SMB Wireless Usage Skyrocketing, Survey Finds

July 19, 2004

Spending on wireless voice and data services by small and medium-sized businesses (SMBs) will grow by 93 percent this year, according to a survey released Monday by Yankee Group.

The survey also found that wireless spending by SMBs represents 45 percent of their total telecommunications expenditures. That is a significantly larger percentage than is the case in large enterprises, the market research firm said in a statement.

"Wireless solution providers and wireless operators cannot ignore the SMB market," Eugene Signorini, Yankee Group's wireless/mobile enterprise and commerce program manager said. "What SMBs lack in size they make up for in volume."

The study company counts all businesses with between 2 and 499 employees as small businesses and that, according to the government, there are five million businesses in that category. The study found that Verizon Wireless is the leading wireless provider to large enterprises, but that market leadership is fragmented in small businesses.Specifically, the survey found that AT&T Wireless was the leader among companies with between 250 and 499 employees and Nextel led among businesses between 100 and 249 employees. Sprint was the leading wireless provider for businesses with between 50 and 99 employees