This new report from Technology Futures provides an update to our 1993 and 1995 forecasts of growth in cellular/PCS subscribers and usage and their impact on the wireline operations of local exchange carriers.
To date, cellular service has primarily been a complementary service to wireline service in North America. This is expected to change as the new PCS providers bring ample capacity online to compete directly with the local exchange carriers, first for usage and ultimately for access. Some competition will come without apparent deliberate effort by wireless providers -- customers will simply use their wireless phones more at the expense of wireline.
The business case for competition with wireline is simple. Major wireless providers and any number of resellers and small providers will have digital technology, which will increase capacity, battery life, and quality -- at lower costs. More capacity, falling costs, and more competitors will result in lower prices -- which inevitably will result in more customers and higher usage. With more wireless customers and lower prices, usage and ultimately access will be diverted from wireline.
This comprehensive report:
Analyzes the competitive threat to the local exchange carriers from the wireless alternative for voice communications.
Reports the competitive threats in terms of key variables, including access lines lost and message and non-message revenue lost.
Gives a view of the industry trends for the next 10 years and longer, including wireless subscribership and price.
Includes TFI's latest life estimates of the LEC copper distribution infrastructure.