March 22, 2005

US Mobile Growth Defies Conventional Wisdom

This is the first document in the "State Of Mobile 2005" series.

by Charles S. Golvin

with Chris Charron, Sally M. Cohen, Tenley McHarg

Executive Summary (This is a document excerpt)

US consumers continue to embrace mobile phones at a significant rate, defying predictions of saturation. By the end of 2004, two-thirds of all households had a mobile phone, and households with mobile service averaged 1.8 phones. While handset makers continue to cram new features like cameras and color screens into their phones, consumers still say that what's most important are basics like battery life and price. Prepaid wireless has increased in popularity, doubling its share of households in the past two years. The billions of dollars that carriers have invested in their networks in the past two years have not translated to increased customer satisfaction — although fewer customers report a high level of dissatisfaction today than did in 2002.

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