Sixth Annual CMRS Competition Report

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Sixth Annual CMRSCompetition Report
Thomas J. Sugrue Opening Remarks June 20, 2001
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Charting the Growth in the Mobile Telephone
Industry 1993 - 2000
109 Million Subscribers in 2000
184,449 Jobs in 2000
89.6 Billion Invested as of 2000
255 Average Monthly MOUs in 2000
UP 82 From 140 MOUs as of 1993
UP 543 From 14 Billion as of 1993
Price per minute
Capital Investment
Minutes of Use
Subscribers
Jobs
0.21 Per Minute in 2000
Source Cellular Telecommunications Internet
Association The Strategis Group, 2001
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Total US Commercial Wireless Subscribers 1992 to
2000
Source Cellular Telecommunications Internet
Association, Strategis Group
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Mobile Telephone Competition
Source Federal Communications Commission
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Average Price Per Minute for Mobile Telephone
Service
Source The Strategis Group, 2001
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Average Local Monthly Bill1993 to 2000
Source Cellular Telecommunications Internet
Association
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Average Minutes-of-Use per Month1993 to 2000
Source Cellular Telecommunications Internet
Association
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Major Carriers Expanded Nationwide Networks

• Six nationwide or nearly-nationwide carriers
• Acquisitions
• Mergers
• License swaps
• Partnerships

• Sprint PCS
• Verizon Wireless
• VoiceStream

• ATT Wireless
• Cingular
• Nextel

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Tom Sugrue Has Added Minutes and Lowered His
Monthly Bill...
150 Anytime 2000 Weekend Minutes
40 per month
210 Anytime Minutes
35 per month
Source Sugrue family budget
10
Wireline Substitution in theWiener-Goldstein
Household
Total Cost 47.29
Total Cost 38.84
Long Distance (100 minutes _at_ 7/minute)
7.00
Long Distance and Vertical Services
0
3 Vertical Services (Call waiting,
CallerID, Voicemail)
0.42 Universal Service Fee 0.60 911
Surcharge 2.83 Federal State Taxes
16.49
3.62 Universal Service Fee 0.60 911
Surcharge 1.14 Miscellaneous Fee 1.85 Federal
State Taxes
Monthly Access (200 peak and 1500 off-peak
minutes)
34.99
Monthly Access (unlimited local calling, includes
SLC)
22.00
Wireline (3rd line, Maryland)
Wireless (Verizon Wireless DigitalChoice)
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International ComparisonsWireless Penetration
YE 2000
Source The Cellular Review, Bearn Stearns, Feb.
12, 2001, at 7 (Europe) Subscriber Count
Cellular Telephone Subscription by Country,
Asiacom, at 12 (Japan China) Cellular
Telecommunications Internet Association
(December 2000).
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Prepaid as a Percentage of Total Subscriber Base
Source Mobile Matters, JP Morgan, March 2001,
at 10 (Europe) Johnathan Burns, Tales Of The
TapePrepaid Wireless A New Way Of Wireless, Dow
Jones Newswire, Jan. 29, 2001 (citing Knox
Bricken of the Yankee Group).
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International ComparisonsTotal Subscribers YE
2000
Source Mobile Matters, JP Morgan, March 2001,
at 11-12 (Europe) Subscriber Count Cellular
Telephone Subscription by Country, Asiacom, at 12
(Japan China) Cellular Telecommunications
Internet Association (December 2000).