To All:
Here is some late information on the SMR industry to keep you occupied until we hear from the White Knight.
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------------------------------------------------------------------------ Tuesday December 23, 8:00 am Eastern Time
Company Press Release
SOURCE: Frost & Sullivan
Frost & Sullivan: Two-Way Land Mobile Radio Service Providers Must Grow To Survive in Competitive Market
MOUNTAIN VIEW, Calif., Dec. 23 /PRNewswire/ -- With so many recent technological innovations, the market for two-way mobile radio services is growing rapidly. As end users in the government, public safety, utilities and transportation industries demand more data transmission options, service providers face the challenge of growing quickly enough to meet such needs.
According to strategic research conducted by Frost & Sullivan (www.frost.com), U.S. Markets for Two-Way Land Mobile Radio Services, revenues for the total two-way LMR services market reached $1.5 billion in 1996, with a total annual growth rate during the forecast period 1996 to 2003 of 14.3 percent.
For the purpose of this study, Frost & Sullivan divided the two-way LMR services market into two segments: the conventional market, and the special mobile radio (SMR) trunked market. The conventional market generated $800 million in 1996, while the trunked market hit $686.9 million.
''A new market trend is the industry migration from conventional systems to trunked systems, which is a primary market driver for the trunked systems market,'' says Telecommunications Industry Analyst Isabelle Gallo. ''Another driver is the switch from analog to digital as a result of growing demand for data transmission possibilities. Technologically, new innovations promote the development of services and the increase of system capacity.''
Market restraints include spectrum shortages that limit industry expansion and limited channel capacity because it restrains the number of subscriber units. The high cost of new technology implementation also delays the growth process for two-way LMR service providers. Competitors face several challenges in the market, including overcoming losses and negative cash flow, implementing digital mobile networks and obtaining additional financing. In order to survive in the market, companies must offer the newest innovative bundle of services at a low price.
Competitors in the two-way LMR services market include both conventional and trunked wireless communications service providers. The two largest competitors in the conventional market accounted for 15.2 percent of revenues in that segment. The rest of the conventional market is fragmented, consisting of about 81 service providers. Three companies accounted for 71 percent of the SMR trunked two-way radio services market in 1996. Approximately 89 smaller service providers each hold less than five percent of the fragmented market.
Frost & Sullivan's study, U.S. Markets for Two-Way Land Mobile Radio Services, is a forecast and analysis study that includes total revenues forecasts, market shares, market trends, technological trends, competitive analysis and strategies. Of the 200 competitors in the U.S. market, a representative sample of 103 companies were included.
The technologies reviewed include commercial mobile radio service (CMRS), dispatch communication, digital specialized mobile radio (DSMR), enhanced digital access communications system (EDACS), enhanced specialized mobile radio (ESMR), frequency division multiple access (FDMA), frequency hopping multiple access (FHMA), frequency-time division multiple access (F-TDMA), integrated dispatch enhanced network (iDEN), land mobile radio (LMR), land mobile radio system (LMRS), multifunctional units, private communications network (PCN), public communications services (PCS), private mobile radio (PMR), specialized mobile radio (SMR), trunked radio services, time division multiple access (TDMA), and wide area paging (WAP).
Market participants include: Aalcom, Ackley Communications Enterprises Inc., Adams Communications, Advanced Communications, Advanced Electronics Inc., Airwaves Communications Inc., American Tower Corp., Andalousia Radio Service, Answer Angelo, Auto-Comm Engineering corporation, Beep-Alert of Indiana Inc., Broadcast Tower Inc., Bryan 800 Communications Inc., Caprock Communications, Carolina Mobile Communications, C-Comm Inc., Central Communications, Chadmoor Wireless Group Inc., Chayce'n You radio Paging Services Inc., Chicago Communications Service Inc., Clark Communications Inc., Coastal Communications/Sea Jay Corporation, Collins Radio Communications Corporation, Commercial Communications Inc., Communications Center Inc., Communications Center of Hawaii, Communications Engineering Company Inc., Communication Enterprises, C&M Communications, Courtesy Communications Inc. , Curry County Communications Inc., Danny's Two-Way Communications, Dave's Communications Inc., Dome Communications Service Inc. , Electronics Inc., Electronics Specialties Inc., Fisher Communications Inc., Flower City Communications Inc., Futronics Inc., Future Communications Inc., General Communications Inc., Geotek Communications Inc. [Nasdaq:GOTK - news], Gulf Coast Radio One & Electronics, Hendrix Communications, Houston Two-Way Radio Inc., Huffman Communications, Hug Communications Inc., Iowa Radio Services Inc., JSM Tele-page Inc., Kanoy Communications, Karkall Inc., Kern Valley Dispatch, Lagorio Communications Company, Leonard Communications Inc., Mankato Answering Service, Midway Electronics, Mobilecom Wireless Services, MobileFone, Mobile Phone of Texas Inc., Mobile Telephone Service of Wheeling West Virginia Inc., Monroe Communications, Motorola, Inc. -- Network Services Division, Network Communications of East Texas, Nextel Communications Inc. [Nasdaq:NXTL - news], Niles Radio Communications, Office Professionals Inc., Pfeiffer Electronics Corporation, Pierre Radio Paging & Telephone Corporation Inc., Pittencrieff Communications Inc., Plainview Telephone Company Inc., Porta-Phone, Qualicom, Racom Corporation, Radio Communications Center, Radio Communications Company, Radiocomm Mobilephone, Ram Mobile Data, Range Corporation DBA Range Telecommunications, RCI, RCC Inc., RCS Communications, Redi-Call Corporation, RF Communications, RoamerR One Inc., Silke Communications, SMR Direct, SMR Systems Inc., Southwest Communications, Spectrum Communications Inc., Stenocall, Tadlocks Communications Inc., Telepage Inc., Teletouch Communications Inc. [Nasdaq:TELL - news], Treasure State Mobile Phone Inc., Triangle Communications Inc., Tri-County Communications, Tri-County Communications Systems, Triple Mobile Phone Inc., Two-Way Radio Service Inc., Valley Communications, Western Communications Services Inc., Western Radio Services Company Inc., and Williams Communications Inc.
This telecommunications industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
Frost & Sullivan is an international marketing consulting company that monitors the LMR industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of research publications such as #2893-65 U.S. Mobile Data Service Markets and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.
Report: 2538-63 Publication Date: October 1997 Price: $1950
For more information, please contact: Kimberly Barney California 650-237-4383 650-903-0915 fax kbarney@frost.com or, visit our web site: frost.com
SOURCE: Frost & Sullivan ------------------------------------------------------------------------ More Quotes and News:
Geotek Communications Inc (Nasdaq:GOTK - news)Nextel Communications Inc (Nasdaq:NXTL - news)Teletouch Communications Inc (Nasdaq:TELL - news)
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