3G mobile networks

In the U.S. mobile broadband market, all major mobile carriers except T-Mobile have launched 3G mobile networks. At the end of 2006, out of the 225 million cellular subscribers in the United States, 15 million used a 3G-based mobile broadband service via cell phone, PDA, laptop or other device. Also, we estimate there were 3.5 to 4 million data card service subscribers in the U.S. in mid-2007. While WCDMA/HSPA (Wideband Code Division Multiple Access/High Speed Packet Access) technologies dominate worldwide, CDMA (Code Division Multiple Access) operators such as Verizon Wireless and Sprint Nextel currently own the majority of mobile broadband customers in the U.S. These two companies have both commercially deployed EV-DO (Evolution-Data Optimized), and together they accounted for 13 to 14 million subscribers at year-end 2006.

AT&T`s mobile broadband business also has shown great market traction. In October 2007, it introduced its first HSPA-compatible data card service, making AT&T's mobile broadband service comparable to Verizon and Sprint's in terms of throughput. In terms of other wireless technologies, although AT&T and BellSouthhave tested mobile WiMAX, their intent was to deliver broadband services to regions not covered by its DSL (digital subscriber line) network. AT&T made it clear that it will not be aggressive in alternative technologies, evidenced by its divestiture of WiMAX spectrum to Clearwire. T-Mobile USA, the U.S. operation of T-Mobile International, has been the slowest to join the mobile broadband bandwagon. One of the reasons is the lack of licensed 3G spectrum. As a result, T-Mobile had been suffering from busy network traffic and deficient reception. Fortunately, its success in the Federal Communication Commission Advanced Wireless Services spectrum auction in Q4 2006 more than doubled its spectrum holdings in the top 100 markets. T-Mobile USA began rolling out its UMTS (Universal Mobile Telecommunications System) network in March 2007, and the company plans to complete most of the network by 2008.