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CDMA2000 CONTINUED TO SET THE PACE FOR 3G IN 2004

The CDMA2000 Industry Achieved Major Milestones and Lead in Service and Product Innovation

COSTA MESA, Calif., Jan.17, 2005 – The CDMA Development Group (CDG) (www.cdg.org) reported today that CDMA2000® continued its global expansion in 2004, adding 31 CDMA2000 networks and 60 million subscribers. The CDMA2000 industry achieved major milestones, surpassing 100 million subscribers in July, and at the end of the year there were 107 CDMA2000 operators in 53 countries serving more than 145 million users. The year also marked a rapid migration to high-speed CDMA2000 1xEV-DO, the introduction of advanced multimedia applications, and advancements in multi-standard interoperability.

“2004 was a great year for 3G CDMA with the accelerated deployment of networks across all continents and the introduction of feature-rich handsets and exciting new applications,” said Perry LaForge, executive director of the CDG. “Over 160 million wireless subscribers use CDMA2000 and WCDMA services worldwide, up from 56 million one year ago. 3G is transforming the wireless and telecom markets and CDMA2000 is leading the way.”

CDMA2000 highlights from 2004 include:

  • CDMA2000 operators lead in the introduction of high-speed data technologies and services. Nine CDMA2000 1xEV-DO networks were deployed and 17 more are being deployed in Asia, Australia, the Americas and Europe. In the United States, Verizon Wireless expanded its 1xEV-DO BroadbandAccess services to 32 markets to cover 75 million people, and Sprint announced that its 1xEV-DO network will be nationwide in 2005. Eurotel Praha launched the first 1xEV-DO services in the 450 MHz band and captured more than 10% of the broadband Internet access market in Czech Republic in just four months of service with nearly 12 million 1xEV-DO users by the end of the year, up from four million a year ago.
  • CDMA2000 operators saw a significant increase in data revenue. Capitalizing on the high-speed data capabilities of CDMA2000 technologies, operators introduced a broad range of advanced services, such as MMS, video and audio downloads, interactive games, real-time broadcasts and location-based services. Many CDMA2000 operators make four to five percent of their total revenue from data services, with KDDI in Japan and SKT in Korea generating 22 percent and 19 percent respectively from data services. Data is the fastest growing business for CDMA2000 operators, and many forecast that it will contribute half of the revenue in five years.
  • There were accelerated deployments of, and growing interest in, CDMA2000 at 450 MHz (CDMA450). With the commercial successes of Zapp in Romania and Skylink in Russia, many NMT-450 operators in Russia, Asia and Eastern Europe have upgraded or are in the process of migrating their 1G networks to 3G CDMA2000. Capitalizing on the favorable propagation characteristics of the 450 MHz band and the advanced 3G functionality of CDMA2000 technologies, operators and many governments are looking at CDMA450 to deliver voice and high-speed Internet access to previously underserved areas. Already, MSI in Indonesia and Tibet Telecom Company of the China Telecom Group deliver voice services to thousands of people who previously had no access to telecommunications. Operators in Cambodia, and soon Vietnam, also have deployed or are deploying CDMA450, and Brazil and other countries in Latin America are evaluating the technology to expand the reach of telecommunication services cost-effectively. Even in advanced wireless markets, such as Norway and Sweden, governments have awarded, or are in the process of awarding, 450 MHz licenses to service low-density and hard to reach areas. At the end of 2004, there were 17 commercial CDMA450 networks and 12 more will be deployed.
  • CDMA2000 in 2100 MHz trials have been successfully completed in China. The Chinese Ministry of Information Industry announced in November that the trials of CDMA2000, including 1xEV-DO, at 2100 MHz had been completed. The Chinese government is expected to issue new licenses this year. KDDI launched CDMA2000 1xEV-DO 2100 MHz services in Japan in October 2003.
  • Multi-standard solutions to provide seamless delivery of services across GSM and CDMA2000 were introduced in 2004. The CDMA2000 industry has developed multi-mode phones which allow transparent roaming between the two standards to enable true universal roaming, and demonstrated the delivery of multimedia messaging services (MMS) across GSM and CDMA2000 networks.

“2005 will be an equally exciting year for the CDMA2000 and 3G CDMA industries,” continued LaForge. “As the wireless industry rapidly migrates to 3G, converged data and voice and fixed and wireless services, CDMA will continue to expand its market presence and will remain the dominant platform.”

About CDMA2000

CDMA2000 is by far the most widely deployed technology with more than 85% of the 3G market today. There are 120 CDMA2000 networks, including 17 CDMA2000 1xEV-DO systems, and 39 more are being deployed. CDMA2000 has become the technology of choice for cdmaOne™, TDMA, analog and Greenfield operators, and is deployed in 450, 800, 1700, 1900 and 2100 MHz bands. More than 700 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 2.4 Mbps, and enabling applications such as TV broadcasts, video and audio downloads. The enhanced 1xEV-DO Revision A which was approved by the 3GPP2 last year, will support peak data rates of 3.1 Mbps on the forward link and up to 1.8 Mbps on the reverse link and will enable carriers to deliver rich multimedia services, such as video telephony.

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 the CDG News Bureau at +1-714-540-1030, ext. 17, or 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)