Industry News

GartnerGroup's Dataquest Says U.S. Mobile Handset Sales Exceeded 10 Million Units in Second Quarter 1999 CDMA Accounted for Nearly Half of Digital Handset Sales

San Jose, CA, September 28, 1999 -- Driven by continued growth in the digital handset market, U.S. mobile handset sales surpassed 10.3 million units in the second quarter of this year, according to Dataquest Inc., a unit of Gartner Group, Inc. Digital handsets accounted for 77.8 percent of U.S. mobile handset sales in the second quarter, while analog handsets totaled 22.2 percent of sales.

In comparison, 1998 year-end results show that analog handsets had 40 percent of the U.S. handset market. Dataquest analysts said that code-division multiple access (CDMA IS-95) handsets are an increasingly large component of the strong growth of digital mobile telephony in the United States.

"The growth of the U.S. CDMA market continues to play havoc with the market share fortunes of the industry's traditional top-tier vendors," said Bryan Prohm, senior industry analyst for Dataquest's Mobile Communications Terminal Devices North America program. "For example, Nokia's weak share in CDMA has prevented it from completely running away with the U.S. market. Motorola's successful CDMA portfolio has helped it capture the No. 2 position in the overall U.S. mobile handset market (see Table 1). Ericsson, which currently does not offer a CDMA product, slipped to the No. 5 position."

Within the U.S. digital handset market, CDMA technology represented 47 percent of sales in the second quarter. Year-end 1998 results showed CDMA had 38 percent of the digital handset market. In 1998, time-division multiple access (TDMA IS 136) technology had 46 percent of digital handset sales, but in the second quarter of 1999, TDMA slipped to 39 percent of sales.

Additional information on this market is available by subscribing to Dataquest's Mobile Communications Terminal Devices North America program. This program provides detailed forecasts and actionable analysis of developments in the mobile communications terminals sector and the fast-changing distribution channels through which they reach the market. More information on this program is available on Dataquest's Web site at http://www.dataquest.com/dq/static/offer/programs/mobdnads19981130.html.

To subscribe to this program, please call 800-419-DATA or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.

GartnerGroup analysts are taking a unique look at the wireless market during The Great Wireless Experiment. Bob Egan, GartnerGroup research director for wireless communications in North America, has put away his wireline-based technologies, and for 30 days his communications (both voice and data) are being conducted exclusively with wireless products. A special Web page has been developed to monitor Mr. Egan's activities with various wireless products. The site will also be updated with GartnerGroup research findings on the wireless industry. The Great Wireless Experiment Web site can be accessed at http://www.gartner.com/wireless.

GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at http://www.gartner.com.

IDO to begin services in N. America next spring

Tokyo, Japan, September 28, 1999 (Kyodo) -- Mobile phone operator IDO Corp. plans to make its services available in North America starting next spring, company sources said Tuesday. IDO plans to tie up with local mobile phone operators such as Bell Atlantic Mobile and GTE Wireless, the sources said.

IDO's cellular phone services, using the Code Division Multiple Access format, features Japan's first international "roaming" technology that makes phones workable overseas with the same numbers as in Japan.

In Japan, the service, which is marketed under the name of "cdmaOne," is provided jointly by IDO and cellular phone operators belonging to DDI Corp.

IDO will begin the roaming service in Hong Kong and South Korea by the end of this year. It also plans to do so in Australia by next September.

Sprint and Sanyo Partner to Offer Internet-Ready Wireless Phone Sprint PCS, Sanyo Sign Contract Valued at Approximately $140 Million During Sanyo Blimp Event in Kansas City

Kansas City, MO, September 23, 1999 -- Sprint PCS, the nation's largest all-digital, all-PCS wireless network, and Sanyo Fisher Company, a division of Sanyo North America Corporation and the U.S. marketer of Sanyo brand telecommunications and audio/video products, today announced an exclusive agreement valued at approximately $140 million. Under the agreement, Sanyo Fisher Company will supply Sprint PCS with its new Internet-ready, dual-band, Data/Fax/MiniBrowser-equipped CDMA/PCS phone, to be marketed as the Sanyo SCP-4000. The Sanyo 4000 is expected to be available in Sprint PCS Centers and RadioShack stores nationwide, beginning October 1. Sprint PCS and Sanyo will celebrate the contract during a three-day event in Kansas City this weekend via several appearances by the Sanyo Blimp including Sunday at Arrowhead Stadium during the Chiefs game. ``We are extremely pleased to announce our continuing partnership with Sanyo, providing Sprint PCS customers with crystal clear voice calling and clear, simple access to the advanced wireless Internet features available over the Sprint PCS Wireless Web on the new Sanyo SCP-4000,'' said Phil Garrison, Vice President and General Manager, Subscriber Equipment, for Sprint PCS. ``Sales success and customer satisfaction with Sanyo's SCP-3000 phone have been outstanding, and we look forward to the multi-faceted SCP-4000 and its successors.'' ``Sanyo Fisher Company is very proud to partner with Sprint PCS, the leading provider of all-digital PCS service in the United States,'' said Isaac Levy, vice president, sales and marketing for Sanyo Fisher Company's Communications/Information Technology Division. ``Sanyo's association with Sprint PCS, begun last year with our first U.S. digital phone, has been an extraordinary success from the outset. In addition to the Sanyo SCP-4000, we are collaborating with Sprint PCS to introduce several new phones in the year 2000.''

Telefonica Launches Movistar Service in Puerto Rico

• Movistar will provide coverage throughout the island before the end of this year, investing over $200 million and creating more than 200 jobs.
• Rates for the Movistar service, which will be offered by TLD, Telefonica Internacional's affiliate in Puerto Rico, will be lower than those in the market.
• PCS system will allow access to Internet, TV and agency news and e-mail.
• The Telefonica Group now has more than 15 million cellular phone clients throughout the world.

San Juan, Puerto Rico, September 23, 1999 -- Telefonica today began offering its Movistar mobile phone service, using the PCS (Personal Communications Service) system and a revolutionary offer which will mark a significant improvement over products now on the market in Puerto Rico.

Movistar is the trademark in Puerto Rico for Newcomm Wireless Services, the joint venture between TLD (Telefonica Larga Distanca) of Puerto Rico, an affiliate of Telefonica Internacional., and Clearcomm to provide personal communications services on the island.

The investment in the launch is more than $200 million and the project is expected to create more than 200 new jobs this year.

MoviStar's PCS service is supported by a 100% digital network with CDMA (code division multiple access) technology, which provides customers with greater sound quality and guarantees confidentiality and security. It will include "roaming" service in the United States, which will allow Movistar clients to travel to the United States and other countries and place calls without having to change their mobile phone number. The service also allows customers to place calls to the United States and other countries.

The new system will also permit customers to connect with Internet, to receive news from television and news agencies and to send and receive electronic mail.

Movistar has a potential market of 2.8 million customers in Puerto Rico, where there are currently 550,000 mobile phone clients. Construction of the Movistar network is being carried out by Lucent Technologies and will provide full coverage throughout the island before year-end 1999.

Sprint and Samsung Introduce New Dual-Band Wireless Phone that Combines Voice Dialing and Wireless Internet Capabilities; The Ultimate Wireless Accessory" SCH-3500 Manages All Communications from a Single Handset

Kansas City. MO, September 22, 1999 -- Samsung and Sprint PCS today introduced the SCH-3500, a new dual-band, Code Division Multiple Access (CDMA) PCS phone that combines voice-activated dialing and wireless Internet access via the Sprint PCS Wireless Web in a small, sleek package. The phone will be available this month at Sprint PCS stores, RadioShack stores and other participating retailers in the Sprint PCS nationwide wireless network. The SCH-3500 is packaged with a standard lithium-ion battery and desktop charger and has a suggested retail price of $149.99.

Designed with voice-activated dialing capabilities as well as voicemail, Caller ID, three-way calling and call waiting, the titanium-colored SCH-3500 phone is as functional as it is stylish. With voice-activated dialing for 20 numbers, callers only need the sound of their voice to keep up with frequently dialed numbers. Additionally, the SCH-3500 features voice memo.

Wireless Internet access is another innovative feature of this web-enabled phone. The SCH-3500 features a MiniBrowser which enables customers to browse select text versions of popular websites via the Sprint PCS Wireless Web, as well as check e-mail and receive short messages, such as news and information updates. The phone even serves as a wireless modem for Internet or corporate Intranet access through a laptop, palm computing device or handheld computer.

"Critical communications now reaches far beyond mere voice technologies. E-mail and wireless Internet access are vital means of keeping in touch and staying informed. Samsung is dedicated to providing consumers with the innovative features they need to keep pace with their active lives," said Peter Skarzynski, vice president of sales and marketing for wireless terminals, STA. "Samsung also recognizes that callers want a phone that reflects their sense of style. The titanium-colored handset with its active flip up makes the 3500 handset the ultimate wireless accessory."

"The SCH-3500 combines voice-activated dialing capabilities with wireless Internet access making it an ideal phone to support the Sprint PCS Wireless Web services," said Phil Garrison, vice president and general manager, Subscriber Equipment, for Sprint PCS. "Sprint PCS is committed to providing our customers with clarity, nationwide coverage, information connectivity, superior value and the most advanced, feature-rich phones, like the SCH-3500."

The phone weighs only 5.5 ounces and is 4.4 inches long. The unit has a five-line display and an active flip. With a standard lithium ion battery, the phone provides up to 2.5 hours of talk time or up to 130 hours of standby time in CDMA mode. The extended battery lasts up to 5 hours of talk time or up to 230 hours in standby in CDMA mode. Batteries can be recharged using the Samsung desktop rapid charger, the automobile cigarette lighter adapter rapid charger or a travel charger. Hands-free car kits, leather cases, a Sprint PCS Wireless Web Connection Kit and ear phones are also available.

Samsung and Sprint PCS Sign $500 Million Agreement to Deliver Advanced, Internet Capable Wireless Phones; Agreement Includes SCH-3500 "Ultimate Wireless Phone"

Kansas City, MO, September 22, 1999 -- Samsung Telecommunications America (STA) and Sprint PCS today announced they have reached an agreement valued at up to $500 million for the delivery of wireless phones over the next year. Included in the agreement are Samsung's SCH-dual-band/dual-mode wireless phones that provide e-mail and wireless Internet capabilities, in addition to a full range of voice features. Through the agreement, Samsung phones will allow customers to take full advantage of the voice and data capabilities offered by Sprint PCS' 100 percent digital, 100 percent PCS nationwide wireless network.

This is the second major agreement between Samsung and Sprint PCS. Samsung fulfilled a previous $600 million, three-year contract, in only two years. Through the original contract, Sprint PCS sold several Samsung products, including the SCH-2000, the world's first voice-activated dialing CDMA PCS wireless phone.

"With the addition of Samsung's advanced new Internet-ready SCH-3500, Sprint PCS offers businesses and consumers a new level of communication service and information access," said Andy Sukawaty, president for Sprint PCS. "The Sprint PCS network provides the only all-digital nationwide network that was built from the ground up to offer a new level of wireless clarity and nationwide Internet access via the Sprint PCS Wireless Web. The Samsung SCH-3500 is an attractive addition to our product line."

The SCH-3500 is a new dual-band, Code Division Multiple Access (CDMA) PCS phone that combines voice-activated dialing and wireless Internet access in a small, sleek affordable package. The phone will have a suggested retail price of $149.99 and will be available from Sprint PCS this month.

"We're pleased to extend our relationship with Sprint PCS," said Peter Skarzynski, vice president of sales and marketing for wireless terminals, STA. "Because the nationwide Sprint PCS network is optimized for data as well as voice communications, we're designing phones that allow consumers to take full advantage of this wireless digital technology. As a result, the SCH-3500 will allow callers to stay in touch more ways with more people."

With voice-activated dialing capabilities as well as voice mail, Caller ID, three-way calling and call waiting, the titanium-colored SCH-3500 phone is functional and fashionable. With voice-activated dialing, callers can use their voice to dial up to 20 different numbers. The SCH-3500 also offers wireless data capabilities so callers can access the Internet, and receive e-mail and short messages. The phone even serves as a wireless modem for Internet or corporate Intranet access through a laptop, palm computing device or handheld computer.

AirTouch Cellular, Nortel Networks Complete Unprecedented Upgrade of System in Los Angeles

Los Angeles, CA, September 21, 1999 -- In an unprecedented feat, AirTouch Cellular and Nortel Networks have completed the most complex wireless network upgrade ever attempted in the United States. The project in Los Angeles, which involved five switching centers and nearly 1,200 cellular base stations covering both analog and digital (CDMA) networks, now makes Nortel Networks one of the leading suppliers of infrastructure for AirTouch's US cellular markets.

The installation and deployment in Los Angeles of one of the country's most efficient wireless networks provides AirTouch's customers with the highest quality voice service and a full range of features such as caller ID, voice mail and short messaging. The deployment will also allow AirTouch to lower its operating costs. AirTouch and Nortel Networks worked closely to ensure that there was no impact to cellular customers caused by differences in feature functionality between the old and new systems.

"AirTouch's work with Nortel Networks means we can provide a superior wireless offering today with superb network reliability. It also gives us a cost-effective way to evolve to future services such as wireless Internet access," said Nancy Hobbs, executive vice-president and general manager, AirTouch.

AirTouch and Nortel Networks will continue to optimize and enhance the system, which utilizes the flexible and modular Metro Cell base station and DMS*-MTX* SuperNode* switching equipment based on the highly reliable Nortel Networks' DMS family of switches.

"With the dramatic changes that lie ahead including the evolution to more efficient wireless networks based on Internet Protocol (IP) technology, we'll continue to work closely with AirTouch to deliver Unified Networks solutions that will help it bring improved operating margins as the result of new, revenue generating services and reduced operating costs," said Nancy White, vice-president, US region, Nortel Networks.

Weather.com to Deliver Instant Interactive Weather Content Over Sprint PCS Wireless Web; weather.com Leads Wireless Product Development at PCS '99 Via Demonstrations on Nokia's Wireless Application Protocol (WAP)-Enabled Phones and Moves Closer to Universal Weather Delivery with New Wireless Applications

Atlanta, GA, September 21, 1999 -- The Weather Channel Web site®, weather.com, the world's leading source of weather on the Web, today announced an alliance with Sprint PCS to become the primary weather information provider for Sprint PCS Wireless Web services. The alliance allows Sprint PCS customers clear and simple wireless Internet access to weather.com from their Sprint PCS Phones.

In a recent Yankee Group survey, wireless users ranked weather as the number one information service they want delivered to their wireless devices, and weather.com is leading the way as one of the first companies to introduce WML-based (Wireless Mark-Up Language) applications. The Weather Channel will demonstrate weather.com information services on Nokia's Internet-ready, WAP-enabled phones at PCS '99, in the Nokia Partner Pavilion, September 21-24th, in New Orleans. Additionally, on Wednesday, September 22nd, at 2 p.m., Jody Fennell, executive producer and vice president of weather.com, will participate in the PCS '99 Panel; "Wireless Internet: Adding Value by Adding Content."

The weather.com products allow Sprint PCS customers to connect with weather.com to review current conditions, the latest weather headlines and five-day forecasts. The application also gives customers the ability to conduct a zip code search on weather.com for more than 40,000 locations throughout the U.S.

These new relationships are the latest step in weather.com's goal toward universal weather delivery, and they reinforce weather.com's position as a leader in wireless content development.

"weather.com is excited to develop wireless products with industry leader Sprint PCS and demonstrate our wireless capabilities at PCS '99 on Nokia's WAP-enabled phones," said Jody Fennell, executive producer and vice president of weather.com. "Our newest phase of wireless connectivity offer our popular weather.com information to wireless customers as conveniently as possible, wherever they may be. As the world's leading source of wireless weather, these alliances allow weather.com to answer the mobile, untethered consumers' demand for weather information."

"Whether we're targeting the business traveler or busy parents, Sprint PCS knows how important up-to-the-minute weather reports are to our customers," said Charles Levine, chief sales and marketing officer for Sprint PCS. "Offering weather.com content demonstrates Sprint PCS' commitment to clearly connecting our customers to personalized wireless Internet content that's valuable to them, anytime on the nation's largest all-digital, all-PCS nationwide wireless network."

Leap Wireless International and Lucent Technologies Sign US$330 Million Contract to Expand Cricket Communications Network Across the United States; Agreement Further Enables Leap Subsidiary to Provide Customers With High-Quality, Affordable Wireless Service

San Diego, CA, September 21, 1999 -- Wireless communications carrier Leap Wireless International, Inc. and Lucent Technologies today announced an agreement totaling at least $330 million in which Lucent will provide infrastructure equipment and financing for Leap's U.S. subsidiary, Cricket Communications. Cricket will work with Lucent to expand its wireless network in key markets across the country. Under the terms of the agreement, Lucent will supply and install CDMA (Code Division Multiple Access) network wireless infrastructure equipment and services, including base stations and switches. Cricket will also use Lucent Technologies NetCare® professional and network support services for the network buildout.

"We appreciate the confidence Cricket has in Lucent to be a key technology provider as it enters new markets," said Chuck Many, Lucent Technologies vice president-Emerging Wireless Carriers. "Lucent Technologies is delighted to be working with Cricket as it continues to offer an innovative service that makes wireless technology available to entirely new market segments."

Cricket Communications seeks to make wireless communications simple, worry-free and affordable for all users, said Susan G. Swenson, president of Leap and CEO of Cricket. The Cricket service is targeted to the mass consumer market, enabling customers to make and receive all their local calls for one low, flat monthly rate. Cricket's service is currently offered in Tennessee, and Cricket Communications plans to deploy the service in additional markets across the United States. Leap has rights to acquire licenses to offer the Cricket service to approximately 24 million potential subscribers (1998 POPs) in markets across the country such as Albuquerque, N.M.; Charlotte, N.C.; Dayton, Ohio; Little Rock, Ark.; Memphis and Nashville, Tenn.; Salt Lake City, Utah; Spokane, Wash.; Tucson, Ariz.; Tulsa, Okla. and Wichita, Kans. "The Lucent agreement is a significant step forward in Leap's efforts to work with world-class infrastructure vendors," Swenson said. "Lucent's reputation, experience and quality products will enable us to accelerate our plans to bring the Cricket offering to new markets across the country. By working with Lucent, we believe we can meet the rapid growth requirements created by the extraordinary acceptance of Cricket's truly unique concept."

Sprint Announces "Grand Opening of the Wireless Internet" with Nationwide Availability of the Sprint PCS Wireless Web; Sprint PCS Offers Customers a Broad Variety of Internet-Ready Wireless Phones and Best of News and Information from Bloomberg.com, CNN Mobile, InfoSpace.com, MapQuest.com, Yahoo! and Others

Kansas City, MO, September 20, 1999 -- Sprint today announced nationwide availability of the Sprint PCS Wireless Web, a suite of simple, user-friendly wireless data products and services. Through recent agreements with leading content providers such as Bloomberg.com, CNN Mobile, InfoSpace.com and MapQuest.com, Sprint PCS customers can now browse the best of the wireless Internet straight from their Internet-ready Sprint PCS Phones. Additionally, the Sprint PCS Wireless Web offers the ability to customize and receive important news, email and information updates from Yahoo! as well as dial into a corporate Intranet or the Internet using a Sprint PCS Phone in place of a modem connected to a laptop, personal digital assistant (PDA) or other handheld computing device. A national advertising campaign, launched today, marks the kickoff of the Sprint PCS Wireless Web.

Unlike the complicated and expensive wireless data offerings of the past, pricing for the Sprint PCS Wireless Web follows the same clear and simple value-oriented principles that Sprint PCS has brought to nationwide wireless voice calling.

Sprint PCS customers can try Sprint PCS Wireless Web services for less than $10 a month simply by adding a Wireless Web Option to their current price plan $29.99 and above. Additionally, Sprint PCS offers a range of all-in-one Sprint PCS Wireless Web Plans that include both voice and wireless web minutes in a single bundle, enabling customers to mix and match their voice and wireless web minutes as needed.

Sprint PCS Wireless Web Plans:

• Sprint PCS Wireless Web Option - $9.99 per month offers 50 wireless web minutes and 50 Wireless Web Updates from Yahoo! that may be added to any Sprint PCS Service Plan $29.99 per month and above.
• Sprint PCS Wireless Web Plan - $59.99 per month for 300 anytime, anywhere voice/wireless web minutes and 200 Wireless Web Updates from Yahoo! (includes free long-distance calling to any number in the U.S. from a Sprint PCS Phone on the nationwide Sprint PCS wireless network)
• Sprint PCS Wireless Web Plan - $89.99 per month for 500 anytime, anywhere voice/wireless web minutes and 200 Wireless Web Updates from Yahoo! (includes free long-distance calling to any number in the U.S. from a Sprint PCS Phone on the nationwide Sprint PCS wireless network)
• Sprint PCS Wireless Web Plan - $129.99 per month for 800 anytime, anywhere voice/wireless web minutes and 200 Wireless Web Updates from Yahoo! (includes free long-distance calling to any number in the U.S. from a Sprint PCS Phone on the nationwide Sprint PCS wireless network)
• Sprint PCS Wireless Web Plan - $179.99 per month for 1200 anytime, anywhere voice/wireless web minutes and 200 Wireless Web Updates from Yahoo! (includes free long-distance calling to any number in the U.S. from a Sprint PCS Phone on the nationwide Sprint PCS wireless network)

"The Sprint PCS Wireless Web represents a pivotal development in our company's effort to offer consumers and businesses a single clear and simple tool for all of their wireless voice and data communications needs," said Andrew Sukawaty, president of Sprint PCS. "Customer interest in our wireless web products and services has been extremely positive and we're very excited to be on the leading edge of this new evolution in wireless communications." The Sprint PCS Wireless Web features three distinct offerings that will allow consumers and business users to access the information they need - when they need it -on the largest all-digital Sprint PCS nationwide wireless network for voice and wireless Internet:

• SPRINT PCS WIRELESS WEB BROWSER: Sprint PCS customers whose phones are equipped with a simplified Phone.com MiniBrowser designed especially for wireless phones will be able to connect to select Internet-based content "real time," whenever they want, using their Sprint PCS Phones to interactively browse specially-designed text versions of popular web sites. Sprint PCS has licensed the Phone.com UP.Link Server Suite, which enables the MiniBrowser functionality on Sprint PCS Phones. Via partnerships with industry-leading content providers, such as Bloomberg.com, InfoSpace.com, MapQuest.com and CNN Mobile, Sprint PCS customers will be able to stay in touch with important, personalized information while "on the go." ·
• SPRINT PCS WIRELESS WEB UPDATES FROM YAHOO! This service allows customers to receive automatic updates straight from Yahoo! directly on their Sprint PCS Phones. The customized updates from Yahoo! include such topic areas as sports, weather reports, stock quotes, horoscopes and news headlines. Users simply set up a personalized page on the Yahoo! website (using any computer with Internet access), and select in advance what updates they want and what time(s) they want to receive the updates on their Sprint PCS Phones. This service operates as part of the Sprint PCS Wireless Web Messaging Service (formerly Text Messaging or SMS) which is currently available to all Sprint PCS customers and will be available nationwide on October 3, 1999.
• SPRINT PCS WIRELESS WEB CONNECTION: Sprint PCS customers will be able to do virtually anything they do today while tethered to a wireline wall jack - "on the go," and wirelessly. The Sprint PCS Wireless Web Connection will allow users with laptops, palmtops or other personal digital assistants (PDAs) to connect to information through the nation's largest all-digital, all-PCS nationwide wireless network for voice and wireless Internet. Designed with the mobile workforce in mind, Wireless Web Connection is the latest offering within The Sprint PCS Clear Wireless Workplace - a suite of simple, flexible wireless business solutions. Wireless Web Connection allows Sprint PCS customers to use their Sprint PCS Phones in place of a modem and wall jack to connect to their important, personal information tools and corporate networking content, such as email, schedules, task lists, contacts/address books, order forms and key documents.

To make it simple for customers to begin using wireless web services, Sprint PCS offers a variety of Internet-ready phones starting as low as $99. All Sprint PCS Phones have text messaging capabilities - such as the existing Sprint PCS Wireless Web Messaging (Text Messaging) and Numeric Paging - and automatically will be capable of supporting Sprint PCS Wireless Web Updates from Yahoo! Most Sprint PCS Phones launched in 1999 and beyond will feature MiniBrowser and mobile connectivity capabilities out of the box as well. Additionally, many older Sprint PCS Phones can be connectivity-enabled with a simple software upgrade and the purchase of a Sprint PCS Wireless Web Connection Kit (one modest cable and Sprint PCS Dialer software which is available at a special introductory price of $99.99 for consumers and $29.99 for business customers through December 31, 1999).

US Unwired, a Sprint PCS Network Partner, Expands Sprint PCS Coverage in Louisiana and Texas

Lake Charles, LA, September 17, 1999 -- US Unwired, a Sprint PCS Network Partner managing local Sprint PCS service in areas of Louisiana and Texas, today announced network expansion of 50 Sprint PCS enhancement sites. The expansion extends the benefits of the Sprint PCS all-digital, all-PCS nationwide network to more than a dozen communities from northeast Texas to the Gulf coast of south central Louisiana.

Network enhancements by US Unwired will boost Sprint PCS service already existing in the Texas communities of Longview and Marshall along Highway 259 to Mt. Enterprise. Additional enhancements in Gladewater and along Highway 31 will improve existing Sprint PCS service in northeast Texas. Plans have also been approved to launch Sprint PCS service in Texarkana, Lufkin and Nacogdoches, Texas and their immediate surrounding areas later this fall.

Through continued expansion, US Unwired is now providing Sprint PCS service to the central Louisiana communities of Longville, Rosepine, Anacoco, Pickering, Fort Polk, Hornbeck and Kinder, as well as network enhancements to the I-49 corridor through the city of Natchitoches and north to Alexandria and Shreveport. To the south, US Unwired is providing Sprint PCS service in the communities of New Iberia, Houma and Thibedeaux, TX.

"Our recent expansion into northeast Texas and south central Louisiana offers residents and businesses in those areas the advantages of Sprint PCS coverage," said Wesley Bush, US Unwired director of Sprint PCS network operations. "With the opening of Sprint PCS Centers in Texarkana and Houma this fall, we are able to deliver the best all-digital, all-PCS wireless service throughout east Texas and all of Louisiana."

3GPP2 Holds Successful Harmonization Workshop

Arlington, VA, September 14, 1999 -- Third-Generation Partnership Program 2 (Error! Bookmark not defined.) has completed its international harmonization workshop on Global 3G (G3G) wireless telecommunications systems and moves closer to resolving technical issues related to the operation of CDMA2000 multi-carrier wireless systems on Global System for Mobile/Mobile Application Part (GSM/MAP)-based networks. Harmonization goals were established earlier this year and endorsed by the 3G Partnership Projects.

More than 100 representatives of the wireless industry from 15 countries involved worldwide in 3G wireless standardization participated in a workshop held in El Segundo, Calif., September 9-10, 1999. The workshop focused on identifying hooks and extensions necessary for multi-carrier operation on GSM networks. The workshop also continued the work of the 3GPP workshop, August 24-26, 1999, in Sophia Antipolis, France, that identified hooks and extensions necessary for Universal Terrestrial Radio Access (UTRA)-based direct spread systems to operate on American National Standards Institute (ANSI)-41-based networks.

Participants in the workshop agreed on a number of important issues including a reference model, a requirements document, a handoff mechanism between the direct spread and the multi-carrier radio interfaces, and an allocation of responsibilities for the individual tasks. The workshop participants agreed to continue the successful technical discussions in order to fully implement the OHG proposal. The hooks identified will be included in Release A of CDMA2000. The 3GPP2 workshop was co-chaired by Alberto Gutierrez of Nortel Networks and Gerry Flynn of Bell Atlantic Mobile. The 3GPP2 Steering Committee, at its July 12, 1999, meeting in Montreal, Canada, formed an ad-hoc group to study and propose an implementation of the G3G proposal from the Operators' Harmonization Group (OHG). The goal is to develop a common set of hooks and extensions between 3GPP and 3GPP2 that will allow the operation of direct spread on ANSI-41 and Multi-Carrier on GSM-MAP. The ad-hoc will report the results at the next 3GPP2 Steering Committee meeting scheduled for September 17, 1999, in Tokyo, Japan. The report will detail the outcome as a successful resolution to the key issues and will recommend to continue to interface with 3GPP for the completion of efforts by both 3GPP and 3GPP2 to allow transparent mobile roaming between each system.

TIA Vice President of Standards and Technology Dan Bart remarked, "Harmonization of technical issues is a big step in the development of any standard - particularly in the global arena. The work of 3GPP2 reflects the benefits of international cooperation on standards development and gives us a glimpse of the future of worldwide communications."

Flynn stated that he was "pleased that the workshop was making real progress due to the technical expertise and serious commitment of the participants."

The following five standards development organizations (SDOs) - along with their participating company members - are involved in 3GPP2 : The Association of Radio Industries and Businesses, (ARIB) Japan; The Telecommunication Technology Committee (TTC), Japan; China Wireless Telecommunication Standard (CWTS) Group, China; The Telecommunications Technology Association (TTA), Korea; and TIA, United States.

CNN Interactive, Sprint to Offer First Nationwide Mobile News Service

Atlanta, September 14, 1999 -- Agreement is The First for CNN Mobile News Nationwide CNN Interactive and Sprint have teamed up to offer CNN Mobile, a 24-hour news and information service that will be part of Sprint PCS Wireless Web service available to Sprint PCS' nearly 4 million customers nationwide, it was announced today by Scott Woelfel, CNN senior vice president, general manager and editor in chief, CNN Interactive and Charles Levine, chief sales and marketing officer for Sprint PCS.

Sprint PCS will be the first mobile phone operator in the United States to introduce CNN Mobile nationwide. CNN Mobile will be available to Sprint PCS customers nationwide by the end of September.

"Our goal is to maximize CNN Mobile's distribution and availability, and this agreement allows us to boost the service's penetration with Sprint PCS' nationwide coverage," said Woelfel. "Sprint PCS customers will be able to have the latest news at hand--whether it's breaking news story or the latest sports scores--by relying on CNN.

Levine said, "Sprint PCS Wireless Web will be able to offer subscribers CNN news anywhere on our nationwide wireless network. The clarity of CNN news is a perfect match for the clarity of Sprint PCS service. Our agreement with CNN will make accessing breaking news from wireless phones a valuable proposition for consumers and businesses across the country."

CNN Mobile was the first mobile telephone news and information service to be available globally. Launched in February, CNN Mobile began with nine charter sponsors in seven European and Asian countries and since then has added seven operators in the United States, Europe and Asia/Pacific. By the end of the year, CNN Mobile will be available to more than 8 million customers in the United States and an additional 22 million customers internationally. Produced by the same team responsible for the award-winning Web site CNN.com, CNN Mobile features breaking news, U.S. and world news; weather forecasts; business news and market updates; sports news and scores; entertainment news; and features. CNN Interactive updates the CNN Mobile service 24 hours a day, seven days a week. News headlines are updated every hour; market information is updated every 15 minutes during the trading day; and sports scores and weather forecasts are updated regularly; and breaking news is delivered immediately.

Leap Wireless International Signs Agreement to Acquire Operating License in Dayton, Ohio Covering More Than 1 Million POPs; Dayton Added to Markets Planned to Offer Cricket Service in Future

San Diego, CA, September 14, 1999 -- Wireless communications carrier Leap Wireless International, Inc. today announced that it has entered into an agreement to purchase a PCS operating license in Dayton, Ohio from PCSDevCo, Inc. for an undisclosed amount. The acquisition, which is subject to FCC approval, is expected to add more than 1 million POPs (potential subscribers) to Leap's holdings. In addition to the Dayton license, Leap has the right to acquire licenses on which it was the successful high bidder in the federal government's re-auction of PCS spectrum in April 1999, and has contracts to acquire licenses in North and South Carolina from AirGate Wireless, L.L.C. and in Tennessee and neighboring states from Chase Telecommunications Holdings, Inc. A Federal Communication Commission's (FCC) July 1999 Memorandum Opinion and Order conditionally qualified Leap for "designated entity" status, allowing it to acquire and operate C-Block and F-Block PCS spectrum licenses. A competitor has filed an application for review of the FCC Memorandum Opinion and Order. Leap believes that it will ultimately be permitted to acquire C- and F-Block PCS spectrum licenses.

"The agreement to acquire this license in Dayton expands Leap's commitment to bring the Cricket(SM) service to new markets," said Sue Swenson, president of Leap and CEO of Cricket Communications, Inc., a wholly owned Leap subsidiary. "The FCC's ruling has given us the ability to pursue additional spectrum acquisitions and based on Cricket's momentum, we intend to do so in order to meet the needs of the U.S. market."

With this acquisition in Dayton, Leap has the rights to acquire licenses to offer the Cricket service to approximately 24 million potential subscribers (POPs), based on 1998 population estimates. The conditions of the sale include the transfer to PCSDevCo of the license in Casper, Wyoming that Leap successfully bid upon in the recent PCS spectrum re-auction.

Bloomberg.com to Deliver News Over Sprint PCS "Wireless Web"

New York, NY, September 8, 1999 -- Moving to expand its news delivery across digital platforms, Bloomberg today announced it will offer Sprint PCS wireless subscribers access to news and data from its popular Bloomberg.com Website.

Bloomberg news and information is used by over 250,000 financial professionals (the BLOOMBERG system), 8 million radio listeners (Bloomberg Radio), over 200 million Bloomberg Television homes, and by Bloomberg News' 50 million readers in 850 newspapers around the world.

According to David Wachtel, publisher of Bloomberg Media, the new service will offer access to news displayed in three categories: "World News", "Financial", and "Company News and Delayed Stock Quotes." Quotes can be obtained simply by entering a company's stock symbol or complete name.

The service will also offer access to current index values, changes, and news summaries in four easy-to-read categories: Equity indices, bonds, currency and commodities.

"Because of the nature of our news and the kind of people who rely on it, this agreement with Sprint PCS is a natural fit," said David Wachtel, publisher of Bloomberg Media. "Investors see our news as a real competitive advantage, and it's exciting to be able to give them access in the palms of their hands anywhere, anytime."

"Sprint PCS is committed to providing our customers with clarity and connectivity nationwide. Sprint PCS Wireless Web will be able to offer subscribers news and financial information anywhere on our nationwide wireless network," said Charles Levine, chief sales and marketing officer for Sprint PCS. "Our agreement with Bloomberg will make accessing stock quotes and breaking news from your wireless phone a valuable proposition for consumers and businesses across the country."

The service will be available on all Internet-ready Sprint PCS wireless phones in late September. The information will be updated at a rate consistent with the provider's Internet offering.

Sprint Selects MapQuest.com to Provide Internet-Based Driving Directions to Wireless Web Phone Users; MapQuest.com Expands Its Wireless Partnerships with Addition of Sprint PCS

New York, NY, September 8, 1999 -- MapQuest.com, Inc., the leader in destination information solutions, today announced a new partnership with Sprint PCS, the nation's fastest growing wireless provider, to provide driving directions to Sprint PCS Wireless Web phones users. Beginning in late September, Sprint PCS customers subscribing to the company's Wireless Web service can access MapQuest.com driving directions at anytime from anywhere on the Sprint PCS 100 percent digital nationwide wireless network.

"This new partnership reaffirms MapQuest.com's position at the forefront of the wireless world." said Mike Mulligan Chairman and Chief Executive Officer of MapQuest.com. "At MapQuest.com we know that consumers are looking for directions while on the go. In fact, a January 1999 Jupiter Communications Report showed that driving directions is the killer app for mobile devices."

Sprint PCS Chief Sales and Marketing Officer, Charles Levine said: "Sprint PCS is committed to providing our customers with clarity and connectivity nationwide. We chose to align with MapQuest.com because together, we can provide critical information to businesses and consumers to help them get wherever the need to be from anywhere in our nationwide network. Together, Sprint PCS and MapQuest.com are pioneering the way to offer mobile information access to customers nationwide."

MapQuest.com will provide city-to-city and door-to-door driving directions for Sprint PCS customers who subscribe to the company's Wireless Web service. The Sprint PCS Wireless Web will enable customers to make real-time connections to MapQuest.com and other select Internet-based content so they can interactively browse special text-only versions of popular web sites. The Sprint PCS Wireless Web will be available nationwide throughout the Sprint PCS network in late September.

Leap Wireless International Joint Venture PEGASO PCS Launches Service in Monterrey, Mexico PEGASO Meets Aggressive Timeline to Roll Out Service in Mexico's Major Markets

San Diego and Monterey, Mexico, Sept. 8 -- Wireless communications carrier Leap Wireless International, Inc. and its Mexican joint venture, PEGASO PCS, today announced that PEGASO will launch its all-digital wireless service in Monterrey, Mexico. Monterrey is the third major market in which PEGASO has introduced its high-quality wireless service this year, following launches in Tijuana in February and Guadalajara in August. PEGASO is expected to launch service in Mexico City by the end of the year.

"The Monterrey launch demonstrates PEGASO's ability to meet an aggressive timeline to roll out service in Mexico's four largest markets by the end of this year," said Harvey P. White, chairman and CEO of Leap and CEO of PEGASO. "Monterrey is a key market for PEGASO because of its prominence as the country's second largest industrial center. Following the launch in Mexico City, we expect to further expand PEGASO's network to other regions next year."

"PEGASO's commitment to customer service, innovative marketing and unbeatable voice quality will give Monterrey consumers a clear new choice in wireless communications," said Alejandro Diez Barroso, president of PEGASO. "With our per-second billing we are offering customers the fairest pricing combined with the virtual elimination of fraud to give our users the best value in the market."

Committed to setting new standards of quality and excellence for wireless services in Mexico, PEGASO reaches out to the mass market by selling phones through self-service stores and supermarkets, in addition to its own stores. PEGASO offers customers an array of advanced features, including caller ID and voice mail, in addition to per-second billing. Leap is the largest shareholder in PEGASO PCS. With a planned initial investment of approximately $1.3 billion, PEGASO PCS is deploying the first 100% digital network in Mexico. PEGASO plans to offer nationwide PCS service, launching in the country's four largest cities in 1999. PEGASO has introduced service in Monterrey, Guadalajara and Tijuana and plans to launch in Mexico City later this year.

Sprint Selects InfoSpace.com to Deliver Internet Directory Services through Sprint PCS Wireless Web Service

Redmond, WA and Kansas City, MO, September 7, 1999 -- One step closer to making every space an InfoSpace, InfoSpace.com, a leading Internet infrastructure company, and Sprint PCS, the nation's largest PCS provider with nearly 4 million customers nationwide, today announced that InfoSpace.com will provide the core directory component in Sprint PCS Wireless Web service. This will provide users with the essential capability to find people, places and things in their neighborhood and around the world. This service will be available in late September with the launch of Sprint PCS Wireless Web initiative.

"We have a very aggressive wireless strategy and are committed to providing InfoSpace.com's content, community and commerce services to users anytime, anywhere and on any device," said Naveen Jain, chairman and CEO, InfoSpace.com. "Our relationship with Sprint PCS gives users the ability to access InfoSpace.com's offerings through the freedom of their phone. This further validates our position as a leader in this space."

"Sprint PCS is committed to providing our customers with clarity and connectivity nationwide. We've selected InfoSpace.com's award-winning yellow pages and white pages to give our wireless users access to the clear, localized information they want, when they want it anywhere on the Sprint PCS nationwide wireless network," said Charles Levine, chief sales and marketing officer for Sprint PCS. "Our relationship with InfoSpace.com helps us open access to all services and content on the Internet via the Sprint PCS Wireless Web ."

Two New, Cutting-Edge Nokia Phones Now Available to U S WEST Wireless Customers; $40 Million Agreement to Offer Customers Nokia CDMA Wireless Phones Providing Customers Everything from Choice of Colors to Video Games Even Vibrate Alert Instead of Ring Option

Denver, CO, September 1, 1999 -- U S WEST customers now have the choice of two new wireless phones from Nokia, including one with data/fax connections, built-in video games, - even a vibrating alert so calls can be received without disturbing others. The new Nokia 6185 phone offers many other features as well, including distinctive ringing tones that can be assigned to 20 important callers, an alarm clock, and a calendar.

The new Nokia wireless phones are being made available to U S WEST customers as part of an agreement announced today between Nokia and U S WEST valued at more than $40 million. The second handset now available to U S WEST customers is a designer phone with changeable colors. The Nokia 5170 features Xpress-onô color covers, allowing users to quickly snap on and snap off a variety of colored faceplates without special tools.

"Consumers are going to love these new choices," said Peter Mannetti, president of U S WEST Wireless, "With the addition of the Nokia 5170 and Nokia 6185 to our product line, combined with U S WEST's integrated network and One Number Service, customers have access to a powerful service package."

"Nokia is proud to partner with U S WEST to offer its customers two of the most popular and innovative wireless phone designs in the world," said K-P Wilska, president of Nokia Mobile Phones, Americas. "The Nokia 5170 and Nokia 6185 offer consumers outstanding performance and the ability to individualize their phones according to their lifestyles."

Nokia 6185 Features
Designed with today's changing lifestyles in mind, the Nokia 6185 combines the benefits of multiple products and enhanced features that reach far beyond those of traditional wireless phones. The Nokia 6185 includes a feature called "Profiles," which offers a selection of phone settings, such as "Silent," "Meeting" or "Outdoor," for use in different environments. The 5.2-ounce phone also features a high-resolution illuminated display, Caller ID sensitive ringing tones that can be assigned to 20 important callers, an alarm clock, calendar and four electronic games.

Nokia 5170 Features
The Nokia 5170 phone is one of the hottest digital phones on the market today. Customers gravitate toward the phone's strong feature set, outstanding performance and the unique ability to easily snap on and off the phone's color covers. The Nokia 5170 is the first digital phone to give people a true choice of color - the ability to change the color cover at any time. Additional covers can be purchased separately from a selection of 10 choices including 4 new vibrant colors; Plum Red, Gloss Midnight, Shark Silver, and Cedar Green.

Both handsets are available immediately at U S WEST Wireless and other retail stores in Oregon, Washington, Minnesota, Arizona and Colorado. The Nokia 5170 retails for $59.99, and the Nokia 6185 retails for $179.99. Both phones can be purchased with any U S WEST Wireless calling plan. Customers also can order the service by calling 1-800-222-3772.

Vendor News

QUALCOMM CDMA Technologies Selected by Sprint As Mobile Technology Provider for Third Generation Trials; MSM5000 Chipset and System Software to Power Trial Mobile Terminals for 3G CDMA 1x MC Trials Early Next Year

San Diego, CA, September 29, 1999 -- QUALCOMM Incorporated, pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Sprint PCS, operator of the nation's largest all-digital, all-CDMA network, today announced the selection of QUALCOMM CDMA Technologies as a mobile technology provider for trials of Third Generation (3G) wireless technology based on the 3G CDMA 1x MC (Multi-Carrier) mode of the IS-2000 Release 0 published standard. The technical trials, scheduled to begin during the first quarter of 2000, will use trial mobile terminals based on QUALCOMM CDMA Technologies' MSM5000(tm) chipset and system software along with a complete development toolkit.

"We are pleased to be working with QUALCOMM for 3G trials," said Oliver Valente, vice president of technology and advanced systems development at Sprint PCS. "QUALCOMM's leadership in CDMA, on-time delivery of leading-edge solutions and hands-on technical support make them an excellent choice for the upcoming trials."

"We are proud that Sprint PCS, the nation's fastest-growing wireless services provider, has chosen our seventh-generation MSM5000 CDMA chipset and system software for their 3G trials," said Don Schrock, president of QUALCOMM CDMA Technologies. "These trials are the next step in delivering a new breed of wireless Internet access and data transfer capabilities to consumers and realizing the full potential of the wireless revolution. Sprint PCS has positioned itself as a leader in this revolution to provide the most advanced features and services to their customers."

The recently introduced MSM5000 chipset and system software, QUALCOMM's seventh-generation MSM product, builds upon the successful architecture of QUALCOMM's fifth-generation MSM3000 chipset and system software. Pin-compatible with the MSM3000 product, the MSM5000 chipset and system software will be available in the same 176-ball Fine Pitched Ball Grid Array (FBGA) package and 196-ball Plastic Ball Grid Array (PBGA) production package.

The MSM5000 solution exceeds the ITU's 3G requirements for data rates in full wide area mobility of 144 kilobits per second (kbps) by enabling data rates of 153.6 kbps on both the forward and reverse links. Compliant with 3G CDMA 1x MC (IS-2000 Release 0), the MSM5000 solution gives operators up to twice the overall capacity of voice users over IS-95A and IS-95B systems through the use of features such as fast 800 Hz forward power control and new modulation and coding schemes. Featuring support for Quick Paging Channel and a 24x searcher, the MSM5000 solution provides up to a 50 percent increase in handset standby time. The system software will include support for IS-95A, IS-95B and 3G CDMA 1x MC (IS-2000 Release 0) as well as packet data, a full Internet protocol suite, voice recognition and many other features.

Reference designs and the CDMA Designer(tm) development toolkit will be used to reduce trial development time and effectively evaluate the trial terminals and system. The Subscriber Unit Reference Development System, an essential element in the CDMA Designer toolkit, will provide a working example of the interfaces between QUALCOMM CDMA Technologies' MSM5000 chipset and other functional parts of the subscriber unit. The complete toolkit offers system development software, verification, test, debug, calibration, manufacturing and field test support to ensure faster delivery of feature-rich 3G products to the marketplace.

Brazil's Vesper Selects Lucent Technologies to Supply Wireless Network in US$470 Million Agreement; Lucent to install digital wireless local loop network to offer competitive local and long distance telephone services in São Paulo

Sao Paulo, Brazil, September 27, 1999 -- Lucent Technologies today announced it has been selected by Vesper, one of the new, competitive service providers in the state of São Paulo, to supply a wireless network for fixed voice and data services that Vesper will begin to offer its customers in December.

The project, which could reach US$470 million over five years, is subject to negotiation of final terms and conditions and would include financing. Under the proposed agreement, Lucent will supply a "wireless local loop" (WLL) system, whose key benefit is rapid deployment because it does not require installers to dig trenches and install cable or telephone poles. WLL systems consist of base stations which use radio signals to deliver network services to receivers installed at the home or business. The phones operate just like any ordinary phone, connected through the in-house wiring system.

The first phase calls for the installation of Flexent(tm) PCS Minicells and Mobile Switching Centers (MSCs) using Lucent's flagship 5ESS® Switch platform. Lucent also will supply a range of NetCare® professional and network support services to deploy the network and its Galaxy Power Systems.

"Lucent's unparalleled combination of technology and services, together with its unrivaled international experience, were the decisive factors in the selection process," stated Virgilio Freire, president of Vesper, the trade name for Megatel do Brasil S.A. The Megatel consortium won the second carrier license to provide competitive local and long distance services in the state of São Paulo.

"The rapid deployment of WLL will allow us to meet all our commitments and deadlines, and to begin offering high-quality services at a competitive price," added Freire. The rapid launch of fixed line service is possible because the network is based on a digital mobile phone technology called Code Division Multiple Access (CDMA). Instead of cable or wire, the network relies on wireless transmitters and receivers to deliver telecommunications services to residence and business customers, enabling Vesper to rapidly deploy the service in a matter of weeks. Additionally, the CDMA network will operate in the 1.9 GHz band of the radio frequency spectrum and offer a range of personal communications services, including voice and data communications.

"We are delighted to be working with Vesper in the first large-scale deployment of wireless local loop technology in Brazil," said Jose Roberto Campos, acting president of Lucent Technologies in Brazil. "Lucent has already successfully deployed this type of wireless network in Saudi Arabia, Poland and Egypt, and Lucent Brazil is standing ready to help Vesper meet its schedule."

In addition to WLL, Lucent also will supply other solutions such as network management software, intelligent networking software for short message and other value added services, and power systems for the radio base stations. In subsequent years, the contract also calls for the installation of optical fiber and copper networks, as well as the evolution of the 1.9 GHz system to allow higher-speed data transmissions.

About Vesper in Sao Paulo
Vesper is the trade name for Megatel do Brasil S.A., a consortium composed of Bell Canada International, Qualcomm and Velocom of the United States, and SLI of Argentina. Megatel won the second carrier license to compete against the incumbent wireline telephone service provider in Sao Paulo as part of the privatization process which begun in Brazil in July of 1998. Vesper is slated to begin offering services in the largest cities in the state of São Paulo, including the São Paulo metropolitan area, in December of this year.

Brazil's Telesp Celular Signs Contracts For US$14 Million With Lucent Technologies For Digital CDMA Overlay Of Wireless Network in Sorocaba

Sao Paulo, Brazil, September 24, 1999 -- Project extends the presence of Lucent's CDMA systems in the Telesp Celular network to 59 municipalities in the State of Sao Paulo, a geographic area with 10 million inhabitants Lucent Technologies today announced it has signed a US$14 million contract with Telesp Celular for a digital overlay of the existing analog cellular system in the Sorocaba region of the state of Sao Paulo, an area with a population of 750,000. The digital system is based on code division multiple access (CDMA).

With this contract, Lucent extends its participation in the digitalization and expansion of the Telesp Celular network to an extensive area covering 59 municipalities in the state of Sao Paulo, a 10-million person geographic area. Lucent CDMA systems deployed in the Telesp Celular network now run from Porto Primavera in the north, through Mato Grosso do Sul and to Baixada Santista in the south. To date, Lucent has installed more than 800 cell sites in the Telesp Celular network.

Under the terms of this contract, Lucent will provide Mobile Switching Centers using the 5ESS® switching platform, and approximately 50 Autoplex® System 1000 Compact Minicells, as well as technical expertise and support services. The digital cell sites for this project will be manufactured at the Lucent manufacturing facility in Campinas, Brazil.

"This project increases our presence with Telesp Celular in more than 59 municipalities," said Jose Roberto Campos, vice president of Lucent Technologies in Brazil. "We are thrilled to continue to work hand in hand with this customer as they expand their network to offer superior quality cellular services throughout the state of Sao Paulo."

Lucent already has deployed CDMA systems for Telesp Celular in the cities of Bauru, Marilia and Presidente Prudente, and is currently completing CDMA overlay of existing systems and expanding the networks in the metropolitan area of Sao Paulo and other municipalities in the interior of the state. Lucent's 5ESS Switch is a large-scale, software-based digital switching system that delivers any media from one platform. This capability allows service providers to offer any service-local, long distance, voice, data, or video-over any network-wireless or wireline. Its new 7R/E Packet Driver provides a smooth gateway to packet networks, allowing service providers to merge their voice and data networks as one. The 5ESS Switch currently serves more than 104 million lines and 48 million trunks from four thousand host switches in more than 50 countries worldwide. The Autoplex System 1000 Series II cell sites will be equipped with digital radios using the cdmaOne technology. This wireless technology, based on the IS-95 CDMA standard, provides increased call capacity and enhanced call quality that is comparable to landline service.

Lucent Technologies and QUALCOMM to Develop Wireless System Based on Third Generation Standard; Alliance Will Accelerate Introduction of Services Based on IS-2000 3G Specification

Murray Hill, NJ, September 23, 1999 -- Lucent Technologies and QUALCOMM Incorporated today announced an alliance to commercialize a wireless technology that dramatically increases the capacity and data capabilities of Lucent's network equipment based on one of the fastest growing global digital wireless technologies, Code Division Multiple Access (CDMA). Under terms of the co-development agreement, QUALCOMM CDMA Technologies will provide the core chip and software to be incorporated into Lucent's CDMA base station equipment. The agreement anticipates field trials during the first half of 2000 using Lucent's Flexent® base stations and trial handset terminals. By highlighting the improved transmission rates, the trials will help accelerate the commercialization of wireless enhanced voice, high-speed data, video-on-demand, interactive e-mail and remote monitoring services to consumers around the world.

Lucent's CDMA base stations will be equipped with new channel cards incorporating QUALCOMM CDMA Technologies' recently introduced CSM5000(tm) Cell Station Modem (CSM(tm)) while preserving existing radio frequency (RF) components. Trial terminals will be based on QUALCOMM CDMA Technologies' latest mobile handset circuitry, the MSM5000TM Mobile Station Modem (MSM(tm)).

The announcement by Lucent and QUALCOMM comes only weeks after formal adoption of the first global standard for third generation(3G) wireless systems. The technology being developed by the two CDMA leaders is called CDMA2000 1XRTT, and is the first phase of the industry-approved IS-2000 3G standard which assures compatibility with today's commercial IS-95A and IS-95B cdmaOneTM networks. The IS-2000 standard adheres to the Global 3G CDMA specification agreed to by more than 40 wireless operators and manufacturers worldwide.

"With global CDMA subscriber growth exceeding 150 percent in the past year, our customers have aggressive deployment plans for this evolutionary 3G technology," said Bill Wiberg, president of Lucent's Wireless Network Group's cellular and PCS business. "We are confident that we will meet this challenge with QUALCOMM as a key partner in our development and commercialization program."

"This collaboration is truly a win-win for us and the wireless industry," said Don Schrock, president of QUALCOMM CDMA Technologies. "Our complete chipset solutions for 3G infrastructure and handset products, combined with Lucent's high-quality base station systems, will ensure faster time to market and a cost-effective transition to third generation CDMA services." QUALCOMM CDMA Technologies' CSM5000 infrastructure chip complies with CDMA2000 1XRTT while doubling the overall capacity for voice users as compared with IS-95A CDMA systems. The CSM5000 chip exceeds the International Telecommunications Union's 144 kilobits per second (kbps) mobile data rate requirement for 3G systems by supporting 307.2 kbps on both the forward and reverse links. The CSM5000 integrates up to 32 simultaneous users, a four-fold increase over the previous generation CSM.

Repeater Technologies Unveils Customized Donor Antenna

New Orleand, LA, September 22, 1999 -- Repeater Technologies here at PCS '99 today in booth No. 5322 announces the introduction of RepeaterStar(tm) DA1900-39 donor antenna, which is custom-designed for over-the-air repeater applications.

The specialized antenna features superior sidelobe suppression of -50 dB in the E-plane and -40 dB in the H-plane. In addition, the donor antenna features excellent front-to-back ratio of 50 dB, allowing for less vertical real estate separation between the donor antenna and the subscriber antenna.

RepeaterStar is a deep-dish reflector with a 39-inch radiating aperture and a depth of just 12 inches. Installation is quick and easy with a weight of just 45 pounds. The over-the-air repeater's optimized design offers 24 dBi gain and a narrow 11.5 degree beamwidth.

The antenna's superior performance and its easy to install attributes make it the perfect companion for the company's OA1900C Network Repeater(tm).

"We've designed the RepeaterStar DA1900-39 to add to the portfolio of our RepeaterHybrid(tm) Network Technology offering -- making repeaters easier to deploy in Low Density/Low Capacity PCS markets," said Ken Kenitzer, president and chief executive officer of Repeater Technologies. "This new donor antenna is being deployed now by PCS carriers. We are pleased to offer carriers the performance and features they require with this new antenna."

Deploying with Repeater Technologies CDMA Network Repeaters constitutes a buildout trend with such PCS carriers as Ameritech, Alaska DigiTel, Amica Wireless, Clearnet, Intelos, Lifecom(R), Montana Wireless, PrimeCo, U S West Communications and Via Wireless.

TASKIT®/CDMA v3.1 Decreases CDMA Handset Testing Time by 50%;New Software Dramatically Reduces Resources Needed for Mobile Phone Evaluation

New Orleans, LA, September 22, 1999 -- Telecom Analysis Systems (TAS), a leading provider of wireless communications test equipment, announces TASKIT/CDMA v3.1, the latest generation of its automatic CDMA mobile test software. TASKIT/CDMA, a key element in TAS' CDMA Automatic Test System (CDMA-ATS™), is the industry's standard test platform for comprehensive CDMA handset evaluation. Available immediately, TASKIT/CDMA v3.1 increases test throughput levels by 100%. The most efficient solution for handset evaluation, the v3.1 release slashes test times in half when compared with earlier versions of the TASKIT software.

TASKIT/CDMA v3.1 also adds a feature that allows simultaneous comparison of competing handset performance results. Service providers often need to evaluate the performance of different handsets before deploying them within their network. TASKIT/CDMA makes it easy for carriers to compare handsets and choose the model that will provide subscribers with the best service.

TASKIT/CDMA provides the most extensive suite of tests for evaluating the performance of CDMA handsets in accordance with the latest industry standards specified in IS-98A, J-STD-018, EIA/TIA-98B and ARIB T53 v1.1. TASKIT/CDMA performs the following tests critical to handset performance evaluation:

• Forward Traffic Demodulation
• Receiver Sensitivity
• Dynamic Range
• Single Tone Desensitization
• Intermod Spurious Response Attenuation
• Frame Error Rate
• Waveform Quality and Frequency Accuracy
• Minimum Controlled Output Power
• Maximum RF Output Power
• Response of Open Loop Power Control
• FER Characterization · Frequency Requirements
• Idle Handoff · FER during Soft Handoff
• Range of Open Loop Power Control
• Receiver Conducted Spurious Emissions
• Range of Closed Loop Power Control
• Access Probe Output Power
• Transmitter Conducted Spurious Emissions
• Standby and Gated Output Power
• Demodulation of Non-Slotted Paging Channel with AWGN

"Our customers need to get their products and services to market quickly," says Rob Van Brunt, TAS Product Manager of Wireless Test Instruments. "At the same time, they cannot compromise their product design by trading-off test coverage for test throughput. We've optimized TASKIT/CDMA execution with time-saving measures that allow mobile phones to be thoroughly tested in half the time."

TASKIT/CDMA provides base station drivers for the HP E8282 and the Tektronix CMD80. Test conditions and results are stored in an industry standard Microsoft® Access database format for post-processing in MS Excel, MS Word, Crystal Reports, and other applications. TASKIT/CDMA v3.1 software also enables the user to capture spectrum analyzer test results in graphical format.

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