Zhang Dongchen China Mobile Communication Corporation, China March 2011

1. Consideration on the future development of mobile service Zhang Dongchen China Mobile Communication Corporation, China March 2011

2. Contents The Network Development of China Mobile Considerations on Spectrum Insufficiency of IMT

3. The development of mobile service in China • In the past decade, mobile communications have been growing rapidly in China, which makes a strong impact on our daily lives • By the end of 2010, the total number of national telephone users has reached 1153.39 million. • The number of mobile telephone users has reached 859 million • The number of 3G users has reached 47.05 million • The mobile tele-density in China is: 64.4 telephones /100 people The proportion of mobile telephone users The growth rate of mobile phone in every month

4. GSM and TD-SCDMA network As the largest telecom operators in the world, China Mobile has played a very important role in the development of mobile service in China • The world's largest GSM network • More than 500,000 GSM Base Stations • More than 580 million users • Continued expansion in TD-SCDMA network coverage • Covering 656 cities with 135,000 base stations in operation at the end of 2010 • Steady growth of 3G users: 22.636 million at the end of Jan 2011

5. The development of TD-LTE network TD-LTE is China Mobile’s future Successful TD-LTE demonstration during Shanghai World Expo 世博中心 演艺中心 中国馆 主题馆 世博轴 • Coverage: 5.28 square km • Data rate: 70Mbps • Outdoor BS: 17 • Indoor coverage system: 8 • Operating band: 2.3GHz • Successful TD-LTE demonstration during Guangzhou Asian Games • Provide service such as high definition broadcast, mobile video monitoring, 3D games and high-speed Internet access etc Users are enjoying various high quality mobile broadband services

6. The development of TD-LTE network Field Trial: 4 Vendors Field Trial: 5 Vendors Lab Test: 9 Vendors • Trials are ongoing in China Lab Test: all system testes have been finished by Jan. 2010 Field Test: finished by the end of 2010 Results show networking capability starts to be supported • Large-scale pre-commercial trial will be carried out in 6 cities this year. • Will deploy more than 3600 base-stations by the end of this year • Operating band: 2.6GHz&2.3GHz

7. Service provided by multiple networks • The traditional voice service is mainly carried by GSM network, and will grows steadily in the future • value-added data service will mainly carried by TD-SCDMA and future TD-LTE network • The income of data service has increased very rapidly due to the application of smart terminal and increase in mobile networkbandwidth

8. Service provided by multiple networks • Data traffic becomes driving force for the growth of value-added business revenue

9. The problem of spectrum insufficiency • As the traffic capacity of mobile communications, especially the data traffic, increased rapidly, the spectrum of IMT is increasingly insufficient Traffic trends of mobile communication • Constructing and operating multiple networks at the same time will further aggravate spectrum insufficiency

10. Solution to the spectrum insufficiency • Method 1: Network optimization Technical Method • Improve network capacity by narrowing the distance between BSs • the distance between some base stations in urban is less than 200 meters • Maximum the network potential by automatic frequency optimization • It has been widely adopted in China mobile’s network Further improvement of current network is limited

11. Solution to the spectrum insufficiency • Method 2: Accelerate the frequency arrangement for implementation of IMT being arranged has been arranged ITU region 1 450 470 790 960 1710 2025 2110 2200 2300 2400 2500 2690 3400 3600 862 ITU region 2 806 450 470 698 960 1710 2025 2110 2200 2300 2400 2500 2690 3400 3600 ITU region 3 450 470 698 790/806 960 1710 2025 2110 2200 2300 2400 2500 2690 3400 3600 • ITU-R will finish the arrangement of IMT spectrum allocated at WRC07 in 2011 • This is a very effective method which can obtain obvious effect in a short period

12. Solution to the spectrum insufficiency • Method 3: Acquire more frequency spectrum for IMT ITU forecast on the spectrum requirement in the future requirements（MHz） （a) Developed area for mobile service (b) Developing area for mobile service • According to the prediction from ITU, the requirement for mobile service frequency will be around 1300MHz. • At present, only about 1100MHz spectrum identified for IMT, still has hundreds of MHz frequency gap • Although this method will take a long time, it is the basic and most effective solution to fulfill the frequency requirement in the future

13. Solution to the spectrum insufficiency • Method 4: Some spectrum efficiency enhancing techniques • Some techniques to enhance spectrum efficiency, i.e. SDR &CRS, are studied. • Considerations: • QoS of IMT service should be guaranteed sufficiently when the new techniques are implemented • Some time, supports from administrative policy are needed • Cannot solve the issue in recent years. Frequency occupancy status in GSM 900 Frequency occupancy status in 698-806MHz

14. Thank You! More spectrum to unlock the constraints on IMT development!