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MOSCOW WORKSHOP EXPLORES DEVELOPMENT AND IMPLEMENTATION OF CDMA2000

Rapid Growth of Wireless in Russia Offers Many Opportunities for CDMA Technologies

COSTA MESA, Calif., Oct. 28, 2004 – The CDMA Development Group (CDG) (www.cdg.org) today announced that more than 130 operators, equipment vendors, government officials and press attended a workshop titled, “IMT- MC Cellular Communications: Development Perspectives in Russia,” co-organized by the CDG with the Third Generation Telecommunication Networks Operators Association (3G Association) (www.a3g.ru) and the International 450 Association (IA 450) (www.450world.org) to discuss the progress and opportunities for CDMA2000® in Russia.

Representatives from the Russian Ministry of Information Technology and Communications, CDMA2000 and CDMA450 carriers, organizing associations and sponsors Ericsson, Lucent Technologies, Nortel Networks and Qualcomm shared their deployment experiences and provided insights into the outlook for the Russian wireless market.

During the event, the CDG signed a Memorandum of Understanding (MoU) with the 3G Association that calls for the two organizations to cooperate on the promotion of CDMA2000 (IMT-MC) technology, networks and market development in Russia.

“The demand for wireless services in Russia is growing rapidly, offering great potential for the CDMA community,” said Perry LaForge, executive director of the CDG. “The commercial success of CDMA2000 worldwide provides valuable insight into the opportunities of advanced wireless technologies, and the CDG looks forward to working with the 3G Association to share information and to promote CDMA2000 in Russia.”

The success of CDMA450 was a major theme of the event. In his opening statement, Nikolay Popov, Director of the Department of Public Programs at the Ministry of Information Technology and Communications, stated that CDMA450 technology has allowed Russia to modernize a large base of analog systems and has significant potential and positive implications for the future development of universal access in the country.

Four of the 12 commercial CDMA450 networks today are located in Russia, while two more are about to be deployed and two others are conducting trials in the country. Two leading Russian CDMA450 operators, Delta Telecom and Moskovskaya Sotovaya Svyaz (MCC), shared their experiences at the workshop.

Delta Telecom, branded as SKYLINK in St. Petersburg, reported that its revenues have increased 16 times since the introduction of CDMA450 and ARPU has reached $68, compared to $10-15 for other operators in the market. The carrier plans to launch CDMA2000 1xEV-DO service next year, offers roaming with a number of CDMA450 operators in the region, and is testing GSM inter-standard roaming.

MCC, also branded as SKYLINK in Moscow, launched CDMA450 services last November. It now covers 65 percent of the city’s population and offers voice, SMS and Virtual Private Network services. The carrier is conducting 1xEV-DO trials, with a commercial launch of the higher-speed technology pending. MCC currently has roaming in place with SKYLINK in St. Petersburg, Diallog in Belarus and KCC in Kuzbass. Additional roaming roll-outs are planned for the Tyumen and Bashkortostan regions of Russia, Latvia and Kazakhstan.

In addition to the Russian carriers, two other CDMA2000 operators from the region presented at the workshop. Eurotel from the Czech Republic launched CDMA2000 1xEV-DO, branded Data Express, in August 2004, the first CDMA2000 1xEV-DO network in Europe and the first 1xEV-DO system at 450 MHz. The service, which offers high-speed access to the Internet, has been a tremendous success: in two months, it captured 10 percent of the broadband market in the country. Altel is in the second phase of deploying CDMA2000 1X at 800 MHz in Uzbekistan and is evaluating a trial of CDMA2000 1xEV-DO as well as CDMA450.

“As the attendance at the workshop demonstrates, there is great interest in new wireless technologies and the opportunities they create for the Russian market,” said Alexander Krupnov, president of the 3G Association. “This workshop was our first event focusing on IMT-MC, and we look forward to working with the CDG on future events.”

About CDMA2000: 100 Million & Growing

There are more than 124 million people across all continents using CDMA2000 technologies. 97 operators in 46 countries worldwide offer CDMA2000 services, and 36 more will launch in the coming months. More than 680 CDMA2000 devices have been introduced to the market. CDMA2000 1xEV-DO is leading in the deployment of 3G broadband networks worldwide, with 13 commercial networks, 18 additional systems to be deployed this year. There are 87 models of 1xEV-DO devices commercially available today.

About the CDG

The CDMA Development Group is a trade association formed to foster the worldwide development, implementation and use of CDMA technologies. The 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.

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