U.S. Wireless Market to Reach $212.5 Billion by 2008
Feb 11, 2005
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Total U.S. spending on wireless communications will grow by 9.3 percent in 2005, to a total of U.S. $158.6 billion, according to TIA's 2005 Telecommunications Market Review and Forecast, an annual publication of the Telecommunications Industry Association (TIA).

The report predicts the wireless market will reach $212.5 billion by 2008, with a 10-percent compound annual growth rate (CAGR) from 2005 to 2008.

The U.S. wireless market revenues in 2004 totaled $145.1 billion, up 11.6 percent from 2003. The increase in 2004 marked a return to double-digit growth following a dip to mid-single digits in 2003. This increase in wireless communications spending was driven by faster growth in handset revenue from new models, increased revenue from Wi-Fi equipment, and a rebound in support services.

According to the study, the wireless phone market was buoyed by continued subscriber growth and upgrades to more sophisticated handsets. After slowing in 2001 and 2002, wireless communications handsets rose at double-digit rates in 2003 and 2004, reaching $10.1 billion and $11.0 billion respectively. Spending on wireless communications handsets will grow from an estimated $11.5 billion in 2005 to $13.8 billion in 2008, growing at a 6 percent compound annual rate.

"The double-digit increases in the wireless market clearly indicate that it is a key driver in the communications industry. With the introduction of new technologies and services such as 3G wireless services, Wi-Fi, and WiMAX, we will continue to see an increase in wireless infrastructure revenue," TIA President Matthew J. Flanigan said.

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