Two Recent Press Releases from International Data Corporation:
$$$$$ CELLULAR/PCS SEGMENT: STRONG GROWTH IN SUBSCRIBERS
More than 111 million people subscribed to wireless services in 1998, producing almost $40 billion in revenues. By 2003, there will be nearly 186 million subscribers, generating revenues of almost $69 billion. This data comes from a report from International Data Corporation (IDC). IDC's report splits the overall market into the following segments: Cellular/PCS, paging, specialized mobile radio (SMR), mobile data networks (MDN), and mobile satellite services (MSS).
Activity in the cellular/PCS market flourished in 1998. The number of subscribers in this segment increased nearly 24% in 1998, and by 2003 this market will surpass 118 million subscribers. Carriers were busy with digital rollouts, and a new type of subscriber emerged - the hybrid. "These subscribers can roam among digital cellular, digital PCS, and analog markets," said Callie Pottorf, research analyst with IDC's Wireless and Mobile Communications program.
According to IDC, growth in the paging market was slow in 1998. The number of subscribers increased by less than 3% to 43 million. "Many of the larger paging carriers did away with unprofitable subscribers," Pottorf said. By 2003, there will be more than 58 million paging subscribers.
Throughout IDC's forecast, the number of subscribers in the SMR and MDN segments will increase at compound annual growth rates (CAGRs) of 17% and 15%, respectively. The mobile satellite market will also increase its number of subscribers at a CAGR of 25%.
$$$$$ OVER 32 MILLION US HOUSEHOLDS BANKING ONLINE BY 2003
Online banking is swiftly charging from its position as an extravagant application used by a select few to a convenient functionality craved by the growing horde of Internet users. Research from International Data Corporation indicates there were nearly 6.6 million households banking online in the United States alone in 1998. By 2003, that number will increase substantially - to more than 32 million.
"A combination of factors is driving the explosive growth in online banking," said Paul Johnson, senior analyst with IDC's Internet and eCommerce Strategies program. "There has been a proliferation of low-cost PCs and other networking devices in the home market, which is causing a surge in the number of Internet users. Because many of the security concerns have been alleviated, these Internet users are becoming comfortable using the Internet as a transaction-based medium." The increasing number of banks offering Web-based banking services is also triggering the market's growth. IDC estimates the number of banks offering online banking services will increase from 1,200 in 1998 to 16,000 by 2003, primarily via the Web. These numbers represent 6% and an incredible 86%, respectively, of all U.S. commercial banks and credit unions. "Banks are beginning to realize that online banking offers competitive advantages, operational efficiencies, and direct marketing capabilities," Johnson said. According to IDC, online banking is evolving through three phases. The first phase offers functionality similar to what is available through telephone banking systems - access to account balances and transaction data. The access is provided through a dial-up or browser-based service. The second phase emphasizes interactive technologies such as online bill payment and personalized reminder services. The third phase involves direct marketing of credit and lending services, personalized financial management features, and services such as securities trading and insurance offerings.
"A strong link exists between banking, bill payments, and the Internet. Although there is still uncertainty in the bill presentment market, banks must seize this tremendous opportunity in front of them. Online banking may be the critical service that enables banks to maintain their role as the dominant provider of financial services," Johnson said.
International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods, and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at idc.com.
IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.
COMMENT: We feel the best way to take advantage of this surge in growth is to purchase shares of CheckFree (CKFR). The stock has been stalled here in the twenties recently, but we know the online banking business is beginning its major growth phase now and will continue to surge over the next five years.
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