Mobile Handset analyst
January 18, 2005

Carrier EV-DO launches set to boost CDMA figures
The increasing availability of 1xEV-DO handsets could boost the number of CDMA-device shipments worldwide to 168 million this year, though the real ramp-up will occur in 2006, according to figures from Signals Research.

The firm says it is expecting EV-DO terminals to contribute more to overall CDMA-handset shipments, taking into account the planned launch of EV-DO services by U.S. carrier Verizon Wireless, which is due to begin commercial service in February using devices from Audiovox, LG and Samsung.

“Our optimism [regarding CDMA shipments] is based upon the apparent aggressiveness of [Verizon], our expectations for initial order volumes, attractive ASPs and the continued proliferation of 1xEV-DO in South Korea and Japan,” says Signals founder Michael Thelander.

Signals Research forecasts that, overall, 21% of all CDMA handsets sold this year will be EV-DO-enabled – an increase on its previous forecast of 13% – and that the figure will rise to 39% in 2006.

“1xEV-DO should also have strong success in other markets, including China, India, Latin America and certain parts of Europe [via CDMA450],” Thelander says. “However, for 2005, 1xEV-DO market activity in these regions will largely be infrastructure-related, thus setting the stage for subscriber/handset growth in 2006.”

Signals also forecasts that WCDMA-handset sales will reach 56.4 million this year.

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