hnology continues as the industry experiences new subscribers and lower prices for services. The U.S. market had 100 million wireless subscribers in year 2000, a 16.2 percent rise from 1999 of 86 million. In 1993, there were only 16 million wireless subscribers, a rise of 525 percent rise in subscribers over 7 years. Market penetration rose 33 percent in 2000. In 1993, market penetration was only 6 percent. The explosive growth can largely be attributed to intensive competition which forces prices down and increase cellular phone usage. In fact, the market for wireless voice services is becoming mature. Growth rates and heavy competition are restricting profit margins. The U.S. telecommunications services industry will continue to expand in 2001. The popularity of wireless phones has increased the demand for wireless cellular telephone service and reduced the demand for in-building wired phones. Approximately 50 percent of the population has access to a wireless phone. With increased usage of wireless phones, the cost structure should be affordable to the greater population. Cellular phone growth has fueled expansion of network infrastructure expansion as well. In mid-2000, there were 95,753 cellular sites. In 1999, there were 74,157 cellular sites. This is year-to-year increase of 29 percent. The wireless industry is constantly evolving the current growth reflects an ongoing shift to new technology of digital personal communication services (PCS). The industry is also pooling its resources to create a national network. Regional companies need greater coverage to compete with one-rate plans offered by AT&T wireless and Sprint PCS. It is more cost effective to join forces than to start a company's wireless operations from scratch. Furthermore, speed-to-market is a key competitive element. Voicestream, Verizon Wireless, and Cingular Wireless all became national players in year 2000. These companies will be very competitive wi...
