CDMA2000 Drives Subscriber Growth and Revenue
 

The CDMA Development Group (CDG) (www.cdg.org) reported today that the 3G CDMA2000(r) subscriber base has nearly doubled since December 2002, reaching 60 million at the end of August, and is growing at an average 3.5 million users per month. More than 30 percent of CDMA subscribers now use 3G services.

"CDMA2000 is by far the most successful commercial wireless technology today, bringing services consumers want and driving growth and revenues for operators," said Perry LaForge, executive director of the CDG. "CDMA is the fastest-growing technology worldwide and, driven by high demand for CDMA2000 services, it will continue to advance and capture greater market share from other technologies."

CDMA2000 is expanding across all regions. There are 70 commercial networks and 20 more will be deployed within the next six months in Asia, Australia, Africa, Europe and the Americas. Whereas one year ago, the vast majority of CDMA2000 subscribers resided in Asia, today over 40 percent are in North and South America as well as Europe.

In Asia-Pacific, 27 out of the total 45 CDMA networks have migrated or are migrating to CDMA2000, and there are 4 commercial CDMA2000 1xEV-DO networks. More than half of the 63 million CDMA subscribers use CDMA2000 technology. CDMA2000 has had a tremendous success in the region. In Japan, KDDI reached 10 million CDMA2000 users in September, just 18 months after the launch of its 3G services, and beat DoCoMo in net subscriber growth in the first half of 2003. Strong sales of its 3G "au" services and higher-than-expected ARPU for the service have boosted KDDI's net profit estimate by 34 percent for 2003. Korea leads the world in true broadband mobile data services with more than 2.5 million CDMA2000 1xEV-DO subscribers. These subscribers generate 50 percent more revenue than an average user.

CDMA is the dominant technology in North America today, with 70 million subscribers, and its market share continues to expand. 22 out of 49 CDMA networks, including leading operators such as Alltel, Bell Mobility, Verizon, Sprint and U.S. Cellular, have migrated to or are in the process of deploying CDMA2000 networks. CDMA2000 already serves nearly 30 percent of CDMA users in the region and the base is growing rapidly. Verizon, for example, reported a 50% increase in their CDMA2000 1X base, and their data usage went up 77% from 1Q to 2Q this year. Sprint PCS reported that the number of subscribers of PCS Vision(sm) increased in 2Q 2003 to 2.1 million users.

Latin America, including the Caribbean, is another rapidly-expanding market for CDMA2000. CDMA already has a very strong presence in Latin America with 29 million users or 23 percent market share, second only to TDMA. There are 52 cdmaOne and CDMA2000 operators in 19 countries. CDMA2000 is the most advanced technology deployed in the region, giving operators significant competitive advantage in increased capacity to meet growing demand for voice services and high-speed data capabilities. Latin America has a large base of CDMA2000 operators: 28 have deployed or are migrating to CDMA2000 in key markets such as Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela.

cdmaOne and CDMA2000 will continue to expand faster than other leading technologies. According to Deutsche Bank, the CDMA base and market share will double within the next five years to reach close to 487 million subscribers and 26 percent of the market. More importantly, more than 50 percent of them will be using 3G CDMA2000 technologies whereas only 9 percent of GSM subscribers will have access to 3G services in 2008.