US Cell Phone Market to Grow at 6% Per Year - Report

Strategy Analytics has issued a new report, which has concluded that the US cellular subscriber market will grow at a compound annual rate of 6% over the next five years resulting in penetration approaching 70%. Wireless minutes sold will double to 1.6 trillion, while operator service revenues will approach US$133 billion.

David Kerr, Vice President of Strategy Analytics' Global Wireless Practice notes, "Verizon will continue to lead the market from both an EBITDA and market share perspective in 2003, and Sprint will get back in the saddle after a tough year with data services and Virgin Mobile users fuelling growth. T-Mobile will trail only Verizon in net additions in 2003 while Cingular looks set to lose further ground and be locked in a battle with AT&T for second place."

Phil Kendall, author of the report and Director of the Strategy Analytics Wireless Network Strategies (WNS) service adds, "The US market will not break out from the single-digit subscriber growth established in 2002. Gross additions are expected to recover to 58 million in 2003, while ARPU will remain flat at approximately US$52 but CPGA ramps up by US$7."

Another key finding from "US Cellular Market Outlook 2003-2008: Verizon & T-Mobile Shine as Cingular Plays Catch Up" include the opinions that CDMA will continue to account for the largest proportion of cellular users in the US through 2008."

Posted to the site on 14th March 2003