Thomas J. Sugrue Opening Remarks June 20, 2001 Sixth Annual CMRS Competition Report.

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Presentation transcript:

Thomas J. Sugrue Opening Remarks June 20, 2001 Sixth Annual CMRS Competition Report

Charting the Growth in the Mobile Telephone Industry: UP 584% From 16 Million Subscribers in 1993 UP 364% From 39,775 Jobs in 1993 UP 543% From $14 Billion as of 1993 DOWN 64% From $0.58 per minute in 1993 SubscribersJobs Capital Investment Price per minute 109 Million Subscribers in ,449 Jobs in 2000 $89.6 Billion Invested as of 2000 $0.21 Per Minute in 2000 Source: Cellular Telecommunications & Internet Association; The Strategis Group, 2001 UP 82% From 140 MOUs as of 1993 Minutes of Use 255 Average Monthly MOUs in 2000

Total US Commercial Wireless Subscribers: 1992 to 2000 Source: Cellular Telecommunications & Internet Association, Strategis Group

Mobile Telephone Competition Source: Federal Communications Commission

Average Price Per Minute for Mobile Telephone Service Source: The Strategis Group, 2001

Average Local Monthly Bill 1993 to 2000 Source: Cellular Telecommunications & Internet Association

Average Minutes-of-Use per Month 1993 to 2000 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 Anytime Minutes $40 per month $35 per month 150 Anytime Weekend Minutes Source: Sugrue family budget

Wireline Substitution in the Wiener-Goldstein Household Monthly Access (unlimited local calling, includes SLC) 3 Vertical Services (Call waiting, CallerID, Voic ) Long Distance (100 7¢/minute) Wireline (3rd line, Maryland) Wireless (Verizon Wireless DigitalChoice) $22.00 $34.99 $16.49 $7.00 Monthly Access (200 peak and 1500 off-peak minutes) $0.42 Universal Service Fee $ 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 $ 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).

Prepaid as a Percentage of Total Subscriber Base 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 Source: Mobile Matters, JP Morgan, March 2001, at (Europe); Subscriber Count: Cellular Telephone Subscription by Country, Asiacom, at 12 (Japan & China); Cellular Telecommunications & Internet Association (December 2000).