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Wireless Subscriber Growth Will Slow Due to Market Saturation Between 2008 and 2013
added: 2008-08-16

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that wireless subscriber growth is slowing due to market saturation, with US carriers adding only 26 million new subscribers in the next five years to reach 266 million in 2013.

Adoption by teens and young adults will become nearly ubiquitous as the majority of the demographic already have cell phones, and 31 percent of parents with children ages 10 to 12 reported that their children also have cell phones.

According to a new JupiterResearch report, "US Wireless Forecast, 2008 to 2013: Reaching the Tipping Point for Mobile Data Services," cell phones are evolving from a one-to-one communication platform into a one-to-many platform as online users migrate toward social networks as a center of communication. Although this transition is just beginning, its impact on the mobile data market is significant.

Data access fees will soon represent the bulk of non-messaging data revenue for carriers. Sales of devices that are optimized for more than voice, and targeted toward consumers with lower price points, improved browsing experiences, and access to social networking services are on the rise. Moreover, widgets will become standard on basic feature phones, enabling users to engage with the Internet while avoiding the challenges of browsing on a small screen.

"Devices like the iPhone that now offer faster network speeds and unlimited data plans at affordable prices will drive adoption of data plans within the next five years," explained Julie Ask, Vice President, Research Director and Lead Author of the report for JupiterResearch. "The associated revenue of nearly $16 billion in 2013 will represent the largest portion of overall consumer data revenue."

According to David Schatsky, President of JupiterResearch, "Consumers' increasing desire to access social applications such as Facebook on their cell phones, coupled with flat-rate pricing plans, will give carriers the opportunity to capitalize on this revenue shift."


Source: PR Newswire

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