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CDMA Development Group Responds to European Commission Assurances of Open Market for 3G

COSTA MESA, Calif., July 30, 1998 -- In a statement today, the CDMA Development Group's (CDG) Executive Director Perry LaForge responded to the European Commission's assurances that the European market is open to a variety of standards for third generation mobile phone technology (3G).

"The CDG is very encouraged by the European Commission's commitment to opening the European market to a variety of 3G standards. This is a big change from the public and private statements that have been made in the past, and the CDG applauds the European Commission for this very positive statement," said LaForge. "By eliminating the issue of a closed European market, we are able to focus our energies on converging similar CDMA-based standards to ensure maximum benefit to the consumer."

The CDG is developing Wideband cdmaOne™, one of the main CDMA standards recommended to the International Telecommunications Union's (ITU) IMT-2000 development process. Europe has proposed a very similar standard called Wideband CDMA. The CDG maintains that Wideband cdmaOne and the similar European Wideband CDMA should be converged since the differences in the proposals are not significant. In this case, having different standards will not provide additional benefit to the customer because the fundamental characteristics of the technologies are the same but the resulting wireless systems would be incompatible. Combining these standards will result in competition based on service and feature differentiation and will provide faster market acceptance of 3G lower cost services due to greater economies of scale. The announcement by the European Commission is a very positive step in that it assures an open dialogue between supporters of both Wideband cdmaOne and Wideband CDMA.