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Telecommunications equipment industry

Wireless Market to Quadruple by 1999: Frost & Sullivan Report

Strategic Insights

— 1 min read

The US wireless market is undergoing a significant transformation, with sales of pagers, cellular, and PCN telephones and accessories projected to nearly quadruple from $2.5 billion in 1992 to $9.5 billion in 1999, growing at a 21 percent compound annual rate. This shift is driven by the increasing adoption of handheld portable phones, niche marketing, and the entry of new end-user segments such as healthcare and security.

Key Takeaways:

  • Sales of pagers, cellular, and PCN telephones and accessories will nearly quadruple from $2.5 billion in 1992 to $9.5 billion in 1999.
  • The retail channel will become increasingly important, rising from 22 percent of total sales in 1992 to 34 percent by 1999.
  • Handheld portable phones will show the fastest growth, with new handsets offering both dispatch and two-way calling capabilities.
  • Niche marketing will become more important to reach all relevant end-user segments, including personal users, healthcare, security, and blue-collar workers.
  • Cellular telephone/pager combinations will become popular, and dual-mode cellular phones will be increasingly necessary as network infrastructures provide both analog and digital signals to cellular subscribers.
  • Accessory packages, including batteries, maintenance products, and antenna, will gain popularity, particularly in the retail segment.
  • Joint ventures, alliances, mergers, acquisitions, and consortia will proliferate in the mobile industry, reducing the time it takes to bring new products to market.

Statistics:

  • Compound annual growth rate (1992-1999): 20.9%
  • Total cellular and PCS telephone, pager, and accessory equipment market revenue forecasts (U.S.):

* 1990: $1.959 billion

* 1991: $2.175 billion

* 1992: $2.511 billion

* 1993: $2.988 billion

* 1994: $3.583 billion

* 1995: $4.557 billion

* 1996: $5.676 billion

* 1997: $6.890 billion

* 1998: $8.170 billion

* 1999: $9.457 billion

Sources:

  • Frost & Sullivan, U.S. Cellular and PCS Telephone, Pager, and Accessory Markets: Time to Focus on Applications
  • Frost & Sullivan, Total Cellular and PCS Telephone, Pager, and Accessory Equipment Market: Revenue Forecasts (U.S.), 1989-1999

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