CDG Press Releases
CDMA SUBSCRIBERS IN CHINA ARE TAKING ADVANTAGE OF AFFORDABLE VALUE-ADDED SERVICES
China’s CDMA customers are benefiting from a wide variety of popular services across a broad range of devices
BEIJING — May 20, 2008 — The CDMA Development Group (CDG) today announced strong growth in the uptake of CDMA wireless value-added services in China. Aided in part by the increased availability of smartphones, BREW-enabled entry-level handsets and a rise in the number of dual-mode handsets, the demand for CDMA wireless value-added services grew by almost 20% last year.
“China is experiencing a boom in wireless technology penetration, and CDMA is helping to drive this,” said James Person, chief operating officer of the CDG. “The performance and flexibility of CDMA networks allow operators to deploy new capabilities in a fast and cost-effective manner to compete in the market. Together with the increased availability of low-cost CDMA2000® handsets that can deliver value-added services, this competition is powering China’s wireless market penetration.”
This healthy competition between CDMA and GSM is helping drive the strong growth that is being witnessed by China’s wireless industry. As of March 2008, there were more than 42.8 million CDMA subscribers in the country, with 35% of the CDMA handsets sold in the Chinese market priced below 350 RMB (about $50 USD). This price bracket is critical for device proliferation in emerging markets and CDMA is leading the industry in these very low-end handset shipments. Another 40% of CDMA handsets sold in China cost between 350 and 700 RMB (about $50-100 USD). Equally as important to the wireless industry is the competition amongst manufacturers in China, and around 5 million of the 6.5 million CDMA handsets manufactured per month in the country are exported.
During 2007, CDMA wireless value-added service usage grew 19.3%, which the CDG attributes to the relative affordability of data packages and widespread availability of BREW capabilities for delivering mobile data services at a reduced rate — 94% of CDMA2000 phones in China are BREW-enabled. Up to 78% of CDMA handsets have a color display, 21% have built-in MP3 players, 21% of phones have a built-in camera and 12% of them are dual-mode (CDMA and GSM) WorldModeTM phones.
Additionally, China’s mobile Internet user base has increased beyond the 50 million user mark. Knowing that 90% of all Internet users are also mobile users suggests that there is enormous growth potential in the mobile Internet market. This bodes well for CDMA2000 since it is optimized for economical, high-speed broadband performance and has become the technology of choice for mobile data.
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