US consumer wireless ARPU to reach $48 in 2009, business ARPU to grow to $74 in 2009

The US wireless industry opened 2005 with strong forward momentum following a banner year in 2004 that witnessed the addition of new wireless subscribers and the launch of 3G consumer devices. While this trend is expected to continue through 2005, it is inevitable that there will be an eventual slowdown as subscriber penetration surpasses 75% of the US population, leading to heightened competition brought on by the absence of first-time subscriber opportunities.

The US wireless industry opened 2005 with strong forward momentum following a banner year in 2004 that witnessed the addition of new wireless subscribers and the launch of 3G consumer devices. While this trend is expected to continue through 2005, it is inevitable that there will be an eventual slowdown as subscriber penetration surpasses 75% of the US population, leading to heightened competition brought on by the absence of first-time subscriber opportunities.

As wireless providers introduce a range of new data services, IDC forecasts that US consumer wireless ARPU will trend slowly upward to $48 in 2009. US business wireless ARPU will also steadily grow to $74 in 2009.

By the end of 2007, IDC expects the main focus of the market will become subscriber upgrades to 3G devices and the adoption of 3G data services, including a strong business subscriber shift toward 3G. As wireless subscriber market reaches near-total saturation in 2008-09, IDC forecasts both increased voice pricing pressures and renewed focus on driving wireless data revenue to replace and augment declining voice ARPU. 3G wireless services will provide carriers with the opportunity to diversify revenue streams and position themselves as core voice and data communications providers to both consumers and business users.

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