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Wireless Telecommunications Overview

Wireless Telecommunications Overview. January 2009. UP 21% Increase of 128 MOUs from 2005. UP 954% 544 Billion More Messages than in 2005. UP 1875% 5.3 Billion More Messages than in 2005. UP 35% 68 Million More Subscribers than 2005. DOWN 19% From $0.08 per minute in 2005.

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Wireless Telecommunications Overview

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  1. Wireless Telecommunications Overview January 2009

  2. UP 21% Increase of 128 MOUs from 2005 UP 954% 544 Billion More Messages than in 2005 UP 1875% 5.3 Billion More Messages than in 2005 UP 35% 68 Million More Subscribers than 2005 DOWN 19% From $0.08 per minute in 2005 Mobile Telephone Service Trends (June 2005 - June 2008) Promoting Competition Across Technology Platforms - Wireless 263 Million Subscribers in 2008 601 Billion Messages in 2008 5.6 Billion Messages in 2008 Price per minute 6.5¢ in 2008 751 Average Monthly MOUs in 2008 Price per minute Subscribers Minutes of Use Photo /Video Messages Text / SMS Traffic Source: CTIA – The Wireless Association; FCC.

  3. Total U.S. Mobile Wireless Subscribers Source: CTIA-The Wireless Association, as of June of each year.

  4. Price Per Minute for Mobile Telephone Service Source: Calculated using ALMB and Average Minutes of User per Subscriber per Month measures from CTIA-The Wireless Association. As of June of each year.

  5. Mobile Telephone Competition and Rollout Source: FCC, as of mid-2008. Estimates are based on Census Blocks using 2000 Census.

  6. Comparing Wireless Markets – U.S. vs. Overseas Average Minutes-of-Use per Month Price per Minute

  7. Photo and Video Messages (millions) Growth in Mobile Messaging Services Text/SMS Messages(billions) Source: CTIA-The Wireless Association (2005-2008) Annualized, June to June. Source: CTIA-The Wireless Association (2005-2008) Annualized, June to June.

  8. Fostering Innovation Through Open Technology Platforms • In 2005, and until only very recently, most wireless carriers operated “closed” networks. • In July 2007, the FCC adopted an “open platform” rule for one-third of the 700 MHz spectrum auctioned in early 2008 (the “C Block”). • Verizon Wireless, AT&T, T-Mobile, and New Clearwire have announced plans to deploy open platforms when not mandated by FCC regulation.

  9. Opening Additional Spectrum for Efficient Use For Mobile Wireless Broadband Services

  10. Licenses Won by Block A (307 licenses) B (643 licenses) C (5 licenses) Licenses Won by Providers Other Than Incumbent Telephone or Cable Company Note: Map includes 700 MHz A, B, and Upper C Block licenses in the 50 states won by bidders in areas without wired networks.

  11. 700 MHz Auction $19.1B All other auctions $19.1B AWS-1 Auction $13.7B Comparison of 700 MHz and AWS-1 Auction Revenues vs. All Others All other auctions $19.1B 700 MHz & AWS I auctions $32.8B Note: 700 MHz Auction revenues do not account for bidding credits. (FCC, April 2008)

  12. Advancing Broadband Deployment • Classified Wireless Broadband Internet Access as an information Service - placing it on the same footing as DSL, cable modem, and broadband-over-powerline (BPL). • Adopted more stringent performance requirements for commercial 700 MHz licenses - promoting deployment of broadband especially to rural areas. • Finalized rules for transition of 2.5 GHz spectrum to its new band plan - transition is now complete in markets serving 86% of the U.S. population. • Adopted an innovative “hybrid” licensing regime for the 3650-3700 MHz band to facilitate access to, and intensive use of, the band.

  13. Advancing Broadband Deployment – Marketplace Developments

  14. Mobile Broadband Coverage Over Time 2008 2005

  15. Mobile Broadband Devices In Use(millions) Source: FCC

  16. Wireless Telecommunications Overview January 2009

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