout to compete with GSM. CDMA technology, said to offer better communication at a low price, shares radio frequencies digitally and allows many users on the network simultaneously.

Hsieh declined to say how much the CDMA system would cost but said it was appropriate for Taiwan's crowded telecommunications market, where Chunghwa and six private vendors launched GSM systems under major liberalisation policies in 1998.

"We have undergone a half year of evaluation which revealed good prospects and maturity of CDMA in terms of technology," he said.

Hsieh said U.S. research estimated global CDMA subscriptions would swell to 65 million by 2000 from 23 million in 1998.

In Taiwan, about five million of the island's 22 million people have mobile phones, 90 percent of which are digital GSM, while 500,000 use earlier-generation analogue technology. Chunghwa hoped to reallocate the radio frequencies used by the analogue system when it was phased out, Hsieh said.

The company has about half of the cellular market but Hsieh said there was still plenty of room to grow.

"It's too early to say the market is tight. With 25 percent annual growth in the telecom market, there's nothing that looks like saturation," he said, calling his growth forecast conservative.

Hsieh said he expected telecom regulators to open the CDMA market to competitive bidding and multiple vendors, meaning a rollout was unlikely before 2002.

Chunghwa has not decided which system supplier to use. CDMA vendors Include Qualcomm (Nasdaq:QCOM - news), Lucent Technologies (NYSE:LU - news) and Motorola (NYSE:MOT - news) of the United States, Nortel Networks (Toronto:NTL.TO - news)(NYSE:NT news) of Canada and Samsung [SAGR.CN] of South Korea.

The Directorate General of Telecommunications said it had set no limits on mobile phone standards, which continue to evolve.

Mobile telephony is one of several sectors parliament opened to private and foreign investment and is dismantling Chunghwa's erstwhile monopoly.

Taiwan set out ground rules on Tuesday for ending Chunghwa's lucrative monopoly on local and long-distance fixed-line telephone service.

cdmaOne* Service Goes Nationwide

Tokyo, Japan, Apr. 13, 1999 -- The DDI CELLULAR Group and IDO are pleased to announce that they will establish nationwide coverage with the advanced cdma One cellular service. The system will become operational at midnight on Wednesday, April 14.

Nationwide cdmaOne Network Completed

1. Background
Developed by the U.S. venture company Qualcomm, cdmaOne (U.S. standard IS-95) is a global cellular system with voice clarity rivaling that of fixed-line telephones. This advanced system also supports high-speed data communications. To date cdmaOne has been introduced on a commercial basis in 36 countries* (as of March 1999, according to the CDG Home Page), including South Korea, the United States, China (Hong Kong), Canada, Australia and Brazil. At the end of 1998 there were 23 million cdmaOne subscribers in the world.

In Japan, the use of cellular phone has undergone dramatic expansion. DDI and IDO saw the need to introduce a new technology that would let them use their spectrum effectively and maintain their long-term competitiveness. After extensive research they decided to offer cdmaOne to their customers in a highly convenient and seamless nationwide system. On March 26, 1997 the two companies signed agreements that provided for the joint introduction of the cdmaOne system.

In October 1997, DDI and IDO formally adopted cdmaOne as their common nationwide brand. This name is in line with the recommendations of the CDMA Development Group (CDG), which was established to promote the technology at an international level. In preparation for the commercial launch of the system, field trials were carried out in the Kansai and Kanto regions. These tests confirmed the superb quality of calls on the new system.

2. Seamless Nationwide Network Service

Three of DDI CELLULAR Group, KANSAI CELLULAR TELEPHONE Co., KYUSHU CELLULAR TELEPHONE Co., and OKINAWA CELLULAR TELEPHONE Co. launched the first commercial cdmaOne services in Japan on July 14, 1998. On March 18, 1999, CHUGOKU CELLULAR TELEPHONE Co., HOKURIKU CELLULAR TELEPHONE Co. and SHIKOKU CELLULAR TELEPHONE Co. also began to offer cdmaOne services.

On April 14, the nationwide network will be complete with the launch of services by IDO, TOHOKU CELLULAR TELEPHONE Co. and HOKKAIDO CELLULAR TELEPHONE Co. People in every part of Japan will be able to enjoy the superior service quality that is a main feature of cdmaOne.

The completion of the nationwide network will create an extended service area encompassing the 23 wards of Tokyo and 652 cities, 1,456 towns and 180 villages throughout Japan. The total population coverage ratio will increase to 95% of Japan. In addition, DDI and IDO have established a seamless service system offering the same service options, charge plans and after-sales services anywhere in Japan.

The DDI CELLULAR Group and IDO will continue to expand the service area and improve quality. The first 64kbps cellular data communications service and international roaming service that enables subscribers to use the same cellular telephone in Japan and overseas are to be introduced at the end of this year. The introduction of these services will further extend the potential of mobile communications and lay the foundations for a new era in telecommunications.

3. Overview of cdmaOne Services

• Features of cdmaOne
• Voice quality rivaling that of fixed-line telephones
• Voice quality approaches that of natural voice. Ambient noise is filtered out and, even when the caller is mobile, calls can be continued without inter ruption.
• Compatibility with high-speed data communications
• Data can be transmitted now at 14.4kbps. A 64kbps packet switching service will be introduced at the end of this year.
• High-quality service provided through nationwide network
• The superb voice quality associated with cdmaOne is available through a seamless nationwide network.
  
• International roaming

Beginning in December 1999, subscribers will be able to use their cdmaOne telephones in South Korea and Hong Kong. The service will be progressively expanded to include other countries, such as the United States and Canada.

Seamless Nationwide Service

New range of cellular telephones
Six new top-of-the-line models have been launched this spring. All combine superb voice quality with compact lightweight design and long battery life. In preparation for the development of commercial products, DDI and IDO have adopted a unified brand and common base designs.

Super-convenient service options available nationwide
Based on the WAP industry standard, the EZweb* and EZaccess** services allow users to send and receive e-mail and access various information sites. In addition, common basic specifications have been developed to provide nationwide access to an easy-to-use system for exchanging short messages.

Expanded service area and superior call quality
The completion of the nationwide network has created an extended service area covering approximately 95% of Japan's population. DDI and IDO will continue to expand the service area and enhance voice quality.

Nationwide after-sales service structure
Subscribers will enjoy ongoing peace of mind, thanks to a nationwide service network. cdmaOne cellular phones can be repaired throughout Japan at service centers established by the DDI CELLULAR Group and IDO.

Seamless charging and service system extended
The Long-Use Discount Service* and the Long-Use Preferential Discount Service** can be applied reciprocally. In addition, users can now choose IDO or DDI Cellular numbers for the Nakayoshi Discount* and Only You* plans, which provide special discounts for calls to specified numbers. Service provided by DDI CELLULAR Group

** Service provided by IDO

4. Developments Relating to cdmaOne

March 26, 1997
DDI and IDO sign a memorandum of cooperation concerning the introduction of the CDMA system (IS-95).

Early August 1997
DDI begins field testing of the CDMA system in Kyoto and Osaka Prefectures.

August 26, 1997
DDI, IDO and STI (South Korea) sign a memorandum of cooperation concerning the CDMA system.

Mid-October 1997
IDO begins field testing of the CDMA system in Tokyo, Saitama and Yamanashi prefectures.

October 30, 1997
cdmaOne is formally adopted as the common brand name for the CDMA system of the DDI CELLULAR Group and IDO.

April 8, 1998
All DDI CELLULAR Group companies and IDO submit applications for changes to their business activities in relation to cdmaOne.

May 18, 1998
DDI and IDO decide to adopt the WAP Internet connection protocol.

May 31, 1998
DDI and IDO establish a joint research facility to study IMT-2000.

July 14, 1998
Kansai Cellular Telephone Co., Kyushu Cellular Telephone Co., and Okinawa Cellular Telephone Co. launch cdmaOne services.

February 17, 1999
A provisional license is obtained for an experimental IMT-2000 radio station.

March 11, 1999
Basic agreements on international roaming are signed with STI (South Korea) and Hutchison (Hong Kong).

March 18, 1999
CHUGOKU CELLULAR TELEPHONE Co., HOKURIKU CELLULAR TELEPHONE Co. and SHIKOKU CELLULAR TELEPHONE Co. launch cdmaOne services.

April 14, 1999
IDO, TOHOKU CELLULAR TELEPHONE Co. and HOKKAIDO CELLULAR TELEPHONE Co. begin to provide cdmaOne services.

Leap Wireless International Signs Agreement to Acquire 100% Ownership of Chilesat PCS

*Leap Plans to Expand Network and Services

SAN DIEGO, Apr. 13, 1999 -- Wireless communications carrier Leap Wireless International, Inc. today announced it has signed an agreement to increase its ownership of Chilesat Telefonia Personal S.A. (Chilesat PCS) from 50% to 100%.

In a $50 million transaction, Leap will purchase the remaining 50% of Chilesat PCS from Telex-Chile, a Chilean telecommunications company, and its affiliate, Chilesat S.A. Chilesat PCS is a Chilean wireless carrier that launched commercial service in September 1998.

Upon completion of the acquisition, Leap will take steps to recapitalize Chilesat PCS, which will allow it to expedite the planned expansion of the network and the services offered to its customers.

Chilesat PCS's nationwide wireless network covers more than 80% of the population in the country of nearly 15 million people.

Chilesat PCS employs nearly 315 people and had 27,000 subscribers as of Feb. 28, 1999, the end of Leap's second quarter of fiscal year 1999. The transaction is subject to certain conditions, including consent of the creditors of Telex-Chile and Chilesat S.A., and is expected to close within the next week. The transaction is structured with a US$28.0 million cash payment and a deferred payment obligation of US$22.0.

"We believe this acquisition will give us the opportunity to more expeditiously develop the potential of Chilesat PCS," said Harvey P. White, Leap's chairman and CEO. "Leap believes in the Chilean wireless market, and we are now able to move forward on our plans to recapitalize Chilesat PCS, improve the network, increase our marketing efforts, and aggressively grow the business." Leap's purchase of Telex-Chile's interest resolves key issues for Chilesat PCS, which was experiencing short-term funding problems related to Telex-Chile's financial condition.

"We are extremely pleased that Leap is taking full ownership of Chilesat PCS," said Richard Sutherland, general manager of Chilesat PCS. "We have had a strong, positive relationship with Leap and anticipate that our relationship will grow even stronger now that Leap will be even more involved in the operation. Leap's marketing, financial and operational strengths will enable us to meet the market demand for high-quality wireless services in Chile."

Wireless Industry Leaders Test SnapTrack Location Technology

Successful Testing of System to Locate 9-1-1 Callers Marks Industry Cooperation

Tampa, Fla., Apr. 12, 1999 -- A group of cdmaOne™ wireless industry leaders including major carriers, handset makers and technology providers today announced the completion of some of the most extensive tests to date of wireless handset technology that can help locate callers in emergency situations. The tests are the culmination of more than one year of work by the group. The companies carried out tests of two different manufacturers' prototype telephones containing SnapTrack's enhanced Global Positioning System (EGPS) technology on two separate wireless networks in Tampa, Fla.

SnapTrack's EGPS technology will help wireless carriers to locate wireless callers requesting 9-1-1 service as mandated by the Federal Communications Commission (FCC) for Oct. 1, 2001. The Tampa tests mark the most advanced testing of handset-based location technology on any digital wireless network. Further prototypes will be tested in coming weeks.

Using prototype handsets from Motorola and Samsung, more than 8,000 test calls were made over a period of days and under a variety of conditions including clear skies, inside moving automobiles, inside homes and large buildings, and in wooded areas. The tests were conducted on GTE Wireless' 800MHz network and on Sprint PCS' 1900MHz network. Preliminary results show SnapTrack typically located callers with an accuracy under 25 meters. In optimal conditions, callers were located within five meters. In calling environments with extreme signal blockage, such as indoors where conventional GPS will not work, SnapTrack located callers within 90 meters, well below the FCC's 125-meter accuracy requirement.

The Tampa trials were conducted under the auspices of the CDMA Development Group's (CDG) Location Technology Team, an effort initiated by the international trade association of cdmaOne operators and manufacturers to examine different location technology approaches for meeting the FCC's wireless location mandate. The SnapTrack CDMA Test Group, one of the CDG trial teams, carried out the tests. Carrier members of the test group include AirTouch Communications, Ameritech Cellular, Bell Mobility, GTE Wireless, PrimeCo Personal Communications, Sprint PCS and US WEST Wireless. Participating wireless telephone makers include Denso, Fujitsu, Hyundai, LGIC, Motorola, and Samsung. The group also includes chipset makers Texas Instruments (TI) and VLSI Technology.

"The CDG and its members realize the importance of supporting public safety in locating wireless callers to 9-1-1, so we established several test groups to trial a number of technology solutions," said Perry LaForge, executive director of the CDG. "These test results have given the wireless community vital information for evaluating the performance and practicality of this technology, and we look forward to the continued success of all the trial teams."

"EGPS set new performance standards for wireless location technology in Tampa," said Steve Poizner, president of SnapTrack. "In this and every prior test, SnapTrack delivered accuracy and sensitivity levels unmatched by competing technologies -- the kind of accuracy carriers must have in order to deliver not only 9-1-1, but other location-based services."

A variety of miniature antennae also are being tested with each phone, and testing is conducted at all times of day in order to measure effects from GPS satellite constellation variation. Tests of prototype phones from LGIC and Hyundai/Cyberlane will be conducted shortly. Summary test results will be presented to the entire CDG Location Technology Team in May.

"Each member of the test group did their part to make these tests a reality, but handset makers such as Motorola and Samsung deserve special recognition for developing sophisticated prototypes under very tight time constraints," said Craig Farrill, vice president of strategic technology for AirTouch Communications.

"Motorola is proud to participate in these leading-edge location technology trials," said Dr. Valy Lev, corporate vice president and director of Advanced Technologies and Software Operations for Motorola's Personal Communications Sector. "Such trials will help Motorola provide location-enabled handsets in a timely fashion to meet customer and industry requirements."

"Just as Sprint PCS has shown leadership in building its nationwide CDMA network, we are proud to work with our fellow CDG members and SnapTrack in leading the way towards the testing and implementation of new and important location services" said Oliver Valente, vice president of technology and advanced systems development for Sprint PCS. "Any technology that enhances the safety and peace of mind of our subscribers when they use 9-1-1 is a welcome addition to our wireless services."

"These tests demonstrate that the wireless industry is serious about moving forward with location technology, raising the possibility that location technology will be implemented before the FCC deadline," said Joe Hanna, president-elect of the Association of Public Safety Communications Officers. "That's encouraging because early implementation of wireless location technology would benefit everyone."

"GTE Wireless is evaluating all location technology options to make sure that customers get the most accurate and cost efficient service available," said Dan Mean, vice president of technology and operations support for GTE Wireless." In the event of an emergency, when every minute counts, we want to help get public safety personnel to the scene as quickly and efficiently as possible."

SnapTrack technology requires no additional cell sites. The location solution is designed to have a minimal impact on handset cost and form factor, while requiring only minimal software changes to existing network equipment. The EGPS architecture enables location determination in a wide variety of environments where conventional GPS operates either extremely poorly or not at all.

SK Telecom launches mobile internet service "011 CyberNET" - Information search, games, entertainment, posting messages, Internet access, online communication and e-mail

April 8, 1999 -- SK Telecom, provider of cellular service and multimedia Internet/online communication service Netsgo, said today that it is inaugurating on April 12 011 CyberNET service allowing Internet access on cellular phone.

011 CyberNET is a real-time-based interactive information access service and allows users to access databases and download menu program to retrieve data or store documents drawn up on handsets in databases using cellular phone.

The company said it has recently increased its SMS facilities to a total of four units to provide an enhanced interactive data service 011 CyberNET. It also said that it "succeeded in eliminating delays in sending replies that frequently appear in data transmission and retrieval services currently available by other mobile service providers," and "SK Telecom's new service enables real time data access."

011 CyberNET offers text-based data retrieved from contents available on the Internet through Netsgo and other online services. The contents available include information on places, events and restaurants worth visiting, sports scores, movies, stock quotes and coupons. Netizens can also send and receive email or swap their opinions using online bulletin boards.

Subscribers can use the service by selecting CyberNET in the menu on their mobile handsets or pressing the access code for the service. This makes the service menu appear on the screen that allows users to surf the Net on the phone just like they do on their PCs by clicking on the menu.

Only users that have handsets with CyberNET feature can use the service. All new models for Speed 011 including Samsung's SCH-6200 that will become available from April 12 will have the feature, and subscribers with old models can use CyberNET service by having their handsets upgraded free of charge in May.

Sprint and Samsung Announce Availability of Dual-Band, Voice-Activated Dialing PCS Phone

KANSAS CITY, Mo., Apr. 7, 1999 -- Sprint and Samsung Telecommunications America (STA), Inc. today announced the availability of the SCH-1500 PCS phone providing callers a new way to enjoy the clarity and sound quality of digital wireless service with the assurance of uninterrupted coverage no matter where they travel. The SCH-1500 is a dual-band, dual-mode handset that combines voice-activated dialing (while in digital mode) to give callers the greatest level of calling ease possible. The phone will be available this month at RadioShack stores nationwide. The SCH-1500 is packaged with a standard lithium ion battery and dual-slot desktop charger and has a suggested retail price is $129.99. Sprint PCS is the nation's largest 100 percent digital, 100 percent PCS network already serving more than 280 metropolitan markets nationwide.

"We're pleased to add another innovative, feature-rich Samsung phone to our product line," said Charles Levine, chief sales and marketing officer for Sprint PCS. "The Samsung SCH-1500 offers the convenience of Samsung's innovative voice-activated dialing feature. When combined with the benefits of the Sprint PCS nationwide network, the dual-band SCH-1500 is sure to be a hit with consumers."

"At Samsung, we build phones to fit lifestyles, and that means giving callers all of the features they need to make their lives easier," said Peter Skarzynski, vice president of wireless sales and marketing at STA. "Customers trust Samsung to deliver the highest quality for the best value."

In the digital mode, the SCH-1500 allows callers take advantage of Samsung's innovative voice-activated dialing feature for up to 20 numbers. The SCH-1500 includes one-touch dialing for nine numbers, two-touch dialing for 90 numbers and a scratch pad for storing numbers quickly. With this phone, customers can receive all of the benefits of the Sprint PCS nationwide network, including short messaging services, Caller ID and Voicemail. The SCH-1500 is loaded with many feature-rich functions including vibrating alert, ringer mute and nine ringing tones and four melody tones. The phone's large buttons and five-line LCD screen - four text lines and one icon line - make input exceptionally easy.

In digital mode, the SCH-1500's standard lithium ion battery provides approximately three hours of continuous talk time or 50 hours of stand-by time. In analog mode, the battery provides approximately two hours continuous talk time or 14 hours of stand-by time. The optional extended lithium ion battery (purchased separately) provides approximately four hours of continuous talk time or 95 hours of stand-by in digital mode; or 2.5 hours of talk time or 19 hours of stand-by time in analog mode. The compact, lightweight phone weighs 7.7 ounces with the standard lithium ion battery and 7.9 ounces with the extended lithium ion battery. Its dimensions are 5.7"H x 2.1"W x 1.0"D.

Mobile Phones Move Into 3rd Place Among Korean Exports

Seoul, Apr. 6, 1999 -- Mobile phones surged into third place among South Korea's exports, as the nation's top cellular phone makers, including LG Information & Communications Co. and Samsung Electronics Co., stepped up their efforts to grab a share of the market.

In the first two months of 1999, mobile phone exports rose 41 percent from a year earlier to $390 million, exceeding combined exports of color TV sets, microwave ovens, VCRs and refrigerators and ranked third after semiconductors and liquid crystal displays, the Electronics Industry Association of Korea said.

LG Information & Communications Co., one of Korea's top three cellular phone exporters, said it will hire about 300 people this month, reflecting the company's strategy to focus on mobile phone exports. The new recruits include researchers and sales people to market the company's handsets in North and South Americas, LG Information said.

"We need to allocate more resources overseas -- this clearly is the place to be," said Kim In Gwon, a spokesman for LG Information. ``As a global leader, you can make more money selling these handsets than selling refrigerators."

Exports to Triple Kim said the company expects to triple its mobile phone exports to $350 million this year.

LG has tentatively set an advertising budget of about $6 million to market its products in the U.S. The company is selling its handsets under brand names of AirTouch Communications Inc. and others, but it hopes to sell them under names of both LG and its providers this year.

Samsung Electronics Co., also one of the nation's top three mobile phone exporters, is aiming to double its exports to $900 million this year, betting on growing markets in Australia, China and Brazil.

The world's largest memory chipmaker is the official sponsor of mobile phones for the 2000 Sydney Olympics, a costly project the company took to step up its exports in Australia. Samsung's mobile phone exports accounted for 30 percent of its total mobile phone sales last year. It plans to increase that portion to over 40 percent this year.

China Market
Analysts expect the company to benefit from China's move to open its market wider to suppliers of CDMA technology. At present, China's rapidly expanding mobile telephone market is dominated by the European standard, GSM. Besides handsets, Samsung provides mobile phone technology based on CDMA or code division multiple access system as well as GSM or global system for mobile telecommunications.

"We're betting on two things -- CDMA and China,'' said James Chung, a Samsung Electronics spokesman.

Samsung expects subscribers of CDMA-based mobile phones to total 140 million by 2003, accounting for 20 percent of the total global subscribers. They now account for only 7 percent.

Lucent Inc. and Motorola Inc. last week signed contracts valued at about $20 million to expand mobile telephone network in China based on the American CDMA standard.

Hyundai Electronics Industries Co., another major mobile phone exporter, expects its exports to rise to $380 million this year from $7.5 million last year.

Last year, Korea's mobile phone exports increased 68 percent from 1997 to $1.42 billion.

Vendor News

TAS Debuts New 4500 FLEX5 RF Channel Emulator with Dynamic Environment Emulation

Eatontown, NJ, Apr. 19, 1999 -- Telecom Analysis Systems, Inc. (TAS), a leading provider of wireless communications test equipment, announces its newest generation RF Channel Emulator, the TAS 4500 FLEX5. The new FLEX5 platform is a 26-MHz bandwidth system, optimized to meet stringent performance requirements for bandwidth applications and for testing third generation (3G) wireless communications products.

The 4500 FLEX5 features advanced capabilities including Dynamic Environment Emulation (DEE), which allows time-vary emulation of real world channel conditions in the lab. DEE gives complete control over test channel conditions by enabling users to synthesize complex, time-varying propagation environments or to playback large files imported from actual field measurements. These files can contain an extensive collection of drive test scenarios, greatly enhancing design verification capabilities.

Dynamic Environment Emulation varies key channel parameters including Doppler shift, delay spread, path loss, modulation type and channel loss, at precise time intervals. By changing channel conditions rapidly, DEE provides these test conditions necessary to fully evaluate time-sensitive communications algorithms such as rake receiver finger management or cellular handoff schemes. For comprehensive system test applications, DEE synchronizes fading and multipath characteristics across multiple FLEX 5 instruments. This results in precise cause-and-effect correlation between channel conditions and system performance. Innovations such as Dynamic Environment Emulation help reduce design costs by moving expensive fields tests into a laboratory setting.

"Our customers trust the reliability and performance of our RF Channel Emulators. The new FLEX5 is a direct response to their needs for greater versatility and flexibility as they design and deploy next-generation wireless communications products," comments Rob Van Brunt, TAS Product Manager of Wireless Test Instruments. "Using the 4500 FLEX5, our customers can thoroughly test new products in their labs with greater assurance of meeting and exceeding field performance requirements. The ability to isolate design flaws at the earliest stages of product development reduces costs and time-to-market, which is critical for maintaining a competitive edge in the fast-paced wireless communications market."

The integrated, modular architecture of the FLEX5 covers a wide range of wireless transceivers operating in the 25 - 3000 MHz range. Built-in local oscillators simplify test setup and operation. All FLEX5 models feature convenient front panel controls as well as TASKIT® software for Windows PC control.

The TAS 4500 FLEX5 can be used alone or in combination with other instruments to test RF communications for cellular and PCS systems, mobile radio, audio/video broadcast, antenna array systems, wireless LAN, wireless local loop (WLL), cable modem, and cordless telephones. Often used in conjunction with the TAS 4600A Noise & Interference Emulator and TASKIT/CDMA software, TAS delivers a unique and powerful comprehensive test system for CDMA mobile phones. Application-specific configured systems are also available for testing and smart antenna and antenna diversity systems using TASKIT/Smart Antenna software.

For more information on the TAS 4500 FLEX5, contact Rob Van Brunt at (732)544-8700) or via e-mail at rvb@taskit.com. Lead time is four to six weeks. Pricing is available upon request.

Nortel Networks to Build Digital Wireless Network Equipment in China Equity Investment, Contracts Coincide with Visit of Chinese Premier Zhu Rongji

OTTAWA, Apr. 16, 1999 -- Nortel Networks will build digital wireless network infrastructure equipment in China to expand its presence in the burgeoning Chinese wireless market.

In a series of agreements signed in conjunction with today's visit by Chinese Premier Zhu Rongji, Nortel Networks concluded additional equity investments of more than US$30 million in joint venture company Guangdong Nortel to initiate local manufacturing of cdmaOne and GSM wireless equipment for the Chinese market.

Nortel Networks also signed agreements worth US$60 million with China Unicom for expansion of two existing GSM digital wireless networks in Zhejiang province.

"These agreements continue our 27-year history of investment in the Chinese market," said Robert Mao, CEO and president, Nortel Networks China. "Now we look to the future, harnessing our innovation to help evolve China's communications infrastructure to deliver the integrated data, Internet, video and voice services of tomorrow."

The Chinese Premier's visit included a preview of the future - the world's first public demonstration of CDMA2000 third generation digital air interface technology for delivery of very high-speed (384 kilobits per second) data, video and other wireless Internet services.

Today's preview also included a demonstration of sophisticated software for controlling quality-of-service over IP (Internet Protocol) networks. This software allows an operator to ensure the highest levels of transmission quality and reliability to users of premium services.

DSP Communications Delivers WorldCDMA ARM Integrated Baseband Chipsets; Second generation chipset provides superior power management

CUPERTINO, Calif., Apr. 15, 1999 -- DSP Communications, Inc. today announced that it has commenced on-time delivery of its new WorldCDMA(tm) ARM integrated multi-mode baseband chipset, the D5421.

"DSPC's D5421 is the only cdmaOne™ chipset available today that enables handset manufactures to achieve standby times of up to 350 hours," said Arnon Kohavi, VP Business Development. "We believe this accomplishment, in addition to our unprecedented track record in delivering power efficient, high performance, low cost chipsets, will enable handset manufacturers to continue to offer superior handsets."

DSPC's first generation WorldCDMA chipset, the D5411, successfully enabled handset manufacturers to offer one of the world's smallest CDMA handsets featuring, at the time, the industry's lowest power consumption and longest standby and talk times. The D5421, DSPC's second generation chipset, provides PowerSmart(tm) management for minimizing power consumption, while adding functionality such as voice recognition.

With an integrated ARM7 TDMI™ MCU and OAK™ DSP core, DSPC's CDMA chipset, provides a compact solution for satisfying cdmaOne™ baseband processing requirements. The D5421 WorldCDMA™ chipset is based on state-of-the-art 0.25 micron CMOS technology featuring high speed and 2.5V operation. The D5421 is available in low foot print FPBGA packaging.

DSPC's WorldCDMA™ chipset family offers a worldwide cdmaOne™ compliant solution for complete baseband processing for dual mode cellular, PCS, and WLL handsets. Implementing three vocoders, including the 8 Kbps and 13 Kbps QCELP® and EVRC, DSPC's WorldCDMA™family offers high voice quality to end-users together with compliance with worldwide standards' requirements.

With built-in flexibility for software modifications, WorldCDMA™ chipsets can be easily customized, giving handset manufacturers the ability to differentiate their products.

DSPC's CDMA call processing software and reference designs further assist handset manufacturers by providing a flexible means for entering the market quickly and efficiently. Handset providers can employ their resources to focus on differentiating their product in terms of shape, look and feel while relying on DSPC for the internal design. Handset providers may also define the man machine interface (MMI) to achieve the consistency that they require throughout all their product lines. With an extensive understanding of call processing software, system level design, and baseband chipsets, DSPC provides a one-stop shop for OEM handset providers who use DSPC chipsets.

All-Motorola cdmaOne Digital Network Goes Commercial in Japan

ARLINGTON HEIGHTS, Ill., Apr. 14, 1999 -- National network provides state-of-the-art service to world's fastest-growing cellular market

The massive, nationwide buildout in Japan of a CDMA (Code Division Multiple Access) digital cellular communications network was completed today with the scheduled commercial launch of state-of-the-art cellular infrastructure designed, manufactured and installed by Motorola, Inc.'s Network Solutions Sector (NSS). The Motorola NSS CDMA network also is known as cdmaOne™.

The all-Motorola digital network, owned and operated by DDI Corporation (DDI) and IDO Corporation (IDO), offers 95 percent coverage nationally to Japan's 126 million people.

"We now have the wireless technology and the ability to move Japan forward in what we believe is the world's most competitive marketplace," said IDO Executive Vice President Akimasa Egawa. "Motorola shares our collective desire to ensure that the customer is positioned as the ultimate beneficiary of this mammoth technological accomplishment," Egawa said.

"This is a significant day for all of us and for the digital cellular industry," said DDI Executive Vice President Tadashi Onodera. "Our work with IDO and Motorola has been one of the most satisfying collaborations ever."

Last July, three DDI networks were commercialized, offering the first commercial cdmaOne service to people in cities such as Osaka, Kobe, Kyoto, Fukuoka and Naha, plus more than 600 other communities. Last month more new service was launched in the Shikoku, Hokuriku and Chugoku regions, where more than 15 million people live. Today's launch of two systems by IDO and DDI's remaining regional networks marks the completion of the world's most ambitious and comprehensive cdmaOne installation project. The IDO service areas encompass the heavily populated southeast area of Japan including the cities of Tokyo, Yokohama, and Nagoya. The host of the 1998 winter Olympic games, Nagano, is also starting service. The DDI regions launching today include the cities of Sapporo and Sendai.

"What is unique about this entire project is the shared vision of two major wireless providers and their willingness to work together with us in developing a total communications solution for an entire nation," said Ron Hamma, vice president and general manager of NSS operations in Japan. "All of us at Motorola are grateful for the trust DDI and IDO have placed in us and in our ability to deliver a technologically superior wireless solution," Hamma added.

The DDI/IDO nationwide network is comprised of Motorola NSS's SC™ family of base stations and EMX® 5000 mobile switches. The EMX 5000 was developed jointly by Motorola NSS and Alcatel USA, which manufactures the switch and provides core platform software. Motorola NSS develops the mobility applications software.

Six-sector technology, which nearly doubles a cell's capacity, plus state-of-the-art 8 Kbps Enhanced Variable Rate Coders (EVRC), digital voice encoders that provide landline quality voice transmission and significant capacity gains, are incorporated throughout each network system.

Alamosa PCS LLC to Build, Operate cdmaOne Networks

Sprint Affiliate to Buy US$82 Million in Nortel Networks Equipment

DALLAS, Apr. 14, 1999 -- Alamosa PCS LLC, an affiliate of Sprint's wireless division, will build and operate wireless networks in parts of Texas, New Mexico, Arizona and Colorado using Nortel Networks cdmaOne (IS -95 CDMA) infrastructure including radio base stations and DMS-MTX switching equipment.

Alamosa PCS LLC will purchase US$82 million in CDMA network equipment from Nortel Networks over the next three years. Operating under the Sprint PCS (NYSE: PCS - news) name, Alamosa PCS LLC will have networks in a number of cities in Texas including Abilene, Amarillo, El Paso, Laredo, Lubbock, Midland and San Angelo as well as in Albuquerque, Las Cruces and Santa Fe, N.M. and Flagstaff and Prescott, Ariz. Alamosa PCS LLC will also operate networks in Pueblo and Grand Junction, Colo.

"As one of the first affiliates to build a portion of the Sprint PCS nationwide network, we are looking forward to providing area residents as well as existing Sprint PCS subscribers who travel within our markets with a high-quality, all-digital service that is second to none," said David Sharbutt, chairman, Alamosa PCS LLC. "With the help of Nortel Networks, Alamosa PCS will deliver a wireless network that will offer all the benefits of CDMA digital service and further expand the footprint of the Sprint PCS nationwide network. The consumers in our markets will have all the advantages of the latest CDMA technology."

"As a Sprint PCS affiliate, Alamosa PCS is able to offer a high degree of value, call clarity and nationwide coverage to its customers," said Tom Mateer, vice president, affiliates, Sprint PCS. "Alamosa PCS will benefit from the strength of the Sprint brand while extending the reach of the Sprint PCS network."

Alamosa PCS LLC will deploy Nortel Networks' cdmaOne base stations including the CDMA Minicell and Metro Cell. The Minicell and Metro Cell offer future standards (3G) compatibility and are part of a flexible and scalable portfolio of Nortel Networks' products that cost effectively fulfill operators' capacity needs.

Samsung Mass-produces Essential Chips for Wireless Handsets

*Company builds foundation for core CDMA technology.
*Samsung expects local production to save around US$2 billion in imports by 2003.
*Design capability for IMT-2000 chipsets, the 3rd-generation wireless communications, is accelerated.
*Competitiveness of Samsung's wireless handset exports is strengthened.

SEOUL, Korea, Apr. 12, 1999 -- Samsung Electronics Co., Ltd. has completed development of a Mobile Station Modem or MSM (model: SCom 3000), Base Band Analog Processor or BBA (models: SBAPP2.X/SBAP3000), and general-use operating system software for handsets. Korean telecommunications companies are once again proving its leadership in code division multiple access (CDMA) by independently developing this core technology. More importantly, Samsung expects to begin mass-production later this month.

The MSM and BBA are non-memory devices for handsets comparable in importance to the central processing unit in a computer. These critical components have all been imported from Qualcomm in the US until now, costing Korean handset manufacturers at least US$1 billion. Moreover, these imports have been increasing with the expansion of the CDMA market.

Samsung Electronics invested around two years and some W27 billion to develop these chips. The company has filed for 25 domestic and foreign patents related to the hardware and methods for activating the "acoustic echo canceler" function for improving voice quality when using a hands-free kit.

The SCom3000 chip is used in conjunction with the real-time pSOS general-use operating system software to facilitate the addition of multimedia functions such as web browser and email. A specific signal-processing algorithm has been built in to improve call quality by eliminating acoustic noise. In addition, an 8K Enhanced Variable Rate Codec (EVRC) that is usable with CDMA handsets is also provided to offer clear communications.

From the mid-1990s, researchers from Korean companies as well as from worldwide telecommunications companies have had their best researchers working on the MSM chips. However, they will not complete commercialization of this complicated device until the end of this year or the first half of next year.

The BBA chip transfers data between the wireless RF components and the MSM. To date, only Sony and Qualcomm have produced this high-value-added device. It is designed to operate on just 200 milliamperes, helping to increase call time and standby time. The BBA chip comes in four different package types to accommodate manufacture designs for smaller and lighter handsets.

At the same time it begins mass-production of the MSMs and BBAs, Samsung has completed development of its own frequency synthesizers and high-frequency (RFIC) chipsets. As a result, the company has completed localization of at least 90% of the parts and components used in wireless handsets, a feat that will greatly improve their international competitiveness. By 2003, the company expects to save some US$2 billion in import costs.

Samsung has laid the groundwork for local production, technical independence, expanded exports and early completion of chipsets compatible with IMT-2000, the next generation in mobile communications. This accomplishment will ensure Korea's future global competitiveness in the mobile communications industry and pave the way for major inroads into the new markets for communications semiconductors, part of the non-memory field. As a result, Samsung will be able to greatly increase sales and obtain some of the world's most sophisticated technology in this area.

With the development of the critical mobile handset chips and the company's advanced memory technology, Samsung Electronics plans to develop a System-On-Chip with a MSM chip that includes FLASH/SRAM memories and speech codec and MSM and BBA chips, next generation IMT-2000 chips, that makes possible 153.6Kbps data transmission and are also compatible with the IS-95C standard. These new products are scheduled for initial shipment in the second half of 1999.

Motorola Expands CDMA Network in Beijing

ARLINGTON HEIGHTS, Ill., Apr. 7, 1999 -- Motorola, Inc.'s Network Solutions Sector (NSS) announced today that Motorola (China) Electronics Ltd., Hangzhou Motorola Cellular Systems Co, Ltd. and Beijing Telecommunication Administration (BTA) have signed a contract to expand the Code Division Multiple Access (CDMA) digital cellular network in Beijing, China. The value of the contract was not announced.

Hangzhou Motorola Cellular System Co., Ltd. will manufacture and supply Motorola NSS's SC 2450 CDMA base stations for the network expansion, according to the terms of the contract. The network expansion will provide cellular coverage to the city's major tourist area, plus the area within the city's Five-Ring Road after the work is completed in August.

A Motorola NSS 800MHz CDMA network was installed for trials in Beijing in 1997, with an initial designed capacity of 43,000 subscribers.

Hangzhou Motorola Cellular Systems Co, Ltd. is a joint venture of China Posts and Telecommunications Industry Corp., Eastern Communications Co., Ltd. (Eastcom) and Motorola (China) Investment, Ltd. Created in 1996, the joint venture was the first production base for CDMA infrastructure systems and mobile phones in China and is the country's largest in terms of production capacity.

"With increasing competition and ever more discerning consumers, cellular network suppliers and operators have a constant need to deliver new and better services to ensure customer satisfaction, loyalty and business growth," said Tom Hinton, vice president and general manager of Motorola Greater China Network Solutions Sector. "Motorola CDMA technology and products are perfect for the rapidly growing, quality conscious Chinese market."

Motorola NSS is a pioneer in CDMA network infrastructure technology design and development. NSS launched the world's first commercial CDMA network in Hong Kong in 1995. Globally, the company has more than 100 agreements in 24 countries to provide commercial and trial CDMA systems.

Motorola Signs $188M (U.S.) Contract to Supply Wireless Phones to Brazil's Telefonica Celular

RIO DE JANEIRO, BRAZIL, Apr. 6, 1999 -- Motorola announced it has signed a $188 million contract (U.S.) with Brazil's Telefônica Celular to provide digital wireless telephones. Telefônica Celular will offer its customers the choice of two Motorola phone models - the CDMA StarTAC™ ST7760 and the MultiTAC™ SC3160 CDMA dual mode 800 MHz phones. Telefônica Celular is the service provider responsible for providing cellular A band services in four Brazilian States that utilize the CDMA technology. Motorola is expected to deliver the phones to Telefônica Celular by December, 1999 for its supply to Rio de Janeiro, Espírito Santo, Bahia and Sergipe.

According to Dante Iacovone, President of Motorola do Brasil and vice-president and General Manager of the Personal Communication Sector for Latin America-South, this deal has a historical significance for Motorola Brazil. "It is the biggest contract ever signed in the country with a cellular carrier for providing Motorola phones," said Iacovone.

The StarTAC ST7760 dual mode (CDMA and analog) phone weighs as little as 105g and offers from 90 to 250 minutes of talk time and up to 120 hours of standby time when operating in digital mode. Key features include: a display with multiple visualization options and various font sizes; VibraCall silent alert, Caller ID, a Voice Mail icon and text messaging system.

The MultiTAC SC3160 CDMA phone, launched in Brazil recently at Telexpo, Latin America's most influential technology trade show, is Motorola's newest compact option for dual mode (CDMA and analog) phone users. The phone measures 12 cm in length and 4.5 cm in depth and includes such features as: VibraCall™ silent alert; a Portuguese options menu; a four line and 12-digit display with an extra line of icons that makes retrieving incoming calling information easier to retrieve; and 99 alphanumeric memories that can store the last 10 numbers called and the numbers of the last 16 calls received. Additionally, the MultiTAC SC3160 CDMA phone is capable of Short Message Service* (SMS) and Caller ID*.

With a single touch it is possible to read all the alphanumeric messages previously stored. The phone operates with a Lithium Ion battery, the industry's lightest battery technology, and provides from 130 to 145 minutes of talk time and from 24 to 60 hours of standby time.

Lucent Technologies Signs Contract with Argentina's CTI Movil to Provide CDMA Overlay of Its Wireless Network

BUENOS AIRES, ARGENTINA, Apr. 6, 1999 -- Lucent Technologies today announced that it has signed a US$40.8 million contract with CTI Movil of Argentina to provide wireless Code Division Multiple Access (CDMA) equipment for the first phase of the digitalization of its national mobile telephone network. With the selection of CDMA as its digital technology of choice, CTI Movil adds Argentina to a growing list of countries now implementing the technology. The number of CDMA subscribers worldwide now reaches nearly 20 million in about 40 countries, with Latin America representing the second largest growth potential after Asia.

The project calls for the digitalization of CTI's network in the cities of Cordoba, Rosario, Mendoza, Mar del Plata, Tucuman, Parana and Santa Fe. It also provides for the installation of a Wireless Intelligent Network platform that will allow CTI to provide to its customers value added services such as Short Message Service and a Wireless Virtual Private Network.

"CDMA technology offers significant benefits such as increased call capacity and call quality that is comparable to landline service, and our Wireless Intelligent Network platform provides a flexible way for service providers to add valuable services for their customers," said Victor Agnellini, Managing Director of Lucent Technologies Argentina. "We are very pleased to, once again, collaborate with CTI in bringing this latest technology to Argentina."

"The introduction of this new cutting-edge technology, available for the first time in this country, confirms our commitment to bring quality service to our customers," said Eduardo Menasce, president of CTI Movil. "This technology also allows us to add numerous new services in our mobile telephony network."

CDMA is a digital wireless technology based on the IS-95 air interface. This technology reduces the static and cross-talk sometimes heard on analog systems, and provides a "soft hand-off" capability that makes call hand-offs between cell sites and mobile switching centers (MSCs) virtually unnoticeable to customers. With CDMA technology, subscribers are assigned a unique code which allows each user to be distinguished from other users who are transmitting simultaneously over the same frequency band. This allows more efficient use of the licensed spectrum which increases network call capacity for service operators. CDMA technology has inherent encryption qualities that help prevent fraudulent activity and resist potential interference and eavesdropping.

Lucent Technologies Wireless Intelligent Network (WIN) is a distributed network architecture developed for the flexible creation and rapid delivery of new e