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CDG reports CDMA continues to dominate North American 3G market
Posted: 02-Aug-2007 [Source: CDG]

[CDMA Development Group (CDG) announces more than 135 million 3G subscribers in North America--the two leading operators continue to be Sprint and Verizon Wireless.]

The CDMA Development Group (CDG) announced that CDMA2000 continues to dominate the North American 3G wireless telecommunications market -- with more than 135 million 3G subscribers in the region, of which more than 22% use EV-DO mobile broadband devices. The CDG cites an increase in demand for mobile broadband as the primary driver for the sharp increase in CDMA2000 operator revenue.

"CDMA2000's strong growth in North America validates the technology's powerful and robust evolution path," said Perry LaForge, executive director for the CDG. "Its superior performance, utility and reliability have made it the overwhelming choice for subscribers who demand substantial value -- in other words, it is the best solution at the most affordable price."

Collectively, the capital investments of the CDMA2000 service providers in North America are generating more than US$3 billion of revenue per quarter from mobile data services alone. That's more than $34 million dollars per day or around as much as the U.S. entertainment and game software industry makes each day. Including voice revenue, these operators are pulling in another $19 billion of revenue per quarter.

The CDG attributes the rapid subscriber growth to the extensive, first-to-market, selection of innovative and affordable products and services, excellent coverage, a compelling customer experience, and superior customer care.

Following are highlights from two of the leading CDMA operators, as of March 2007:

Sprint

* $4.6 billion annualized wireless data service revenue across both network platforms - Data revenue growth is being propelled by an increasing share of EV-DO customers, strong demand for messaging and PDA's, as well as connection cards

* $12.25 in CDMA data ARPU, which is over 20% of total ARPU generated from CDMA subscribers

* Since launching EV-DO, Sprint's data ARPU has increased approximately 60%

* Sprint continues to deploy EV-DO Rev. A technology, today reaching more than 206 million people nationwide or more than 98 percent of its current mobile broadband coverage area

* Connection cards are approaching one million post paid subscribers

Verizon Wireless

* 1.6 million net subscriber additions in Q1 2007, increasing their retail customer base to 58.5 million, including 23.1 million customers with EV-DO devices

* $1.6 billion of data revenue in Q1 2007, up 80% from the previous year

* $8.95 in retail data ARPU, up 54% from the previous year

Rural operators, such as Embarq and Metro PCS, have also demonstrated that CDMA2000 is highly desirable for rural and urban subscribers alike. Both operators have seen significant subscriber and revenue growth in previously underserved markets.

Not resting on its laurels, several vendors within the CDMA industry are working diligently towards providing infrastructure equipment and devices for the 1700/2100 MHz (AWS) and 700MHz frequency bands. CDMA2000 has also proven to be an optimum solution for emergency and first responder solutions.

"We are pleased to witness the level of satisfaction CDMA2000 provides across the mobile broadband value chain -- for consumers, businesses, operators, infrastructure and device suppliers, value-added service and content providers, as well as regulatory bodies," commented Joe Lawrence, vice president of marketing for the CDG. "The CDMA ecosystem has created healthy competition in North America and across the world, with the end customer becoming the ultimate benefactor. We look forward to further expanding CDMA2000's presence worldwide."

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