1 Thomas J. Sugrue Opening Remarks June 13, 2002 Seventh Annual CMRS Competition Report.
Sixth Annual CMRS Competition Report
description
Transcript of Sixth Annual CMRS Competition Report
Thomas J. Sugrue
Opening RemarksJune 20, 2001
Sixth Annual CMRSCompetition Report
Charting the Growth in the Mobile Telephone Industry: 1993 - 2000
UP584%
From 16 Million
Subscribers in 1993
UP364%
From 39,775 Jobs in 1993
UP543% From $14
Billion as of 1993
DOWN64%
From $0.58 per minute in
1993
Subscribers Jobs CapitalInvestment
Price per minute
109 MillionSubscribers in 2000
184,449 Jobs in2000
$89.6 BillionInvested as of 2000
$0.21 Per Minute in 2000
Source: Cellular Telecommunications & Internet Association; The Strategis Group, 2001
UP82% From 140 MOUs as of 1993
Minutes of Use
255 Average Monthly MOUs in 2000
Total US Commercial Wireless Subscribers: 1992 to 2000
0
40
80
120
160
1992 1993 1994 1995 1996 1997 1998 1999 2000
Mil
lion
s of
Sub
scri
bers
Paging/Messaging
Mobile Telephone
Source: Cellular Telecommunications & Internet Association, Strategis Group
Mobile Telephone Competition
90.8%84.4%
75.1%
46.7%
11.9%
78.3%
65.5%
8.9%
0%
20%
40%
60%
80%
100%
3 ormore
4 ormore
5 ormore
6 ormore
7 ormore
Number of Competitors in a County
Per
cent
of U
.S. P
opul
atio
n
2001
1997
Source: Federal Communications Commission
Average Price Per Minute for Mobile Telephone Service
$0.53
$0.58 $0.57 $0.56$0.54
$0.43
$0.35
$0.28
$0.21
$0.45
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Ave
rage
Pri
ce P
er M
inut
e
Source: The Strategis Group, 2001
Average Local Monthly Bill1993 to 2000
$61.49$56.21
$51.00$47.70
$42.78$39.43 $41.24
$45.27
$0.00
$16.00
$32.00
$48.00
$64.00
1993 1994 1995 1996 1997 1998 1999 2000
Ave
rage
Loc
al M
onth
ly B
ill
Source: Cellular Telecommunications & Internet Association
Average Minutes-of-Use per Month1993 to 2000
140119 119 125 117
136
185
255
0
40
80
120
160
200
240
280
1993 1994 1995 1996 1997 1998 1999 2000
Ave
rage
MO
Us
Per
Sub
scri
ber
Per
Mon
th
Source: Cellular Telecommunications & Internet Association
Major Carriers Expanded Nationwide Networks
• Six nationwide or nearly-nationwide carriers – Acquisitions
– Mergers
– License swaps
– Partnerships
• Sprint PCS
• Verizon Wireless
• VoiceStream
• AT&T Wireless
• Cingular
• Nextel
Tom Sugrue Has Added Minutes and Lowered His Monthly Bill...
0
500
1000
1500
2000
2500
1999-2000 2000-2001
Min
utes
Per
Use
Per
Mon
th
$30.00
$35.00
$40.00
$45.00
$50.00
Mon
thly
Bill
210 Anytime Minutes
$40per
month
$35per
month
150 Anytime
+2000 Weekend Minutes
Source: Sugrue family budget
$0
$25
$50
$75
Mon
thly
Cos
tWireline Substitution in the
Wiener-Goldstein Household
Monthly Access(unlimited local calling,includes SLC)
3 Vertical Services(Call waiting, CallerID,Voicemail)
Long Distance(100 minutes@ 7¢/minute)
Wireline(3rd line, Maryland)
Wireless(Verizon Wireless DigitalChoice)
$22.00
$34.99
$16.49
$7.00
Monthly Access (200 peak and1500 off-peak minutes)
$0.42 Universal Service Fee$0.60 911 Surcharge$2.83 Federal & State Taxes
$0
Total Cost = $47.29
Total Cost = $38.84
Long Distance and Vertical Services
$3.62 Universal Service Fee$0.60 911 Surcharge$1.14 Miscellaneous Fee$1.85 Federal & State Taxes
International Comparisons:Wireless 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).
76% 72%67%
58%50%
46%39%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Swed
en
Ital
y
U.K
.
Ger
man
y
Fra
nce
Japa
n
U.S
.
Chi
na
Prepaid as a Percentage of Total Subscriber Base
85%
68%
49% 48% 47%
11%
0%
20%
40%
60%
80%
100%
Ital
y
U.K
.
Fra
nce
Ger
man
y
Sw
eden
U.S
.
Mill
ions
Source: Mobile Matters, JP Morgan, March 2001, at 10 (Europe); Johnathan Burns, Tales Of The Tape:Prepaid Wireless A New Way Of Wireless, Dow Jones Newswire,
Jan. 29, 2001 (citing Knox Bricken of the Yankee Group).
International Comparisons:Total Subscribers: YE 2000
109.5
86.5
5848.2 42 40.1
30.2
6.3
0
20
40
60
80
100
120U
.S.
Chi
na
Japa
n
Ger
man
y
Ital
y
U.K
.
Fra
nce
Sw
eden
Mill
ions
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).