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Thomas J. Sugrue
Opening Remarks
June 13, 2002
Seventh Annual CMRSCompetition Report
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Total US Commercial Wireless Subscribers: 1992 to 2001
11 1624
3444
5569
86
110
128
0
30
60
90
120
150
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mil
lion
s of
Sub
scri
bers
Source: Cellular Telecommunications & Internet Association, 2002.
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Mobile Telephone Competition
2.5%8.9%
65.5%
78.3%
90.8%
84.4%
75.1%
46.7%
11.9%
94.1%88.7%
21.5%
53.5%
80.6%
0%
20%
40%
60%
80%
100%
3 or more 4 or more 5 or more 6 or more 7 or more
Number of Competitors in a County
Per
cen
t of
U.S
. Pop
ula
tion
1995
1997
2001
2002
Source: Federal Communications Commission, April 2002
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Average Revenue Per Minute for Mobile Telephone Service
Source: Calculated using Average Local Monthly Bill and Average Minutes of User per Subscriber per Month from Cellular Telecommunications & Internet Association, 2002.
$0.44$0.47
$0.43
$0.38 $0.37
$0.29
$0.22
$0.18
$0.12
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
1993 1994 1995 1996 1997 1998 1999 2000 2001
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Average Local Monthly Bill1993 to 2001
$61.49$56.21
$51.00$47.70
$42.78$39.43 $41.24
$45.27 $47.37
$0.00
$16.00
$32.00
$48.00
$64.00
1993 1994 1995 1996 1997 1998 1999 2000 2001
Ave
rage
Loc
al M
onth
ly B
ill
Source: Cellular Telecommunications & Internet Association, 2002
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Average Minutes-of-Use per Month1993 to 2001
140119 119 125 117
136
185
255
385
0
50
100
150
200
250
300
350
400
1993 1994 1995 1996 1997 1998 1999 2000 2001
Ave
rage
MO
Us
Per
Su
bsc
rib
er P
er M
onth
Source: Cellular Telecommunications & Internet Association, 2002; Calculated using reported billable MOUs, which includes local, roaming, and prepaid minutes.
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• $40 per month
• 2 lines
• 210 shared minutes per month
• DC-Baltimore metro area
Kerry Sugrue Joins Sugrue Family Plan for Wireless Services
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$0
$40
$80
$120
$160
April May June July August September
Sugrue Family Gets the Bill
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Kerry Sugrue Leaves Sugrue Family Plan
But Finds Wireless Happiness With Her Own Plan
• $35 per month• 300 anytime minutes per month• 3000 nights & weekend minutes• Large regional calling area• No roaming• Long distance included• Voicemail, caller ID, call waiting, etc.
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Don´t Let What Happened To My Daughter Happen To Yours
Read the new CGB/WTB
Wireless Phone Service Booklet for more information on wireless phone
service.
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Wall Street Concerns
• Impact of “telecom bust” and general economic downturn
• Wireless growth slowing
• Too much competition?
• High cost of infrastructure expenditures
• What is the market potential for advanced wireless services?
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Year-to-Year Growth in Wireless Subscribers
24%26% 25%
51%
45% 40%
30%27%
17%
0%
10%
20%
30%
40%
50%
60%
1993 1994 1995 1996 1997 1998 1999 2000 2001
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Total Additional SubscribersYear-to-Year
4.97
8.139.66 10.25
11.27
13.89
16.8
18.9
23.5
0
5
10
15
20
25
1993 1994 1995 1996 1997 1998 1999 2000 2001
Source: Year-to-year additions based on subscriber data from Cellular Telecommunications & Internet Association, 2002.
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Cumulative Capital Investments1993 to 2001
Source: Cellular Telecommunications & Internet Association, 2002.
$105,030,101
$13,946,406
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$ th
ousa
nd
s
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14
1924
27
33
40
52
65
$0
$10
$20
$30
$40
$50
$60
$70
1994 1995 1996 1997 1998 1999 2000 2001
$ B
illio
n
Total Yearly Service Revenues1994-2001
Source: Cellular Telecommunications & Internet Association
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51%
61% 60%
69%62%
50%
0%
25%
50%
75%
12-17 18-24 25-29 30-34 35-54 55 andover
Age Group
Percentage Who Own a Mobile Phone February 2002
Source: Upoc and Frank N. Magid & Associates