Towards the Next Billion Subscribers: Motorola Delivers on Seamless Mobility Vision


Success for GSMA's emerging market programme as Motorola exceeds handset shipment targets and launches affordable network solutions

BARCELONA, Spain, Feb. 13 /PRNewswire-FirstCall/ -- 3GSM World Congress -- Motorola, Inc. (NYSE:MOT) outlined its vision for connecting the next billion wireless subscribers in emerging markets, through its partnership with the GSM Association (GSMA) and the delivery of seamless mobile technology, at the 3GSM World Congress in Barcelona today.

Motorola is celebrating 12 months since its selection by the GSMA to develop and supply mass market handsets to 'connect the unconnected', under the GSMA's Emerging Market Handset (EMH) programme. In September 2005, Motorola won a second tender to supply its range of robust sub-US$30 handsets for a further six month term until end June 2006.

Ron Garriques, president of Motorola Mobile Devices, declared the programme a success, saying the company is well on track to exceed the target of 12 million handsets shipped in over 50 countries over the period of the contract.

"The drive to 'connect the unconnected' is a passion shared throughout Motorola," he said. "We're combining purpose-built devices, powerful but affordable networks and rich experiences to make the seamless mobile experience a reality for operators and customers all over the world."

Today, Motorola and the GSMA announced their intention to extend the emerging markets programme for a further six months, underscoring their focus on the mass market to support business growth. Together the two organizations expect to have shipped over 20 million handsets into low-GDP nations by the end of 2006, connecting more than 31,000 new users every day.

"Motorola has led the mobile phone industry in turning our vision of low- cost, yet quality, handsets for the developing world into a reality," said Rob Conway, CEO of the GSM Association. "In so doing, Motorola has played a major role in transforming the mobile phone from a luxury item for the few into an affordable tool for the many."

To help telecoms operators connect the next billion subscribers by 2010, Motorola has introduced a range of affordable network solutions called Motorola Reach, featuring GSM base stations, wireless backhaul offerings, a media gateway and alternative power sources. The Motorola Reach family will allow operators to cost-effectively service both densely populated and remote rural locations, and complements Motorola's ongoing handset agreement with the GSMA.

"Another way we are helping to connect people is through providing highly reliable field-proven network solutions that are both flexible and affordable. The Motorola Reach portfolio brings people together in remote and populous locations, not only enabling people access to communications, but changing the way people live. We are also deploying Canopy(R) wireless broadband technology which is part of the MOTOwi4(TM) wireless broadband portfolio in a number of high growth markets across the world," stated Adrian Nemcek, president of Motorola Networks.

Motorola today announced a five-year exclusive contract with MTC Namibia for the supply of GSM/GPRS and Canopy access network equipment. The installation of the new equipment will help the country's sole cellular service provider expand its network and reach 95% of Namibia's population.

In addition Motorola announced a major deal with Orascom Pakistan (Mobilink) to replace its existing legacy home location register (HLR) with Motorola's home location server (HLS). The HLS is a highly reliable, next generation home location register that simplifies the network, resulting in lower capital and operating expenses than a traditional switch-based solution. It is highly scalable and will also offer added capacity to fulfill Mobilink requirements to cope with subscriber growth and demands for new applications.

Today Motorola also launched a stylish new clamshell design entry-level mobile handset that incorporates an FM radio, the Motorola W220. In markets where radio can be the only source of information and entertainment, this feature specifically addresses the diverse needs and desires of consumers.

For every handset sold through the GSMA's EMH programme, Motorola and the participating mobile phone operator contribute 50 cents to a development fund that supports organizations using mobile technology to benefit social and economic development in emerging markets.

Motorola is also working in partnership with SharedPhone International on an exciting initiative whereby a GSM SIM card based payphone allows street operators in Africa and India to generate additional income, while giving fellow citizens access to valuable communication services.

The global mobile industry has reached more than two billion subscribers(1), with a record 810 million units shipped in 2005. This number is expected to rise by 15 percent to 930 million units in 2006 with strong demand from emerging economies, with sales tipped to hit a billion in 2007(2).

In Pakistan alone, subscriber numbers grew by 450% between June 2004 and December 2005, and this week Motorola signed its largest-ever home location server (HLS) deal with Orascom Pakistan (Mobilink) with a capacity to manage up to 20 million subscribers.

Motorola is committed to its vision to reach the next billion subscribers and is providing purpose-built handsets and network technologies that radically reduce both operator and subscriber costs to realize this goal. As the innovator in mobile communications, Motorola sees these exciting initiatives and opportunities not only as the future of its business but for the mobile communications industry as a whole.

Motorola is showcasing its products and innovations at Booth A07, Hall 8, at the 3GSM World Congress, Barcelona.

For more information about Motorola at 3GSM visit: motorola.com/3gsm

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.8 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com/ .

1 Source: Wireless Intelligence, September 2005
2 Strategy Analytics, January 2006

MOTOROLA and the stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners.

Source: Motorola, Inc.

CONTACT: Una Kent, Director Communications, Mobile Devices, Europe & High Growth Markets, of Motorola, +44 7802 365956, una.kent@motorola.com

Web site: www.motorola.com/
http://motorola.com/3gsm

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