CDMA2000 Operators Enable Wireless' Next Big Opportunity

The CDMA Development Group (CDG) has announced that the CDMA2000 industry in the USA is playing a key role in wireless' next big opportunity: the US$10 billion mobile virtual network operator (MVNO) market. This type of service provider targets specific demographics rather than traditional, broader categories such as consumers or business users. For example, Virgin Mobile USA caters to the youth market, while Movida Communications is focused on Hispanics.

The CDG says that the common denominator is that the majority of MVNOs rely on CDMA2000 networks.

The MVNO market in the U.S. drove approximately US$2 billion in revenue in 2005 and had 5.5 million customers, according to the analyst firm Ovum. By the end of the decade, the MVNO market could be worth US$10 billion annually and have 25 million customers, Ovum estimates. Research firm Yankee Group expects the MVNO market in the U.S. to be worth US$10.7 billion by 2010 with 29 million customers. According to a January 2006 survey by In-Stat, roughly 80 percent of existing and prospective cellular users said that they would consider buying service from an MVNO.

Sprint enabled the first U.S. MVNO, Virgin Mobile USA in 2002, and today CDMA2000 operators have MVNO agreements with Amp'd Mobile, Disney Mobile, ESPN Mobile, HELIO, Movida Communications and Qwest Communications International. In the case of Virgin Mobile USA, the MVNO added three million customers in its first 30 months.

''3G opens exciting possibilities for MNVOs that offer services beyond discount voice and SMS and for mobile operators to move into new markets,'' said LaForge. ''By being first to market with 3G and broadband, CDMA2000 operators are in a good position to capitalize on this opportunity.''"

Posted to the site on 24th March 2006