AGOURA HILLS, Calif.-According to J.D. Power and Associates’ “PCS Report,” penetration rates for wireless telephone service rose to 43 percent of households nationwide last year, up from 35 percent the previous year.
Pittsburgh saw the largest increase in subscribers, rising 20 percent from the previous year, followed by Seattle with an 18-percent increase.
The report showed that satisfaction among incumbent cellular customers has risen during the past few years, resulting in a closing of the gap compared with personal communications services providers. Two years ago, PCS providers had satisfaction scores 11 points higher than incumbent cellular operators, compared with a four-point advantage last year.
“Upon market entry, PCS carriers created quite a storm with digital service and innovative pricing plans,” noted Sheryl Russell, director of communications services at J.D. Power and Associates. “Incumbent carriers have responded competitively with their own digital offerings and aggressive pricing plans.”
The report also noted that overall wireless usage increased more than 40 minutes per month from 1998 to 241 minutes in 1999.
Heavy spenders, defined as those who spend more than $50 per month, increased by nearly 90 minutes to an average of 424 minutes per month.
