Wireless Penetration Levels In Top 10 U.S. Markets.

Telephia, Inc. released a study on the percentage
of the total population that subscribes to wireless voice service in the top 10 U.S. markets. The study reveals that, as of the end of last year, the subscriber penetration rates in the country’s largest urban areas span a relatively wide range of 36 to 48 percent. These significantly different penetration rates between markets are likely the result of regional or market-based factors such as the intensity of carrier competition, advertising spending patterns and the effectiveness of marketing activities. The results of the study also suggest that, if analyst predictions that U. S. penetration rates will eventually reach levels seen in Europe hold true, there appear to remain significant growth opportunities for the domestic wireless voice industry. The findings released by Telephia today represent 10 of the 25 markets nationwide in which Telephia has established a proprietary network of data-gathering receivers. During the month of February alone, Telephia receivers logged more than 16.5 billion wireless events.

An examination of wireless subscriber penetration in the country’s top 10 markets (chosen with respect to population) reveals considerable differences in penetration by market. This can be the result of many factors, including degree of competition, media spending patterns, pricing and promotional activities and quality of service issues, all of
which vary by market.

New York and Los Angeles, the two largest markets, both rank among the bottom three – and below the average of the top 10 – with regard to penetration, with rates of 38 percent and 36 percent respectively. Washington, D.C., and Boston register the highest penetration rates. The number of wireless subscribers in both markets approaches half of the total market population.

The differences in rates between markets suggest that there is plenty of room for carriers, many of whom already have a national footprint and national pricing plans, to grow their subscriber bases at the market level. This growth will come through more locally targeted programs to succeed in the less saturated markets.

“While we are gradually approaching penetration rates here in the United States that come closer to the 70 and 80 percent levels seen in Europe, there is still a tremendous opportunity for growth in the wireless voice industry,” said John Oyler, president of Telephia. “Competition within markets is fierce and here to stay, and as providers continue to refine and develop their service offerings, consumers will turn to the tremendous benefits of wireless communication in even greater numbers.”