Happy New Year!
The mark of a new year tradition ally brings resolutions for the fu ture and reflections on the past. That holds true for the wireless industry as well.
What will 1996 bring this indus try? Some early economic indicators the most publicized being disappointing retail sales over the holidays point to a more conservative marketplace, where consumers aren’t spending, spending, spending. In contrast, the Dow Jones industrial average is still above the 5,000 m ark.
The real question is whether wireless can remain immune to the national and global economies.
The cellular industry is famous for not being affected by the recession of the 1980s. Since cellular service started in 1984 in this cou ntry, the subscriber base has been growing at a phenomenal rate. By 1986, the subscriber base grew by 145 percent, the follow ing year, 77 percent; then 81 per cent, 69 percent, 63 percent, 45 percent, 39 percent, and around 46 percent gro wth in 1993, 1994 and 1995. Pretty good figures, wouldn’t you say?
The wireless industry has been sending mixed signals about hos the coming year could shape up.
On the one hand, Motorola Inc., Nokia Corp. and Audiovox Corp. noted they have been affected by declining cellular handset sales. Not a good sign. And AT&T Corp. is set to get rid of 72,000 supervisors as part of its plan to split into three separate companies.
On the other hand, PCS bidders in the C-block auction have bid more than $1 billion to date as the fourth round of bidding closed Dec. 22. They’re obviously staking big bucks that personal communications services will prove the success story of the next 10 years.
One telecom analyst pointed out that PCS operator Spring Spectrum’s success could largely define how many of hte C-Block diders fare. Again, there is much money to be made and lost in wireless in teh coming year.
. . . To celebrate the new year and RCR’s launch as a weekly publication, we received a face lift to make the newspaper easier to read and a little more contemporary. However, we have kept the same format so you can still expect to find your favorite sections in their usual places.
Since the newspaper will be delivered every Monday, RCR.newsfax now will be sent to readers on Tuesday through Friday, begining this week.
