Motorola Awarded 3G Contract With CST Invest Ltd. To Provide CDMA2000 1X Service In Ukraine

CST Invest Ltd., has awarded Motorola (NYSE: MOT) a commercial contract to deploy a third generation (3G) Code Division Multiple Access (CDMA) 2000 1X network in Dnepropetrovsk, Ukraine. CST Invest Ltd., along with Motorola, will bring the first CDMA2000 1X service to Ukraine's growing wireless market. Financial terms of the contract are not being disclosed.

This is the ninth CDMA2000 1X contract announced by Motorola's Global Telecom Solutions Sector (GTSS) since October 2000.

Network deployment is under way and CST Invest Ltd. expects to launch its commercial services in the first quarter of 2002. This is Motorola's first CDMA2000 1X hybrid network that converges fixed wireless and Internet services with peak data speeds of up to 144 kilobits per second.

"CST Invest is excited about the possibilities that come with a full offering of CDMA2000 1X solutions from Motorola, which will complement our goal to increase the nation's Internet penetration rate," said Pavel Gorulya, general director for CST Invest Ltd. "As a telecom operator, this air interface technology optimizes our existing spectrum by offering both enhanced voice capacity and high-speed packet data services for our valued customers. In addition, Motorola's solution can provide an effective 'last mile' connectivity solution to the rural areas where it is costly and technically prohibitive to install wired lines," said Gorulya.

"Motorola's CDMA2000 1X architecture will nearly double its voice capacity while providing 3G data rate speeds," said Barbara Kalinowska, area general manager for Motorola's GTSS. "This creates the opportunity for future revenues from applications such as high-speed Internet access, advertising and video conferencing. The Ukraine is a key Motorola market in Eastern Europe and our CDMA solutions will be an integral part of CST Invest's strategy to seamlessly migrate its networks to provide 3G applications and services to its customers," said Kalinowska.

Motorola, through its alliance with Cisco Systems, Inc. is providing third-generation CDMA 1X systems to telecom operators around the world. Users will be able to enjoy high performance data services such as Internet access, mobile commerce applications and on-line gaming. It is these types of applications that will make future devices smarter and people's lives simpler.

The Motorola/Cisco CDMA 1X solutions can be implemented over an existing CDMA network, which can help lower operator's costs by enabling them to use their existing infrastructure. Motorola's CDMA SC™ 4812 four-carrier base stations require only simple card upgrades to support 3G 1X voice and data features.


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