WASHINGTON-Personal communications services subscribers use their phones more than cellular
subscribers, said the Telecommunications Industry Association last week.
PCS subscribers use their phones for 300
minutes per month while cellular subscribers use their phones for 140 minutes per month, TIA said in a report,
“1999 MultiMedia Telecommunications Market Review and Forecast.”
The report was released on
Wednesday by TIA and its subsidiary, the MultiMedia Telecommunications Association.
Spending on PCS services
more than doubled in 1998, rising from $1.5 billion to $3.7 billion. This spending is expected to increase to $16.6
billion in 2002.
Notwithstanding the growth in PCS spending, TIA said that cellular continues to “dominate
the wireless services market.” Cellular service spending totaled $27.2 billion in 1998, representing 71 percent of
total wireless services spending.
The key factor in propelling wireless penetration-for example, cellular has passed
the 20 percent level and now faces competition from PCS-is declining prices for handsets and service. This could level
off, however, if “regulatory initiatives … will add to the cost of providing wireless services and will create
upward price pressure,” TIA said.
The paging market is continuing its double-digit growth rate, TIA said. The
paging services revenues totaled $5.6 billion in 1998.
The specialized mobile radio market experienced double-digit
growth after Nextel Communications Inc. entered the market, according to TIA. SMR services spending was $1.8
billion in 1998, and is expected to increase to $4.5 billion in 2002.
The report said the overall U.S.
telecommunications market grew by more than 11 percent in 1998, generating revenues of $467.2 billion. Spending on
telecom equipment continued its growth as well to reach $121.3 billion, an 11.8-percent increase.
“It is
especially encouraging that the U.S. telecommunications industry registered a trade surplus in the face of economic
downturns in many world markets,” said TIA President Matthew J. Flanigan. “With exports of
telecommunications equipment falling only 1 percent in 1998, the industry has fared well in light of the financial
turmoil in key foreign markets.”
