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Broadband wireless services saw high growth in Asia, U.S.

Posted: 17 May 2006     Print Version  Bookmark and Share

Keywords:The CDMA Development Group  broadband wireless services  higher revenues and growth 

The CDMA Development Group (CDG) has reported that operators in Asia and the United States have seen a significant uptake of CDMA2000 1xEV-DO broadband wireless services and, as result, higher revenues and growth.

A first-to-market advantage, marketing opportunities and a wide selection of devices have enabled operators to attract high-end users, reduce churn and drive data revenue, said CDG. In some markets, operators report that their 1xEV-DO subscriptions are growing at a rate of 230 per cent per year and that wireless broadband subscribers spend twice on data and 40-60 per cent extra overall than average users.

"CDMA2000 has had a three-year lead in wireless broadband and is now deployed in 55 countries, serving close to three crore (30 million) users worldwide," said Perry LaForge, executive director of the CDG. "What is most important is that 1xEV-DO provides the services that wireless customers want, which is reflected by the growing number of users and rising minutes of use, and delivers results for operators in higher revenues and improved overall performance."

With speeds compatible to landline broadband—average speeds of 400Kbps to 800Kbps up to 2.4Mbps—1xEV-DO enables faster access to information and customized applications for enterprises, as well as new services such as mobile TV, access to radio programs, music downloads, video distribution and 3G interactive video gaming for the consumer. These services and over 217 1xEV-DO devices have generated enthusiasm in the market, with 12 per cent of CDMA2000 subscribers already using broadband, and the number of users is growing at 4 million per quarter. For SK Telecom in Korea, 1xEV-DO already accounts for over 40 per cent of the operator"s subscriber base.

The first-to-market advantage with broadband has allowed CDMA2000 operators to attract and retain high-end users. KDDI in Japan, for example, reports that more than half of new subscriptions to its WIN 1xEV-DO services are new customers.

With the strong demand for 1xEV-DO services, operators have seen data usage and revenues grow rapidly. In the United States, Verizon Wireless" data revenues in Q1 more than doubled year-over-year, contributing Rs.3,933.59 crore ($872 million) or 11.5 per cent of all service revenues, up from 6.3 per cent the previous year. Data ARPU reached Rs.251.71 ($5.58) for the quarter, up by 79 per cent from one year ago; data customers totaled 2.61 crore (26.1 million), a 47 per cent increase over one year ago. Sprint Nextel"s data revenue topped Rs.3,608.80 crore ($800 million) in Q1 2006, with data ARPU growing 21 per cent and accounting for 11per cent of total ARPU.




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