To: Jerry Miller who wrote (2161 ) 6/7/1998 9:59:00 PM From: flickerful Read Replies (1) | Respond to of 10081
ÿ SRATEGY ANALYTICS: US cellular subscribers will generate over 500 billion minutes of use by 2003 M2 Presswire Between 1998 and 2003, Wireless Minutes of Use will grow at a compound annual rate of 35% to capture 9% of total telecom traffic in the US. The findings are the result of a recent study published by Strategy Analytics within its continuous information service, "Mobile Communications Service -- North America", which monitors consumer buying behavior and technology trends. The Personal user will be the engine for Cellular & PCS subscriber growth to 126 million by 2003 representing 44% penetration. "Consumers will reach 85% of the subscriber population by 2003, but a strong and profitable Business user segment should not be overlooked. Aggressive improvements in the cost per minute, ease of use and integration with landline telephony will be required to achieve these targets", said David Kerr, Director of Wireless Programs at Strategy Analytics. Subscribers to digital networks will expand dramatically from a base of under 7 million at the end of 1997 to 124 million by 2003. CDMA systems will overtake TDMA in 2000 and will capture approximately 65 million customers by 2003. TDMA will be a strong second placed technology with 52 million subscribers in 2003. Adoption of Value Added Services including SMS is currently negligible. However, Single Number and Single Service concepts continue to be of strong interest to cellular subscribers. 40% of current cellular users report that they would "Definitely" be interested in a single personal telephone number while half of all users are interested in having a single provider for wireless, local and long distance services. "For incumbent LECs, a frightening statistic should be the fact that two thirds of their most affluent customers (household income $100K or more) indicate strong interest in a single service provider" Kerr noted. The introduction of CPP, and continued innovation for Frequent Number discounts are critical factors for the acquisition and retention of wireless customers. In order to fuel subscriber growth and mitigate the decline in ARPU, operators must: * Explore short term revenue opportunities in Handset Rental and Handset Insurance * Encourage multiple users per household through cost effective companion programs * Develop compelling applications for Value Added Services. Cellular operators need to focus on customization of services and, wherever possible, bundling and integration of wireless and wireline components. "The end game for operators must be share of total telecom minutes and total telecom expenditures. Aggressive movement to fixed-mobile integrated networks, with inclusion of Internet access at a minimum, will significantly raise the barriers to switching. This will also enable significant economies in marketing, customer care, and billing, which will be critical for profitable performance", noted Kerr. Strategy Analytics will host an audioconference on June 23rd, 1998 at 11:00AM EST to present the key findings from the "US Cellular & PCS Market Outlook" report. For registration information, or editorial questions, please contact: Kelly Quinn, tel. +1 617 738 1300, fax +1 617 244 9488. email kquinn@strategyanalytics.com Company Background: Strategy Analytics, formerly BIS Strategic Decisions, provides information and insights which help competitors develop strategies in consumer electronics and media, communications, personal computing, automotive electronics, and enabling technology business. Working on a truly global basis, Strategy Analytics delivers planning support in published and con sulting formats to meet the decision support needs of clients in North America, Europe, Japan and the Far East. CONTACT: Kelly Quinn, Strategy Analytics Inc. e-mail: kquinn@strategyanalytics.com WWW: strategyanalytics.com *M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA SUPPLIED BY NAMED PARTY/PARTIES.* (Copyright 1998)