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IDC Forecast Anticipates Decline In Total Voice Revenue in 2008-2009 for the U.S. Consumer Wireless Industry

FRAMINGHAM, MA - March 29, 2006 - Although the U.S. wireless service provider industry rocketed ahead in 2005, adding approximately 21.8 million new subscribers, IDC finds the U.S. consumer wireless industry rapidly approaching key turning points in 2006. With subscriber growth slowing and continued voice average revenue per user (ARPU) erosion factors, total voice revenue is expected to decline in the 2008-2009 timeframe.
The U.S. wireless service provider industry had another stellar year in 2005, crossing the 200 million subscriber and 70% market penetration thresholds, receiving positive market response to the first handset-based 3G applications, and with providers reporting they had crossed the 10% data ARPU level. Another key dynamic in 2005 was that mobile virtual network operators (MVNO) moved into the market entry phase; two key roles that MVNOs will play over the forecast period are to force the broader wireless service provider market to adopt a retail market model approach and to increase the overall level of service provider competition.

Stock Option Trading "Total voice service revenue declines late in the forecast period will jolt an industry accustomed to 25 years of voice revenue growth and further emphasize the importance of data services to the future of the industry. With the wireless subscriber market approaching saturation, driving further adoption usage of data services will be critical to maintaining total ARPU and service growth in light of continuing voice ARPU erosion," says Scott Ellison, program director, Wireless and Mobile Communications at IDC.

Last November, IDC forecast that computer shipments would rise 8.9% in 2007. despite Microsoft Vista's delay. If any thing, IDC believes that some consumers will make the choice to wait until Microsoft begins offering Vista for Windows before purchasing a new computer, which may be why its 2007 forecast was higher. Loren Loverde, an IDC analyst, was quoted as saying, "The delay will probably have a larger impact on PC vendor and Microsoft marketing efforts rather than on overall shipment numbers."

Currency Day Trading The key market dynamics over the forecast period include: the slowing of total subscriber growth; increasing levels of competition from MVNOs, followed by further service provider consolidation; market model evolution among established national wireless service providers from a utilities-type market model to a retail market model; continued voice ARPU erosion; strong data revenue growth offsetting emerging data pricing erosion; the increasingly critical role of content and entertainment in driving data service revenue; strong business market growth; new and emerging user segments; new uses of wireless contributing to continued subscriber and total revenue growth over the forecast period; and total average ARPU remaining relatively stable across the forecast period.

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Financial Software Trading This IDC study, U.S. Wireless Consumer 2006-2010 Forecast: Ways Around The Walls Ahead (IDC #34960), examines the U.S. wireless consumer market, which is expected to continue steady but declining growth in both subscriber and total revenue services growth over the course of the forecast period. Key market dynamics like the role of MVNOs and slowing subscriber growth are examined, as are competitive strategies for U.S. service providers.

was put in the uncomfortable position yesterday of having to announce that it downwardly revised its expected revenues for its fiscal quarter ending on March 31st. The company issued a statement indicating it expected to revenues of roughly $ 525 million instead of the previously forecasted $ 750 million. The news hit the company hard today with the open of trading on wall street. EA's stock saw a sharp decline, shedding nearly a full $10 off of its prior day's closing price of $66.35.

Online Stock Trading Company To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

Buyer expectations, at their lowest in January, peaked in the summer, and since then have been trending slowly down. "Together, " says Gantz, "these supply and demand side indicators point to a growth in IT spending in 2005 between 4%-8%, which perfectly brackets IDC's current forecast for U.S. IT spending of 5.8%. But the indicators are still showing a disparity between forecasts of vendor revenues and buyer expectations of IT spending growth. That will obviously even out as 2005 progresses."

Forex Day Trading About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

"Some of the emerging companies presented in this study focus on enhancing wireless interaction between consumers as well as between consumers and data sources, - two key trends that are now shaping the direction of the entire wireless industry, " says Julien Blin, research analyst for IDC's Wireless and Mobile Communications.

Financial In Market IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at http://www.idc.com.

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Day Trading Stock Tip Source: IDC

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