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ALL CDMA HANDSETS SOLD IN 2005 WERE 3G CAPABLE

 Sales of 1xEV-DO Handsets Increased 150 Percent

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COSTA MESA, Calif., February 27, 2006 – The CDMA Development Group (CDG) (www.cdg.org) reported today that 3G CDMA2000® accounted for nearly 100% of CDMA handsets sold in 2005. Sales of 1xEV-DO handsets grew from 11 million to 27 million units, as more operators aggressively promoted their broadband offerings. Close to 250 new models were introduced last year; there are now over 950 CDMA2000 devices, including 160 1xEV-DO, manufactured by 64 vendors.

“The availability of a broad range of devices has greatly contributed to the rapid expansion and commercial success of CDMA2000 in the past five years,” said Perry LaForge, executive director of the CDG. “CDMA2000 handsets are widely available in developed and developing markets providing more than 225 million people around the world access to high-quality voice and the most advanced data services.”

CDMA2000 offers more devices to address the diverse needs of individual markets and different market segments than any other advanced wireless technology today. While WCDMA has over 100 devices on the market, mainly targeting high-end users, the 950-plus CDMA2000 product portfolio ranges from entry-level phones to very high-end multimedia consumer electronics handsets. The selection of CDMA2000 devices includes phones, PDAs, PC cards, modems, routers, laptop embedded PCI Express modules and thumb-drive UBS modems. The latest 1xEV-DO phones offer advanced features such as 7 mega pixel and 5x zoom video camera, MP3 player with stereo speakers, TV screens and 3D color displays. There are also laptops with integrated EV-DO modules on the market. CDMA2000 devices operate in several spectrum ranges, including 450 MHz, 800 MHz, 1700 MHz, 1900 MHz and 2100 MHz, and many of them support multiple bands. There is also a growing number of CDMA2000 WorldMode ™ multimode phones which work on CDMA2000 1X/1xEV-DO and GSM systems across different bands.

Economies of scale and greater competition from multiple vendors have significantly driven down prices for CDMA2000 devices, especially in the low and mid tier price ranges, making 3G accessible to price sensitive markets such as India, South East Asia and Latin America. There are already entry-level phones offered below $50, and the CDMA industry is working on several initiatives to further reduce the cost and accelerate availability of these, as well as mid-tier 1X and EV-DO phones and modems.

With the wireless industry’s rapid transition to 3G, the sales and market share of CDMA2000 handsets will continue to grow. In 2005, CDMA2000 phones accounted for over 20% of total handsets sold, up from 10% only 3 years ago. Some analysts forecast that this trend will continue and that CDMA2000 will capture a 26% share of the handset market and nearly 50% of the 3G market by 2009.

Growing unit sales and the increasing market share of 1xEV-DO devices is more evidence of the CDMA2000 industry’s accelerated transition to broadband. Last year, 1xEV-DO handsets represented 17% of total CDMA2000 devices sold, compared to 8% the previous year and less than 5% in 2003. This year, unit sales will double again to 55 million, or 30% of all CDMA2000 handsets sold, and by 2009 over 90% of CDMA2000 devices will be 1xEV-DO and Rev A capable.

Information on CDMA2000 devices is available on the CDG web site at www.cdg.org.

About CDMA2000
CDMA2000 is the most widely deployed 3G technology, with 148 CDMA2000 operators in 68 countries. There are more than 225 million 3G CDMA2000 subscribers, including 24 million 1xEV-DO users.  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. 

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 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 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)