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WIRELESS SERVICES MARKET GROWTH TO TRIPLE BY 2001 AS CONSUMERS FUEL FIRE

MOUNTAIN VIEW, Calif.-The U.S. mobile communications services market is projected to more than triple from $26.3 billion in 1994 to $92.5 billion by the year 2001, according to a new study from Frost & Sullivan Inc.

The share of total mobile market revenues going to cellular and emerging personal communications services is expected to rise from 68 percent in 1994 to 71 percent on 2001, while Frost & Sullivan said paging in the same period is projected to dip from 26 percent to 22 percent.

The company reported revenues from personal, non-business end-users will jump to 17 percent by 2001 from just 6 percent last year. In addition, blue-collar applications should increase from 11 percent to 17 percent, while sales and general business users are expected to decline from 41 percent to 32 percent and 40 percent to 29 percent, respectively, according to the study.

Frost & Sullivan said customers are placing increasing value on using a full-service communication provider. As a response, providers are implementing bundling plans for service options. The firm said the ability to access multiple services through one handset is being sought increasingly by end users, requiring configuration of both handsets and networks for transmission and receipt of a variety of signals.

In addition, the report said the potential growth of wireless devices is tremendous. With penetration below 10 percent, growth drivers include mobile service convenience, business productivity, consumer safety, lowered cost and improved coverage.

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