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CDMA CAPTURES 25% MARKET SHARE IN INDIA

CDMA Operators Rapidly Expand Coverage in Underserved Areas and Introduce Advanced Data Services

COSTA MESA, Feb. 28, 2005 – The CDMA Development Group (CDG) (www.cdg.org) today announced that CDMA coverage is rapidly expanding in India. Between December 2002 and 2004, the CDMA subscriber base increased over 500% to reach 14 million users, and CDMA market share grew from 2% to 25%. With the deployment of CDMA2000®, operators have introduced high-speed Internet access and a broad range of advanced data services.

“India is the fastest-growing wireless market in the world, and CDMA2000 has and will continue to play a key role in this important region,” said Perry LaForge, executive director of the CDG. “Competition created by the introduction of CDMA2000 has stimulated growth and innovation in the market, which in turn has greatly benefited both the consumer and the telecommunication industry.”

Since the liberalization of the telecommunication market in 2003, which allowed CDMA and other technologies to enter the mobile market, the penetration of wireless services in India has increased from 10 million at the end of 2002 to 45 million in 2004; wireless has become the dominant means of communication, surpassing fixed line connections. The competition has driven tariffs to one of the lowest rates in the world, putting phones in the hands of millions who previously could not afford it.

With the introduction of the Unified License and open competition, CDMA has thrived in India. The CDMA base grew from 1 million to 14 million users. CDMA operators have rapidly built networks and offered lower pricing plans in previously underserved areas. Reliance Infocomm, for example, offers wireless services in 1100 towns throughout India, and recently announced plans to expand its CDMA2000 network to 400,000 villages across the country offering voice and data services to 6.5 million potential users. CDMA2000 operators including Reliance and Tata, have introduced data services such as streaming video, mobile banking, wireless point-of-sale solutions, wireless data VPN for enterprise e-mail access, and vehicle tracking.

CDMA2000 will continue to expand and bring new services to the region. Lehman Brothers expects that CDMA will account for one third of net mobile subscriber additions in India.

There are six CDMA carriers operating in India today including BSNL, HFCL Infotel, MTNL, Reliance, Shyam Telelink and Tata Teleservices. With the deployment of CDMA2000 services, Reliance Infocomm Ltd. has become India's largest mobile phone company, serving more than 10 million users, or 20% of the market.

About CDMA2000

CDMA2000 is by far the most widely deployed 3G technology with more than 90% of the 3G market today. There are 127 CDMA2000 networks, including 18 CDMA2000 1xEV-DO systems, and 40 more are being deployed. CDMA2000 has become the technology of choice for cdmaOne™, TDMA, analog and Greenfield operators, and is deployed in the 450, 800, 1700, 1900 and 2100 MHz bands. More than 720 CDMA2000 devices are available on the market.

CDMA2000 1xEV-DO is the fastest high-speed wireless data technology commercially deployed today, delivering average data speeds of 400-600 kbps up to 3.1 Mbps, and enabling applications such as TV broadcasts, video and audio downloads.

More information on CDMA2000 is available at www.cdg.org.

About 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 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.

 

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