US Cellular Markets To Hit $85 Billion In 2006.

By 2006, there will be nearly 250 million cellular subscribers in the United States alone, says the new US market forecast from Strategy Analytics. Handset purchases are set to top 154 million annually in the same timeframe while penetration is set to pass the magical 50% mark in 2002, thus firmly establishing cellular telephones as an American consumer essential.

Despite a certain amount of negativity in the cellular sector, as in so many other high-technology industries over the last six months, Strategy Analytics sees this as less of a long-term slowdown and more of a temporary blip on the radar screens. The introduction of next-generation systems, improved marketing of prepaid and data services to US users is forecast to regenerate a market that is slowing in its traditional growth patterns and in need of a boost.

“Digital wireless, like embryonic industries before it, is evolving, and thus experiencing its share of growing pains” noted David Kerr, VP of Wireless Services for Strategy Analytics. “However, the market will be ripe with opportunity for those fortunate enough to read and respond to the trends unfolding in the marketplace”. The market is indeed ripe for the taking – by 2006 Strategy Analytics expects voice service revenues alone to ring in $85 billion, and handset revenues will top $14 billion.

The company’s latest report “US Cellular Market Forecast 2001 – 2006” provides a comprehensive analysis of the current state of the US cellular marketplace and provides voice service and handset market forecasts through 2006. In addition, the report provides service and terminal market forecasts segmented by air interface for the same periods.