US Wireless Penetration to Reach 50% This Year

The Yankee Groups predicts that US wireless penetration will reach nearly 50 percent by the end of this year. “North Americans now treat wireless like a utility rather than a novelty,” and that “With the current state of wireless competition, it is only a matter of time before unlimited calling plans are available nationwide,” the company said. Although that would seem to be a boon for US consumers, Yankee Group Wireless/Mobile Services Program Manager Roger Entner believes it might not. “The U.S. wireless industry is facing the threat of becoming like the airline industry with high fixed costs, low variable costs, a perishable product and cutthroat competition,” he said. “These conditions make it easy for industry participants to behave in a way that has potentially disastrous consequences in the long run. Airline travel is cheaper than ever before, but few customers are happy with the experience.”

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