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To: Sawtooth who wrote (19063)12/3/1998 12:24:00 AM
From: Ruffian  Read Replies (1) | Respond to of 152472
 
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Thursday December 3, 12:01 am Eastern Time

Digital wireless phone sales top analog models-study

NEW YORK, Dec 3 (Reuters) - U.S sales of new-generation, digital wireless phones for the first time outpaced sales of
traditional, analog phones during the first three quarters of 1998, a market research firm said Thursday.

Digital wireless phone sales totaled 10.1 million units through the first three quarters of 1998, while analog phone sales reached 7.9
million units, according to a study by Dataquest, a unit of Gartner Group Inc. (NYSE:IT - news)

''The analog-digital crossover, at last, signals the market's protracted transition to second-generation digital phones a full six years after they were first introduced in
the United States,'' said Dataquest analyst Matt Hoffman.

Nokia , Finland's telecommunications equipment maker, saw its share of the U.S. digital phone market surge to a leading 40.3 percent in the first nine months of
1998, compared with 19.8 percent market share in 1997, Dataquest said.

Nokia's strong market share gains were driven, in part, by its connection to AT&T Corp.'s (NYSE:T - news) successful new wireless pricing plan called Digital One
Rate, Dataquest said.

AT&T's Digital One Rate pricing plan, and similar plans introduced by rivals, have helped spark consumer interest in new-generation wireless phones, which offer
broader reach, better clarity and more sophisticated features than traditional, wireless phones, industry analysts have said.

Schaumburg, Ill.-based equipment manufacturer Motorola Inc. (NYSE:MOT - news) saw its market share nearly double to 11.5 percent from 6.3 percent last year.

''The fast risers, Nokia and Motorola, have grown with strategies to diversify into all digital product segments,'' Hoffman said.

Meanwhile, Sweden's Ericsson and San Diego-based Qualcomm Inc. (Nasdaq:QCOM - news) saw their market share shrink as the companies targeted niche
markets, Dataquest said.

Ericsson now holds about 20.6 percent of the U.S. market, down from 41.3 percent in 1997, while Qualcomm controls about 8.2 percent of the market, compared
with 17.4 percent last year, Dataquest said.

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AT&T Corp (NYSE:T - news)
Gartner Group Inc (NYSE:IT - news)
Motorola Inc (NYSE:MOT - news)
Qualcomm Inc (Nasdaq:QCOM - news)

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