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Latin American CDMA operators positioned for 3G growth

October 25, 2005

At this week's Futurecom conference, the CDMA Development Group (CDG) reported that the Latin American region continues to be CDMA technology's fastest-growing market. There are 42 CDMA operators in 22 countries and nearly one out of four wireless subscribers, or 50 million consumers, uses the technology today. If the subscriber base continues to grow at its current rate of 38% per year, the CDG expects to see over 70 million CDMA users by 2009.

"CDMA2000 was the first 3G technology introduced in Latin America and today it serves more than 30% of the CDMA users in the region," said Celedonio von Wuthenau, regional director for Latin America for the CDG.

The CDMA2000 evolution path offers competitive advantages to operators in high-speed data capabilities, cost of delivery and time-to-market. Through in-band migration, operators have been able to deploy CDMA2000 1X and 1xEV-DO and introduce enhanced voice services, broadband high-speed data, and advanced multimedia services rapidly and cost-effectively. CDMA2000 1X delivers the highest voice capacity of any commercially available 3G technology with data speeds comparable to WCDMA. It has enabled operators to aggressively drive voice traffic and introduce data services such as picture and video messaging, web-browsing, games and location-based services.

With data speeds of up to 2.4 Mbps in a single channel, 1xEV-DO is the fastest wireless data technology deployed today, and will outperform HSDPA (High Speed Downlink Packet Access) when that technology is commercially introduced in 2006-2007. CDMA2000 1xEV-DO has allowed operators to drive data ARPU through rich multimedia services, including TV broadcasts, audio downloads and 3D gaming, and to offer broadband Internet access, in some cases competing with landline broadband providers. The next generation of the CDMA2000 standard, 1xEV-DO Rev A, builds on the Rev 0 capabilities and offers VoIP (voice over Internet Protocol) and significantly higher data rates (3.1 Mbps in the forward link and up to 1.8 Mbps in the reverse link in a single channel) allowing operators to further differentiate their services offerings, while reducing the cost of delivery.

To date, 30 operators have migrated to CDMA2000 in Latin America: of those 29 use CDMA2000 1X, and seven have deployed CDMA2000 1xEV-DO. Four more 1X and eight 1xEV-DO networks are currently being deployed.

 

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