CDMA OPERATORS IN NORTH AMERICA CAPITALIZE ON THEIR TECHNOLOGY ADVANTAGES
CDMA2000 Delivers on 3G
COSTA MESA, Calif., June 18, 2003 - The CDMA Development Group (CDG) (www.cdg.org) reported that operators who have deployed CDMA2000 in North America are seeing positive results in network performance, service differentiation and product availability.
Perry LaForge, executive director of the CDG, said, "CDMA technology offers significant advantages to operators in capacity, high-quality service, and a smooth evolution to next-generation services. North American operators have capitalized on these advantages and are now well-positioned to further strengthen their leadership in the region."
With 64.5 million subscribers in North America, CDMA is the dominant wireless technology. In March 2003, more than half of the wireless users in the region accessed services through CDMA networks. There are 36 CDMA operators in Canada and the United States, 16 of which have deployed or are migrating to CDMA2000®.
CDMA2000 is the only 3G technology commercial in North America and it is expanding rapidly. It offers operators significant benefits, such as doubled capacity, improved network performance and differentiation through high-speed data services. Coupled with the fact that the migration to CDMA2000 is relatively easy and requires low capital investment, this motivated operators to deploy it aggressively. They are already seeing positive results after only 18 months of the first deployment in the region.
Sprint, which operates the largest all-digital, all-CDMA Third-Generation (3G) wireless network in the United States, launched its nationwide CDMA2000 1X network and PCS VisionSM, its advanced wireless data service, in the third quarter 2002 with roughly a $750 million investment in the network. Since the launch, Sprint has reported significant network performance improvements - 1.8 times gain in capacity, a 39 percent decline in dropped calls and 11 percent improvement in blocked calls. Its high-speed data network delivers average data speeds of 50 to 80 kbps and peak speeds up to 144 kbps.
Subscriber migration to the CDMA2000 1X network is progressing rapidly. At the end of the first quarter 2003, Sprint crossed a significant milestone by announcing 1.3 million PCS Vision customers, leading the industry in the use of advanced data services. In addition, as of the end of the first quarter 2003, nearly 90 percent of handsets sold by Sprint were CDMA2000 1X voice devices, 45 percent were also CDMA2000 1X data-capable and nearly 53 percent of Sprint's wireless customers are using CDMA2000 1X handsets.
Oliver Valente, vice president of Technology Development for Sprint, said, "With the high-speed packet data capabilities offered by CDMA2000 1X technology, Sprint is able to further enhance and expand its comprehensive range of PCS Vision applications, creating a more valuable wireless experience for our customers."
CDMA2000 1X is the perfect fit for Sprint's strategy as a service innovator. Through PCS Vision, customers can take and receive pictures from select PCS Phones; browse the Internet at speeds faster than most dial-up connections; check personal and corporate email; watch clips and stream audio for news and music; and download polyphonic, animated and voice ringers, and full-color, graphically-rich games and screen savers. Sprint was the first carrier in the U.S. to offer wireless, on-demand multimedia and to offer a phone with a built-in camera. In addition, Sprint recently introduced a camera phone for less than $100 after discounts.
Verizon Wireless launched their CDMA2000 1X network in the first quarter 2002. Verizon will reach 100 percent coverage by July. Nearly 20 percent of their base have CDMA2000 1X handsets.
Migration to CDMA2000 was a critical part of the company strategy to strengthen its leadership position in the U.S. market by offering high-quality data services while significantly improving spectral efficiency to stay ahead of usage demands.
With the Express NetworkSM, Verizon Wireless is delivering data services to the enterprise segment at average data rates of 60-80 kbps. The Express Network powers a suite of services for businesses that encompass Internet/Intranet access, personal information management, and e-mail solutions. Express Network subscribers grew 39 percent from 1Q 2002 to 4Q 2002. The United States' largest wireless carrier reported demand for data services is growing with 1X data usage up 77 percent from 1Q 2002 to 4Q 2002. After successful technical trials in 2002, Verizon Wireless has committed to a 3Q 2003 deployment of CDMA2000 1xEV-DO in Washington, D.C. and San Diego. CDMA2000 1xEV-DO is capable of delivering peak data rates up to 2.4 Mbps, with average data speeds of 600-800 kbps.
"Providing the nation's best wireless network is at the core of everything we do and our relentless pursuit of excellence drives us to deploy the most advanced wireless technologies available," said Dick Lynch, executive vice president and chief technical officer for Verizon Wireless. "CDMA2000 has already played an integral part in our success and will continue to provide a solid foundation as we continue to introduce quality, differentiated services to our customers."
There were nearly 17 million CDMA2000 subscribers in North America by the end of first quarter 2003 and the number is growing rapidly. With the technology's extensive footprint, exciting applications, and more than 65 commercially available devices, users have strong incentives to migrate to 3G.
The CDMA Development Group is a nonprofit trade association formed to foster the worldwide development, implementation and use of CDMA technologies. The 110 member companies of the CDG include many of the world's largest wireless operators and equipment manufacturers. The primary activities of the CDG include development of CDMA features and services, public relations, education and seminars, regulatory affairs and international support. Currently, there are more than 500 individuals working within various CDG subcommittees on CDMA-related matters. For more information about the CDG, contact Valerie Christopherson of the CDG News Bureau at +1-714-540-1030, ext. 14, e-mail firstname.lastname@example.org, or visit the CDG Web site at www.cdg.org.
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