wireless telecommunications bureau wireless telecommunications overview january 2009

Wireless Telecommunications Bureau

Wireless TelecommunicationsOverview

January 2009


Mobile Telephone Service Trends (June 2005 - June 2008)

DOWN19%

From $0.08 per minute

in 2005

Subscribers Photo /Video

Messages

Price per minute

263 MillionSubscribers in

2008

Price per minute 6.5¢ in

2008

Source: CTIA – The Wireless Association; FCC.

UP

21%Increase of 128 MOUs from 2005

Minutes of Use

751 Average Monthly MOUs in

2008

UP35% 68 Million

More Subscribers

than 2005

UP954%544 Billion

More Messages

than in 2005

Text / SMS

Traffic

601 Billion Messages

in 2008

UP1875%

5.3 Billion More

Messages than in 2005

5.6 Billion Messages

in 2008

Promoting Competition Across Technology Platforms - Wireless


263243

220

194169

148135

11897

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008

Su

bsc

rib

ers

(M)

Source: CTIA-The Wireless Association, as of June of each year.

Total U.S. Mobile Wireless Subscribers


$0.065$0.068$0.071$0.079

$0.090$0.106

$0.119

$0.145

$0.204

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

2000 2001 2002 2003 2004 2005 2006 2007 2008

Price Per Minute for Mobile Telephone Service

Source: Calculated using ALMB and Average Minutes of User per Subscriber per Month measures from CTIA-The Wireless Association. As of June of each year.


Source: FCC, as of mid-2008. Estimates are based on Census Blocks using 2000 Census.

Mobile Telephone Competition and Rollout

Estimated Mobile Telephone Rollouts by Census Block

Total Number of Providers in a Census Block

% of Total U.S. POPs

At least 1 Provider 99.6%

At least 2 Providers 98.5%




Comparing Wireless Markets – U.S. vs. Overseas

740

142 145162 137

852

0

100

200

300

400

500

600

700

800

900

US Western Europe Japan

Min

ute

s o

f U

se (

MO

Us)

MOU 2Q05

MOU2Q08

Source: Merrill Lynch, Global Wireless Matrix

0.06

0.25

0.32

0.05

0.20

0.25

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

US Western Europe Japan

Rev

enu

e P

er M

inu

te (

RP

M)

US

D

RPM 2Q05 RPM 2Q08

Source: Merrill Lynch, Global Wireless Matrix

Average Minutes-of-Use per Month

Price per Minute


Photo and Video Messages (millions)

2851,139

2,605

5,628

0

2,000

4,000

6,000

2005 2006 2007 2008

Tot

al M

essa

ges

(m)

57113

241

601

0

200

400

600

800

2005 2006 2007 2008

Tot

al T

ext

Mes

sage

s (b

)

Text/SMS Messages(billions)

Source: CTIA-The Wireless Association (2005-2008) Annualized, June to June.

Growth in Mobile Messaging Services

Source: CTIA-The Wireless Association (2005-2008) Annualized, June to June.


Fostering Innovation Through Open Technology Platforms

In 2005, and until only very recently, most wireless carriers operated “closed” networks.

In July 2007, the FCC adopted an “open platform” rule for one-third of the 700 MHz spectrum auctioned in early 2008 (the “C Block”).

Verizon Wireless, AT&T, T-Mobile, and New Clearwire have announced plans to deploy open platforms when not mandated by FCC regulation.


0

100

200

300

400

500

600

Pre-1994 1994-1997 2005-2009

MH

z

BRS/EBS

AWS-I

700 MHz

BroadbandPCS

SMR

Cellular

Newly Opened

Spectrum

Source: FCC

Opening Additional Spectrum for Efficient Use For Mobile Wireless Broadband Services


Licenses Won by Providers Other Than Incumbent Telephone or Cable Company

Licenses Won by Block

A (307 licenses)

B (643 licenses)

C (5 licenses)

Note: Map includes 700 MHz A, B, and Upper C Block licenses in the 50 states won by bidders in areas without wired networks.


Comparison of 700 MHz and AWS-1 Auction Revenues vs. All Others

700 MHz & AWS I auctions$32.8B

All other auctions$19.1B

Note: 700 MHz Auction revenues do not account for bidding credits. (FCC, April 2008)

700 MHz Auction$19.1B

All other auctions$19.1B

AWS-1 Auction$13.7B


Advancing Broadband Deployment

Classified Wireless Broadband Internet Access as an information Service - placing it on the same footing as DSL, cable modem, and broadband-over-powerline (BPL).

Adopted more stringent performance requirements for commercial 700 MHz licenses - promoting deployment of broadband especially to rural areas.

Finalized rules for transition of 2.5 GHz spectrum to its new band plan - transition is now complete in markets serving 86% of the U.S. population.

Adopted an innovative “hybrid” licensing regime for the 3650-3700 MHz band to facilitate access to, and intensive use of, the band.


Advancing Broadband Deployment –

Marketplace Developments


Mobile Broadband Coverage Over Time

2008

2005


Mobile Broadband Devices In Use(millions)

0.4

11.0

35.3

0

10

20

30

40

50

Jun-05 Jun-06 Jun-07

Dev

ices

in U

se (

mill

ion

s)

Source: FCC


Wireless TelecommunicationsOverview

January 2009

wireless telecommunications bureau wireless telecommunications overview january 2009

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