AUSTIN, Texas-More than half of all cellular and broadband personal communications services are sold through the retail channel, said IDC/Link Resources of Austin, Texas, in a recent report on distribution channels. The study grouped cellular and PCS offerings together.
IDC reported the current average channel mix for cellular/PCS is 50 percent retail, 25 percent direct, 20 percent company-owned stores and 5 percent telemarketing. The firm expects the distribution of the mix to stay about the same for the next five years.
Revenue per subscriber per month for cellular/PCS carriers is expected to decline from $57 per month this year to $38 per month in 2001.
IDC said these figures suggest carriers must continue decreasing activation costs, which average $239 per subscriber. The company forecasts the number will fall to $105 by 2001.
Current activation costs vary significantly from $70 on the low end, in the telemarketing channel, and $396 on the high end, through company-owned stores.
IDC said it expects growth in the consumer market will lead to greater emphasis on brand equity. The company said it expects deregulation will result in more product bundling and one-stop shopping. Off-the-shelf products will become more important as well.
