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CDG Comments on the Dissolution of the Planned Nokia and Sanyo Joint Venture

CDMA2000 Will Continue to Serve the Global Demand for Affordable Communications Well Into the Future

http://www.primezone.com/newsroom/news.html?d=101244

COSTA MESA, Calif., June 26, 2006 (PRIMEZONE) -- In response to the recent dissolution of the planned Nokia and Sanyo joint venture and subsequent statements by Nokia, the CDMA Development Group (CDG) (www.cdg.org) offered today the following comments.


1. The CDG is disappointed that the proposed joint venture between
Nokia and Sanyo did not come to fruition. It was anticipated that
for Nokia, this would have meant a stronger position in key CDMA
markets such as the United States, Japan and Korea where CDMA
growth is exceptional, and would have facilitated Nokia's
participation in emerging CDMA markets such as Africa, Brazil,
China, India and Russia.

2. The CDMA2000(r) industry is well supported with a large and
highly competitive handset supplier base. Currently, there are
over 50 different vendors who have produced over 1250 devices for
CDMA2000. In this highly competitive market, consolidation is
expected.

3. According to Strategy Analytics, LG, Samsung and Motorola are the
leading suppliers of CDMA handsets worldwide. Nokia's CDMA global
market handset share has remained small, particularly in key
markets such as North America. Should Nokia reduce their
shipments of CDMA handsets, we anticipate that several of the
other CDMA handset suppliers will easily fill this void.

4. This healthy competition has resulted in the availability of
entry-level 3G CDMA2000 handsets that have approached price parity
with 2G GSM handsets. As an example, there are 21 CDMA2000 phones
currently offered for less than $50 USD (wholesale) from 10
different suppliers in India, which is one of the most competitive
mobile communications markets in the world. Two of these device
models come from Nokia; the remaining 19 phones are supplied by
LG, Motorola, Samsung, Huawei, Haier, JingPing, Kyocera, UT
Starcom and ZTE. These entry-level CDMA phones enable access to
downloadable value-added services, while the competing 2G phones
that support the GSM standard do not.

5. CDMA2000 continues to enjoy strong industry-wide support as
evidenced by recent quotes in CDG press announcements from KDDI,
LG Telecom, Sprint-Nextel, Telecom New Zealand, Verizon Wireless,
Airvana, Qualcomm, Lucent, Motorola and Nortel. CDMA2000 provides
operators with a significant competitive advantage. Today, there
are more than 152 operators in 68 countries delivering 3G services
to more than 250 million people worldwide.

6. Many of the CDMA2000 networks launched over the last several years
have been in price-sensitive and underserved rural markets such as
Africa, Russia and greater Asia. These operators have selected
CDMA2000 to deliver affordable voice and broadband Internet access
using low frequency assignments (e.g., 450 and 800 MHz). Economic
studies have shown that in many markets the total cost of
ownership of a 3G CDMA2000 network is less than a 2G network.
Today, there are more than 50 CDMA450TM operators worldwide
serving some of the most remote places on earth. CDMA2000 is
expected to remain the leading 3G technology serving rural
markets worldwide for the foreseeable future.

The CDG is available for more comments. More information on CDMA2000 is available at www.cdg.org.

About CDMA2000

CDMA2000 is the most widely deployed 3G technology in the world, with 152 CDMA2000 operators in 68 countries, including 37 CDMA2000 1xEV-DO systems in commercial operation. With more than 250 million subscribers, CDMA2000 controls 82 percent of the 3G market. CDMA2000 has become the technology of choice for cdmaOne(tm), TDMA, analog and Greenfield operators, and is deployed in the 450, 800, 1700, 1900 and 2100 MHz bands. Nearly 1,200 CDMA2000 devices are available on the market, including 280 1xEV-DO devices. 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 CDMA technologies. The more than 100 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 CDMA 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 CDMA-related matters. For more information about the CDG, contact the CDG News Bureau at [phone], or visit the CDG Web site at www.cdg.org.

CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA-USA).

CDMA450 is a registered trademark of the Telecommunications Industry Association (TIA-USA)

cdmaOne is a trademark of the CDG.

WorldMode is a trademark of the CDG

CONTACT: CDG News Bureau
Ricca Silverio
[phone]
Fax: [phone]
[e-mail]


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Keywords: JOINT VENTURE, TELECOMMUNICATIONS