CDMA2000 IS BRINGING 3G SERVICES TO CHINA ON A MASSIVE SCALE

Affordable 3G Wireless Voice and Broadband Services are Poised to Rapidly Replace Wireline Subscriptions

BEIJING — June 3, 2009 — At the inaugural CDMA World Forum, the CDMA Development Group (CDG) today commented that new 3G wireless voice and mobile broadband service offerings in China are poised to rapidly replace fixed-line solutions, exemplified by subscriber adoption of China Telecom’s CDMA2000 1X and EV-DO Revision A (Rev. A) mobile broadband services. China Telecom is now offering fixed and mobile broadband data services under its “e-surfing” brand, in addition to its existing CDMA2000® 1X voice and data services. The operator has already launched 3G CDMA mobile broadband services in more than 120 cities, with plans to cover 324 cities nationwide by July 2009. By catering to its long-standing enterprise relationships, leveraging its large existing fixed-line customer base and focusing on offering mobile Internet services, China Telecom added 6.8 million CDMA2000 customers in the first four months of 2009 to reach a total of 34.71 million CDMA subscribers.

“China Telecom is showing market leadership through its commitment to bringing 3G CDMA services to China and communicating the value of CDMA2000 voice and mobile broadband services to the Chinese consumer,” said Perry LaForge, executive director of the CDG. “A wide selection of affordable 3G CDMA devices is helping China Telecom realize phenomenal subscriber growth, as it leverages the CDMA2000 network to offer wireless voice and broadband data services to both new and existing customers.”

Since the restructuring of China’s telecom industry in 2008, the country’s three wireless operators have been investing heavily in 3G networks across three technologies. China Mobile plans to invest US$8.6 billion to expand its TD-SCDMA network in 2009, while China Unicom plans to put US$5.6 billion into its recently-launched WCDMA network this year. China Telecom has announced it plans to spend more than US$11.7 billion on CDMA network expansion and optimization over the next three years, while procuring 55 million CDMA2000 handsets in 2009 to support this rapid growth.

The China Ministry of Industry and Information Technology (MIIT) expects 3G wireless subscribers in the country to exceed 500 million within the next 3 years, as affordable mobile broadband services replace fixed-line Internet services and expand to rural areas. Furthermore, an MIIT report predicts that Chinese CDMA subscribers will experience a 30.6% compound annual growth rate over the next 4 years, and that EV-DO subscribers will account for 41.1% of China's 3G subscriber base by 2012. EV-DO Rev. A delivers average download speeds of 600-1400 kbps with bursts up to 3.1 Mbps and average upload speeds of 500-800 kbps with bursts up to 1.8 Mbps.

According to the China Internet Network Information Center (CNNIC), China’s Internet penetration rate at the end of 2008 was at 22.6%, surpassing the global rate of 21.9%. China’s Internet user base was at 298 million users with 279 million broadband users, while the mobile Internet user base doubled in 2008 to surpass 117 million users. As 90% of all Internet users in China are also mobile users, there is enormous growth potential for EV-DO services in the mobile Internet market. This bodes well for China Telecom since its 3G network will be optimized for economical, high-speed broadband performance, and the operator will be able to offer mobile broadband data services to China’s large and underserved population at attractive prices.

For more information please visit www.cdg.org.

About CDMA2000
CDMA2000 is a widely deployed 3G technology, with 280 operators in 102 countries and territories serving more than 455 million subscribers. Counting 2G cdmaOne™ subscribers, there are 465 million CDMA users worldwide. CDMA2000 1xEV-DO is a widely-deployed 3G CDMA (IMT-2000) solution offering mobile broadband to over 112 million people on a wide range of devices. CDMA2000 has been chosen by operators in both developed and emerging markets, and is deployable in the 450, 700, 800, 1700, 1900, AWS and 2100 MHz bands. More than 2,110 CDMA2000 devices from over 115 suppliers have been introduced to the market, including more than 529 Rel. 0 and 118 Rev. A devices on 106 CDMA2000 1xEV-DO Rel. 0 and 62 Rev. A systems. 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 140 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.