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Free Page Preview: Sneak a peek at 3 pages from the TIA 2009 ICT Market Review & Forecast detailing the future of prepaid service and the wireless market.
The U.S. wireless market consists of voice and data services, handsets, wireless communications, Wi-Fi® and WiMAX™ equipment, and professional services in support of the wireless infrastructure. In 2008, revenue totaled $210 billion, up 8.4 percent from 2007. For the first time, wireless service revenue growth dropped to single-digits. Wireless devices, which recorded double-digit increases during each of the previous six years, rose only 5.0 percent in 2008. Wireless equipment increased 1.4 percent, and services in support of the wireless infrastructure expanded 7.3 percent.
Source: 2009 ICT Market Review & Forecast
Sales of wireless and mobile subscriptions are slowing. But don’t blame the economy — blame success, which will fuel this industry well past 2012. In 2008, the wireless subscription rate in the U.S. reached 87 percent, and it is fast approaching 100 percent. All those handsets mean that traditional voice-driven devices and services are maxing out their client base. But data, not voice, is now king, as surging sales of smart phones shows.
Between 2006 and 2008, the sale of data-related services and components has jumped nearly three-fold from $12 billion (with a “b”) to $33 billion. And that number isn't likely to slow much, as these devices are not just toys to be enjoyed, they're increasingly key to functioning effectively in our increasingly interconnected world.
Prepaid cellular service is a growing segment of the wireless industry, with more
than 40 million subscribers in 2008, comprising 17 percent of all wireless subscribers.
Prepaid wireless is popular because it requires no long-term contract, no
activation or termination fees, and no credit check. Carriers are making prepaid
plans more attractive by enhancing service, lowering price and adding phones...
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