CDG Press Releases
INDIA COURTS EXPONENTIAL GROWTH FOR CDMA2000
3G CDMA2000 Proves Most Compelling Technology for Affordable Voice, Video and Data in One of the World’s Fastest-Growing Wireless Markets
NEW DELHI — August 30, 2006 — The CDMA2000 Development Group (CDG) (www.cdg.org) today announced the rapid uptake of CDMA2000® in India, the world’s fastest-growing wireless communications market. This growth is coming from the aggressive sale of services from six CDMA2000 operators: Bharat Sanchar Nigam Ltd. (BSNL), HFCL Infotel Ltd., Mahangar Telephone Nigam Ltd. (MTNL), Reliance Infocomm, Shyam Telecom and Tata Teleservices Ltd. (TTSL). CDMA2000 consistently proves to be the most economical and flexible solution for differentiated services — from enabling the all-important entry-level (pre-paid) voice communication to the voice/video/data “triple-play” — with an unsurpassed variety of CDMA2000 handsets that have garnered the largest share of shipments into India.
“The proliferation of CDMA2000 technology in India makes logical sense,” said Perry LaForge, executive director of the CDG. “Looking solely at the wide variety of entry-level handsets, it stands to reason that CDMA2000 will grow in lock step with the market itself. In fact, as an emerging market, India is a perfect showcase for CDMA2000’s ability not just to bridge the digital divide, but to do so with the world’s most powerful and comprehensive solution that economically converges telecommunications with information technology, consumer electronics and multimedia.”
The CDG reports that from July 2005 to July 2006, 12.7 million new users subscribed to CDMA2000 services in India, attaining a cumulative subscriber base of 35.2 million. In the same period, CDMA2000 maintained its 30% market share, while the total India subscriber base grew to 112 million users. In July 2006, over 1.59 million new users subscribed to CDMA, with Reliance adding the bulk of the subscribers after signing up 929,941 new users, up from 874,000 new (net) subscribers in June . Meanwhile, Tata Teleservices has been acquiring up to 40% of all new users in Delhi and the national capital region by leveraging its retail network, and introducing new and more affordable service packages and a full-line of devices for entry-level and high-end users.
The CDG also reports that CDMA2000’s competitive presence in India is helping India meet its Information & Communications Technology (ICT) goals by increasing both teledensity and Internet penetration nationwide. Within a year after CDMA2000 was first introduced in 2002, wireless tariffs dropped by 42 percent and teledensity rose by 1.7 percent. Within three years after CDMA2000 was introduced, wireless tariffs dropped by 75 percent and teledensity rose by 7.1 percent. Today’s 112 million wireless subscribers in India represent an approximate 14% total teledensity and 0.7% Internet penetration, which is well below the global average, yet offers an opportunity for exponential growth for CDMA since, unlike GSM, it can address both ICT segments most economically.
India ’s increasing teledensity also will help raise the country’s per-capita gross domestic product (GDP). According to the International Telecommunications Union (ITU), a country's per-capita GDP increases by an average of US$240 for every 1% increase in mobile telephony penetration. A country's per-capita GDP increases by an average of US$593 for every 1% increase in Internet penetration.
CDMA2000 is based on open standards that enable global interoperability and economies of scale. It also supports removable user identity modules (R-UIM), seamless global roaming, post- and prepaid solutions, and a large selection of rich and versatile value-added services. These attributes have enabled the largest CDMA2000 operator in India, Reliance Infocomm, to claim more than 20 million subscribers nationwide in three years. Tata Teleservices, the second largest CDMA2000 carrier in India, has more than 11 million subscribers nationwide. By 2010, CDMA2000 is expected to catalyze the expansion of India’s mobile and Internet user base beyond 500 million and 50 million users respectively.
The Indian market, which is dominated by four GSM operators, is predominantly a pre-paid voice and SMS market, where the average revenue per user (ARPU) is below US$10/month. CDMA2000 is changing this landscape by offering revenue-generating data services from handsets with color screens that cost less than US$50. These popular and valuable services are helping to drive up customer satisfaction and ARPU.
La Forge added, “In all markets, operators will eventually have to deploy 3G technology to support the increased demand for voice and high-speed data services from both consumers and enterprises. These services will require large amounts of bandwidth to ensure sufficient capacity, data throughput, and a satisfactory end-user experience. CDMA2000 has at least a two-to-three year lead over GSM in delivering these services.”
More information on CDMA2000 is available at www.cdg.org.
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