India Courts Exponential Growth For CDMA2000

The CDMA Development Group (CDG) has commented on the rapid uptake of CDMA2000 in India. This growth is coming from the aggressive sale of services from six CDMA2000 operators: Bharat Sanchar Nigam Ltd. (BSNL), HFCL Infotel, Mahangar Telephone Nigam (MTNL), Reliance Infocomm, Shyam Telecom and Tata Teleservices (TTSL).

"The proliferation of CDMA2000 technology in India makes logical sense," said Perry LaForge, executive director of the CDG. "Looking solely at the wide variety of entry-level handsets, it stands to reason that CDMA2000 will grow in lock step with the market itself. In fact, as an emerging market, India is a perfect showcase for CDMA2000's ability not just to bridge the digital divide, but to do so with the world's most powerful and comprehensive solution that economically converges telecommunications with information technology, consumer electronics and multimedia."

The CDG reports that from July 2005 to July 2006, 12.7 million new users subscribed to CDMA2000 services in India, attaining a cumulative subscriber base of 35.2 million. In the same period, CDMA2000 maintained its 30% market share, while the total India subscriber base grew to 112 million users. In July 2006, over 1.59 million new users subscribed to CDMA, with Reliance adding the bulk of the subscribers after signing up 929,941 new users, up from 874,000 new (net) subscribers in June. Meanwhile, Tata Teleservices has been acquiring up to 40% of all new users in Delhi and the national capital region by leveraging its retail network, and introducing new and more affordable service packages and a full-line of devices for entry-level and high-end users.

The CDG also reports that within a year after CDMA2000 was first introduced in 2002, wireless tariffs dropped by 42% and teledensity rose by 1.7%. Within three years after CDMA2000 was introduced, wireless tariffs dropped by 75% and teledensity rose by 7.1%. Today's 112 million wireless subscribers in India represent an approximate 14% total teledensity and 0.7% Internet penetration.

India's increasing teledensity also will help raise the country's per-capita gross domestic product (GDP). According to the International Telecommunications Union (ITU), a country's per-capita GDP increases by an average of US$240 for every 1% increase in mobile telephony penetration. A country's per-capita GDP increases by an average of US$593 for every 1% increase in Internet penetration.

La Forge added, "In all markets, operators will eventually have to deploy 3G technology to support the increased demand for voice and high-speed data services from both consumers and enterprises. These services will require large amounts of bandwidth to ensure sufficient capacity, data throughput, and a satisfactory end-user experience. CDMA2000 has at least a two-to-three year lead over GSM in delivering these services."

Posted to the site on 31st August 2006