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CDMA Development Group Announces Broad Local Support for CDMA Operators And Manufacturers In Brazil

Emerging CDMA Handset Manufacturing Capabilities Marks on Important Expansion of CDMA in South America

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COSTA MESA, Calif., July 27, 1998 - - The CDMA Development Group (CDG) today announced the emergence of broad local support for code division multiple access (CDMA) technology in Brazil. The announcement comes on the eve of the long-awaited privatization of TELEBRAS, the Brazilian telephone monopoly, and heralds a significant expansion of CDMA in Latin America.

The growing presence of CDMA operators and manufacturers in Brazil is a testament to the continuing success of the technology," said Perry LaForge, executive director of the CDG. "We expect the CDMA presence in Brazil to continue to expand as the privatization effort continues. Along with Japan, Brazil represents one of the key drivers for CDMA growth during the second half of 1998 and on into next year."

CDMA is widely recognized to be the most advanced wireless telephone technology available today. It provides consumers with a number of important benefits such as superior voice quality, exceptional privacy and security, increased reliability, and longer talk and standby times.

The CDMA presence emerging in Brazil represents the strong commitment by the worlds leading telecommunications companies to support current and future CDMA services throughout the country. CDMA manufacturers have invested more than US $250 million to date in Brazil, which is the largest wireless market in South America.

The expanding CDMA presence in Brazil includes both wireless service providers and equipment manufacturers. A CDMA cellular network has entered commercial service in Salvador, the capital of the state of Bahia, and the launch of commercial service is expected in Rio de Janeiro and Sao Paulo during the third quarter of 1998. In Region 5 of the B-band, which includes the states of Parana and Santa Catarina, the Global Telecom consortium will establish CDMA cellular service later this year. Further CDMA deployments are expected to occur after the conclusion of the TELEBRAS privatization.

Local CDMA manufacturing capabilities are accelerating to meet the requirements of CDMA service providers. World-leading telecom manufacturers have well-established facilities for building CDMA base stations in Brazil, but the main area of growth in manufacturing is in CDMA handsets, where at least three of the leading vendors will inaugurate CDMA handset production facilities in 1998. It is expected that CDMA handset manufacturing capacity will reach 1.2 million units per year within as little as six months, thereby providing operators with a vast supply of locally produced CDMA phones.

Members of the CDG will assemble in Sao Paulo on August 18-19, 1998 for the CDMA Latin American Forum. This invitation-only event will provide a comprehensive update on the progress of CDMA in Brazil and worldwide.

Executives from CDMA service providers throughout the region will discuss the deployment and operation of CDMA cellular, PCS and Wireless Local Loop networks. Workshops on CDMA network deployment and roaming will also be offered.