Qualcomm Inc (QCOM)

[Mindy]

CDMA Wireless Subscriber Base Grows at 745%

27th April , 2004

http://www.3g.co.uk/PR/April2004/6980.htm

US : The CDMA Development Group (CDG) announced that CDMA is rapidly expanding and capturing significant market share in India, one of the fastest growing wireless markets in the world. With the widespread deployment of CDMA2000® in 2003, the CDMA base grew by 745 percent, reaching nearly 9.3 million users in March 2004.

There are seven CDMA carriers operating in India today including BSNL, HFCL Infotel, MTNL, Reliance, Shyam Telelink, and Tata Teleservices. Reliance is the largest operator in India, capturing 20 percent market share in nine months after introducing CDMA2000 services in May 2003.

“India represents a tremendous opportunity for the wireless industry, and CDMA2000 is well positioned to become the dominant technology,” said Perry LaForge, executive director of the CDG. “CDMA2000’s spectral efficiency allows operators to offer affordable services to existing markets and expand coverage to new areas. The high-speed capabilities of CDMA2000 offer a cost-effective solution for providing data services, including broadband access to the Internet.”

In less than five years, India has surpassed more than 33 million mobile users. With teledensity of only 7 percent, many analysts view India as one of the world’s most lucrative markets with tremendous growth potential. Financial analyst firm Lehman Brothers recently reported that India’s wireless market is expected to grow to 50 million by 2004 and 100 million by August 2006.

CDMA was introduced in India as a limited mobility solution and reached nearly 1.1 million users by the end of 2002. With the deployment of CDMA2000 and market liberalization in 2003, CDMA technology’s adoption rate surged and the subscriber base grew by over eight million for the year, nearly five million in the second half. More importantly, the introduction of CDMA services has created competition, lowered tariffs and offered many citizens access to communication services for the first time.

CDMA will continue to expand and bring new services to the region. Reliance introduced very successful pre-paid services in February of this year and Tata is expanding its CDMA network by adding capacity in the existing markets and expanding to 11 new markets by 3Q 2004. Lehman Brothers expects that CDMA will continue to expand the market share with 33 percent of net mobile subscriber additions this year.