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CDMA Industry Recaps Major Milestones in 2006 Substantial Subscriber Growth, Global Expansion, Technology Innovation

March 12, 2007

The CDMA Development Group (CDG) announced that the CDMA industry continues to lead in 3G, achieved numerous milestones in 2006, including substantial subscriber growth, and witnessed an increased demand for wireless broadband services.

- With 100 million new subscribers in 2006, the number of CDMA users grew at a 24 percent per annum rate, for a total of 373.5 million cdmaOne and CDMA2000 subscribers worldwide.

- Up to 190 million CDMA2000 handsets were shipped in 2006, 28% of which had 1xEV-DO broadband capabilities.

- The demand for CDMA2000 1xEV-DO mobile broadband subscriptions dramatically increased with more than 30 million new additions in 2006, and 1xEV-DO now has 55 million global users, up from 24.4 million in 2005.

- The world's first four CDMA2000 1xEV-DO Revision A (Rev. A) networks were launched in 4Q 2006, delivering on the promise of higher speed broadband access in both directions and significantly lower latencies.

"CDMA2000 operators continue to lead in the delivery of advanced 3G services," said Perry LaForge, executive director of the CDG. "With Rev. A deployments coming online and Ultra Mobile Broadband (UMB) on the horizon, we can expect to see this growth trend to continue. CDMA2000 operators have benefited from the technology's innovation and market lead, and they are in a unique position to reap the rewards of enabling the delivery of a true mobile broadband experience."

The migration to 3G has been led by the CDMA industry with an increasing number of operators who now serve up to 70% of all global 3G subscribers.

-- Over 230 operators in more than 100 countries have deployed or are planning to deploy CDMA2000; 192 operators in 82 countries are already commercial.

-- Up to 50% of these operators have deployed or are planning to deploy wireless broadband services using CDMA2000 1xEV-DO.

-- Up to 103 of these operators have deployed or are committed to deploying 3G services using CDMA450 technology.

-- Up to 40 GSM operators have opted to deploy 3G CDMA2000 technology.

The demand for wireless data services enabled by EV-DO is driven by multimedia messaging, gaming, entertainment, personalization, enterprise services, and other advanced wireless data services. This demand has led to increased operator data revenue.

-- For most leading CDMA2000 operators, mobile data (including SMS) now accounts for more than 15% of their total average monthly revenue.

-- Sprint Nextel, Verizon Wireless, and Telecom New Zealand witnessed record-breaking, double-digit revenue growth in wireless data, up to 66%, 63%, and 34.2% respectively.

-- In Korea, SK Telecom continued to witness an increase in wireless Internet ARPU, up 11% from 2005.

-- In Japan, KDDI reported a 7.4% increase in data revenue and an average of US$28.30 per user per month for their EV-DO (WIN) broadband data services, which contributes up to 30% of KDDI's total revenue.

The CDMA industry introduced a wide variety of CDMA2000 devices in 2006 and drove the cost of 3G handsets to below US$30 through initiatives such as Global Handset Requirements for CDMA (GHRC).

-- More than 600 CDMA2000 devices became commercially available in 2006, increasing the total to 1,600, including 400 1xEV-DO, 25 WorldMode and 18 EV-DO Rev. A devices.

-- More than 25 EV-DO-enabled notebooks were introduced by Dell, HP, Itronix, Lenovo, Panasonic, Sony and Toshiba.

-- The industry delivered 3G CDMA2000 1X handsets at a wholesale cost below US$30 in the highly competitive Indian market and offered more than 30 handset models from 12 suppliers to operators on each continent for less than US$50.

 

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