CDG Press Releases
CDMA DOMINATES ULTRA LOW-COST HANDSET MARKET IN INDIA
Yankee Group report also cites low-cost CDMA handsets as key driver towards increasing teledensity in the region
COSTA MESA, CALIF. — March 19, 2008 — The CDMA Development Group (CDG) today announced that, based on a Yankee Group study, CDMA dominates the ultra low-cost handset (ULCH) market in India. Research also suggests that the availability of low-cost CDMA handsets has been a key driver towards increasing teledensity in the region. The Yankee Group study, entitled “CDMA Imports Driving Ultra Low-Cost Handsets in India: Price Trending Analysis,” is available now on the CDG Web site: www.cdg.org/technology/3g/resource/yankeegrp_ultralowhandsets.asp.
“Availability of low-cost CDMA handsets changed the competitive landscape in India,” said BV Raman, CDG’s representative in India. “In India and other parts of the globe, this healthy competition is making wireless telecommunications more affordable and is contributing not only to CDMA’s rapid expansion but increasing teledensity worldwide. Given CDMA’s aggressive and highly economical evolution path, the strength of the ULCH market has positioned CDMA2000® operators to benefit from the Indian government’s imminent spectrum allocation for 3G.”
The Yankee Group report, based on comprehensive import data from Indian government sources between January and October 2007, made a number of key findings:
The Yankee Group also determined that India’s total mobile teledensity has increased as a result of the availability and variety of CDMA ULCHs from multiple vendors. According to the Telecom Regulatory Authority of India (TRAI), GSM and CDMA subscriber bases grew 13.4% and 12.12% respectively in Q3, 2007. The TRAI data indicates an increasing growth rate for CDMA subscribers, up from 10.05% in the previous quarter.
“A number of factors including, but not limited to service provider competition, service quality, brand affinity, effective marketing and distribution, device vendor competition, increasing per-capita GDP, and general demand factors including choice, are driving growth,” commented John Jackson, vice president of Yankee Group’s Enabling Technologies Group. “CDMA has helped create this healthy growth environment. Trending in the data analyzed is clear. We expect CDMA handsets to continue dominating the low cost market for the foreseeable future.”
Low-cost CDMA handset pricing is not limited to India. More than 82 very low-end (VLE) CDMA2000 handsets (under $50 USD wholesale) are available globally from 19 suppliers in highly competitive emerging markets such as Bangladesh, China, Ghana, Indonesia, Mexico, Nigeria, Pakistan, Sri Lanka and Venezuela. Very low-cost CDMA handsets are also becoming available in developed markets with the debut of the “Cricket EZ” handset sold by Cricket Communications in the United States for $49.99 — a trend which will rapidly transform the wireless industry.
More information on CDMA is available at www.cdg.org.
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