CDG Press Releases
CDG COMMENTS ON THE DISSOLUTION OF THE PLANNED NOKIA AND SANYO JOINT VENTURE
CDMA2000 will Continue to Serve the Global Demand for Affordable Communications Well into the Future
COSTA MESA, CALIF. — June 26, 2006 — In response to the recent dissolution of the planned Nokia and Sanyo joint venture and subsequent statements by Nokia, the CDMA Development Group (CDG) (www.cdg.org) offered today the following comments.
1. The CDG is disappointed that the proposed joint venture between Nokia and Sanyo did not come to fruition. It was anticipated that for Nokia, this would have meant a stronger position in key CDMA markets such as the United States, Japan and Korea where CDMA growth is exceptional, and would have facilitated Nokia’s participation in emerging CDMA markets such as Africa, Brazil, China, India and Russia.
2. The CDMA2000® industry is well supported with a large and highly competitive handset supplier base. Currently, there are over 50 different vendors who have produced over 1250 devices for CDMA2000. In this highly competitive market, consolidation is expected.
3. According to Strategy Analytics, LG, Samsung and Motorola are the leading suppliers of CDMA handsets worldwide. Nokia’s CDMA global market handset share has remained small, particularly in key markets such as North America. Should Nokia reduce their shipments of CDMA handsets, we anticipate that several of the other CDMA handset suppliers will easily fill this void.
4. This healthy competition has resulted in the availability of entry-level 3G CDMA2000 handsets that have approached price parity with 2G GSM handsets. As an example, there are 21 CDMA2000 phones currently offered for less than $50 USD (wholesale) from 10 different suppliers in India, which is one of the most competitive mobile communications markets in the world. Two of these device models come from Nokia; the remaining 19 phones are supplied by LG, Motorola, Samsung, Huawei, Haier, JingPing, Kyocera, UT Starcom and ZTE. These entry-level CDMA phones enable access to downloadable value-added services, while the competing 2G phones that support the GSM standard do not.
5. CDMA2000 continues to enjoy strong industry-wide support as evidenced by recent quotes in CDG press announcements from KDDI, LG Telecom, Sprint-Nextel, Telecom New Zealand, Verizon Wireless, Airvana, Qualcomm, Lucent, Motorola and Nortel. CDMA2000 provides operators with a significant competitive advantage. Today, there are more than 152 operators in 68 countries delivering 3G services to more than 250 million people worldwide.
6. Many of the CDMA2000 networks launched over the last several years have been in price-sensitive and underserved rural markets such as Africa, Russia and greater Asia. These operators have selected CDMA2000 to deliver affordable voice and broadband Internet access using low frequency assignments (e.g., 450 and 800 MHz). Economic studies have shown that in many markets the total cost of ownership of a 3G CDMA2000 network is less than a 2G network. Today, there are more than 50 CDMA450 TM operators worldwide serving some of the most remote places on earth. CDMA2000 is expected to remain the leading 3G technology serving rural markets worldwide for the foreseeable future.
The CDG is available for more comments. More information on CDMA2000 is available at www.cdg.org.
# # #
*** cdmaOne is a trademark of the CDG