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March 1 2006

Revenue in the U.S. wireless market totaled $174.7 billion in 2005, up 10.7 percent from 2004, with an acceleration in handset revenue and a ramp-up in new wireless subscribers as key drivers of growth, according to the newly released TIA’s 2006 Telecommunications Market Review and Forecast.
 

• Wireless phones comprise 94 percent of the total wireless device market
   
• Revenue generated from all wireless services rose 14.8 percent in 2005 to $118.6 billion. The TIA says it expects revenue to increase to $180.4 billion in 2009, growing 11.1 percent on a compound annual basis.
   
• Overall wireless device market is expected to increase from $17.8 billion in 2006 to $24.5 billion in 2009 growing at a 13.1 percent CAGR.
   
• Revenue in the wireless device market rose 22.6 percent in 2005 reaching $15 billion as a 25.4 percent increase in wireless phones offset a 21.6 decline in pagers and a 5.9 percent decrease in PDAs, according to the TIA.
   
• The emergence of new mobile applications such as video and music will continue to fuel both the subscriber and handset markets.
   
• The TIA expects a drop to single-digit increases in wireless subscribers (wireless telephony and paging) beginning in 2007, with growth averaging 8.2 percent on a compound annual basis through 2009, when there will be an estimated 278.5 million wireless subscribers, representing 88 percent of the population.
   
• The wireless handset and device market totaled $15 billion in 2005 and is expected to increase 19.3 percent in 2006 climbing to $17.8 billion
   
• 25m new wireless subscribers were added in 2005 (21.4 million subscribers added in 2004).
   
• Overall wireless market, including transport services, devices, wireless equipment and services in support of the wireless infrastructure, to grow at an 11.0 percent compound annual growth rate (CAGR), reaching $265.2 billion in 2009.
  subscribed to a wireless service.
   
• Capital expenditures revenue will grow at a 7.5 percent CAGR reaching $32 billion in 2009.
   
• Spending on services in support of the wireless infrastructure rose 18.0 percent in 2005, accelerating from the 13.6 percent increase in 2004.
   
• New wireless applications and wireless infrastructure upgrades are fueling growth in this area. Total spending on services in support of wireless infrastructure in the United States will increase to a projected $20 billion by 2009, up 14.1 percent CAGR from the $11.8 billion total of 2005.
   
• Market Expected to Reach $265.2B in 2009