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3COM/SAMSUNG TO DELIVER CDMA2000 HIGH-SPEED WIRELESS NETWORKS.

3Com Corporation (Nasdaq:COMS) and Samsung Electronics Co., Ltd. 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.

The initial third-generation, or 3G networks from 3Com and Samsung will enable mobile data services at speeds of up to 144 kbps, and are scheduled for deployment in commercial service before the end of this year. Future planned releases will increase mobile data rates to more than 384 kbps.

The 3Com/Samsung joint delivery will focus initially on the recently standardized cdma2000 networks, which will serve as the next evolution of cdmaOne(TM) digital cellular and PCS networks. cdmaOne networks today provide coverage in more than 40 countries and boast more than 50 million subscribers around the globe. (Source: CDMA Development Group, Feb. 7, 2000)

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. (Source: Ovum, "Third Generation Mobile: Market Strategies," published October 1999)

New 3G Networks Will Be Standards-Based

Products jointly delivered by 3Com and Samsung will 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 vendors' 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 take advantage of 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."

3G wireless networks are high-speed, packet-switched mobile voice/data networks currently under development. The 3G standards, which are being defined by working groups within the International Telecommunications Union (ITU), will be deployed in carrier networks in a phased approach over the next several years.

Wireless network service providers around the world can migrate existing digital cellular networks to 3G network infrastructures over time. Wireless infrastructure equipment makers -- such as 3Com and Samsung -- who are developing 3G products in step with industry standards are enabling this migration.

Using an evolutionary approach to building a 3G network enables service providers to continue using existing infrastructure and recoup existing network investments while preparing for the future. At each new 3G network phase, mobile network operators will be able to offer their subscribers substantial additional benefits. These ultimately include much higher network speeds (eventually, up to 2 Mbps), global interoperability among different operators' networks and mobile phones, and more sophisticated application services.

In the new cdma2000 networks, the Base Station Controller (BSC) will connect directly -- via a new radio port (RP) 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, 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 (Steel Belted Radius for 3Com).

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.

About 3Com CDMA Wireless

3Com's wireless data technology is based on the company's award-winning Total Control(R) 1000 multiservice access platform, which gives service providers a powerful and highly reliable networking solution, including support for remote access, carrier-grade IP telephony, IP fax, cable access, virtual private networking and other converged voice, video and data applications.

3Com's wireless data equipment connects directly to wireless switches or radio access networks to provide the interworking and protocol conversions required to deliver both circuit-switched and packet-switched data capabilities to mobile data users.

Much of the basic technology behind the 3G network architecture has already been developed and brought to market by 3Com. For example:

-- The InterWorking Function (IWF), which enables wireless carriers to integrate voice and data traffic over the same circuit-switched network, was added as a capability on the Total Control platform in October 1998.

-- A packet-switched cdmaOne wireless network platform, which supports wireless data access speeds of up to 64kbps for mobile users, was deployed in 1999.

-- New AAA server and Mobile IP technologies that give mobile users real-time, "always connected" access to IP networks were introduced in 1999 as part of the packet-switched platform.

3Com will leverage its leadership in today's CDMA wireless Internet access market by offering this 3G-migration path to the company's extensive customer base. 3Com is the world's leading manufacturer of CDMA wireless data equipment, and its CDMA solution is currently compatible with all major CDMA switches and is used by virtually every major CDMA cellular and PCS carrier worldwide.

About Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd., with 1999 sales revenues of US$22.8 billion, is a world leader in the electronics industry. The Korea-based concern has operations in about 50 countries with 54,000 employees worldwide. The company consists of three main business units: Digital Media, Semiconductors and Information & Communications Businesses. For more information, please visit our website, http://samsungelectronics.com.

About 3Com Corporation

With over 300 million customer connections worldwide, 3Com Corporation connects more people and organizations to information and each other in more innovative, simple and reliable ways than any other networking company. 3Com delivers e-Networking solutions through information access products and network systems to enterprises, small businesses, consumers, and network service providers.

For further information, visit 3Com's World Wide Web site at www.3com.com or call 847/342-6304.
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Title Annotation:Company Business and Marketing
Comment:3COM/SAMSUNG TO DELIVER CDMA2000 HIGH-SPEED WIRELESS NETWORKS.(Company Business and Marketing)
Publication:Tele-Service News
Geographic Code:1USA
Date:Apr 1, 2000
Words:1254
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