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Leading Asian Nations Choose cdma Wireless Standard

Korean CDMA networks pass 250,000 subscriber mark
Hong Kong system doubles subscriber base in six months
Japan clears way for implementation of CDMA standard

COSTA MESA, CA -- Four of the leading economic powers of Asia have selected or are conducting trials using the CDMA (Code Division Multiple Access) format for wireless communications systems. CDMA is being embraced by these nations as their next generation digital wireless standard because it offers greater capacity, provides better in-building coverage and delivers superior call quality and reliability.

South Korea and Hong Kong are experiencing rapid levels of growth in their commercial CDMA cellular systems. Japan is turning to CDMA to solve a growing crisis of spectrum congestion.

South Korea
South Korea's CDMA cellular systems are experiencing explosive growth, adding new users at a rate of 2,000 per day.

According to ETRI, the Korean telecommunications research institute, cellular phone service utilizing CDMA has grown to cover over 250,000 customers. The total number of CDMA subscribers is expected to exceed 1 million by the end of 1996.

Korea Mobile Telecom (KMT) launched Korea's first commercial CDMA digital cellular service in January 1996 as an overlay to its existing network. By the end of the year, KMT plans to provide CDMA cellular coverage for the entire country.

Shinsegi Telecomm Inc. introduced an entirely new CDMA-based cellular network in the Seoul and the Taejon regions in April 1996. Shinsegi plans to extend coverage to 72% of the Korean populace by year's end.

Besides CDMA cellular systems, South Korea has ambitious plans for PCS networks. The South Korean government has issued licenses for three PCS franchisees, all three of which have selected CDMA technology. Korea Telecom intends to launch a CDMA PCS network in 1998.

Hong Kong
In Hong Kong, the first commercial CDMA cellular service in the world is celebrating its first anniversary of operation in September.

Hutchison Telecom selected CDMA to overcome the capacity limits that made its analog cellular network obsolete. Hutchison currently has more than 50,000 subscribers for its CDMA system, an increase of 100% or more from May of this year. The new digital system is demonstrating six times the cell capacity of the analog network it replaces.

In Japan, two cellular service providers, DDI and IDO, announced their intention to migrate to CDMA from their current analog systems. Commercial service is scheduled to begin before year's end. Their primary reason for the selection of CDMA was the greatly increased call capacity CDMA offers.

With explosive growth in wireless subscribers - in excess of 1 million per month in July 1996 alone - Japan is slated to run out of available spectrum for additional cellular subscribers in 1998. CDMA is being viewed as a solution to avert this crisis by freeing up spectrum due to its greater call capacity.

The Japanese Ministry of Posts and Telecommunications is organizing an open government/industry consortium to develop wireless devices using the CDMA format.

CDMA continues to gather momentum in China. Several of the leading equipment manufacturers are investigating co-production agreements with Chinese electronics firms. Motorola's Cellular Infrastructure Group (CIG) has signed a contract with China Posts and Telecommunications Industry Corp. and the Hangzhou Communications Equipment Factory to form a joint venture to begin production of CDMA products by the end of the year.

Wireless Local Loop is one application of CDMA technology that is particularly attractive to China. The Fujian Posts and Telecom Administration recently completed China's first digital phone call in the 1.9-Ghz frequency band. The call was made using a CDMA wireless local loop system from Motorola.