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3G Americas Documents Next-Generation Transition

10th June 2003

3G Americas has published a white paper entitled GSM for Rural and Regional Mobile Operators. The report identifies the opportunities for TDMA wireless operators in the Americas, often licensed in the 850 MHz band, to deliver next-generation services using the GSM family of technologies.

Chris Pearson, Executive Vice President of 3G Americas emphasized, "GSM 850 is now a core band, making it possible for rural carriers to benefit from readily available equipment, infrastructure and devices, as well as the economies of scale derived from 847 million GSM customers throughout the world." Pearson continued, "This paper provides a roadmap and business case for rural and regional operators in the Americas that want to offer 3G high- speed wireless data services in the near future. GSM migration with EDGE technology offers the benefits of relatively easy deployment, cost efficiency and the ability for implementation within existing spectrum."

Conclusions of the paper indicate that rural and regional operators transitioning to GSM will benefit by:

-- clear evolution to next-generation services through GPRS, EDGE and UMTS

-- enhanced voice capacity and data capabilities

-- wide range of competitively priced multi-band devices

-- multiple vendors offering cost-effective infrastructure and application
solutions

-- optimization of spectrum usage

-- lower capital expenditures and reduced long-term operating expenses

-- revenue opportunities for national and international roaming

"Use of GSM in the Americas and around the world continues to outpace all other technologies. In the United States, rural and regional TDMA operators have an opportunity to capitalize on this growth and capture their portion of GSM roaming revenues which can represent 22-33% of a rural operator's total revenue," said Rod Nelson, Chairman, 3G Americas. "To date, 35 operators in the U.S. are deploying GSM -- including 32 rural or regional operators -- and additional operators are finalizing their next-generation migration decisions."

GSM for Rural and Regional Mobile Operators determines that a TDMA operator's choice of the GSM family of technologies represents an investment in the enhanced capabilities for voice and value-added packet data services that will benefit them today and in the future. Announcements of GSM migration by rural and regional TDMA operators include: Cincinnati Bell Wireless, CORR Wireless, EDGE Wireless, Eastern New Mexico Rural Telephone, Highland Cellular, Triton PCS, Union Telephone and Western Wireless.

GSM is the most extensively used digital mobile network technology in the world reporting 847 million customers in 175 countries on more than 640 GSM mobile networks. GSM has the only truly global footprint for international roaming and portability of services.

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