| US Cellular Market Drives The Consumers and Companies |
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| Friday, 01 June 2007 | |
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With the increasing availability of latest technology phones at affordable prices in the US, the market for cell phones is on the rise, benefiting both customers and cellular companies. As per a research from Wireless Intelligence, the joint venture between Ovum and the GSM Association, the US cell phone market has shown a phenomenal growth and is rapidly increasing since 2006. The market added 18 million new connections each year. The market reached a total of 232 Million connections in 2006, which is further expected to go up by 9% this year, adding 20 million new connections in 12 months, as per TelecomTV. Cell phones are gradually becoming essential and omnipresent in US, with the steadily increasing cellular markets and consumer demand for cell phones. Other reasons for the expansion of cellular markets are growing population, beneficial service plans that offer with lower call rates, and the trend for using mobile phones. Tariff plans for the family have also led to the increase in the sales of the number of handsets and connections sold. With the advancement of technology, increasing number of people are lured into using the new wireless technology. The function of a cell phone has moved much beyond voice communication. It now includes features like text messaging, gaming, high-speed Internet access, e-mail and data organizing. Many major carriers have seen their non-voice ARPU increasing by 30-60% during the time span of Q1 2006 to Q1 2007.The prime reason for this growth is the adoption of CDMA2000 1x EV-DO and WCDMA services. These companies have increased their investments in 3G (third generation) and 4G networks, to be enabled to provide the consumers with technologically up-graded phones. The wireless market of US sustained its growth in the cellular sector in 2005. It underwent an increase of 15% and 11% in the number of subscribers and revenue growth, respectively. This sector acquired further integration by the merger of two big telecom companies- Sprint and Nextel and prior to that was the acquisition of Western Wireless by Alltel. As per a research analyst at RNCOS, “With the growing cellular market in US, the network coverage and availability of good featured handsets has also improved tremendously. It is estimated that the sales of good features enabled phone, will rise as the customers will not have to loosen their pockets much for availing a latest technology in-build phone”. Related Market Research Reports: |
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