WASHINGTON-The wireless industry gained almost 14 million new subscribers by the end of 1998-a growth rate of nearly 25 percent in one year, said the Cellular Telecommunications Industry Association last week. “To put this in context, it took the industry nine-and-a-half years to gain its first 13 million subscribers. That’s less than we added last year alone,” said CTIA President Tom Wheeler. At the current rate of growth, someone signs up for wireless service every 2.25 seconds, Wheeler added.
The wireless industry is “changing the paradigm of people’s relationship with the telephone,” Wheeler said. In addition to subscribership being up, minutes of use-which mean more revenues for carriers-is up while the cost to consumers is down. “It is a good business and it is good for consumers so it is a win-win,” he said.
CTIA believes the stimulant behind this growth is competition. “There is no segment of the telecommunications industry that is more competitive,” Wheeler said. He also noted the report was released on April Fools’ Day but assured reporters it was “the gospel truth.” CTIA surveys its members twice each year on market statistics. The survey had a response rate of 93.4 percent with 2,869 of the 3,073 members responding.
The survey is not carrier-specific, CTIA said, but Sprint PCS said it represented 12.2 percent of the new subscribers, the most in 1998. Indeed, Sprint PCS had 836,000 new subscribers in the fourth quarter, which is an industry record, said spokesman Tom Murphy.
Wheeler also believes subscribership will grow as people use wireless as their second-line or cut the wireline cord altogether. A core market for “cutting the cord” are Generation Xers, he said.
