CDG Press Releases——China Becomes a Focal Point for CDMA2000 as Worldwide Demand for Mobile Broadband Increases(4/15/2010)

China Telecom Assumes Leadership Role for CDMA2000 Devices and Services

BEIJING — April 15, 2010 — The CDMA Development Group (CDG) today highlighted the growing importance of China Telecom to the 3G CDMA industry, citing its rapid EV-DO Revision A (Rev. A) network deployment, vast device selection, extensive list of services and remarkable subscriber growth.

“With the issuance of 3G CDMA licenses and China Telecom assuming ownership of the existing CDMA2000® network, mobile broadband has taken flight in China,” said Perry LaForge, executive director of the CDG. “By embracing the technology and rapidly deploying 3G services across its nationwide CDMA2000 1X and EV-DO Rev. A networks, China Telecom has lead the way for 3G in China and assumed a position of global leadership within the telecommunications industry.”

In 2009, China Telecom doubled its subscriber base from 28 million to 56 million, and is now adding 100 thousand subscribers per day, or more than 3 million subscribers per month. The operator also completed the largest and fastest network deployment ever, bringing its e-surfing EV-DO Rev. A mobile broadband service to 284 cities in just nine months. The rapid network expansion, now covering over 500 cities, has been complemented by an unparalleled selection of over 600 CDMA2000 handsets and a wide range of data devices. China Telecom has 5.14 million 3G mobile broadband subscribers and intends to surpass 100 million total wireless customers by the end of 2010, which will make it the largest CDMA2000 operator in the world.

According to the China Internet Network Information Center (CNNIC), China’s Internet user base grew by 84 million in 2009 alone, while the mobile Internet user base nearly doubled for the second straight year. As a result, almost 61 percent of all Internet users in China are doing so on mobile devices, yet the country currently only has 16 million 3G subscribers. The Ministry of Industry and Information Technology (MIIT) for China points out that this is about to change rapidly, predicting that the number of 3G subscribers in China will grow to 500 million over the next three years. Of those, the MIIT predicts that over 40 percent will be EV-DO subscribers, creating economies of scale for 3G CDMA that will drive the industry for years to come.

This growth will be fueled by China Telecom investing US$11.7 billion to expand and optimize its CDMA2000 network through 2011, and by continuing to expand its sale channels and offer a broader range of devices and services to its subscribers. The operator established a CDMA2000 Handset Alliance with over 100 companies, currently sources devices from over 80 manufacturers and complements this device selection with a robust application store and an “Open Abilities” development program.

The effect of this growth on the global CDMA2000 ecosystem will be dramatic. The device selection China Telecom is creating will expand to emerging markets, such as Africa and Southeast Asia, reducing handset costs and enabling mobile Internet penetration. China Telecom’s commitment to the CDMA2000 long-term technology roadmap will also drive network evolutions such as 1X Advanced and EV-DO Revision B (Rev. B) for increased network capacity and performance.





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