CDMA2000 Operators to Deploy LTE, Mobile WiMAX to Complement 3G Networks
November 17, 2008 // Published as a news service by IHS
Code division multiple access (CDMA) operators will be among the first to complement their third generation (3G) networks with orthogonal frequency-division multiplexing (OFDM)-based technology solutions such as Long Term Evolution (LTE) and Mobile Worldwide Interoperability for Microwave Access (WiMAX), according to the CDMA Development Group (CDG).
CDMA operators will build on the wireless data business models they developed for CDMA2000 1x evolution-data optimized (EV-DO) and their 3G voice, broadband and broadcast data services will serve as their core revenue generators as they deploy next-generation networks, said CDG.
"3G is enabling new services that drive profitable wireless data business models, which will continue to be the foundation for operators even as OFDM-based technologies like LTE and Mobile WiMAX are deployed," said Perry LaForge, executive director of the CDG.
"Next-generation mobile broadband solutions will increase the value of existing 3G voice and data networks by interoperating with them to address distinct business needs."
OFDM-based solutions promise additional broadband capacity beyond what is available today over 3G broadband networks, said CDG.
Just as mobile broadcast solutions, including MediaFLO, digital video broadcasting-handheld, integrated services digital broadcasting-terrestrial and terrestrial-digital media broadcast, augmented 3G technologies, additional mobile broadband capacity solutions will bolster CDMA2000's growth by fortifying the overall value proposition, said CDG.
These new technologies will not replace 3G solutions until large economies of scale are built and mass market adoption criteria, such as ubiquitous coverage, affordable tariffs, global roaming and low-cost handset availability, are met, said CDG.
CDMA2000 operators will enhance and increase the value of their current 3G assets through an in-band evolution path, doubling the voice capacity of 1X, introducing concurrent IP-based voice and data services and increasing the data throughput speeds of EV-DO, said CDG.
The majority of LTE and Mobile WiMAX networks will initially be deployed in metropolitan areas, as wider-bandwidth spectrum becomes clear and available to satisfy the demand for high-capacity broadcast and broadband data services, said CDG.
Sprint Nextel launched its Xohm Mobile WiMAX solution in the Baltimore area in the U.S., while Verizon Wireless, SK Telecom, Korea Telecom Freetel, Telecom New Zealand, KDDI, China Telecom, MetroPCS and Aircell announced intentions to deploy LTE. These 3G CDMA operators will rely on CDMA2000 to provide coverage and roaming in the surrounding areas and in international markets, said CDG.
CDMA2000 delivers services that take advantage of high-speed mobile broadband connectivity, which lead to higher data profits for U.S. operators, claims CDG.
Verizon Wireless generated almost $2.6 billion in data revenue during the second quarter of 2008, resulting in an average revenue per user (ARPU) of $12.58 for data alone. This figure represents 24.4% of the company’s total ARPU and a compound annual growth rate (CAGR) of 31.3%, said CDG.
The ARPU generated by Sprint Nextel's CDMA2000 subscribers increased by 18% year-over-year to more than $15, representing 27% of their total CDMA ARPU.
Globally, CDMA operators added almost 25 million EV-DO users during the same time frame, representing a 33% annual increase, said CDG.
There are more than 100 million subscribers of CDMA2000 1xEV-DO services offered by 123 operators in 62 countries, said CDG.
Up to 44 operators deployed CDMA2000 1xEV-DO Rev. A networks to offer advanced mobile broadband services and another 36 operators are in the process of deploying this solution.
Source: CDMA Development Group (CDG).