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CDMA Development Group Issues Spectrum Policy
Recommendation Submitted for International Consideration

COSTA MESA, Calif., Aug. 10, 1998 -- The CDMA Development Group (CDG) today announced that it has defined a policy for worldwide spectrum allocation and submitted it to the United States delegation to ITU-R Task Group 8/1. The position paper articulates the Group's spectrum allocation philosophy, stressing the importance of expeditious allocation of cellular and personal communications systems (PCS) spectrum for wireless applications in a technology-neutral manner and migrating in-band to advanced services in order to protect operator investments in existing frequency bands.

The paper clearly states that allowing market forces, not government mandates, to determine the most appropriate access technology should be a principle adhered to for current allocations for PCS, cellular, and other spectrum uses, as well as future global allocations for IMT-2000.

"The driving consideration behind our position is what will bring the greatest economic advantage to operators, and thereby end customers, worldwide," said Perry LaForge, executive director of the CDG. "By continuing to allocate spectrum in the cellular and PCS bands, operators will realize significant benefits from economies of scale, reduced complexity, faster time to market and simplified international roaming. All of these factors will go straight to the bottom line, which is important for operators anywhere in the world."

The paper outlines the position for cdmaOne™ systems to follow an in-band evolution toward third generation (3G) systems to give operators flexibility in deploying advanced services in the existing cdmaOne band classes. In-band migration allows operators to leverage the investment they are making in current second generation (2G) cdmaOne platforms rather than completely replacing infrastructure for 3G. This strategy also allows new operators to experience the significant benefits of digital CDMA services now, and upgrade as required by the demands in their respective markets rather than wait for systems that are not yet developed.

The Group's submission of the paper on July 23, 1998 to U.S. Task Group 8/1 is the first step in the international standards process. The CDG will work with the necessary organizations around the world to gain acceptance of these spectrum principles.

"We are prepared to work with standards groups and government bodies to refine these principles and maximize participation so that the greatest benefit is realized by the wireless consumer," added LaForge.