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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.

For more information please visit www.cdg.org.

About CDMA2000
CDMA2000 is the most widely deployed 3G technology, with 257 operators in 98 countries, including 99 CDMA2000 1xEV-DO systems, serving more than 418 million subscribers. Counting 2G cdmaOne™ subscribers, there are more than 431 million CDMA users worldwide. CDMA2000 has become the technology of choice for developed and emerging market operators, and is deployable in the 450, 700, 800, 1700, 1900, AWS and 2100 MHz bands. More than 1,950 CDMA2000 devices from over 110 suppliers have been introduced to the market, including more than 500 1xEV-DO Rel. 0 and 48 Rev. A devices. More information on CDMA2000 is available on the CDG Web site at www.cdg.org.

About CDG
The CDMA Development Group is a trade association formed to foster the worldwide development, implementation and use of CDMA2000 technologies. The more than 130 member companies of the CDG include many of the world’s largest wireless carriers and equipment manufacturers. The primary activities of the CDG include development of CDMA2000 features and services, public relations, education and seminars, regulatory affairs and international support. Currently, there are more than 500 individuals working within various CDG subcommittees on CDMA2000-related matters. For more information about the CDG, contact the CDG News Bureau at +1-714-540-1030, or visit the CDG Web site at www.cdg.org.

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Note to editors
cdmaOne is a registered trademark of the CDMA Development Group. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA-USA). All other trademarks are the property of their respective owners.