Mobility Phones - Mobile Phones

The worldwide mobile phone market experienced an expected sequential downturn in shipments following a busy holiday quarter. According to IDC’s Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 291.6 million units during the first quarter of 2008 (1Q08), down 11.6% from the 330.8 million units shipped during the previous quarter (4Q07) and up 14.3% from the 255.0 million units shipped during 1Q07. While the first quarter results are in line with IDC’s 2008 forecast, concerns over the economy may negatively impact handset purchases as the year progresses.”The mobile phone market will be under increased pressure from a number of factors that compete for users’ attention and wallets,” said Ramon T. Llamas, senior research analyst with IDC’s Mobile Device Technology and Trends team. “Disposable income is being eroded by rising food and fuel prices and worries about global financial markets and slow economic growth are creating a cautious outlook for the months ahead. Against this backdrop, many emerging markets continue to offer tremendous growth potential and IDC expects highly competitive pricing and innovative service plans will keep the overall market on track for the year.”

Demand for handsets in the low cost segment will remain present in certain emerging markets throughout 2008, driving worldwide shipment growth. In contrast, more mature regions are increasingly characterized by highly competitive markets for replacement handsets and somewhat slower shipment growth.

“As predicted, most mobile phone vendors experienced a lull in the first quarter of 2008 with the exception of LG,” said Ryan Reith, senior research analyst for IDC’s Worldwide Mobile Phone Tracker. “Continued growth in the low cost segment will mean average selling prices (ASPs) will be generally lower than in the past, but this will be balanced somewhat by further expansion in the converged mobile device or smartphone segment, especially in mature markets.”

Top Five Vendors

Nokia once again outperformed its competitors, with total shipment volumes greater than those of the next three vendors’ combined. Keeping volumes at a high level were its entry level devices going into emerging markets, including its successful 1100 and 1200 series devices, while more fully featured devices like its 5310, 5610, and 6500 series and Nseries devices generated the most revenue and profit for Nokia. With a strong presence in emerging markets, Nokia is poised to capitalize on replacement handset opportunities in these markets.

Samsung gained further clarity as the No. 2 vendor worldwide, building its largest margin yet against Motorola. Although shipments remained even from the holiday quarter, Samsung improved its presence within key emerging markets, balancing out against soft demand in Europe and North America. In the process its decreased marketing expenses, allowing for double-digit profitability. Samsung remains confident that it will reach its goal of 200 million units shipped this year, and look to more full featured devices to be released in the months to come.

Motorola had a disappointing quarter, falling further behind Samsung and reaching shipment levels not seen since the second half of 2004. Gaps in its product portfolio left the company vulnerable, especially in the areas of music, touch, and messaging where other vendors have flourished with their own products. Further compounding its problems was another quarter of operating loss and lower operating margin. While the results speak to its ongoing difficulties, Motorola has been building a framework to turn its fortunes around with plans to separate the mobile devices business unit from the company and streamline its silicon and software platforms to bring new devices to the market later this year.

LG Electronics capitalized on Sony Ericsson’s challenges to re-take the No. 4 position for the first time since the beginning of 2006. Thanks to the continued demand of its flagship feature phones, including the Viewty, Voyager, and Venus, LG bucked the trend of seasonal decrease in shipments. In addition, LG returned to double-digit profitability. Looking ahead, LG plans to grow its presence within emerging markets and ship more high-end devices next quarter.

Sony Ericsson started off the year citing several challenges affecting its shipment volumes: diminished demand for its mid-range and high-end devices, channel inventory buildup, component shortages, and greater interest in low-price handsets in Asia/Pacific, an area where the company has not had a strong presence. Despite this dour news, the company hopes that its renewed focus on the North American market with the W350, W760, Z555, and XPeria along with several Cybershot, Walkman, and Web-ready devices around the globe will yield positive results later in the year.

Antenova Ltd., the integrated antenna and RF solutions company, announced the availability of two new high performing multi-band High Dielectric Antenna (HDA) embedded antennas for mobile handset and portable device applications; a 4mm low profile penta-band antenna and a six-band antenna. Antenova’s 4mm low profile penta-band HDA antenna, the industry’s thinnest five-band antenna, is ideally suited for ultra-thin mobile handsets, and the new six-band HDA antenna is ideally suited for mobile handsets, PDAs and UMPCs for the global markets.”As more and more applications are designed into devices, co-existence has become critical and board space a premium,” stated Greg McCray, CEO of Antenova. “But unfortunately, as the antenna size (volume) gets smaller, the performance decreases, so it becomes even more critical to have higher performing smaller antennas. With its’ smaller size, multi-band capabilities and lower detuning qualities, Antenova’s HDA antennas allow device designers and manufacturers more freedom in their PCB layout without having to sacrifice antenna performance and efficiencies. The low profile of our 4mm high penta-band HDA antenna enables handset manufactures to keep pace with consumer demand for smaller and thinner handsets, while the six-band HDA antenna provides device manufactures the development, cost and time-to-market advantages of designing one device for their global markets.”

Antenova’s 4mm low profile penta-band antenna covers the GSM 850, GSM 900, DCS 1800, PCS 1900 and WCDMA 2100 bands and is also suitable for CDMA/TDMA 850 and 1900. With a small volume of about 1cc and an impressively low 4mm height, this antenna is the thinnest penta-band antenna in the world and offers over 50% average terminal radiation efficiency over all five bands. The hexa-band antenna covers the same five cellular bands plus the 2.4 GHz band for Bluetooth and Wi-Fi applications, has a volume of less than 5.8cc and offers an average terminal efficiency of greater than 50% over all five cellular bands and 40% efficiency in the 2.4 GHz band.

McCray added, “Antenova has been leading the industry with its high performing multi-band HDA internal antennas for mobile handsets and portable devices. Antenova’s patented HDA antennas, through our licensee partners and customers, have been in mass production since 2004 and enable some of the most advanced wireless devices, smartphones and feature phones around the world. HDA antennas can be found in a significant number of handsets from 4 of the top 5 handset OEMs, including Motorola and Samsung, and in a multitude of handsets from ODM customers in Taiwan and China.”

Motorola, Inc. (NYSE: MOT - News) announced today that its Board of Directors has elected David Dorman to serve as non-executive Chairman of the Board. Mr. Dorman will succeed Ed Zander, the company’s current chairman and former chief executive officer, who will retire as planned upon completion of his term at Motorola’s 2008 Annual Meeting of Shareholders to be held on May 5, 2008.”Dave is ideally suited to serve as Motorola’s chairman and I am confident that our shareholders will continue to benefit from his industry knowledge and deep understanding of the Company,” said Greg Brown, president and chief executive officer of Motorola. “I look forward to working with Dave in his new role as we move forward with our plan to create two independent publicly traded companies and improve the performance of the Mobile Devices business.”

“Motorola has tremendous assets and talented people, and I am confident in the actions Greg Brown, our management team and Board are taking,” said Dorman. “I look forward to taking on this new and exciting role and to working closely with Greg, the Board, and the senior management team to enhance value for all Motorola shareholders.”

Dorman, 54, joined Motorola’s Board of Directors in 2006. Dorman is a 28- year veteran of the telecommunications industry. He is currently a managing director and senior advisor at the firm of Warburg Pincus and Co. He joined AT&T as president in December 2000 and served as chairman and chief executive officer from 2002 until November of 2005. Previously, Dorman served as chief executive officer of Concert, the global venture created by AT&T and British Telecommunications from 1999 to 2000 and as chairman, president and chief executive officer of Pacific Bell from 1994 until its acquisition by SBC Communications in 1997. He served as an executive vice president of SBC until January 2008. He began his career in the telecommunications industry at Sprint in 1980 where he served in various capacities culminating as president of Sprint Business in 1994. Dorman serves on the boards of CVS Corporation, YUM! Brands, Inc., and the Georgia Tech Foundation.

Motorola today unveiled the mobile WiMAX experience during an exclusive bus tour at the WiMAX Forum Congress Asia 2008 in Singapore. This is Motorola’s first mobile WiMAX demonstration with live handoffs between access points to the public in Asia Pacific. The demonstration marks another milestone as Motorola accelerates the delivery of personal media experience to users in the region.The demonstration is conducted through a mobile WiMAX network set up at Motorola’s facility in Ang Mo Kio, Singapore. Attendees joining the bus tour are able to experience various mobile applications including video conferencing, web browsing and mobile streaming while moving past access point sites along the bus route. Additionally, as the WiMAX connection is extended through an air router, guests will also be able to experience mobile broadband through their own WiFi enabled devices.

“Mobile WiMAX is an essential part of Motorola’s portfolio to deliver broadband everywhere enabling consumers to access high speed Internet at home and on-the-go,” said Mike Ropicky, senior director of marketing and product operations, Home & Networks Mobility, Motorola Asia Pacific. “Today’s demonstration reinforces Motorola’s capability in providing and deploying mobile WiMAX technology that is ready for commercial deployment in the Asia Pacific region.”

The network infrastructure is powered by Motorola’s WAP 400 access points with backhaul provided by Motorola’s wireless IP backhaul equipment at the company’s facility. During the tour, the signal was seamlessly transmitted and handed off between access point sites, providing an uninterrupted broadband experience to users. Laptops enabled with Motorola’s WiMAX PC cards for high speed video were also demonstrated on the bus.

Mobile WiMAX solutions will enable operators in Asia Pacific to provide cost-effective, fast and easy-to-deploy broadband services to fixed, portable and mobile users. Motorola has won numerous commercial contracts and conducted trials across Asia Pacific including the first trial in Thailand with United Information Highway.

The demonstration builds on Motorola’s leadership in developing wireless broadband technology. Motorola now has 19 contracts for commercial WiMAX networks in 18 countries around the world. For more information about Motorola wi4 WiMAX solutions, please visit: http://www.motorola.com/wimax.

Motorola, Inc. and Carl Icahn today announced that they have reached an agreement under which William R. Hambrecht, founder, chairman and chief executive officer of WR Hambrecht + Co. and co-founder of Hambrecht & Quist, and Keith Meister, a managing director of the Icahn investment funds and principal executive officer of Icahn Enterprises, will be nominated for election to Motorola’s Board of Directors at the 2008 Annual Meeting of Shareholders and included in the Company’s 2008 proxy statement. In addition, Mr. Meister has been appointed to serve on the Board, effective immediately.In connection with the nomination of Messrs. Hambrecht and Meister, the Icahn Group, which beneficially owns, in the aggregate 144,562,000 shares of Motorola common stock, representing approximately 6.4% of Motorola’s outstanding shares, has agreed not to solicit proxies in connection with the 2008 Annual Meeting and to vote its shares in support of all of the Board’s director nominees.

As part of the settlement agreement, all pending litigation between Motorola and Carl Icahn will be dismissed. In addition, Motorola has agreed to seek input from Mr. Icahn in connection with significant matters regarding the intended separation of the Mobile Devices business, including the search for a new CEO to head the Mobile Devices business. In addition Messrs. Hambrecht and Meister may communicate with Mr. Icahn, subject to certain confidentiality restrictions, regarding Board activities of Motorola, including with respect to the intended separation of the company into two independent businesses.

“We are pleased to have reached this agreement with Carl Icahn,” said Greg Brown, president and chief executive officer. “We look forward to continuing the process we announced on March 26 to create two independent publicly-traded companies and we are pleased to avoid a costly and distracting proxy contest.”

“This is a very positive step for Motorola in that shareholder representatives will have strong input into board decisions affecting the future of our company,” said Carl Icahn. Mr. Icahn further noted, “In addition, the Motorola Board has also taken an important step forward for corporate governance in that the separated company which includes Mobile Devices will be essentially free from poison pills and staggered boards, both of which, in my opinion, serve to make democracy a travesty in corporate America.”

William R. Hambrecht, 72, has been Founder, Chairman and Chief Executive Officer of WR Hambrecht + Co, a financial services firm, since December 1997. Mr. Hambrecht co-founded Hambrecht & Quist in 1968, from which he resigned in December 1997 to form WR Hambrecht + Co. Mr. Hambrecht currently serves on the Board of Trustees for The American University of Beirut and is on the Advisory Investment Committee to the Board of Regents of the University of California. He also serves on the Advisory Council to The J. David Gladstone Institutes. In October 2006, Mr. Hambrecht was inducted to the American Academy of Arts and Sciences. Mr. Hambrecht graduated from Princeton University.

Keith Meister, 34, since August 2003, has served as Vice Chairman of the Board of Icahn Enterprises G.P. Inc., the general partner of Icahn Enterprises L.P. (NYSE: IEP - News), a diversified holding company engaged in a variety of businesses, including investment management, metals, real estate and home fashion. From August 2003 through March 2006, Mr. Meister also served as Chief Executive Officer of Icahn Enterprises G.P. Inc., and since March 2006, Mr. Meister has served as Principal Executive Officer of Icahn Enterprises G.P. Inc. Since November 2004, Mr. Meister has been a Managing Director of Icahn Capital LP, the entity through which Carl C. Icahn manages third party private investment funds. Since June 2002, Mr. Meister has served as senior investment analyst of High River Limited Partnership, an entity primarily engaged in the business of holding and investing in securities. Mr. Meister also serves on the boards of directors of the following companies: XO Holdings, Inc., WCI Communities, Inc., and Federal-Mogul Corporation. With respect to each company mentioned above, Mr. Icahn, directly or indirectly, either (i) controls such company or (ii) has an interest in such company through the ownership of securities. Mr. Meister received an A.B. in government, cum laude, from Harvard College in 1995.

“Motorola is to close its Singapore handset production plant by the end of the year, cutting 700 jobs.”

Go from turning heads to turn-by-turn directions. AT&T Inc. and Motorola Inc. announced today at CTIA Wireless 2008 that the MOTO Z9 slider handset, which is exclusive to AT&T in the U.S., will put customers on the right path in style. MOTO Z9 will be the first phone to include AT&T Navigator, bringing the company’s Global Positioning System (GPS) navigation service to an even greater number of AT&T customers.Motorola’s award-winning CrystalTalk technology also delivers voice quality to match MOTO Z9’s design. The proprietary technology enables consumers to be heard even in noisy environments, so users sound as good as MOTO Z9 looks.

MOTO Z9’s sleek slider design demands attention, and AT&T’s third-generation (3G) wireless network allows it to be as fast as it looks. Available in more than 265 markets, 3G service from AT&T gives MOTO Z9 blazing-fast data speeds, enabling the coolest new services like Video Share,1 which allows users with compatible phones such as MOTO Z9 to send live one-way video and audio from one user to another.

Consumers can use the device’s intuitive music features to find their favorite tunes and playlists and can enjoy one-touch access to a song they want to hear. AT&T Mobile Music1 provides fast access to downloadable music from eMusic and sideloading compatibility from Napster To Go and any unrestricted MP3 audio file. The device supports up to 8GB of memory, with an optional removable microSD card. Stereo Bluetooth wireless technology, a lightning-fast Opera 8 browser and 2.0-megapixel camera round out MOTO Z9’s robust multimedia offerings.

MOTO Z9 is now available. It’s exclusively sold at AT&T company-owned stores, authorized dealers and http://wireless.att.com for $249.99 after a two-year service agreement. For more information, specifications and images of MOTO Z9, please visit http://www.att.com/mobilehandsets-news or http://www.motorola.com/mediacenter.

Mobile Linux is well poised to take on the surging smartphone market according to “Mobile Linux: Google and Motorola Hold the Short-Term Keys to Success,” from the Strategy Analytics Handset Component Technologies Service.Mobile Linux offers an attractive package in terms of customization, cost, developer community, time to market, security and multi-chipset support to handset manufacturers and mobile operators, according to industry analysts Strategy Analytics. This report evaluates the current status of the mobile Linux market and assesses the impact of recent initiatives by industry players in the mobile Linux arena.

“Unlike the desktop PC industry there are more than 30 operating systems existing today in the mobile phone industry, over 20 of which are Linux-based,” comments Sravan Kundojjala, Analyst at Strategy Analytics. “This has been a concern for the industry, but recent moves suggest consolidation is in the cards.”

Stuart Robinson, Director of the Handset Component Technologies service, adds, “Strategy Analytics believes recent initiatives by Google and Motorola could solve problems like consistency of APIs, slow adoption of mobile Linux in developed markets and fragmentation. We also believe that interest in Linux is at an all-time high and that it will emerge as a worthy competitor to market leaders Symbian and Windows Mobile.”

Carl C. Icahn c/o Icahn Associates Corp. 767 Fifth Avenue, 47th Floor New York, NY 10153March 26, 2008

Board of Directors Motorola, Inc. 131 E. Algonquin Road Schaumberg, Illinois 60196

Ladies and Gentlemen:

Today’s — much delayed and long overdue — announcement regarding the spin-off of the Mobile Devices business and the establishment of two fully independent companies with separate management teams and Boards is clearly a step in the right direction. As you know, for some time I have argued that this should be done. However, as one of the largest Motorola stockholders, I continue to have concerns about the speed and manner in which a new management team is selected for the Mobile Devices business and the separation transaction is consummated. Time is of the essence and decisive action is required to reposition the Mobile Devices business for success as an independent company. Furthermore, today’s announcement begs a few key questions:

1. Why will it take you until sometime in 2009 to accomplish the separation?

2. Why does it take the threat of a proxy fight for you to make promises we all want to hear?

3. Do you intend to carry out your proposals or will it be a repeat of last year’s proxy fight strewn with a string of broken commitments?

Obviously the tepid reaction of the market manifests shareholders’ views concerning the value of your commitment. The only statement made in your conference call we totally agree with is that . . .”there can be no assurances that any transaction will ultimately occur.”

You stated during today’s conference call, “we discussed Board Nominees with Carl Icahn and we proposed two nominees and he declined.” Again this is only partially true. It is true that Sandy Warner, head of the Nominating Committee called me and offered seats to two of my Nominees if I would drop the proxy fight. However, you failed to mention in your conference call that I told Mr. Warner that I would gladly accept this offer if the Board would also accept Keith Meister. Mr. Warner replied summarily to this offer that Meister did not “qualify.” I asked Mr. Warner what does one have to do to qualify — lose $37 billion dollars? Mr. Warner then replied that the Board did not “know” Meister. My answer was that Meister would fly anywhere at any time to meet the Board so they could “know” him (I did mention that the situation at Motorola is too serious for the Board to remain a country club). My offer to Motorola stills stands.

You have stated to the press that our request for information about what steps the Board actually took to correct the problem at Motorola is an unnecessary distraction. We disagree. In a political election when constituents believe their representatives’ performance was inadequate, they are certainly not denied information as to whether their representative acted in a grossly negligent fashion. Why should it be different in Corporate America?

I do however agree with you that this proxy fight is a distraction that Motorola at this junction can ill afford. If as you have stated, we all want to benefit the stockholders of Motorola, then what possible reason is there for not putting Keith Meister on the Board. After all, how much can he eat at the Board meetings? On a positive side, having a highly intelligent, energetic individual like Keith, who has 145 million reasons to spend his time working toward the spin-off being accomplished, may well make this promise come true in a timely fashion.

We ask the Board meet with Meister, put egos aside and let’s get on with the urgent business at hand.

Sincerely,

Carl C. Icahn

Motorola, Inc. announced that the Company’s Board of Directors has commenced a process to create two independent, publicly-traded companies. Today’s decision follows the Company’s January 31, 2008 announced evaluation of the structural and strategic realignment of its businesses and represents affirmative steps to position its Mobile Devices and Broadband & Mobility Solutions businesses for success, while creating value for all Motorola shareholders.”Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and Board of Directors, together with independent advisors,” said Greg Brown, Motorola’s president and chief executive officer. “Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus — as well as more targeted investment opportunities for our shareholders.”

Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies:

* The Mobile Devices business is an industry leader in multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.

* The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and Internet Protocol (IP) video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.

“Our priorities have not changed with today’s announcement,” added Brown. “We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world. As part of that effort, we have undertaken a global search for a new chief executive officer for the Mobile Devices business. We believe strongly in our brand, our people and our intellectual property, and expect that the Mobile Devices business will be well-positioned to regain market leadership as a focused, independent company.”

The completion of any separation transaction would be subject to certain customary conditions, including implementation of inter-company agreements, filing of required documents with the Securities and Exchange Commission and receipt of an opinion of counsel or a ruling from the Internal Revenue Service as to the tax-free nature of any transaction. The Company expects that the separation of its businesses, if consummated, would take place in 2009. The Company noted that there can be no assurance that any separation transaction will ultimately occur or, if one does occur, its terms or timing.

Motorola, Inc., a major contributor to the Third Generation Partnership Project (3GPP) Long-Term Evolution (LTE) standard, has joined the LTE/System Architecture Evolution (SAE) Trial Initiative (LSTI). This industry group is driving the acceleration of commercial and interoperable next-generation LTE mobile broadband systems through the collaborative efforts of leading telecommunications companies worldwide.”Motorola has significant expertise in OFDM-based technologies and mobile broadband innovation,” said Darren McQueen, vice president, IMS, Cellular and Broadband Network Technologies, Motorola Home & Networks Mobility. “Joining the LSTI supports our commitment from our networks and mobile devices teams to the advancement of technologies that will deliver the media mobility experiences that consumers today have come to expect.”

Motorola is leveraging its success in being among the first to deliver 802.16e commercial systems by reusing a significant amount of its WiMAX research and development, coupled with its rich heritage in cellular networking, Motorola chipsets, network and video head-end solutions, and professional services to deliver its end-to-end LTE solution.

Motorola is among the vendors selected by Verizon Wireless and Vodafone to participate in their joint LTE trials during 2008. Motorola also is planning a number of other field trials during 2008. For more details about Motorola’s LTE solutions please visit: http://www.motorola.com/lte

About LSTI

The LTE/SAE Trial Initiative (LSTI) is a global, collaborative technology trial initiative focused on accelerating the availability of commercial and interoperable next generation LTE mobile broadband systems. The Initiative was formally launched in May 2007 by leading telecommunications companies Alcatel-Lucent, Ericsson, Orange, Nokia, Nokia Siemens Networks, Nortel, T-Mobile and Vodafone. Since its inception LSTI has expanded to also include in its membership China Mobile, Huawei, LG Electronics, NTT DoCoMo, NXP, Samsung, Signalion, Telecom Italia, Qualcomm, ZTE, Rohde and Schwarz, and Motorola.

Motorola, Inc. today announced a $165 million WiMAX 802.16e infrastructure contract with Etihad Atheeb Telecommunication Company (Atheeb) that will enable the new service provider to offer compelling and unique broadband services to subscribers in the Kingdom of Saudi Arabia.Atheeb selected Motorola based on Motorola’s global leadership and ability to deliver a fully integrated end-to-end nationwide WiMAX solution. The contract includes the delivery of Motorola’s new WAP 800 access point, featuring smart antenna technology, plus a comprehensive service package including end-to-end delivery of network planning, installation, optimization and support services. Broadband will be available to customers across the Kingdom, reaching into areas of demand that until now have been underserved.

Ali Amer, vice president, Middle East, Africa and Pakistan, Motorola Home & Networks Mobility said, “Motorola is delighted to be working side by side with Atheeb to address the appetite of Saudi customers for high-speed communications. This will be delivered utilizing Motorola’s leading, cost- effective, and proven WiMAX 802.16e technology and services. Users demand connectivity whether they’re at home or in the office, and Motorola is excited to work with Atheeb to meet this from concept to reality.”

Motorola is a global leader in WiMAX with 19 WiMAX contracts and more than 75 engagements in 44 countries worldwide. The WAP 800 access point technology to be deployed with Atheeb has 4 transmit and 8 receive antennas per sector providing optimal coverage and uplink data performance.

A portion of the contract will be financed by Motorola

3G Americas, a wireless trade association, will host the HSPA Mobile Broadband Pavilion at CTIA, April 1-3, 2008, in the Las Vegas Convention Center with the participation of 19 other companies. Pavilion guests will see, feel and experience true mobile broadband services and applications on a broad variety of HSPA devices and learn about the evolution path to LTE. HSDPA is the leading mobile broadband technology commercially available today on 182 networks in 79 countries, with more than 400 devices available from 90 suppliers.The HSPA Mobile Broadband Pavilion will allow attendees to put themselves in real-life scenarios and interact with products and applications that are available today to revolutionize their lives — at work, at home, in the classroom and on the move. Guests will see many of the 400 different HSDPA devices currently available. Additionally, viewer-selected videos and presentations will be available for technology tutorials and real operator success stories worldwide. The future migration to LTE is exhibited as well as a roadmap to the numerous displays featuring live LTE demonstrations throughout CTIA.

Some of the demonstrations planned for the Pavilion include services that might be used “At Home” such as the “three-screen revolution,” using an HSPA femtocell to integrate the home IPTV experience with a mobile device and a PC. “On the Move” applications to be showcased include a file download and upload, laptop Internet browsing, streaming video, IP meetings and group calls. “In the Classroom” will feature an instant communications application, and “At Work” will showcase live video-sharing between a mobile device and a PC. Another application solution to be shown adapts video streams from off-deck broadband sites for delivery on HSPA devices.

“HSPA is a global reality. We invite you to visit the HPSA Mobile Broadband Pavilion at CTIA and experience the vibrant HSPA ecosystem here today,” said Chris Pearson, President of 3G Americas. “At the same time, there is another growing ecosystem for LTE evolving rapidly with its recent 3GPP standards specifications approval. This is an ecosystem of vendors as impressive as that of HSPA, with operators already announcing their future LTE deployments.”

Many members of 3G Americas will be present in the Pavilion to demonstrate or discuss HSPA and/or LTE technology. Members of the 3G Americas Board of Governors include: Alcatel-Lucent, AT&T, Cable & Wireless, Ericsson, Gemalto, HP, Motorola, Nortel Networks, Nokia, Openwave, Research in Motion (RIM), Rogers, T-Mobile USA, Telcel, Telefonica, and Texas Instruments.

The HSPA Mobile Broadband Pavilion is located in the Central Hall between the North Hall and South Hall of the Las Vegas Convention Center at CTIA in the ‘Road to 4G’ zone. The Pavilion will be open Tuesday and Wednesday, 9am to 5pm and Thursday, 9am to 3pm (April 1-3). Media and analysts are encouraged to visit and contact 3G Americas for a private briefing and demonstrations.

HSPA, High Speed Packet Access, provides compelling advantages over competing technologies today, including the ability to support simultaneous voice and data services on the same radio spectrum, while also being backwards-compatible and enabling roaming across 220 countries worldwide. Some network operators report HSDPA users can expect average throughput rates of 600-1400 Kbps on the downlink. HSUPA users, on 31 commercial networks worldwide, can today experience peak achievable rates close to 1 Mbps in the uplink under favorable conditions. HSPA Evolution (HSPA+), with volume deployments scheduled for 2009, will more than double HSPA capacity as well as reduce latency below 25 milliseconds.

LTE, Long Term Evolution, an approved 3GPP standard specification, is a high data rate, low latency wireless technology based on OFDMA technology, and the next evolutionary step for GSM operators after HSPA+. It will match or exceed the capabilities of any other OFDMA mobile standard. For LTE, with advanced enhancements (MIMO), 3GPP reports peak theoretical network throughput rates of up to 326 Mbps and 86 Mbps respectively for the downlink and the uplink in 20 MHz of spectrum.

The Enterprise Mobility business of Motorola, Inc. announced its AP-7131, the industry’s first tri-radio 802.11n access point (AP) featuring Motorola’s new adaptive AP architecture. The unique tri-radio design integrates three 802.11n radios that simultaneously support high-speed client access, mesh backhaul and dedicated dual-band intrusion protection for enabling the all-wireless enterprise. Using an expansion slot, the third radio can be field upgraded to enable next-generation 3G/4G technologies like WiMAX for primary or redundant WAN connectivity.Motorola and Moonblink Communications, a partner providing Wi-Fi, WiMAX, and other broadband wireless solutions, also announced today that San Marino Unified School District will be the first customer worldwide that will combine an 802.11n WLAN deployment using the new AP-7131 along with Motorola’s award-winning Point-to-Point (PTP) solutions to connect four school campuses — delivering an end-to-end wireless network.

In a new enterprise wireless LAN (WLAN) survey commissioned by Motorola, the research results of more than 550 enterprise WLAN decision-makers found that nearly four out of 10 respondents are planning to deploy 802.11n technology in the next 12 months. More importantly, the number of enterprises planning to use WLANs as their primary network will more than double in the next 12 months, growing from 8 to 17 percent. Gartner predicts that “by year-end 2011, 70 percent of all new worldwide voice and data client-to-LAN connections will be wireless.”

“We’re thrilled to be deploying Motorola’s new AP-7131 802.11n access points,” said Stephen Choi, director of technology, San Marino Unified School District. “In evaluating vendors for WLAN, only Motorola provided an end-to-end wireless solution with the advantage of smart adaptability and mesh that met our evolving needs. We are looking forward to providing students and faculty with a fast, reliable wireless network that allows us to meet our educational goals.”

Motorola’s new AP-7131 access point has been engineered for flexibility and ease-of-use for wireless enterprise deployments. It can be used as a stand-alone AP within small to medium businesses. In adaptive mode, the AP-7131 combines the benefits of central management and site-survivability to help reduce the complexity of deployments in remote offices. In a campus WLAN switch environment using the thin AP mode, the AP-7131 can be centrally managed for large scale deployments. This unique multi-mode operation is supported by the same firmware version to greatly simplify the task of building a large scale multi-site wireless enterprise.

“The mesh-enabled AP-7131 provides the security and performance that enterprises require at a fraction of the cost of wired networks and realizes the long promised vision of the wireless enterprise,” said Sujai Hajela, vice president and general manager of Enterprise WLAN, Motorola Enterprise Mobility business. “Leveraging the industry’s first tri-radio 802.11n AP, users will be able to unleash the full-potential of 802.11n for superior performance of data, video and voice applications along with mesh backhaul and security on the network.”

The AP-7131 provides 24/7 intrusion protection, which can significantly lower the cost of building a secure wireless enterprise. Traditional solutions time-slice the radio for both access and intrusion protection, limiting 802.11n performance and security capabilities. Motorola’s new AP-7131 with the third radio eliminates the need for time-slicing or the need for a dedicated sensor AP for security thus reducing the cost of secure and manageable deployments. Featuring a fully Dynamic Frequency Selection (DFS2)-compliant chipset, a fast MIPS network processor with hardware-accelerated encryption and dual Gigabit Ethernet interfaces, the AP-7131 delivers full 600Mbps connection speeds, while simultaneously providing enterprise-class security.

To help customers with AP-7131 802.11n network rollouts, Motorola will launch its industry leading LANPlanner tool with 802.11n capability in the second quarter of 2008. The LANPlanner will allow customers to view 802.11n AP placements along with AP-7131 MIMO performance maps for the first time. In addition, an Automated Migration Wizard will greatly simplify migration to 802.11n by allowing businesses to specify migration paths, view mixed network coverage and determine the exact number of AP-7131 AP’s required in the final network design.

Motorola’s AP-7131 also includes an innovative industrial design that allows the same AP to work in both carpeted areas and industrial environments by attaching an aesthetically appealing “snap-on facade” with integrated antenna elements. The AP-7131, designed by renowned Italian designers Giugiaro Design, delivers an elegantly fashioned MIMO AP suitable for installation in hospitality and carpeted office environments.

A study of the differences between buyers of top selling handsets is discussed in the latest Strategy Analytics report, “Buyer Profiles of the Top 50 Best Selling Handsets in the US.” This research examines some 9000 buyers of handsets over the first three-quarters of 2007, and profiles buyers of the top 50 handsets by examining extensive buyer demographic and usage data for each model.According to Barry Gilbert, author of this study, “Insights on cellphone buyers based on handset model choice is an extremely valuable tool for both handset OEMs and the operators who sell the majority of these devices.”

There were about 250 handsets marketed during the study period, from low end basic phones to smartphones; and the top 50 represented approximately half the total volume in the US marketplace.

* Motorola dominated the US landscape with the greatest number of top selling devices, representing 50% more than its nearest competitor, Samsung;

* while female buyers tended to rate various device characteristics more favorably than male buyers, they were somewhat more sensitive to price

* male buyers tended to be more influenced by reviews in magazines, while female purchasers were more influenced by word-of-mouth suggestions

Purchase Influences by Gender on Device Purchase Based on a 1-5 scale, 1=low influence on purchase, 5= high influence

Store Employee - Male 2.5, Female 2.3

Brand Recognition - Male 3.7, Female 3.7

TV Advertising - Male 2.2, Female 2.1

Newspaper/Magazines - Male 2.2, Female 1.8

Family/Friends/Colleagues - Male 2.7, Female 2.8

Price - Male 4.0, Female 4.1

Reviews In Magazines - Male 2.5, Female 2.0

Boost Mobile(tm), a lifestyle-based telecommunications brand and wholly-owned division of Sprint Nextel, today announced that it has added the MOTOKRZR phone to its Unlimited by Boost service handset offering. The Boost-branded Motorola phone is available in black with a reflective finish, and includes the first month of service free of charge with new service activation on Unlimited by Boost.The Boost-branded MOTOKRZR handset features an MP3 Music Player with Touch Sensor Music Controls, 1.3 Megapixel Camera with 4X Digital Zoom and Video Recorder, Bluetooth wireless technology, GPS, Text and Multi-Media Messaging, Wireless Web and Email capabilities, access to AOL, Yahoo! and MSN Instant Messaging, Hands-Free Speakerphone with Voice-Activated Dialing and Voice Recorder, MicroSD Card slot for optional upgradeable memory, Bright Color TFT Internal Display and Java enabled games and applications.

The phone also includes — The Latest, a new pre-loaded service that provides fast and convenient access to the most useful and local information throughout the day. Basic channels include breaking news, sports news and scores, stock market updates, showbiz and weather information. Premium channels provide street level maps and driving directions, Oxford American Dictionary with over 250,000 definitions and Unlimited Directory (411) search. For a limited time, The Latest is being offered for free for the first seven days. Following the 7-day promotional offer, a basic channel subscription will cost $2.99 per month and $4.99 per month for a premium channel subscription.

“Now is the perfect time for us to introduce the popular MOTOKRZR to our Unlimited by Boost handset lineup,” said Neil Lindsay, vice president of product development, Boost Mobile. “We doubled our base from 224,000 to 500,000 Unlimited by Boost customers in Q4 alone, and introducing this feature-rich handset will help us keep the momentum going.”

Currently available in 13 states including: Alabama, Arkansas, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, Nevada, North Carolina, Oklahoma, Tennessee and Texas, Unlimited by Boost offers unlimited local and nationwide long distance calling from within a large home calling area for a low fixed monthly price. The monthly service fee excludes applicable taxes, including sales taxes, and customers making or receiving calls outside of their home calling area are charged 15 cents per minute. As with all service plans available from Boost Mobile, there are no contracts, credit checks or activation fees.

Worldwide sales of mobile phones to end users surpassed 1.15 billion units in 2007, a 16 per cent increase from 2006 sales of 990.9 million, according to Gartner, Inc. Mobile phone sales at the end of the year were consistent with the yearly trend, as fourth quarter sales reached 330 million units.”Emerging markets, especially China and India, provided much of the growth as many people bought their first phone,” said Carolina Milanesi, research director for mobile devices at Gartner, based in Egham, UK. “In mature markets, such as Japan and Western Europe, consumers’ appetite for feature-laden phones was met with new models packed with TV tuners, global positioning satellite (GPS) functions, touch screens and high-resolution cameras.”

“After another strong year, we expect the growth in sales of mobile devices to end users will decelerate in 2008 and fall to about 10 per cent growth as mature markets become more saturated,” added Ms Milanesi. “However, the global mobile devices market will remain relatively immune to a recession in the US and Western European economies as the majority of growth in 2008 will come from emerging markets. The mature Western Europe and North America markets are driven by operator contract terms and replacement cycles and will account for just 30 per cent of the global mobile devices market in 2008.”

Nokia achieved its long-term target of 40 per cent market share in the fourth quarter of 2007 when it sold slightly more than 133 million phones across the world. Despite some component shortages, Nokia increased its market share sequentially in all regions except North America, which remains a challenging market for the vendor. In emerging markets, products such as the 1110, the 1600 and the 2630 were in demand by consumers, while in mature markets such as Western Europe high-end phones like the N95, N82 and N73 were sought-after devices. In 2008, Nokia will need to continue to improve its portfolio, offering not only more applications and functions, but also novel designs and improved user interfaces.

In the fourth quarter of 2007, Samsung maintained second position, and although its market share slipped slightly, the gap widened between it and third-placed Motorola. Its success relied on its Ultra and Ultra II family of products. In 2008, Samsung needs to diversify its portfolio further with more form factors and colours so that single products stand out from the overall line-up.

The problems that beset Motorola in the third quarter of 2007 continued through the fourth quarter, and it recorded sales of 39 million phones across the world, taking 11.9 per cent of the market. It retained second place in terms of annual sales to end users in 2007, largely thanks to the inventory it disposed of in the first half of the year. Nevertheless, the extent of Motorola’s troubles can be seen in the 9.7 percentage-points market-share drop in its fourth quarter of 2007 result from the same period in 2006.

Sony Ericsson ended 2007 with another positive performance, growing its market share on a quarterly basis to 9.0 per cent from 8.7 per cent. Its Cyber-shot and Walkman products, such as the K850i, K610i, W910i, K550i and W300i, remained popular among consumers around the world. As Sony Ericsson widens its reach, adding features such as Wi-Fi and GPS, as well as more low-tier products, it will stay competitive in the coming quarters.

LG’s mobile phone sales totalled 23.5 million units in the fourth quarter of 2007, maintaining its 7.1 per cent market share despite the increase of more than three million in sales volumes. The success of the Viewty, the Venus and the Voyager helped LG gain brand awareness across the world as well as improve its margins. Ms Milanesi commented: “In 2008, LG will need to continue strengthening its high-end portfolio for mature markets as well as its mid tier. In the low tier, LG will increasingly be challenged by vendors such as ZTE, which has already been eroding its market share in key markets such as India.”

The market saw three new entrants into the top ten in the fourth quarter of 2007. These vendors included Research In Motion (RIM), ZTE and Apple. “On one hand, we have aggressive pricing and a focus on emerging markets (ZTE), and on the other, RIM with targeted functions and Apple with brand and design,” said Ms Milanesi.

“Phone manufacturers need to continuously adapt their portfolios to respond to operators’ demands for open platforms, lower pricing and more personalisation,” recommended Ms Milanesi. “They should also try to meet consumers’ desires for fashionable, easy-to-use phones.”

Regional Analysis

In Asia/Pacific, 112 million mobile devices were sold in the fourth quarter of 2007, representing 9.6 per cent growth over the previous quarter. Over the holiday season, operators and distributors offered a wide range of mobile phone options at reasonable prices, tempting new users to sign up to service plans. “Driving factors for growth in emerging markets in Asia/Pacific included huge numbers of new subscribers, lower-priced phones based on wideband code division multiple access (WCDMA) technology, as well as ultra-low-cost CDMA phones and low-cost global system for mobile (GSM) phones,” said Ann Liang, Gartner principal research analyst for mobile terminals, based in Taipei.

Sales in the Eastern Europe, Middle East and Africa region remained strong in the fourth quarter of 2007 and reached 61.8 million units. Mobile operators continued to add new subscribers to their networks, especially in Africa where countries such as Nigeria, Egypt, Algeria and South Africa saw healthy net new additions.

In Japan, sales to end users numbered 12.5 million units in the fourth quarter of 2007, a decrease of 3.6 per cent year-on-year. Strong sales in the early part of the year brought total sales in 2007 to a record high of 52.3 million units — more than in 2003, when many Japanese bought their first camera phones. “In 2007, music player functions and embedded TV-tuners with large, high-resolution displays persuaded users to replace their devices,” said Nahoko Mitsuyama, principal analyst for mobile communications research at Gartner, based in Tokyo.

In Latin America, sales reached 38.8 million units in the fourth quarter of 2007, a 12.5 per cent increase from the same period in 2006. “In December, the holiday season, along with accompanying promotions, meant sales hit a new record level,” said Tuong Nguyen, analyst for mobile terminals at Gartner, based in Arlington, Virginia.

The fourth quarter of 2007 was another record quarter in North America, as sales to end users continued at a rapid pace, reaching 49 million units, an increase of 9.2 per cent from the fourth quarter of 2006. “AT&T and Verizon Wireless continued to be the strongest performing operators, while Sprint Nextel lagged,” said Hughes De La Vergne, principal analyst for mobile terminals research at Gartner, based in Dallas, Texas. “Replacement devices continued to dominate sales and growth in new subscribers slowed down as penetration rates climbed.”

In the fourth quarter of 2007, mobile phone sales in Western Europe totalled 55 million units, up 2 per cent from the fourth quarter of 2006. Features such as music players, GPS and cameras proved to be significant attractions. In the same quarter, operators in Germany, the United Kingdom and France introduced Apple’s long-awaited iPhone to the market. Although sales have been small, this iconic device renewed consumers’ interest in high-end phones, which in most Western European markets are still heavily subsidised by operators.

Motorola, Inc. introduced several new products from its MOTOA4(TM), wireless broadband and professional two-way radio portfolios designed to improve communications for public safety, commercial and business customers.New products making their debut include the PM1200(TM) Mobile Two-Way Radio, CP110(TM) Portable Two-Way Radio, Motorola Bluetooth Wireless Adapter, and the DigitalPatroller DP-2 In-Vehicle Video System. These purpose-built solutions are the latest two-way radios, the accessories that bring the convenience of Bluetooth to public safety radios, and a mobile digital video recorder (DVR) that features a server-based video data management system.

These Motorola products will be on display at Booth #1400 at the International Wireless Communications Expo (IWCE) Feb. 27-29 at the Las Vegas Convention Center.

Diverse Product Rollout

The newest additions to the Motorola portfolio of two-way radios include offerings for both the commercial tier — the CP110 Portable Two-Way Radio — and the professional tier — the PM1200 Mobile Two-Way Radio. These two-way radios allow users to enhance employee efficiency and productivity. The CP110 has exceptional audio quality and a durable, rugged design enabling essential communication in loud workplace environments such as construction and property management. The PM1200 provides local public safety, public works, utilities and transportation customers with a high quality, high power, low-band two-way radio communication solution.

Today, Motorola unveiled its first phase of wireless accessory solutions for two-way radios in the form of the Motorola Bluetooth Adapter. Users can quickly and easily pair this Bluetooth Adapter with the compatible Motorola Bluetooth Headset H300(TM). The Motorola Bluetooth Adapter was designed with busy professionals in mind and has been certified and tested to work with the following Motorola portable two-way radios: PR1500(TM), HT1000(TM), XTS��1500, XTS��2500, and XTS��5000.

DigitalPatroller DP-2, manufactured by Integrian, is Motorola’s new in-vehicle video recording solution designed specifically for public safety, and it provides an important capability for law enforcement. DP-2 starts with a mobile DVR attached to a video camera in the police car. When triggered the DVR begins recording video from the camera and audio from the portable microphone that the officer wears. The audio and video are stored on the hard drives of the DVR. When the car returns to headquarters, video is retrieved and stored in a database.

The database enables recorded video and audio to be called up later by type of incident, location or date. Having the video in digital format also makes it easy to search and easy to share with prosecutors and other agencies. DP-2 is rugged, reliable, and automatic, letting the officer concentrate on the job; it’s Motorola technology that’s second nature.

Sprint and Motorola, Inc. announce the availability of a local, regional and national network interoperability solution. Now, a Nextel Direct Connect user can talk directly to a first responder who uses a Project 25 land mobile radio (LMR), creating a new level of interoperability by allowing the two types of push-to-talk services to communicate with each other.To enable this interoperability, Motorola has developed a gateway — MOTOBRIDGE IP Interoperable solution — that facilitates the integration of disparate networks (different bands, system types or vendors) to provide enhanced communications among users for day-to-day or emergency applications with built in scalability to allow numerous agencies, users and dispatch locations to be supported. In addition, Advanced Nextel features such as, Group Calls, Call Alert Status Messages, Talkgroup Calls and Emergency Alerts are enabled seamlessly through the MOTOBRIDGE Solution.

“The collaboration between Motorola and Sprint is a critical step to further boosting communications capabilities for public safety personnel,” said James Lee Witt, former FEMA director and current Chief Executive Officer of James Lee Witt Associates, a part of GlobalOptions Group. “It is essential to enable interoperability and simplify communications when operating on different frequencies.”

“The tragic events of Sept. 11, 2001, and Hurricane Katrina demonstrated the real need for instant communication between local, state and federal safety officials. Those two catastrophic events showed in real time just how vulnerable America is,” said John Walsh, host of America’s Most Wanted. “The relationship of these two industry giants, Sprint Nextel and Motorola, to facilitate immediate communication between our first responders, is a major step in making America safer. This technology will help save lives.”

Nextel Direct Connect is the world’s largest and fastest push-to-talk service, with millions of users enjoying it today. As the leading provider of push-to-talk service, Sprint has the largest portfolio of Nextel Direct Connect devices, including the largest selection of rugged phones certified to Military Standard 810F for dust, shock, vibration, etc. Sprint also offers exclusive Public Safety push-to-talk applications such as Priority Connect, Emergency Group Connect and Priority Group Connect.

Motorola, Inc. today announced it is exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices business to recapture global market leadership and to enhance shareholder value. The company’s alternatives may include the separation of Mobile Devices from its other businesses in order to permit each business to grow and better serve its customers.”All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets,” said Greg Brown, President and Chief Executive Officer. “We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise.”

The company does not intend to discuss developments with respect to the exploration of strategic alternatives unless or until its Board of Directors has approved a definitive transaction or the process is otherwise complete. There can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing.