As the average price of a wireless phone call continues to drop in the US, more and more consumers are subscribing to wireless services, according to the J.D. Power and Associates 2001 US Wireless Industry Services Study, released yesterday.
In 2001, 52% of households in the 25 largest US markets surveyed use a wireless phone service. This is a 93% increase in household penetration when compared with 1995 – an average of 12% per year. At the same time, the current average reported cost per minute for a wireless phone call fell by 75% from 56 cents to 14 cents.
The study indicates that the trend of reduced revenue and increased customer turnover may continue in the foreseeable future. For example, average monthly spending on wireless service has dropped from $66 to $61 per month since 2000 Â- the largest decline since 1996. Over the same period, the length of time a typical wireless user stays with a carrier before switching is growing shorter Â- from 2.54 years on average in 1999 to 2.40 years in 2001.
Operators need to concentrate on building customer loyalty if they are to reap the potential revenue benefits of this increased wireless usage, advises J.D. Power.
The study also found that nearly twice as many subscribers in 2001 (23%) reported having accessed the internet via a wireless phone when compared to 2000 (12%).
