Prospects for 3G Versatile Interchanges Business sector and Innovation.

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HSDPA is the key innovation for acknowledging level rate bundle correspondence benefit proficiently. ... Office building. NEC Solutions. RF Server. Shopping Mall. RS3000. RF Repeater. Plan, ...
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Prospects for 3G Mobile Communications Market and Technology 1. 3G Mobile Market Status 2. View on Future Evolution A) Radio Aspect B) Network Aspect 3. NEC\'s Activities January, 2004 NEC Corporation

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1. 3G Mobile Market Status

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90% of versatile clients use Mobile Internet in Japan Mobile clients in Japan Total Mobile clients: 85M Total Mobile web clients :74M Ratio of 3G client : 30% third Stage Mobile Internet Introduction of new administrations empowered by " settled rate charging" ( as of end Dec 04 ) (K) second Stage Mobile Internet Photo mail supporting the change of Data ARPU first Stage Mobile Internet Rapid increment in Mobile Internet clients Fixed Rate Billing begin (Nov 03) Photo mail begin (Nov 00) i-mode begin (Feb 99) 1996 1997 1998 1999 2002 2003 2004 2000 2001 Source: TCA (Telecommunications Carriers Association) © NEC Corporation 2004 Confidential

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New Revenue created by Mobile Internet Service Decline in voice administration income has been recouped by information administration income. (e.g. NTT DoCoMo) Euro = 135 J-yen Source: NTT DoCoMo © NEC Corporation 2004 Confidential

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Evolution of Service and Terminal Function with increment of Data Speed Network Data Speed 2G 2.5G 3G ~10Kbps 100Kbps ~ Wall Paper Picture Mail Movie Clip Service/Contents Ringing Tone Real Tone Full Music Sort Text Log/Diary Novel Terminal Digital Camera Media Player Digital TV Scheduler Game © NEC Corporation 2004 Confidential

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Mobile Subscribers in Japan Subscribers are moving from 2G to 3G Mobile Subscribers in Japan (Accumulated) Mobile Subscribers in Japan (Monthly) 30% 3G: WCDMA, 1x/Ev-Do, 2G: PDC, cdmaOne Source: Telecommunications Carriers Association, Japan © NEC Corporation 2004 Confidential

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W-CDMA Subscribers in Japan 3G memberships are expanding quickly (1M subs) Vodafone 0.37Mil sub. DoCoMo 8.50Mil sub. 2003 2004 Source : Telecommunications Carriers Association © NEC Corporation 2004 Confidential

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16 million W-CDMA endorsers on the planet At the start of 2005, worldwide membership of UMTS system had as of now came to 16 million on more than 60 systems .. Source: UMTS Forum 3 Sweden Japan 8.9mil 3 UK 1.8 mil. 3 Austria 3 Italy 2.0 mil. 3 Australia Source: TCA and Others. As of December 2004 © NEC Corporation 2004 Confidential

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Flat-rate Charge Service began in Japan Japanese clients appreciate rich information administration since presentation of level rate charge Packet Traffic "Chaku-Uta Full" by au Download whole Music "EZ Channel" by au Periodic auto-conveyance Contents administration Interactive Game Download substance around evening time Enjoy substance at whatever time and anyplace Set most loved substance (3 programs, max.3MB/prog) © NEC Corporation 2004 Confidential

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HSDPA Ready for business administration inside one year Down connection : W-CDMA=384kbps  HSDPA=14.4Mbps Improvement of aggregate throughput with element far field/close field control HSDPA particular: 3GPP Release 5 Low Speed Adaptive Modulation and Coding QPSK to 16QAM, Low to High Error Correction - Hybrid ARQ, Fast Adaptive Scheduling High Speed Far from Base Station (Low Radio Strength) Near to Base station ( High Radio Strength) Packet Traffic HSDPA utilizes remaining bearer influence for parcel activity © NEC Corporation 2004 Confidential

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What is going on in current versatile business sector in Japan ? Parcel movement is expanding quickly Fixed Tariff for Packet activity is getting to be predominant in 3G AU (Ev-Do): 1 Mil clients now Packet use 30 times of customary clients DoCoMo (WCDMA): 1.4mil client now Packet use 13 times of normal clients Traffic on 3G system expanded 1.9 times VDF KK (WCDMA): Stared in Nov.2004 "HSDPA" will be soon. HSDPA is the key innovation for acknowledging level rate parcel correspondence benefit proficiently. Best exertion sort bundle movement increments quickly by productive utilization of radio assets. System to be set up ahead of time Over 100 frameworks are in business operation © NEC Corporation 2004 Confidential

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100% 90% 80% 70% 60% half Vodafone KK :99.6% (as of Aug.2004) DoCoMo: 99.7% (as of Jun.04) :DoCoMo :Vodafone KK 3 6 9 12 3 6 9 12 3 6 2002 2003 2004 Coverage Expansion Plan ●DoCoMo Vodafone KK and systems came to more than 99% of range scope proportion (equal to 2G) ●Expanding indoor scope for client fulfillment Outdoor Coverage regarding populace Indoor Coverage as far as No. of destinations No. of locales 5,000 4,000 3,000 2,000 1,000 0 :DoCoMo :Vodafone 3800 1670 1800 350 0 150 Mar.2003 Mar.2004 Mar.2005(plan) Source: DoCoMo/Vodafone © NEC Corporation 2004 Confidential

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RAN Optimization Continuous Quality Improvement & Area Management Area Patrol Coverage Design Commercial Service Drive Test W-CARD RAN Tuning RAN System Installation W-CARD © NEC Corporation 2004 Confidential

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2. View on Mobile Network Evolution A) Radio Aspect (Super3G)

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Mobile Network Evolution for Future 3G 3.5G S3G 4G 384Mb/s 14Mb/s 100Mb/s 1Gb/s Data Speed WCDMA HSDPA AMC H-ARQ, and so on. Improvement MIMO OFDM, and so forth .. New Access Radio Aspect Network Aspect PS Only (All IP) CS + PS RAN IP-RAN IMS PS RAN IMS CS IP-RAN © NEC Corporation 2004 Confidential

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MIMO: Multiple Input Multiple Output Parallel Spatial transmission by numerous transmit and get reception apparatuses increment the Frequency effectiveness ■MIMO Multiplexing Parallel spatial Transmission of information signs utilizing Multiple Transmit recieving wires => Increase Data rate by the quantity of recieving wires ■MIMO Diversity Transmit same information and get them differences joining => Improve get execution under terrible radio engendering condition Rx Tx #1 #2 #3 #4 Signal Separation & Diversity Combining Parallel Transmission © NEC Corporation 2004 Confidential

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Down Link Access Scheme: OFDM VSF OFCDM : Orthogonal Frequency & Code Division Multiplexing Optimal Mixture of Orthogonal Frequency Division Multiplexing (OFDM ) and Code Division Multiplexing (CDM) Time and Frequency space spreading is embraced to OFDM Improve recurrence reuse proficiency by OFDM Frequency Diversity impact by slender band multi-transporter VSF : Variable Spreading Factor Cellular Environment: Spreading component > 1 To diminish the effect of obstruction Data Rate: 10Mbps@10MHz BW Hot spot Environment: Spreading element = 1 To expand the connection limit Data Rate: 100Mbps@10MHz BW with MIMO OFCDM Coding © NEC Corporation 2004 Confidential

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2. View on Mobile Network Evolution B) Network Aspect (Fixed Mobile Convergence)

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Evolution of Radio Access Network - Flow of 2 Systems Aiming at Wireless Broadband - Multiple new remote innovations with rapid, wide-band, and high versatility rose going for Beyond 3G Two frameworks (1) "PDA innovation" taking into account 3G or 3.5G and (2) "Remote LAN innovation" in light of _WiFi are available and different sorts of controls showed up. High Communication separation *** Mobility* ( Speed km ) 3/3.5G 2/2.5G High-speed, wide-region remote innovation with 4G, 802.20, and so on 2 ~ 3Km ~ 100 Mobile telephone 100m max . HSDPA Difference between Mobile telephone and Wireless LAN PHS NW: Close - Open Capacity: Based on voice – Data with vast limit QoS: Complete – Basically best exertion . ~ 10 WiMax 802.16e 802.16a Wireless LAN *Adaptability to portable in a base station **Downlink speed ***Effective correspondence separation from base station Reference: Search depiction, ABI research 802.11a 802.11b WiFi ~ 50 ~ 3 Low High Low Communication speed ** (Mbps) © NEC Corporation 2004 Confidential

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FOMA N900i L FOMA N900iL FOMA N900i L FOMA N900i L Solution in Cooperation with FOMA® My Office Anywhere, In-house or outside, by one FOMA ® In-house Outside Moving Public phone system UNIVERGE WL Wireless controller FOMA Mobile phone system Application server FOMA N900i L Access point SIP communication server UNIVERGE SV7000 Reference to records for meeting FOMA in office Wireless LAN Foma At webpage At support website Wireless LAN At own work area Off work area Application participation from FOMA outside the workplace Wireless augmentation phone by remote LAN (Wireless IP phone) FOMA N900i L Can get effortlessly by utilization of nearness To web meeting from TV phone © NEC Corporation 2004 Confidential FOMA® is an enrolled trademark of NTT DoCoMo.

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Next Generation Mobile Network MRFC: Multimedia Resource Function Controller MRFP: Multimedia Resource Function Processor CSCF: Call Session Control Function MGCF:Media Gateway Control Function PDG : Packet Data Gateway WAG :WLAN Access Gateway AAA :Authentication, Authorisation and Accounting AP :Access Point MGW:Media Gateway Function HSS : Home Subscriber Server 3GPP-AAA HSS CSCF MRFC MGCF I-CSCF PDG IMS WAG MGW AP WLAN A SV7000 SGW MGW Enterprise WAG WLAN A MRFP AP GGSN (aTCA/RMS) AP 3G PS CSCF 3G-AAA Proxy AP SGSN (aTCA) 3G CS 3G open WLAN IP-RNC (aTCA) Fixed Network VoIP PSTN 3G Authentication UMTS Residence Enterprise New PF connected BAS SV7000 BTS AP Mobile Network Fixed system © NEC Corporation 2004 Confidential

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Mobile/Fixed Service Integration - Seamless Service-One Stop Subscription/Single User ID/Simple Billing Internet Residence Service Applications/Contents ・・・ IP based Service Platform IMS Business Trip Fixed Packet Network Mobile Packet Network Wired Access 2G/3G Mobile ADSL / Fiber HSDPA/EUDCH Office Cable Hot Spots WiMAX WiFi Wireless Access Transportation © NEC Corporation 2004 Confidential

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NEC\'s Activities

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The web PSTN E2E answers for versatile system NEC serves you the aggregate arrangements with the m

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