MOUNTAIN VIEW, Calif.-Despite the threat from emerging personal communications services networks, the cellular service market continues to flourish, according to research conducted by Frost & Sullivan International Inc.
The report said safety tops the list of reasons people subscribe to a cellular service. However, the separation between personal and business subscribers is beginning to lessen, it said, and subscribers are becoming more dependent on the technology.
Cellular service providers also are changing the market patterns they operate by buying and selling markets to form clusters, said Monica Packi, an industry analyst. In addition, cellular carriers are beginning to switch to digital technology, mostly using Time Division Multiple Access or Code Division Mutiple Access standards.
The study said cellular providers must adapt to evolving technology and new legislation by offering varied services including Internet access, cellular service, wide area paging, 800 numbers and cable.
It predicted that recent industry deregulation caused by the Telecommunications Act of 1996 will increase competition and benefit customers through lower prices, higher quality and increased attention to customer service. This will encourage subscriber growth and create new market segments for business in the industry, according to the report.
