The Future of Cellular/Mobile Communications: Insights from David Gergacz

David Gergacz, a pioneer in the cellular/mobile communications industry, shares his perspectives on the current state and future prospects of the sector. He emphasizes the rapid growth of wireless communications, with wireless penetration expected to jump from 8% to 20-40% by the turn of the century. Gergacz highlights the misconceptions about the industry, stating that less than 10% of the population currently uses wireless communications.

Key Takeaways:

• The cellular/mobile communications industry is experiencing rapid growth, with wireless penetration expected to reach 20-40% by the turn of the century.
• The industry has a long way to go, with less than 10% of the population currently using wireless communications, leaving significant room for growth.
• Gergacz emphasizes the importance of educating the public about the benefits and costs of cellular services, citing the 75% of Amigo subscribers who have never used a cellular telephone before.
• The industry is shifting its focus from technology to product development, with Cantel aiming to become a product business rather than a technology company.
• Gergacz highlights the need to drive costs down and change the value proposition to increase penetration, citing the average cost of cellular calls (50 cents per minute) and land-line-based local calls (5 cents per minute).
• The industry is expected to see increasing competition in the coming years, with a focus on offering affordable products and services to bring more people into the marketplace.
• Cantel has experienced excellent business growth, with the company reducing costs dramatically and achieving profitability.

Statistics:

• Wireless penetration in North America is currently at 8%, expected to reach 20-40% by the turn of the century.
• Less than 10% of the population currently uses wireless communications.
• 75% of Amigo subscribers have never used a cellular telephone before.
• Cost of cellular calls: 50 cents per minute, land-line-based local calls: 5 cents per minute.
• Cantel's growth rate: Canada's growth was initially equal to that of the U.S. and then fell to about half of it; this year, growth has accelerated, catching up to the U.S. growth rate.

Sources:

• "Telecommunications in general is probably the fastest-growing industry in the world today." - David Gergacz
• "Wireless is a broad term for the industry, which encompasses voice, data, imaging, things like fax transmission, and some day may even include video." - David Gergacz
• Gergacz, D. (Interview with Edward Trapunski)
• "The delivery companies do. UPS and FedEx use it to take electronic signatures to accept a package and to know where a package is at any time." - David Gergacz
• "We find that 75 per cent of the people who buy Amigo services have never used a cellular telephone before." - David Gergacz
• "Cantel will be 10 years old this coming year, and there has been a tremendous amount of progress in the industry in just those few years." - David Gergacz