CDG Press Releases
ASIA IS ON ACCELERATED PATH TO 3G
CDMA2000 Operators Continue to Set the Pace for Evolution to Advanced Wireless Services
Beijing, China, June 29, 2005 – At a press briefing in Beijing yesterday, the CDMA Development Group (CDG) (www.cdg.org) reported that the success of CDMA2000® operators in Asia is a proof point for the opportunities that 3G offers to consumers and operators in China. Asia is the largest and most advanced wireless market in the world with nearly 50% of all 3G subscribers, and CDMA2000 accounts for more than 80% of them. CDMA2000 operators drive innovation in the region; they have been the first to deploy advanced wireless technologies, and they have set trends in handset and services development. Powered by their network capabilities, CDMA2000 operators redefine business models for the industry by expanding opportunities and bringing new players to market. As a result, they have seen their bases expand and revenues grow.
“The wireless industry is rapidly migrating to 3G CDMA and in many respects CDMA2000 in Asia is leading the way,” said Perry LaForge, executive director of the CDG. “There are nearly 200 million 3G CDMA2000 and WCDMA subscribers worldwide, including 83 million CDMA2000 users in Asia. CDMA2000 is revolutionizing not only wireless but all communications services, and it is one of the leading platforms on which wireless is converging with fixed and broadcast to deliver seamless access to information.”
Asia was the first region to see the launch of 3G when SK Telecom deployed CDMA2000 1X in Korea in October 2000, and it was also first to have 3G broadband when the operator migrated to CDMA2000 1xEV-DO two years later. CDMA2000 continues to be the leading 3G platform in the region: there are 32 CDMA2000 operators in 17 countries, seven of which have introduced 1xEV-DO, the most advanced wireless data technology deployed today. Nearly 75% of CDMA subscribers in the region use CDMA2000 technologies and in very advanced markets, such as Korea and Japan, close to 90% of subscribers have migrated to 3G.
With CDMA2000 1X, operators were able to differentiate their services through high-quality voice and data services, such as MMS, web access and location-based services, resulting in higher growth. KDDI, for example, has captured a larger share of net adds and is consistently gaining market share in Japan. Since launching CDMA2000 in April 2002, KDDI’s base has grown by 40% to reach 20 million users and has outpaced the wireless market in Japan, which expanded by 30% during that period.
The high-speed data capabilities and lower cost of delivery enabled by 1xEV-DO have given operators the opportunity to continue to grow revenue through data services by stimulating usage and revenue-sharing with content providers. Introducing advanced data services, such as TV broadcasts, video and audio downloads and m-commerce, that have been customized for various market segments at attractive prices has caused data revenues to surge. SK Telecom, for example, saw data revenues quadruple and KDDI’s data revenues grew to contribute 24% of total revenue.
“The successes of CDMA2000 operators in Asia clearly demonstrate the opportunities that 3G offers to China,” continued LaForge. “With growing demand for data services and a large base of manufacturers and content providers, China is ready for 3G and 3G is ready for China.”
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