U.S. Consumer Wireless 2005-2009 Forecast: Growth Obscures Fundamental Shifts

This IDC study examines the U.S. wireless consumer market and presents a 2005–2009 forecast for wireless subscribers and revenue. The continued strong growth of the U.S. wireless service market is obscuring fundamental shifts in the market. Wireless providers must increasingly take a retail market approach rather than a telco market approach, are now generally partnered with other providers in business models that do not support their longer-term strategies, have yet to fully recognize the true potential of family share plans, and are faced with a wireless broadband market that is evolving ever more rapidly.

"The U.S. wireless provider market has gone from voice-only to delivering TV programming to handsets in less than 1,000 days," notes Scott Ellison, program director, Wireless and Mobile Communications. "This dizzying rate of evolution is overshadowing fundamental market shifts that wireless providers must recognize, such as the need to focus on retail market approaches, the creation of a simplified and consistent brand experience for customers, and the fact that wireless broadband will reach broader customer segments sooner if customers are offered compelling experiences relevant to them rather than simply a list of ever growing offerings from which to choose on their own."