Wireless Spending To Grow 10% Annually, Study Says

MANHASSET, N.Y. — Total U.S. spending on wireless communications will grow 9.3 percent in 2005 to $158.6 billion, according to the Telecommunications Market Review and Forecast published by the Telecommunications Industry Association (TIA). The report predicts the wireless market will grow at a 10 percent compound annual growth rate (CAGR) through 2008, reaching $212.5 billion. Revenue in 2004 totaled $145.1 billion, up 11.6 percent from 2003.The report categorizes the U.S. wireless market as consisting of transport services, handsets, capital expenditures and infrastructure equipment including Wi-Fi equipment, plus the emerging market for broadband access equipment and professional services supporting wireless infrastructure. The study predicts the U.S. wireless subscriber base will continue to expand, but at single-digit rather than double-digit rates as the wireless subscriber market reaches maturity. Rising prices associated with new applications and plans such as wireless Internet access, text messaging, instant messaging, ring tones, wireless games, multimedia messaging services and Wi-Fi technologies are expected to drive the market.After slowing in 2001 and 2002, wireless handsets rose at double-digit rates in 2003 and 2004, reaching $10.1 billion and $11.0 billion respectively. Spending on wireless handsets will grow at a 6 percent CAGR from $11.5 billion in 2005 to $13.8 billion in 2008, according to the TIA.