3G Shift Accelerates

COSTA MESA, Calif. -- The CDMA Development Group (CDG) (www.cdg.org) today announced that, based on an in-depth analysis of industry data, the worldwide migration to 3G is accelerating, as evidenced by the proliferation of CDMA2000(R). The facts supporting this conclusion are available in a recently published white paper entitled, "The Smart Money is on 3G," which provides a detailed analysis on the pivotal role CDMA2000 has played in creating competition by driving down the cost of delivering voice, multimedia messaging and broadband data services across the globe. The white paper is available for download on the CDG's Web site at www.cdg.org.

"Forward-looking operators around the world are eager to replace their 2G networks with fast, streamlined, and flexible 3G technologies," said Perry LaForge, executive director of the CDG. "In fact, many operators who chose GSM in the past are making wholesale network changeovers to CDMA2000 to remain competitive and increase their earnings. In the last three years, 126 operators, all of whom had a choice of several 2G and 3G technologies, selected CDMA2000. Around 25 of these operators were GSM operators. 3G CDMA2000 enables operators to lower the cost of delivering voice and data, while supplementing their voice and SMS revenue with lucrative, value-added services."

Within five years of its introduction, 3G has reached 350 million subscribers worldwide. More than 30 million subscribers are added every quarter, and the 3G adoption rate has far exceeded that of any other wireless technology. In leading markets, such as Japan, Korea and the United States, the number of 3G subscribers has already surpassed that of 2G subscribers. Other regional and emerging markets are expected to follow their lead. Western Europe will be the next region to witness the inevitable cross-over of having more 3G than 2G subscribers.

CDMA2000 is now available in 72 countries, and in every major world market on all six continents. CDMA2000 is flexible enough to satisfy the wireless communications needs of densely populated urban markets, such as Tokyo, as well as sparsely populated rural markets, such as the Republic of Ghana. In fact, CDMA2000 is bridging the digital divide in many countries, including Argentina, Egypt, Peru, Pakistan and Uganda, offering affordable voice and broadband data access to millions of users in remote areas who have limited purchasing power.

For subscribers, the rapid growth of CDMA2000 serves both personal and enterprise demands by offering a broad range of applications, such as VoIP, multimedia messaging, high-speed video, mobile commerce, position location, and broadband Internet access. With close to 280 million subscribers, CDMA2000 offers next generation services with economies of scope and scale that are comparable to GSM. CDMA2000 adds nearly 8.5 million new subscribers every month, and close to 80% of the entire 3G subscriber base uses CDMA2000 devices and services. By the end of 2006, CDMA2000 will reach 350 million users; and analysts predict that number will approach 450 million by 2009.

CDMA2000 offers subscribers a very large selection of devices, from notebook PC embedded EV-DO modules that download email files with large attachments, to entry-level handsets that cost less than US$50 and enable consumers to download ringtones, wallpapers and daily prayers.

With the introduction of 1,250 devices from 81 suppliers, CDMA2000 supports more devices from more suppliers than any other technology. Due to its maturity and enormous economies of scale, by 2008 the average price for entry-level CDMA2000 handsets will be $33. For the remainder of the decade, the CDG expects CDMA2000 to continue offering the most innovative and most affordable selection of 3G devices.

CDMA Development Group (CDG)