Spending on Wireless Service Overtakes Wireline

Total U.S. household spending on wireless services now represents the largest share of dollars spent on telecommunications services according to the most recent data released by TNS Telecoms, a global provider of market information and analysis for the telecommunications industry. In the second quarter of 2004, 30% of spending on telecommunications services was dedicated to wireless service while wired line service represented 29% of spending, a drop of three percent from the previous quarter.

The average U.S. household spends US$47.87 on wireless service each month and a total of US$158.88 on all telecom services. At the same time, the second quarter results also show that growth in total telecom spending has stalled with a decline of one percent from the spending in the previous quarter.

"These results represent the nature of the hyper-dynamic telecommunications market today," says Charles White, vice president of TNS Telecoms. "As the total size of the market stalls service providers will increasingly be battling against other telecom services for growth."

As of the second quarter of this year, 70% of households have at least one wireless phone with the average household with a wireless phone spending US$69.94 each month, an amount which continues to grow. Alternatively, 96% of households have a fixed wired line in their home with an average spending of US$54.78, but both of these wired line numbers continue to decline, albeit slowly."

Posted to the site on 21st October 2004

Posted to: www.cellular-news.com/story/11219.php