Semi-Annual Wireless Industry Survey

CTIA Jan2005

Background

CTIA-The Wireless Association’s Semi-annual wireless industry survey develops industry-wide information drawn from operational member and non-member wireless service providers. It has been conducted since January 1985, originally as a cellular-only survey instrument, and now including PCS and ESMR providers. No break-out of results specific to PCS or ESMR is performed at this time. The information solicited from the service providers includes: cumulative capital investment, direct employment, number of cell sites, total service revenues, roaming revenues as a subset of total service revenues, the average local monthly bill, and the average length of call. The average local monthly bill is developed on a weighted basis, to avoid skewing the figures. It is not an average of averages. No adjustments are made to these figures.

The CTIA survey also develops information on the number of reported wireless service subscribers for the responding systems, and an estimated total subscriber figure (taking into account non-responding systems). Because the CTIA survey is a voluntary survey, it cannot compel responses from wireless carriers. However, the survey has an excellent response rate. For the December 31, 2004, installment of the semi-annual survey, CTIA received responses from companies serving 95.4 percent of wireless subscribers.

Because not all systems do respond, CTIA develops an estimate of total subscribership. The estimated subscriber figure is developed by determining the identity and character of non-responding markets (i.e., RSA/MSA or equivalent-market designation, age of system, market population), and using a surrogate penetration rate applicable to similar, known systems to derive probable subscribership. These numbers are then summed with the reported subscriber numbers to reach the total estimated subscriber figures. No carrier-specific or market-specific information is maintained as a result of the survey. All such information is aggregated by an independent accounting firm to a nationwide level. The underlying source material for the survey is then destroyed per confidentiality agreements.

The following tables and charts reflect selected top-of-the-line data. Complete results of CTIA’s semi-annual survey are available for purchase in the comprehensive report, CTIA’s Wireless Industry Indices: 1985 – 2004, including data on prepaid and toll revenues, subscriber usage, investment, digital subscribership, and other operational indicators and ratios. The report is available for a member price of $850 and a non-member price of $1,075. Subsequent copies are available to members at $475 each and to non-members at $535 each. Annual subscriptions are available at a member price of $1,445 and non-member price of $1,825. The report may be ordered by contacting research@ctia.org or by ordering directly from CTIA’s eStore at http://www.ctia.org/store/categoryresults.cfm?category_id=15. Order forms are also available on CTIA’s web site, at http://files.ctia.org/pdf/Indices_Order_Form.pdf Materials May not be reproduced or photocopied in any form without written permission from CTIA • 2005 CTIA-The Wireless Association

CTIA-THE WIRELESS ASSOCIATION’S
ANNUALIZED WIRELESS INDUSTRY SURVEY RESULTS
DECEMBER 1985 – DECEMBER 2004
Reflecting Domestic U.S. Commercially-Operational Cellular, ESMR and PCS Providers

                      Annualized   Annualized
                    Total Service   Roamer                            Cum. Capital  Avg. Local  Avg. Local
         Estimated     Revenues    Revenues      Cell                  Investment   Monthly     Call Length
Date    Subscribers     ($000)      ($000)       Sites    Employees       ($000)    Bill         (Min)
1985       340,213      $482,428     N/A          913       2,727        $911,167    N/A          N/A
1986       681,825      $823,052     N/A         1,531      4,334      $1,436,753    N/A          N/A
1987     1,230,855    $1,151,519     N/A         2,305      7,147      $2,234,635   $96.83       2.33
1988     2,069,441    $1,959,548     N/A         3,209     11,400      $3,274,105   $98.02       2.26
1989     3,508,944    $3,340,595    $294,567     4,169     15,927      $4,480,142   $89.30       2.48
1990     5,283,055    $4,548,820    $456,010     5,616     21,382      $6,281,596   $80.90       2.20
1991     7,557,148    $5,708,522    $703,651     7,847     26,327      $8,671,544   $72.74       2.38
1992     11,032,753   $7,822,726   $ 973,871    10,307     34,348     $11,262,070   $68.68       2.58
1993     16,009,461  $10,892,175  $1,361,613    12,824     39,810     $13,956,366   $61.49       2.41
1994     24,134,421  $14,229,922  $1,830,782    17,920     53,902     $18,938,678   $56.21       2.24
1995     33,785,661  $19,081,239  $2,542,570    22,663     68,165     $24,080,467   $51.00       2.15
1996     44,042,992  $23,634,971  $2,780,935    30,045     84,161     $32,573,522   $47.70       2.32
1997     55,312,293  $27,485,633  $2,974,205    51,600    109,387     $46,057,910   $42.78       2.31
1998     69,209,321  $33,133,175  $3,500,469    65,887    134,754     $60,542,774   $39.43       2.39
1999     86,047,003  $40,018,489  $4,085,417    81,698    155,817     $71,264,865   $41.24       2.38
2000    109,478,031  $52,466,020  $3,882,981   104,288    184,449     $89,624,387   $45.27       2.56
2001    128,374,512  $65,316,235  $3,752,826   127,540    203,580    $105,030,101   $47.37       2.74
2002    140,766,842  $76,508,187  $3,895,512   139,338    192,410    $126,922,347   $48.40       2.73
2003    158,721,981  $87,624,093  $3,766,267   162,986    205,629    $145,866,914   $49.91       3.07
2004    182,140,362 $102,121,210  $4,210,331   175,725    226,016    $173,793,507   $50.64       3.05

                      Total Six-   Roamer
                       Month       Service                         Cum Capital  Avg. Local  Avg. Local
          Estimated   Revenues     Revenues   Cell                Investment 	 Monthly    Call Length  Avg. Roam
Date    Subscribers   ($000)       ($000)     Sites    Employees  ($000)          Bill        (Min)      Call Length
Jan-85      91,600    $178,085      N/A         346     1,404      $354,760        N/A         N/A         N/A
Jun-85     203,600    $176,231      N/A         599     1,697      $588,751        N/A         N/A         N/A
Dec-85     340,213    $306,197      N/A         913     2,727      $911,167        N/A         N/A         N/A
Jun-86     500,000    $360,585      N/A       1,194     3,556    $1,140,163      N/A           N/A         N/A
Dec-86     681,825    $462,467      N/A       1,531     4,334    $1,436,753      N/A           N/A         N/A
Jun-87     883,778    $479,514      N/A       1,732     5,656    $1,724,348      N/A           N/A         N/A
Dec-87   1,230,855    $672,005      N/A       2,305     7,147    $2,234,635     $96.83         N/A         N/A
Jun-88   1,608,697    $886,075      N/A       2,789     9,154    $2,589,589     $95.00         N/A         N/A
Dec-88   2,069,441  $1,073,473    $89,331     3,209    11,400    $3,274,105     $98.02         N/A         N/A
Jun-89   2,691,793  $1,406,463   $121,368     3,577    13,719    $3,675,473     $85.52         N/A         N/A
Dec-89   3,508,944  $1,934,132   $173,199     4,169    15,927    $4,480,142     $89.30         N/A         N/A
Jun-90   4,368,686  $2,126,362   $192,350     4,768    18,973    $5,211,765     $83.94         N/A         N/A
Dec-90   5,283,055  $2,422,458   $263,660     5,616    21,382    $6,281,596     $80.90         N/A         N/A
Jun-91   6,380,053  $2,653,505   $302,329     6,685    25,545    $7,429,739     $74.56         N/A         N/A
Dec-91   7,557,148  $3,055,017   $401,325     7,847    26,327    $8,671,544     $72.74         N/A         N/A
Jun-92   8,892,535  $3,633,285   $436,725     8,901    30,595    $9,276,139     $68.51         N/A         N/A
Dec-92  11,032,753  $4,189,441   $537,146    10,307    34,348   $11,262,070    $68.68          N/A         N/A
Jun-93  13,067,318  $4,819,259   $587,347    11,551    36,501   $12,775,967    $67.31         2.38        3.38
Dec-93  16,009,461  $6,075,916   $774,266    12,824    39,810   $13,956,366    $61.49         2.41        3.26
Jun-94  19,283,306  $6,519,031   $778,116    14,740    45,622   $16,107,921    $58.65         2.36        2.89

                     Total Six-   Roamer
                       Month      Service                          Cum Capital  Avg. Local  Avg. Local
         Estimated   Revenues    Revenues                          Investment     Monthly   Call Length  Avg. Roam
 Date    Subscribers   ($000)     ($000)    Cell Sites Employees     ($000)        Bill       (Min)      Call Length
Dec-94   24,134,421   $7,710,891  $1,052,666   17,920     53,902    $18,938,678   $56.21       2.24        2.85
Jun-95   28,154,414   $8,749,625  $1,120,337   19,844     60,689    $21,721,711   $52.45       2.27        2.74
Dec-95   33,758,661  $10,330,614  $1,422,233   22,663     68,165    $24,080,467   $51.00       2.15        2.79
Jun-96   38,195,466  $11,194,247  $1,314,943   24,802     73,365    $26,707,046   $48.84       2.24        2.8
Dec-96   44,042,992  $12,440,724  $1,465,992   30,045     84,161    $32,573,522   $47.70       2.32        3.14
Jun-97   48,705,553  $13,134,551  $1,392,440   38,650     97,039    $37,454,294   $43.86       2.25        2.95
Dec-97   55,312,293  $14,351,082  $1,581,765   51,600    109,387    $46,057,910   $42.78       2.31        2.94
Jun-98   60,831,431  $15,286,660  $1,584,891   57,674    113,111    $50,178,812   $39.88       2.34        2.65
Dec-98   69,209,321  $17,846,515  $1,915,578   65,887    134,754    $60,542,774   $39.43       2.39        3.11
Jun-99   76,284,753  $19,368,304  $1,922,416   74,157    141,929    $66,782,827   $40.24       2.40        2.96
Dec-99   86,047,003  $20,650,185  $2,163,001   81,698    155,817    $71,264,865   $41.24       2.38        3.11
Jun-00   97,035,925  $24,645,365  $1,971,625   95,733    159,645    $76,652,358   $45.15       2.48        3.19
Dec-00  109,478,031  $27,820,655  $1,911,356  104,288    184,449    $89,624,387   $45.27       2.56        3.23
Jun-01  118,397,734  $30,905,721  $1,727,058  114,059    186,317    $99,728,695   $45.56       2.62        3.01
Dec-01  128,374,512  $34,410,513  $2,205,768  127,540    203,580   $105,030,101   $47.37       2.74        2.94
Jun-02  134,561,370  $36,707,086  $1,846,267  131,350    186,956   $118,418,677   $47.42       2.60        3.07
Dec-02  140,766,842  $39,801,101  $2,049,245  139,338    192,410   $126,922,347   $48.40       2.73        3.11
Jun-03  148,065,824  $41,384,171  $1,825,243  147,719    187,169   $134,147,049   $49.46       2.63        3.15
Dec-03  158,721,981  $46,239,922  $1,941,024  162,986    205,629   $145,866,914   $49.91       3.07        3.45
Jun-04  169,467,393  $49,275,671  $2,015,799  174,368    212,186   $156,700,380   $49.49       3.06        3.45

Estimated Subscribers
Year-End 2004 Estimated Wireless Subscribers
Second Highest Growth Year Ever: Up 23.4 Million from 2003

Total Six-Month Service Revenues (000s)
Total Wireless Service Revenues Reach Almost $53 billion for Last Six Months of 2004
- Total Annual Revenues Reach More Than $102 Billion for 2004

Cumulative Capital Investment (000s)
Cumulative Capital Investment Reaches Almost $174 Billion at Year-End 2004 –
Most Recent Year Is More Than First Ten Years of Wireless Investment

Reported Wireless Minutes of Use Exceed One Trillion in 2004
Reported Wireless Minutes of Use Grow 32.7 Percent Year-over-Year

Average Local Monthly Bill
Average Local Monthly Bill Grows 1.5 Percent Year-over-Year
- Average Customer Usage Grows 15 Percent

Cell Sites
Operational Cell Sites Grow 7.8 Percent Year-over-Year

Direct Carrier Employees
Direct Wireless Carrier Employment Grows 10 Percent Year-over-Year
Direct Employment Exceeds 226,000 at Year-End 2004

source: http://www.ctia.org/research_statistics/statistics/index.cfm/AID/10030 18jul2005