The National Market for Cellular Phone Service

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Figures Unreadable The National Market for Cellular Phone Service The national cellular market is undoubtedly one of the nation’s most expansive markets. In 2003, wireless revenues totaled to over $100 Billion; nearly one percent of the United States GDP. Since wireless has emerged, the typical buyer has expanded from the average middle/upper-class adult to teenagers, elderly, and business consumers. 20% of American teenagers own cell phones, explaining why Virgin Mobile was founded to specifically target young consumers1. There is certainly a large market for business consumers, as many carriers advertise business solutions even in retail outlets. Altogether, it’s estimated that 50% of Americans own cell phones, yielding a consumer base of approximately 147 Million customers2. Although there are over 300 registered national wireless firms, there are only a select few that compete in the entire national market3. The industry’s largest corporation is Verizon Wireless with a 2003 annual revenue of $22.5 Billion and a base of 40.4 Million customers. Sprint PCS, T-Mobile, and Nextel also have growing nationwide networks. Many competitors, although well known, only have coverage areas in sections of the United States. Alltel, for example, only offers service in the south and midwest. Until recently, Cingular had coverage areas in only the southeast and western parts of the United States. Its recent merge with AT&T wireless, though, will expanded its network to what some speculate will become the largest nationwide network. Since we are considering the market for national cellular service, we will consider only the ones with complete nationwide service: Verizon Wireless, Sprint PCS, T- 1 Brome 2 Brian and Tyson ... ... middle of paper ... ...escoop.com/>. Burden, Eric. Personal interview. 6 Dec. 2004. Cingular. . Leslie Cauley, and Paul Davidson. “Cingular, AT&T deal gets an OK from Justice.” USA Today Oct. 2004: Money, Pg. 03b. Marshall Brian and Jeff Tyson. “How Cell Phones Work.” Article. . Nextel. . T-Mobile. . Taylor, John B. Economics. Boston: Houghton, 2004 RadioShack. . Sprint PCS. . Verizon Wireless. . “What is the difference between analog and digital cell phones?” Article. . Wireless Advisor. . Yahoo Finance. .

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