CDMA2000 OPERATORS FOCUS ON CONVERGED SERVICES TO DRIVE GROWTH AND REVENUE

Evolution to CDMA2000 Revision A and Beyond is Core of Operators’ Strategy

COSTA MESA, CALIF., Sept. 15, 2005 – At a press conference hosted by the CDMA Development Group (CDG) (www.cdg.org) during the 3G CDMA Americas Congress this week, leading operators from the Americas and Asia discussed their successes with CDMA2000^® and strategies for next-generation services. Luis Avelar, Executive Vice President, VIVO; Gerry Flynn, Director, Advanced Technology Strategy/Standards, Verizon Wireless; Tadashi Onodera, President, KDDI; Barry West, Chief Technology Officer, Sprint Nextel and Greg Young, Chief Technology Officer, Tata Teleservices shared their experiences and the unique opportunities they see for CDMA2000 in Brazil, the U.S., Japan and India.

“These operators are leaders in their markets and have greatly contributed to the tremendous success of CDMA and CDMA2000 over the past 10 years,” Perry LaForge, executive director of the CDG, noted in his opening remarks. “They serve markets with very diverse customer bases and competitive dynamics, and their success with CDMA2000 is a true testimony of the technology’s capabilities and flexibility.”

In their remarks, operators stressed that the evolutionary path of CDMA2000 allowed them to transition to next-generation services quickly without any service interruption to their customers. With CDMA2000 1X, they were able to double the capacity and enhance efficiencies of their networks to meet the demand for voice services and to offer compelling applications to stimulate data usage. The introduction of 1xEV-DO broadband data allowed them to pursue high-revenue generating market segments and drive revenue through data. With the deployment of CDMA2000, operators in developed and developing markets alike saw the usage and revenue from data rise rapidly, especially when they introduced applications such as video, music downloads and enhanced interactive games. KDDI, for example, now generates more than 25% of revenue from data, with 1xEV-DO subscribers generating 35% of their ARPU from data. VIVO reported that its customers already download over 3.5 million applications per quarter and 15 thousand users have signed up for TV broadcast services.

Regarding future strategies, operators indicated that they plan to continue to enhance their network capabilities and refine business models to deliver seamless access to a broad range of integrated voice, video and data services. The core of this strategy is the evolution to CDMA2000 1xEV-DO Revision A, followed by future revisions complemented by other wireless access technologies and integrated with fixed networks all interoperating through packet-based core networks.

The availability of a broad range of CDMA2000 devices with advanced data functionality has also greatly contributed to the operators’ success. They indicated that although their customers place a much higher value on CDMA2000 3G devices, the cost of CDMA2000 handsets has significantly declined, allowing them to compete in more price sensitive developing markets. Through the industry initiatives, such as common handset requirements, operators are able to purchase CDMA2000 handsets for $50 and are working toward reducing this price to $40 per handset.

About CDMA
CDMA technology’s global reach expands 193 operators in 70 countries. CDMA2000 is by far the most widely deployed 3G technology, with 127 CDMA2000 commercial networks in 58 countries, including 22 CDMA2000 1xEV-DO systems. There are more than 185 million 3G CDMA2000 subscribers. 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 860 CDMA2000 devices are available on the market. More information on CDMA2000 is available on the CDG Web site at www.cdg.org.

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