Issue #2003 - 09
US Market Passes 50% Penetration
With CDMA Continuing To Dominate
The US wireless market had grown to 141.4 million subscribers to the end of
December 2002 passing the 50% penetration milestone, according to the
latest figures from EMC.
Mike Woolfrey, Research Manager, EMC added that "While the US has often
been perceived as being behind other mature markets, it is the second
largest domestic market in the world, only China has more cellular users".
To view a graph showing US Subscriber History 1996 - 2002, please use the
Growth slowed in 2002 with 12 million net additions compared to 17 million
in 2001. With the market slowing, carriers are looking to target under-penetrated sectors of the market that in European markets has come
from prepaid offerings. US carriers are conscious of the trade-off of
increased market share against lower revenue gains from the prepaid sector
which currently only accounts for less than 10% of all US users. European
experience confirms lower revenue potential from prepaid users, but EMC
reiterates that there is still profit in prepaid.
CDMA is the leading technology choice in the US market accounting for 43%
of all users. However this position could be challenged by the emergence of
new GSM service from existing TDMA operators. GSM currently accounts for
11% of the market, up from 6% in 1999. EMC forecasts that GSM will account
for 33% of all US users in 2007, with CDMA continuing to dominate with a
forecasted market share of 44% in 2007.
MobileInfo Comments and Advisory: China
may have more subscribers than USA but usage (ARPU) is lower. We
need both - CDMA and GSM/GPRS. Let competition prevail. This will
get the best out of Qualcomm as well.
Note: This news release may contain
forward-looking statements within the meaning of section 27A of the
Securities Act of 1933 and section 21E of Securities Exchange act of
1934 in USA. Similar provisions exist in other countries. There is no
assurance that the stipulated plans of vendors will be implemented.
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