Biggest Year Yet! Wireless Industry Reports 25.2 Million New Subscribers.

SAN FRANCISCO -- Releasing its semi-annual industry survey at the CTIA WIRELESS I.T. and Entertainment Show in San Francisco, the wireless industry reported the largest one-year addition of new subscribers since it first offered commercial service in 1983. In the 12-month period between June 2004 and June 2005, more than 25.2 million subscribers came online.

"Does this look like a mature industry to you," asked CTIA-The Wireless Association President and CEO Steve Largent. "Here we are, in our 23rd year of service, enjoying our best year yet. It really speaks volumes for how competitive markets are allowing consumers to choose wireless as their primary means of communication in America."

Largent pointed to a U.S. wireless penetration rate of roughly 65% and predicted that more growth is on the way. "When you look at countries in other parts of the world with penetration rates exceeding 100%, it's only logical to predict that subscriber growth in the U.S. is far from over," said Largent.

In addition to record subscriber growth, the CTIA Semi-Annual Wireless Industry Survey also reported an enormous increase in SMS traffic and revenue from data services. In the month of June alone, more than 7.2 billion SMS messages were sent through the wireless network. In June of 2004, just 2.8 billion SMS messages were sent. Revenue from text messaging/SMS traffic skyrocketed to $1.24 billion, a 154% increase from the previous year.

Also, revenue from data services such as music and content downloads, game playing and web access registered strong gains. Six-month data revenue increased to nearly $3.8 billion in June of 2005, up more than 85% from the same time last year.

"The evolution of wireless continues," declared Largent. "While voice is still our main driver, we are seeing strong evidence that consumers are using their wireless devices for so much more than just a phone."

The industry survey also showed year-over-year increases in cell site construction, employment, total six-month revenue, minutes of use and total capital investment. Year-over-year, the average local monthly wireless bill increased 3 cents to $49.52. However, it decreased $1.12 from December 2004.

A summary of the survey is available at www.ctia.org.

CTIA is the international association for the wireless telecommunications industry, representing carriers, manufacturers and wireless Internet providers.

www.ctia.org