CDG Press Releases
ADVANCED 3G SERVICES CONTINUE TO INCREASE DATA REVENUE, BOLSTER VOICE REVENUE AND REDUCE CHURN
By 2010, the Vast Majority o f Mobile Broadband Users Worldwide Will Be Using 3G CDMA
COSTA MESA, CALIF. — February 20, 2007 — The CDMA Development Group (CDG) announced today that 3G operators who have deployed CDMA2000® 1xEV-DO are driving the introduction of innovative mobile applications, while reaping the benefits of increased data and voice revenue, improved customer satisfaction and loyalty, and reduced churn. For most leading CDMA2000 operators, mobile data (including SMS) now accounts for 15% or more of their total average monthly revenue.
“Mobile communications has entered another phase in its evolution, where an operators’ revenues and competitiveness is determined by the breadth and quality of data services they offer,” said Perry LaForge, executive director of the CDG. “The time-to-market advantage of the CDMA2000 evolution path is enabling operators to drive this trend and grow their businesses by offering a large selection of popular services. The adoption of these services has enabled enterprise customers and consumers to witness a substantial improvement in productivity and an enhanced lifestyle.”
Subscribers are becoming more dependent on technology advances such as video content, music downloads, multimedia messaging, and mobile TV. CDMA2000 operators are witnessing an increasing demand for these services. For example, in the fourth quarter of 2006, $1.4 billion or nearly 16% of Verizon Wireless’ total wireless service revenues came from data services, up 63% year-over-year. Likewise, in the third quarter of 2006, Sprint Nextel collected a record high of $7.80 per user for data services. In the same quarter, Telecom New Zealand increased its mobile data revenue by 34.2% to NZ$51 (US$34.2) million, boosted by offering services such as push-to-talk, multimedia messaging, Song ID, caller tunes and ringtones. In Korea, approximately 6 out of every 10 people use mobile data services on nearly a daily basis and SK Telecom collects more than 26% of its total monthly revenue from data services, more than three-quarters of which comes from non-SMS services. In Japan, KDDI collected an average of $28.30 per user per month for their EV-DO (WIN) mobile data services, contributing to 30% of its total revenue. Up to 78% of KDDI’s EV-DO users have signed up for their simplified flat-rate plans, which are very popular for those subscribers who switched to KDDI after Mobile Number Portability (MNP) was introduced.
Since 1999, CDMA operators have introduced many profitable innovative applications such as location-based services, video on demand, digital home, and social networking. More examples of innovative applications introduced by CDMA operators can be found at the following website:
According to a recent report from Strategy Analytics entitled, "Beyond 3G: Looking for True Mobile Broadband," by 2010 the vast majority, or 94%, of the 518 million mobile broadband users expected worldwide will be using iterations of existing technologies, such as CDMA2000 1xEV-DO and HSPA. A ll other alternative broadband technologies are expected to be eclipsed by these two dominant solutions for the foreseeable future.
For more information visit: www.cdg.org.
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