CDG Press Releases
CDMA2000 SEES RAPID EXPANSION IN CHINA
Brisk Handset Sales, Differentiated Services, Strategic Alliances and More Spectrum will Drive Expansion
COSTA MESA, CALIF. — October 30, 2006 — The CDMA Development Group (CDG) (www.cdg.org) today announced that CDMA2000® is expanding rapidly in China, the world’s fastest-growing mobile phone market. China Unicom’s steady subscriber growth, differentiation with new value-added data services, strategic partnership with Korea’s leading operator, SK Telecom (SKT), and the potential for obtaining additional spectrum, will enable China to become both a benchmark and showcase for all of the advantages that CDMA2000 has to offer.
“ China is a proving ground for the very latest in wireless technology, said Perry LaForge, executive director of the CDG. With its unsurpassed performance and two-to-three year lead over competing technologies, CDMA2000 has emerged as the most compelling choice for operators around the globe who want to get their 3G networks up and running as soon as possible.”
As of September, the number of CDMA2000 subscribers in China reached 36.1 million, with more than 340,000 net subscriber additions. China Unicom, the second largest operator in China, has enjoyed stable growth in 2006 based on a large selection of devices and value-added data services. At present, the number of China Unicom’s CDMA users is ranked #2 in the world, behind Verizon Wireless, while the scale of its CDMA network is ranked #1.
CDMA2000 can attribute its expansion in China to the sheer volume of China Unicom’s handset purchasing and the popular services that these handsets enable. In the first nine months of 2006, China Unicom introduced more than 60 devices, 50% of them priced below RMB 1000, and sold more than 5 million units to meet rising demand.
Going forward, the operator is expected to benefit from the integration of its sub-brands and introduction of a larger selection of brand name handsets through its alliance with SKT. Reduced tariffs, flexible service plans, innovative promotions, and expanding network coverage will further drive customer acquisition. China Unicom is consistently expanding service into new regions, having just launched CDMA2000 services in Macau.
CDMA2000’s capacity for delivering differentiated value-added data services will continue to be a core ingredient in fueling the technology’s expansion in China. China Unicom recently signed agreements with Warner Music to deliver wireless music services and with Tencent to launch a special “QQ” handset to promote instant messaging. Also, China Unicom is aggressively promoting its own push-email and mobile advertising services.
The allocation and assignment of 3G spectrum is expected to provide China Unicom additional spectrum and a license to offer 3G services in early 2007. Once this license is obtained, China Unicom will be able to offer Internet access and broadband data services to China’s citizens, government institutions, educational facilities, and businesses nationwide using CDMA2000 1xEV-DO.
According to Dr. Zhengmao Li, Director of the Board and Vice President, China Unicom , “Our strategic direction is to strengthen our competitive posture through the delivery of revenue generating next generation services and not rely solely on 2G voice-centric and short message services.”
More information on CDMA2000 handsets is available at www.cdg.org.
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