Subject: [NEXTEL-1] Spending On Wireless Services Surpasses Long-Distance Services Spending

From: Marcelrf <[email-masked]>
Date: Tue, 09 Mar 2004 19:09:52 -0500

Spending On Wireless Services Surpasses Long-Distance Services Spending
Wireless services projected to reach $98 billion in 2004
Contact:
Sharon Grace
For Immediate Release

(703) 907-7721
[email-masked]
March 8, 2004

Arlington, Va. -- Spending on wireless services rose 14.3 percent in
2003 to $89 billion, surpassing long-distance services ($78.0 billion) for the first time, according to TIA's 2004
Telecommunications Market Review and Forecast. The increases in wireless services spending helped offset declines in local exchange services and long-distance (or
toll service) spending of -2.9 and -8.2 percent respectively. The 8.2 percent decrease in toll-service spending during 2003 is its third consecutive decrease, as the shift from wireline to wireless in long-distance traffic continued.

The growth in wireless services spending will continue during 2004 with a projected increase of 10.5 percent to $98.7 billion. Toll services revenue will drop 6.4 percent to $73.0 billion and local exchange services will drop .8 percent to $117.0 billion. Even with the long-distance service and local exchange service drops, the growth in wireless services will lead to a 1.2 percent increase in overall transport services during 2004, a slight improvement over 2003 spending, which was essentially flat at $285 billion. For the period of 2004-2007, however, the compound annual growth rate (CAGR) for transport services is expected to be 4.6 percent with both local and long-distance at less than 2.0 percent CAGR and wireless leading the expansion with a projected 10.7 percent CAGR.

This shift to wireless services reflects a transformation in residential telephone service pricing.
Flat-rate pricing has proved appealing to consumers, so providers are striving to offer attractive packages of bundled local and long-distance services.
"In the next few years, per-minute charges for long-distance calls will probably disappear, and the distinction between local and long distance will become less meaningful," stated Matthew J.
Flanigan, TIA president. "In fact, carriers hope to limit defections to wireless services by bundling landline local/long-distance services with high-speed Internet access and television programming."

TIA's 2004 Telecommunications Market Review and Forecast provides an overview of telecom's interrelated market segments including network services, enterprise and consumer, mobile and wireless communications, and international markets. It's available in hard copy or on CD-ROM.
To order, please visit http://www.tiaonline.org/media/mrf.cfm or call (703) 907-7074. To obtain a press copy of the report, please contact Jennifer Mead at (703)
907-7723 or email

[email-masked].

http://www.tiaonline.org/media/press_releases/index.cfm?parelease=04-23

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