[Variety of GSM 850 multi-band terminals set to fuel next GSM expansion phase in the Americas with major operators set to introduce their first GSM terminals incorporating 850 this month and to have half a dozen models on the shelves for the holiday season. ]

Las Vegas, NV -- Some of the industry's largest GSM/GPRS operators and manufacturers today announced there will be an abundant variety of terminals available for carriers interested in adopting GSM/GPRS technology for 850 MHz networks, accelerating the adoption of the GSM wireless technology throughout the Americas.

While meeting with industry analysts at the CTIA Wireless I.T. & Internet 2002 conference in Las Vegas, 3G Americas, a wireless industry association representing GSM carriers and vendors, emphasized that the introduction of the GSM technology in the 850 MHz spectrum band is successfully on track and that affordable terminals are already available for use on those networks. 3G Americas stressed that GSM carriers using the 850 MHz band should expect to see a steady stream of new multi-band terminals for use in their markets and in other countries around the world. Speaking on behalf of 3G Americas, Chris Pearson, Executive Vice President commented, "These products will effectively open the major segment of the Americas market to GSM because of the dominance of 850 MHz spectrum band throughout the region."

New GSM terminals will fulfill a variety of customer needs and tastes, all the way from entry models to premium products with color screens, JAVA, MMS, and polyphonic sound. Every GSM 850 MHz terminal will benefit from years of GSM product development and can incorporate Adaptive Multi-rate Vocoder (AMR) technology, eventually helping to provide voice capacity gains in GSM networks up to 16 times analog, according to Pearson.

He cited commitments from major operators to introduce their first GSM terminals incorporating 850 this month and to have half a dozen models on the shelves for the holiday season. Cingular Wireless' Vice President for Supply Chain, Frank Boyer, has stated, "All our current suppliers are committed to supplying dozens of new models throughout 2003." AT&T Wireless' Mike Bamburak, Vice President for Technology Development added, "Several of our affiliates are in the process of deploying GSM/GPRS networks, and manufacturers are already delivering affordable multi-band phones that work across several frequencies, including 850 MHz. This is why the scale of GSM makes sense for equipment manufacturers, carriers, and developers. The days of single band wireless phones are over."

The 3G Americas spokesperson further noted that terminal vendors are enthusiastic about the opportunity presented by the introduction of GSM 850 services and noted any cost increments for providing GSM terminals for the 850 MHz band could be minimal or inconsequential for manufacturers. Bill Plummer, Nokia's Vice President of Strategic and External Affairs, has commented that: "As GSM migrates into the 850 MHz frequency, expanding capacity and coverage for Americas GSM networks with new multi-band GSM handsets, consumers in the Americas will benefit from lower cost handsets and enhanced service offerings. The GSM/GPRS-EDGE-WCDMA evolutionary path offers lower cost infrastructure, encourages greater and broader service creation, and ensures global and seamless interoperability - to the benefit of operators and consumers alike." Plummer added that Nokia currently offers two dual-band 850/1900 GSM handsets in the ma! rketplace, the Nokia 3590 and the Nokia 6590.

Likewise, Phil Gilchrist, Vice President of Motorola, PCS Global Standards said, "Motorola supports the integration of GSM 850 into our handsets."

Also voicing a commitment to GSM terminals for the 850 MHz band, Bert Klein, Senior Vice President and General Manager of the Mobile Phones unit, NAFTA region, within Siemens Information and Communication Mobile LLC, states "We are committed to the North American market and have formed strategic relationships with all major GSM carriers in order to meet their needs for dual-band GSM technology," He added "To illustrate our commitment, Siemens intends to introduce four new mobile phones in the United States during the next six months featuring dual-band GSM 850/1900 MHz."

Similarly, Jan Wareby, Executive Vice President and Head of Marketing and Sales at Sony-Ericsson, stated, "Our wireless customers will soon see several entry level and premium dual-band GSM 850/1900 handsets to address the growing demand in North, Central, and South America. We are committed to GSM 850 and we put great effort into superior coverage that benefits operators and consumers alike. As of Q4 this year, we will have the Sony Ericsson T62u on the market, a phone that incorporates the GSM 850/1900, TDMA 850/1900, and AMPS frequencies to maximize seamless roaming across network technologies." Wareby added, "We have also recently launched the T100 and T300, and both will be available in GSM 850/1900 versions for the Americas."

Pearson further explained that the new handsets will benefit from the economies of scale of the GSM terminal industry worldwide. He noted that "Currently the GSM technology has the largest number of manufacturers as well as the highest volumes and best variety of multi-band handsets available throughout the world and there is every reason to believe that this trend will be carried over into the 850 MHz band." According to EMC, there are currently 54 vendors offering 642 models of GSM multi-band handsets. Furthermore, Pearson stated "The cost advantages for GSM handsets, as recently indicated by public customs import data from one Latin American country that showcased a significant cost differential of GSM handsets versus other technologies, could continue for models in the 850 MHz bands."

Pearson summarized that "these terminals will play an important role in GSM subscriber growth in the Americas, already standing at 35 percent per year, according to EMC, and will contribute directly to GSM's rise to become the leading wireless technology in Latin America in 2007 as forecast by Pyramid Research." The bottom line, he noted, is that "the operators who succeed in next generation services will be those who can readily adapt to the shifting value chain brought by mobile Internet. GSM is available in more than 178 countries and more than 220 GPRS wireless data networks are in place. Operators in the Americas now have the same tools as the global GSM community to maximize both their immediate performance and next generation wireless opportunities."

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