CDG Press Releases
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.
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