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CDMA2000 DRIVES DATA SERVICE USAGE AND REVENUE

Operators Double Their Data Revenue with Introduction of Advanced Services

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COSTA MESA, Calif., Sept. 29, 2003 – The CDMA Development Group (CDG) (www.cdg.org) announced today that third-generation (3G) CDMA2000® dominates in data services, measured by the number of subscribers, the broad range of advanced applications it supports, and the increased revenue it generates for operators.

There are more than 54 million CDMA2000 subscribers worldwide who have access to high-speed data services. According to the EMC Worldwide database, CDMA2000 subscribers account for more than 55 percent of data users worldwide.

3G CDMA2000 subscribers generate significantly higher revenue – up to 50 percent more – than 2G subscribers. Because CDMA2000 can support a compelling array of data services, these offerings account for the vast majority of this increase. Some operators report that data revenue from their CDMA2000 1xEV-DO subscribers has increased by as much as 1,100 percent compared to their 2G subscribers, which represents 30 percent of the total revenue generated by these 3G subscribers.

Data services are becoming an important revenue source for operators, and CDMA2000 is already delivering positive results for them,” said Perry LaForge, executive director of the CDG. “Capitalizing on the high-speed data capabilities of CDMA2000 and a large selection of handsets with enhanced functionalities, operators are able to introduce a broad range of advanced multimedia services that stimulate consumer demand and generate significant revenue. For some CDMA2000 operators, data revenue nearly doubled in 2Q 2003 as compared to last year. This trend will continue as more subscribers migrate to CDMA2000 and operators introduce more high revenue-generating multimedia services.”

With typical data throughput of 60 to 100 kbps on CDMA2000 1X networks and 300 to 600 kbps on CDMA2000 1xEV-DO systems, operators can offer a variety of services suited for high data speeds, such as video on demand (VOD), music on demand (MOD), video phone, MMS and TV broadcasting. These revenue-generating services are already becoming very popular. KTF in Korea, for example, reports that VOD is the “killer app” for their subscribers and accounts for 51 percent of all downloads.

CDMA2000 operators across all major markets reported growing demand for advanced services and significant increases in their data revenues in 2Q 2003.

  • SK Telecom (Korea) reported that revenue from data services, such as mobile Internet, text messaging, GPS and e-commerce, surged 91 percent in 2Q 2003 compared to the same period last year. CDMA2000 1xEV-DO subscribers constitute 6 percent of the subscriber base, but they already account for 12 percent of the operator’s total revenue.
  • KDDI’s (Japan) 3G CDMA2000 subscribers generate 18 percent more in revenue than 2G users, and data makes up 23 percent of their monthly bill.
  • Verizon Wireless (North America) reported that usage of its Get It NowSM service, which offers games, ring tones and other data applications, grew to 2.5 million revenue-generating downloads per month.
  • Sprint (North America) reported that the number of subscribers of PCS VisionSM , its CDMA2000 advanced wireless data service, increased in 2Q 2003 to reach 2.1 million users.
  • Vivo, the largest operator in South America, reported a 53 percent growth in its CDMA2000 subscriber base over the past year, while data revenue showed strong growth of 131 percent.

CDMA clearly dominates advanced data market today.” continued Perry LaForge, “With poor performance and disappointing uptake of GPRS based services as well as marginal improvements in data rates and very limited handsets availability delivered by EDGE, CDMA will continue to strengthen its leadership in the coming years.”

Subscriber statistics and CDMA2000 deployment information are available on the CDG Web site at www.cdg.org.

The CDMA Development Group is a trade association formed to foster the worldwide development, implementation and use of cdmaOneTM and CDMA2000. The 110 member companies of the CDG include many of the world’s largest wireless carriers 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. The subscriber numbers in this release are estimates provided by third parties on a quarterly basis and have not been independently verified by CDG. For more information about the CDG, contact Valerie Christopherson of the CDG News Bureau at +1-714-540-1030, ext. 14, e-mail vchristopherson@bockpr.com, or visit the CDG Web site at www.cdg.org.

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***cdmaOne is a trademark of the CDG
***CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA-USA)