LG Develops World's First LTE Handset Modem Chip

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Breakthrough means commercially viable LTE handsets now on the horizon

Worlds First LTE Handset Modem Chip

Now that LG has developed and tested the first 4G handset modem, a commercially viable LTE handset is on the horizon

LG Electronics(LG), a worldwide technology and design leader in mobile communications, announced today that it has independently developed the first handset (user equipment) modem chip based on 3GPP Long Term Evolution (LTE)* technology standards. The modem chip can theoretically support wireless download speeds of 100Mbps (megabits per second) and upload speeds of 50Mbps. This represents a significant step toward creating a market-ready 4G* phone.

The Modem Chip is the most crucial component required to create a viable 4G handset with LTE technology, the leading candidate to become the fourth generation mobile phone technology standard.

LG demonstrated the chip today at its Mobile Communication Technology Research Lab in Anyang, Korea, achieving wireless download speeds of 60 Mbps and upload speeds of 20 Mbps. The fastest phones currently on the market use HSDPA technology and download at a maximum speed of 7.6 Mbps.

Higher download speeds are becoming more and more important as people are increasingly using their mobile phones to watch movies, listen to music and browse the internet. With LTE technology, users can download a 700 MB movie file in less than one minute at speeds of 100 Mbps. LTE technology would also allow consumers to simultaneously stream four HD movies without any buffering.

For the past three years, LG have been pursuing 3GPP LTE standardization, working to develop and test commercially viable LTE technology with approximately 250 of R&D staffs. The result is a 13 by 13 mm modem chip, perfectly sized for the next generation of slim-yet-powerful handsets. For its demonstration today, LG used a test terminal running Windows Mobile to play back high quality, on-demand video. In addition to this handset modem, LG is also developing the first preliminary LTE-based data card, which can replace the wireless cards currently used in computers.

"Now that LG has developed and tested the first 4G handset modem, a commercially viable LTE handset is on the horizon," said Dr. Woo Hyun Paik, CTO of LG Electronics. "This latest breakthrough gives us a strong technology advantage that we will use to bolster our industry leadership."

Most of the major mobile operators are pursuing LTE-based 4G technology. Because it is based on the existing WCDMA technology evolutionary path, 85 percent of WCDMA service-provided carriers will be able to upgrade their networks to LTE with far less cost than building a new network based on a different technology.

According to market research company Strategy Analytics, the global LTE handset market will double from 70 million sales units in 2012 to 150 million sales units by 2013.

Dr. Paik added, "Our successful development of this LTE handset modem signals the start of the 4G mobile communications market. LG will continue to advance this technology and develop further technologies to maintain global leadership."

Mobile phone carriers have now built LTE test networks and are currently working on early stage handsets. The first LTE mobile phones will likely reach the market in 2010.

*Long Term Evolution is an advanced mobile communication technology based on WCDMA, the current 3G standard. This means that the technology can provide enhanced mobile services without the need for building additional network infrastructure. The Third Generation Partnership Project (3GPP), a mobile technology standards organization, is currently in the process of standardizing LTE as a 4G technology. Top phone makers and networking companies from around the world, including LG Electronics, Qualcomm, Vodafone, Verizon Wireless, T-Mobile, KDDI and NTT DoCoMo, support and contribute to LTE's development. Industry experts see a strong likelihood that LTE will be the next 4G standard thanks to its strong capabilities and ease of implementation.

*To qualify as 4G, a network technology must be able to transfer data at over 1 Gbps to a stationary receiver or 100Mbps to a receiver moving at 60 Km/h. This is 50 times faster than WCDMA for moving receivers and 10 times faster than wired broadband internet connections for stationary receivers. 4G networks are also IP-based, making them more efficient.

About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in 114 operations including 82 subsidiaries around the world. With 2007 global sales of USD 44 billion, LG is comprised of four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG is the world's leading producer of mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems.

LG Electronics Mobile Communications Company (LG) is a leading global mobile communication and information company. LG creates handsets that provide an optimized mobile experience to customers around the world with its cutting-edge technology and innovative handset design capabilities. Increasingly, LG is perusing convergence technology and mobile computing products. LG will continue to take leadership in the mobile communication environment with stylish designs and smart technology.

For more information, please visit http://www.lge.com.

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Jun Hyuk Choi
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