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CDMA Development Group Passes Resolution On 3G Standards; Industry Group Calls For Worldwide Efforts Toward Convergence

ATLANTA, Feb. 24, 1998--The CDMA Development Group's (CDG) Executive Board today passed the following resolution during its most recent plenary session, held yesterday in Atlanta
during Wireless '98:

-- The CDG is eager for the consolidation of CDMA technologies including wideband cdmaOne which are being developed for IMT-2000 to establish one common worldwide CDMA standard that leverages the strengths of cdmaOne, and meets the spectrum needs of existing CDMA systems.

-- The CDG recognizes Family of Systems as a viable concept and encourages the development of IS-41-based systems to be a member of IMT-2000 core networks.

-- The CDG requests that cdmaOne-based next generation systems be available in order to commence commercial services after the year 2001 for worldwide markets.

The CDG issued this statement in recognition that most areas of the world are selecting CDMA technology for 3G systems and that key aspects of cdmaOne have served as the basis for all of these proposals.

The CDG Board noted that it is encouraged by the significant efforts regional standards bodies are making in trying to harmonize CDMA air interface proposals in order to minimize regional differences and create a worldwide common air interface. Regional standards bodies in Europe, Japan, Korea and North America are developing CDMA-based proposals for their IMT-2000 systems. In the Americas, the Telecommunications Industry Association's (TIA) TR 45.5 committee has selected wideband cdmaOne as its core proposal for IMT 2000. The CDG member operators recently notified the TIA of their endorsement of the wideband cdmaOne proposal.

While the regions have selected CDMA as the basis for 3G systems, there are some regional difference that need to be resolved. Japan and Korea have been studying regional proposals for CDMA and have taken a leadership role in searching for air interface harmonization.

"The CDG Executive Board agrees that we have a tremendous opportunity to achieve worldwide convergence on an air interface standard," said Perry LaForge, executive director of the CDG. "The standards body ARIB in Japan has been studying ways to achieve convergence of the CDMA proposals through its coordination group. They stated recently that there was no technical reason not to adopt some of the key parameters specified within our proposed wideband
specification. We applaud ARIB's efforts to bring the regional standards bodies together to reach a compromise on key parameters. Based on the discussions at the most recent multilateral meeting in
Japan, we are more optimistic than ever that we will achieve consensus on parameters that will harmonize the standards. Compromise, to the benefit of all, is needed on all sides."

In addition, the CDG shares the view of operators worldwide that convergence provides significant benefits, such as equipment economies of scale and simplified global roaming. These advantages will be far more difficult to achieve if regional differences are not minimized.

LaForge noted, "We have spoken with GSM and CDMA operators around the world and many are in favor of convergence. No one is quite sure how big the market will be for next generation CDMA, and they are concerned that a fragmented market will prevent significant economies of scale and prevent the emergence of 3G systems."

LaForge further described the importance of the Board's resolution on the Family of Systems concept. "The Family of Systems will preserve the investments operators have made in current systems, and allow them to continue to utilize the core network technology that suits their needs. A common air interface, in conjunction with an open interface between IS-41 and GSM networks, will enable carriers to achieve the goals of IMT-2000. Operators can feel confident that there is a clear path for migrating their core networks."

He further noted, "Many of the GSM operators that I have spoken with have said they would also want to see networking between the GSM and IS-41 networks through the Family of Systems approach. After all, there are over seventy five million IS-41-based subscribers in
the world today. This will truly help facilitate a worldwide system."

The CDG has been actively defining requirements for third generation systems, and has been participating in IMT-2000 efforts in the ITU. The group will continue to work through international and regional standards processes to help achieve convergence and provide
operators with an evolutionary approach to 3G systems.

To support these efforts and provide a comprehensive resource all 3G-related issues, the CDG's website will include the latest 3G information, including worldwide operator perspectives and contributions from other industry leaders.