February 23, 2000 in Social Responsibility News

3COM and SAMSUNG Team to Deliver cdma2000 High-Speed Wireless Networks

SANTA CLARA, Calif. and SEOUL, Korea - February 23, 2000 - 3Com Corporation (Nasdaq: COMS) and Samsung Electronics Co., Ltd. today announced they will jointly deliver cdma2000 high-speed wireless networks to service providers worldwide. The two companies have agreed to integrate their solutions for the delivery of high-speed wireless data and voice networks capable of reliably delivering Internet, intranet and multimedia services to mobile subscribers. Initial networks will enable mobile data services at speeds of up to 144kbps, and is scheduled for deployment in commercial service before the end of this year. Future planned releases will increase mobile data rates to more than 384kbps.

The 3Com/Samsung joint delivery will focus initially on the recently standardized cdma2000 networks, which will serve as the next evolution of cdmaOneO digital cellular and PCS networks. cdmaOne networks today provide coverage in more than 40 countries and boast nearly 42 million subscribers around the globe. (Source: CDMA Development Group)

Industry analysts are predicting a surge in the number of wireless data subscribers and service revenue generated over the next several years. In a recent report, Ovum projected that approximately 25 percent of worldwide wireless subscribers will be data subscribers by the year 2003. That would represent growth of 268 percent over current levels, when only 11 percent of the worldwide wireless subscribers are projected to be data subscribers in 2000. Ovum also projected that service revenue from data subscribers will grow to $124 billion worldwide by 2003, compared to an estimated $39 billion worldwide in 2000.


New Networks Will Be Standards-based

Products jointly delivered by 3Com and Samsung will fully adhere to the IS-2000 series of standards developed by the Telecommunications Industry Association (TIA). The initial series of IS-2000 standards was finalized last year. Adherence to these standards in the 3Com/Samsung solution is a significant difference from other wireless relationships announced in past months. Adherence to an open, standards-based architecture maximizes the options for operators to expand and migrate their networks to future capabilities.

"Samsung and 3Com are committed to delivering the first fully standards-compliant cdma2000 solution for the global marketplace," said Dr. Young Ky Kim, vice president, research and development, Samsung Electronics Co., Ltd. "Our equipment will interoperate with other standards-based products. At the same time, the Samsung/3Com cdma2000 solution will be versatile enough that it can be feature-customized for customers, giving service providers maximum flexibility to design and develop their individual networks."

"When 3Com announced its 3G wireless strategy at Telecom '99 last October, we said we would collaborate with strategic partners to develop higher-speed, broader-reaching packet 3G networks," said Irfan Ali, senior vice president and general manager, 3Com Carrier Systems. "Today's announcement delivers on that strategy. We are combining Samsung's world-class expertise in CDMA radio technology with 3Com's leadership in Internet access technology in the mobile network to lead the migration to 3G solutions."

In the new cdma2000 networks, Base Station Controller (BSC) will connect directly - via a new R-P interface - to a Packet Data Serving Node (PDSN), which will perform the traffic aggregation function which is similar to that handled by circuit switches today. The PDSN uses Authentication, Accounting, and Administration (AAA) servers for user authentication and traffic management, and then forwards traffic to a Gateway Router/Home Agent (GRHA) at the designated IP network.

Under the agreement announced today, Samsung, as a system integrator, will provide the Radio Access Network equipment, including Base Transceiver Systems and Base Station Controllers. 3Com will provide the Packet Data Serving Nodes, Packet Data Gateway Nodes, and authentication/billing servers.

Equipment from the two companies will inter-connect using fully standards-compliant interfaces, as defined by the IOS Version 4 interface under the TIA's IS-2000 series of standards. The equipment also will support the IS-2000, Release 0 (1XRTT) standard, increasing mobile packet data and voice access speeds up to 144Kbps. With its greater efficiency and capacity, this solution will be able to host more than 256,000 concurrent calls in the space of a standard central office rack.

Under additional terms of the agreement, Samsung has the right to resell 3Com PDSN, Home Agent and AAA servers to IMT-2000 wireless operators around the world.


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