# Presentation: 211316

## Sixth Annual CMRSCompetition Report

**Opening Remarks**
**June 20, 2001**

- Sixth Annual CMRSCompetition Report

## Charting the Growth in the Mobile Telephone Industry: 1993 - 2000

**UP**
**543%**
** ****From $14 **
**Billion as of **
**1993**

**Subscribers**

**Jobs**

**Capital**
**Investment**

**Price per minute**

**109 Million**
**Subscribers in 2000**

**184,449 Jobs in**
**2000**

**$89.6 Billion**
**Invested as of 2000**

**$0.21 Per Minute in 2000**

- Source: Cellular Telecommunications & Internet Association; The Strategis Group, 2001

**UP**
**82%**
** ****From 140 MOUs as of 1993**

**Minutes of Use**

**255 Average Monthly MOUs in 2000**

## Total US Commercial Wireless Subscribers: 1992 to 2000

- Source: Cellular Telecommunications & Internet Association, Strategis Group

## Mobile Telephone Competition

- Source: Federal Communications Commission

- Average Price Per Minute for Mobile Telephone Service

- Source: The Strategis Group, 2001

## Average Local Monthly Bill1993 to 2000

- Source: Cellular Telecommunications & Internet Association

## Average Minutes-of-Use per Month1993 to 2000

- Source: Cellular Telecommunications & Internet Association

## Major Carriers Expanded Nationwide Networks

- Six nationwide or nearly-nationwide carriers
- Acquisitions
- Mergers
- License swaps
- Partnerships

- Sprint PCS
- Verizon Wireless
- VoiceStream

- AT&T Wireless
- Cingular
- Nextel

## Tom Sugrue Has Added Minutes and Lowered His Monthly Bill...

**210**** **
**Anytime ****Minutes**

**$40**
**per month**

**$35**
**per**** ****month**

**150**** **
**Anytime**
**+**
**2000**** **
**Weekend Minutes**

- Source: Sugrue family budget

## Wireline Substitution in theWiener-Goldstein Household

- Wireline Substitution in theWiener-Goldstein Household

**Monthly Access**
- (unlimited local calling,
- includes SLC)

**3 Vertical Services**
- (Call waiting, CallerID,
- Voicemail)

**Long Distance**
- (100 minutes
- @ 7¢/minute)

**Wireline**
- (3rd line, Maryland)

**Wireless**
- (Verizon Wireless DigitalChoice)

**$22.00**

**$34.99**

**$16.49**

**$7.00**

**Monthly Access**
- (200 peak and
- 1500 off-peak minutes)

**$0.42 Universal Service Fee**
**$0.60 911 Surcharge**
**$2.83 Federal & State Taxes**

**$0**

**Total Cost = $47.29**

**Total Cost = **
**$38.84**

**Long Distance and Vertical Services**

**$3.62 Universal Service Fee**
**$0.60 911 Surcharge**
**$1.14 Miscellaneous Fee**
**$1.85 Federal & State Taxes**

## International Comparisons:Wireless Penetration: YE 2000 

- Source: *The Cellular Review, *Bearn Stearns, Feb. 12, 2001, at 7 (Europe)*; Subscriber Count: Cellular Telephone Subscription by Country, *Asiacom, at 12 (Japan & China); Cellular Telecommunications & Internet Association (December 2000).

## Prepaid as a Percentage of Total Subscriber Base

- Source: *Mobile Matters, *JP Morgan,  March 2001, at 10 (Europe); Johnathan Burns, *Tales Of The Tape:Prepaid Wireless A New Way Of Wireless*, Dow Jones Newswire, Jan. 29, 2001 (citing Knox Bricken of the Yankee Group).

## International Comparisons:Total Subscribers: YE 2000

- Source: *Mobile Matters, *JP Morgan,  March 2001, at 11-12 (Europe)*; Subscriber Count: Cellular Telephone Subscription by Country, *Asiacom, at 12 (Japan & China); Cellular Telecommunications & Internet Association (December 2000).