Since 2003, market concentration has increased 32% and 6.5% in the most recent year of available data, the FCC said. The report indicates that 60% of the nation's subscribers and revenue come from the country's two largest wireless providers: AT&T and Verizon Wireless. The FCC noted that these companies are continuing to gain customers while other national operators, Sprint Nextel and T-Mobile USA, have been losing subscribers.
Despite the economic downturn, wireless services delivered close to $100 billion in "value added" contributions, according to CTIA, a Washington, D.C.-based trade group representing wireless companies. The report also said that wireless providers directly employ more than 268,000 people, a six percent increase year-over-year for the last four years.
Capital investment for the first half of 2009 totaled $8.9 billion, a seven percent drop from the first half of 2008, according to data from the CTIA, and capital expenditures declined from 22% in 2005 to 14% in 2008.
AT&T expressed concern over the results, saying that the FCC's reluctance to acknowledge the market's success may lead to more regulation, which would increase competition for consumers who are demanding more data plans on their mobile handsets.
Sprint said that in order for competition to continue, changes must be made to the regulatory structure governing the universal service fund system, switched access, and special access. The CTIA said it was disappointed that the FCC chose not to find effective competition in the marketplace. The commissioners approved the report 5-0, with the two agency Republicans voting to "concur" to show their displeasure.
