WiMax.com: What percentage of your business is accounted for by the mobile cellular market? Can you give us some idea of the scope of your mobile business?

Samsung does not break-down its financials by product line, but the mobile systems division contributes the majority of the sales revenue of the telecommunications division.  

WiMax.com: What lessons has Samsung learned by delivering successful CDMA, WCDMA, GSM and UMTS solutions to the marketplace that other mobile vendors will have to achieve a learning curve on? Basically tell us please, how Samsung's track record positions it uniquely with Mobile WiMAX, WiBro or other broadband wireless technologies?

Samsung was the world's first to commercially deploy CDMA2000 1X & 1xEV-DO and the first to demonstrate 1xEV-DV.  We have already demonstrated our WiBro system and are currently deploying this technology in S.Korea with commercial service expected by April 2006.  We have modified our existing CDMA2000/WCDMA base stations to support this new technology, so the systems are market proven.  Samsung is uniquely positioned as it offers both handsets and infrastructure.  It is easy to demonstrate leading edge technology in a lab or trade show environment, to successfully deploy this technology in a commercial setting is much more difficult.

WiMax.com: When did Samsung join the WiMAX Forum and why?

Samsung is very involved in industry forums and standards bodies to ensure global standardization.  Samsung is a board member of the WiMAX Forum and chairs the Mobility TG & is the vice chair of the Network WG.

WiMax.com: Does the WiBro standard pre-date the 802.16e standard? How did WiBro come about? And what was the need for a separate Mobile WiMAX type standard---was it because of a need to deploy in Korea much faster?

WiBro is the "Wireless Broadband" service in Korea.  WiBro is based on Mobile WiMAX technology and Mobile WiMAX is fully compliant with IEEE 802.16e TDD OFDMA Standards.  The 802.16e standard is expected to be ratified by 4Q2005 and certified products available by 3Q2006.

As shown in the following slide, the Wireline broadband market is reaching market saturation, (at 79%) and the wireless operators have able to consistently increase their ARPU through offering Wireless Broadband applications & services to their customers:

WiMax.com: What are the advantages of the WiBro approach versus the (perhaps) more feature rich 802.16e Mobile WiMAX complete standard debuting soon?

WiBro is being deployed with the frequency and channel bandwidth that is available in that country.

WiMax.com: Does Samsung have any interest developing or marketing in Fixed WiMAX products and why?

No, we feel that the mobile market has a larger revenue potential.  Mobile WiMAX has several advantages over Fixed WiMAX:

• Mobile WiMAX supports VoIP
• Handover is supported in Mobile WiMAX
• Mobile WiMAX supports many power saving features such as: awake, idle & sleep modes

WiMax.com: Does Samsung believe that the WiMAX initiative is weakened by having two separate standards for Fixed and Mobile WiMAX---something the Forum initially set out to avoid?

No, different applications require different solutions optimized for the unique characteristics of each.

WiMax.com: Samsung recently announced a testing and development agreement with Sprint for Mobile broadband wireless products---will the gear being tested be WiBro specific gear with a different spectrum range or will Samsung instead offer the more option rich 802.16e Mobile WiMAX product line to Sprint?

Sprint Nextel has agreed to conduct lab trials at their company facilities and field trials with customers with our prototype terminals and supporting core network equipment to help substantiate next generation wireless network infrastructure requirements for future wireless interactive multimedia services.

WiMax.com: Samsung is a successful player with universal mobile telecommunications system (UMTS) designs for broadband wireless systems along with WCDMA---How much influence has your design experience with these technologies influenced your WiMAX designs? Also, how do you compare the relative trade offs between the two types of technology?

We are modifying the design of our existing CDMA2000/WCDMA base stations to support Mobile WiMAX.  CDMA will continue to offer wireless operators with a solution for basic voice, mobility and reasonably high data rates.  In contrast, Mobile WiMAX offers greater data rates with a decrease in mobility, (limited to 120km/h) and coverage.

WiMax.com: Is spectrum range much of an issue for a company like Samsung? And what ranges do you see being most likely used in the US beyond 2.5 GHz as well as globally? Also, on a global scale but particularly in the US, where does Samsung see additional spectrum being freed up---or would like to see freed up to facilitate the adoption of WiMAX products?

No, spectrum range is not a technical issue for Samsung,it is a commercial issue.

WiMax.com: Do you see WiMAX being disruptive to 3G technologies or supportive---and why? Is WiMAX the future of broadband wireless?

The technology is supportive, (3G will continue to offer wireless operators with a significant revenue opportunity), however may be disruptive as it may allow other companies (satellite, cable & wireline operators) to enter the wireless market and directly compete with existing wireless operators.

WiMax.com: Is product testing on the horizon?

Samsung will give a trial performance of this technology at the Asia Pacific Economic Cooperation (APEC) Summit this year.

Jim Parker
Senior Manager
Samsung Telecommunications America

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