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CDMA SUBSCRIBER BASE REACHES RECORD NUMBER IN 2Q 2004

Over 50 percent of CDMA Subscribers Use CDMA2000 Technologies

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COSTA MESA, Calif., Aug. 10, 2004 – The CDMA Development Group (CDG) (www.cdg.org) reported today that the CDMA industry added nearly 10.5 million subscribers in 2Q 2004, reaching 212.5 million users worldwide, and in the first six months of 2004, the subscriber base grew by a record 24 million users. CDMA continues to be the fastest-growing wireless standard of all leading cellular technologies. From 2002 through the first half of 2004, the CDMA subscriber base increased by an average of 30 percent per year versus 21 percent for the total wireless market.

CDMA2000® further strengthened its leadership in 3G by adding 14 million users in 2Q to reach 112 million subscribers, including 8.3 million CDMA2000 1xEV-DO users. More than 52 percent of the global CDMA subscriber base use CDMA2000 technologies.

“The phenomenal momentum of CDMA continues,” said Perry LaForge, executive director of the CDG. “CDMA2000 has become the leading platform for advanced wireless services and is driving growth and revenues for operators. The broad acceptance of CDMA2000 in all regions of the world demonstrates tremendous opportunity for the technology and all next-generation CDMA-based systems in the future. A recent forecast from InStat/MDR predicts that CDMA2000 and WCDMA technologies together will capture the largest market share (in terms of number of subscribers) by 2009.”

Asia-Pacific is the largest and fastest-growing region for CDMA with 88.8 million users, or 42 percent of total CDMA subscribers. Today, 66 percent of CDMA subscribers in the Asia region use CDMA2000, and in Japan and Korea, over 84 percent of the CDMA base use CDMA2000. The demand for advanced CDMA2000 1xEV-DO services is growing rapidly, with more than 2 million new subscribers added in the past quarter. There are 26 CDMA2000 operators in 12 countries throughout the region.

In the Americas, the subscriber base grew by more than 21 million in the year June 2003 to 2004, bringing the total number to more than 120 million. CDMA has clearly become the dominant technology in the region.

CDMA expanded its leadership in North America, reaching more than 85.6 million users, and increasing market share to 47 percent, up from 43 percent one year ago. With 24 percent annual growth, CDMA outpaces the overall market 2:1. More than 55 percent of CDMA subscribers in the region use CDMA2000.

Latin America and the Caribbean have nearly 35 million CDMA users and 40 CDMA operators in the region. With 26 CDMA2000 1X and two CDMA2000 1xEV-DO networks in 16 countries, Latin America has more commercially deployed CDMA2000 networks than any other region.

CDMA2000 leads in 3G worldwide deployments with 89 carriers in 45 countries across six continents. An additional 36 CDMA2000 networks will be launched in 2004.
CDMA subscriber statistics and CDMA2000 deployment information are available on the CDG Web site at www.cdg.org. s

About the CDG

The CDMA Development Group is a trade association formed to foster the worldwide development, implementation and use of CDMA technologies. The more than 100 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. For more information about the CDG, contact the CDG News Bureau at +1-714-540-1030 or visit the CDG Web site at www.cdg.org.

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