BOSTON-The U.S. cellular market will grow 6 percent annually during the next five years, resulting in penetration of almost 70 percent, according to a new report from research firm Strategy Analytics.
This year, Strategy Analytics expects Verizon Wireless to lead the market; Sprint PCS to gain ground with data services and its Virgin Mobile partnership; T-Mobile U.S.A. Inc. to continue to report high net additions; Cingular Wireless to lose ground with AT&T Wireless Services Inc. fighting it for second place; Nextel Communications Inc. to lead carriers in ARPU; and service revenues for the industry to be up 9 percent to $93 billion.
Analysts predict that in five years, wireless minutes sold will double to 1.6 trillion, and operator service revenues will near $133 billion. The firm also expects that in 2008, CDMA will still make up the largest proportion of cellular users in the United States, with GSM steadily progressing. Voice traffic volumes will have more than doubled.
