Mobile Cellular Communications, 2000-2005 Report

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NEWS FLASH 2000 - 40 (Nov. 2000)
(Updated on Nov. 8, 2000)

MARKET OUTLOOK

Mobile Cellular Communications, 2000-2005 Report

Web-Feet Research’s latest edition of the "Mobile Cellular Communications, 2000-2005" report has just been released. The report analyzes both the established mobile cellular networks as well as the new Wireless Personal Area Networks (WPAN). Besides setting out a detailed qualitative and quantitative analysis of the wireless markets, the report also offers an analysis of the market drivers, accelerators, and inhibitors.

Findings of the Report

Mobile telephony revenue will reach $480 billion by 2005, up from $172 billion in 1999, while the subscriber base will grow to 1.8 billion, up from 480 million in 1999.

Even though 680 thousand people will subscribe to mobile phone services each day versus 120 thousand for wired line services in 2005, the cost of mobile phone calls will continue to be three times more expensive than fixed calls, 37 cents versus 12 cents per minute.

The interim generation 2.5 networks will attract close to 500 million subscribers, or 27 percent of data services in 2005.

By 2005, the sale of 2.5G handsets will reach 550 million units, representing 45 percent of total sales, while sales of 3G-enabled phones will be about 170 million, or amounting to 14 percent of all phone sales.

Bluetooth will generate 1.05 billion units by the end of the forecast period, up from 45 million in 2001.

The report concludes that by 2005 mobile cellular telephony will have overtaken fixed telephony by "all imaginable metrics" and that pre-paid subscriptions will become a driving force in the mobile cellular market.

For more information: www.web-feetresearch.com

Mobileinfo Comments and Advisory: This is, by far, the most optimistic forecast on mobile telephone market. MobileInfo.Com's tracking of similar market studies suggests that these numbers have not been met in the past. Now, wireless telephony and wireless data are hot markets but not burning hot. The market is growing at a fast clip but forecasts are growing at a faster clip. Many market research firms (without casting aspersions on this study) base their projections on loosely-constructed surveys from respondents who have nothing to loose in making lofty projections. They do not apply statistical tests to validate survey responses. Therefore, we indicate a level of caution - you should use the numbers as indicators of a general trend and apply reality check. We invite feedback from subscribers and vendors if our caution is unwarranted.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.

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