Wireless industry gaining users, healthy competition
BY TODD R. WEISS
(June 21, 2001)
Last year was good for the wireless telecommunications industry, featuring increased competition and innovation, a
growing base of wireless users and lower prices, according to a report adopted yesterday by the Federal
Communications Commission.
The sixth annual report, which won't officially be issued for several
weeks, was presented to the FCC commissioners as an update on the
state of the wireless communications industry.
According to the report, mobile telephony services generated more than
$52.5 million in revenues last year, as well as an increase in subscribers,
up from 86 million in 1999 to 109.5 million in 2000. Overall, wireless
service achieved a 39% penetration rate across the nation, while
wireless companies continued to expand their networks.
Some 259 million people, or almost 91% of the total U.S. population,
have access to three or more different companies offering wireless
services, giving users expanded and competitive choices, according to
the report.
About 75% of the U.S. population lives in areas with five or more
companies providing service, while 47% can choose from at least six
different companies for service.
Digital wireless phone service continues to replace analog wireless service across the nation, according to the report,
with digital customers making up 62% of the industry, up from 30% in 1998 and 51% at the end of 1999.
The increased competition has helped to lower service prices by about 12.3%, said the report.
Wireless Internet services have blossomed since late 1999, according to the report, with seven major mobile telephone
carriers offering data services, including Internet access, Short Messaging Service and e-mail. Meanwhile, the use of
traditional one-way pagers declined last year, as those services were offered by wireless phone companies.
Alan Reiter, an analyst at Wireless Internet & Mobile Computing in Chevy Chase, Md., said that what the report doesn't
say is that while the quantity of service providers is improved, the quality of phone service hasn't kept up.
"Many cellular carriers today are good enough," he said. "Companies like AT&T and Verizon have kludged together
nationwide networks that generally serve consumers and the traveling public well."
"But there are still significant problems with in-building coverage and areas with no coverage," Reiter said. "Voice
cellular is sort of like a medium-priced Holiday Inn. It serves the purposes of most of the people." |
