Wireless Industry: Defying Economic Trends with Growth and Investment.

Business Editors/High-Tech Writers

CTIA Wireless 2003

NEW ORLEANS--(BUSINESS WIRE)--March 17, 2003

Tom Wheeler, President and CEO of the Cellular Telecommunications & Internet Association (CTIA), and Tim Donahue, President and CEO of Nextel Communications and Chairman of the Board of CTIA, today announced a range of wireless metrics from the Day One keynote stage of CTIA WIRELESS 2003 in New Orleans.

"Let's start with an industry that had almost 141 million subscribers at the end of 2002," said Wheeler. "That's about 10% growth since December 2001, at the same time other telecom segments are losing ground."

"During 2002 total wireless minutes of use increased 36% over 2001! And in the last six months of 2002 individual wireless subscribers' usage grew faster than in the first six months," added Donahue.

Wheeler and Donahue also exulted at the expansion of the wireless data market. "The growth in wireless data revenue suggests that we are on track for data revenue in 2003 easily in excess of $1 billion," said Wheeler.

"For the last six months of 2002 the wireless industry did almost half a billion dollars in non-voice data revenue. From December '01 to December '02 data revenue grew by 33%," added Donahue.

Total Six-Month Service Revenues Rise 16% -- U.S. wireless carriers earned service revenues of $39.8 billion in the last six months of 2002, up from $34.4 billion for the last six months of 2001.

Minutes of Use Up More Than 35% -- Total billable minutes of use (MOU) for 2002 reached 619 billion -- up 35% from 456 billion for 2001.

Wireless Investment Up Nearly 21% -- Wireless carriers reported $126.9 billion in total cumulative capital investment as of December 2002 -- up 20.8%, from $105 billion, as of December 2001.

Total Wireless Subscribership Up Nearly 10% -- Overall wireless subscribership increased to 140.8 million by December 2002, from 128.4 million as of December 2001.

Digital Penetration Reaches Nearly 89% -- The digital penetration rate increased 15.6% since December 2001, to almost 89% of all reported subscribers.

CTIA's Semi-Annual Wireless Industry Survey develops industry-wide information drawn from operational member and non-member wireless service providers, including Cellular, PCS and ESMR providers. The information collected includes: cumulative capital investment, total service revenues, roaming revenues, the average local monthly bill and the average length of call. For more information on CTIA's Semi-Annual Wireless Industry Survey, including additional data, charts and tables and background information, please go to www.wow-com.com/industry/stats/surveys.

Complete results of CTIA's Semi-Annual Wireless Industry Survey are available for purchase in the upcoming comprehensive report, CTIA's Wireless Industry Indices: 1985 - 2003, 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. The report may be ordered by contacting [e-mail]. Order forms are available at CTIA's Web site www.wow-com.com/industry/stats/surveys/articles.cfm?ID=228.

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

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