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To: JMD who wrote (13462)	8/7/1998 5:20:00 PM
From: Gaffer	Read Replies (2) \| Respond to of 152472

To all: Link to excellent Strategy Analytics report: strategyanalytics.com

To: JMD who wrote (13462)	8/7/1998 5:34:00 PM
From: 2brasil	Read Replies (1) \| Respond to of 152472

ot US Cellular Subscribers Will Generate Over 500 Billion Minutes of Use By 2003 Says Strategy Analytics BOSTON, Aug. 7 /PRNewswire/ -- 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 published in a recent report ''US Cellular Market Status & Outlook'', from Strategy Analytics Inc.'s Mobile Communications Service North America. ''Consumers will comprise 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 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. 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 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. 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; and develop compelling applications for Value Added Services. Cellular operators need to focus on customization of services 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. Company Background: Strategy Analytics, formerly BIS Strategic Decisions, provides information and insights which help competitors develop strategies in consumer electronics in media, communications, personal computing, automotive electronics, and enabling technology business. Working on a truly global basis, Strategy Analytics delivers planning support in published and consulting formats to meet the decision support needs of clients in North America, Europe, Japan