POWAY, Calif.-According to an economic model developed by Technology Trends, Technology
Focus Inc., 1999 wireless revenue in the United States is likely to fall by approximately $1.50 per user.
“The
economics of the wireless business cannot support acquisition costs of $450 to $500 per subscriber, churn ranging from
30 percent up to 45 percent in some markets, and revenue per user in the $50 range,” said Hunt Eggleston,
president of Technology Trends. “There simply cannot be four or five profitable wireless carriers in every
market.”
Eggleston said the new research indicates carriers need to focus more on keeping customers and less
on attracting new ones if they hope to achieve financial stability.
