Subject: [NEXTEL-1] US mobile market approaching maturity

From: [email-masked]
Date: Thu, 02 Oct 2003 11:44:43 -0400

US mobile market approaching maturity

A new Yankee Group report has shown the wireless industry approaching maturity
with impressive speed. Only two years ago, the U.S. wireless industry was one of
the few remaining emerging high-growth sectors. However, with almost 50%
penetration, North Americans now treat wireless like a utility rather than a
novelty.  "The U.S. wireless industry is facing the threat of becoming like the
airline industry with high fixed costs, low variable costs, a perishable product
and cutthroat competition," says Roger Entner, Yankee Group Wireless/Mobile
Services program manager. "These conditions make it easy for industry participants
to behave in a way that has potentially disastrous consequences in the long run.
Airline travel is cheaper than ever before, but few customers are happy with the
experience."

With the current state of wireless competition, it is only a matter of time before
unlimited calling plans are available nationwide. Wireless number portability
(WNP), commencing on November 24, 2003, likely will be a catalyst for this.
Although the Yankee Group does not expect WNP to have a significant impact on a
per-annum basis, with a rise of only
40 basis points, the quarterly impact will be large, even if it spreads across the
fourth quarter of 2003 and the first quarter
of 2004. On an aggregate basis, the Yankee Group fears that a spike of up to 220
basis points or an increase in the magnitude of 12 to 15 million additional gross
adds is not unreasonable.

http://www.cellular-news.com/story/9836.shtml

Posted to the site on 02-Oct-03

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