Motorola Showcases First GPRS Live Demo in China Further Demonstrating Motorola Leading Position in GPRS - Industry Trend or Event

Cambridge Telcom Report, May 1, 2000

Motorola Inc.'s Network Solutions Sector (NSS) and Beijing Mobile Communication Corporation (BMCC) achieved another mobile milestone with China's first live General Packet Radio Service (GPRS) end-to-end demonstration during the First International GPRS China 2000 Conference held earlier this month in Beijing. Motorola was the only company capable of conducting the demonstration at the conference.

"We are proud to announce China's first complete end-to-end GPRS live demonstration with the frontrunner operator in China," said Tim Chen, General Manager of China Operations, Motorola's Greater China Network Solutions Division. "This significant milestone once again shows our leadership in GPRS in a challenging marketplace and we look forward to working closely with BMCC in bringing wireless Internet to China quickly."

The demonstration showed Motorola's capabilities in GPRS, delivering a complete end-to-end solution by using Motorola's GPRS handset technology with WAP applications, and a complete Internet protocol (IP)-based GPRS network infrastructure solution using Internet technology from Cisco Systems, Inc. The demonstration included browsing the Internet sites of Yahoo and Netease and transmitting and downloading data from Internet to computer through wireless GPRS handsets.

GPRS technology provides high-speed packet data transport service over existing GSM networks. It allows subscribers to send and receive packet information via a mobile terminal on the GSM radio channels to other packet networks such as the Internet or corporate Internets, based on IP networking techniques. GPRS opens the mobile market to a wealth of data applications, including e-commerce, email and data transfer.

With GPRS, which is Phase 1 of Motorola's new Aspira communications architecture vision, the path to 3G will be seamless. New services can be added quickly and the end-to-end user experience will be exceptional. The Aspira communications architecture vision from Motorola combines voice, data and multimedia into one broadband IP-based network. This total end-to-end network solution encompasses transport networks, applications, services and endpoint devices.

The live GPRS demo was enabled by BMCC's GPRS trial system, set up by BMCC and Motorola earlier this year. The trial system includes the GPRS network components such as GSN, PCU, BTS, GPRS/WAP handsets and a MIX WAP gateway. All of this equipment has been produced and supplied by Motorola NSS and can be put into commercial use after software upgrade. Currently, Motorola is the only manufacturer offering a complete GPRS solution - infrastructure and handsets.

BMCC's GPRS trial is a part of the GPRS system field trials that China Mobile Communications Corporation is currently implementing in six provinces and cities in China. The trials, including the tests in the laboratory and on existing GSM networks, are scheduled for completion in mid-year.

In addition to China, Motorola's GPRS infrastructure has been deployed in Germany, Austria, France, Hungary and in Turkey. Motorola now exports commercial GPRS network equipment to 15 countries. At the close of Q1, 2000, Motorola enjoyed a commanding lead in a world-class race for GPRS dominance. For example, Motorola currently has 40 percent of the GSM core network business from among the world's top 10 wireless operators. Motorola is the only vendor to have enabled live GPRS calls on full end-to-end equipment in multiple countries.

Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion. For more information on Motorola, visit www.motorola.com

"Aspira from Motorola" is Motorola's communications architecture vision. The Aspira technology combines voice, data, and multimedia into one broadband IP-based network. This total end-to-end network solution encompasses transport networks, applications, services and devices. Visit the Aspira website at www.motorola.com/aspira

Technology Notes GPRS - General Packet Radio Service GPRS, which has been standardized by ETSI as part of the GSM Phase 2+ development, represents the first implementation of packet switching within GSM, which is essentially a circuit-switched technology. Rather than sending a continuous stream of data over a permanent connection, packet switching only utilizes the network when there is data to be sent.

The implementation of GPRS will bring tremendous benefits to GSM network operators.

It brings IP capability to the GSM network for the first time and enables connection to a wide range of public and private data networks using industry standard data protocols such as TCP/IP and X.25. GPRS is extremely efficient in its use of scarce spectrum resources and enables GSM operators to introduce a wide range of value added services for market differentiation. GPRS is ideal for "bursty" type data applications such as email or Internet access, and can also enable "virtual permanent connection" to data sources, allowing information to arrive rather than being sought. This cannot be achieved using standard circuit-switched networks. By upgrading their networks to GPRS, existing GSM operators will have third generation (3G) capable networks, as UMTS will use packet switching technology. An early move to GPRS can reduce the eventual investment needed to make the transition to 3G.