US mobile phone penetration reaches 53% of total population in December 2002 - Market Intelligence

Mobile Internet, The, March, 2003

The US mobile industry closed 2002 with 53% of the total population in major metropolitan areas subscribing to mobile phone service, according to Telephia Inc., the leading provider of marketing and service quality intelligence to the mobile industry.

Looking at 2003, findings from Telephia's online survey of 50,000 wireless subscribers and non-subscribers showed that one in four non-subscribers expects to sign up for mobile service in 2003, with the young adult and Hispanic populations likely to emerge as high-growth market segments.

Based on results from its Market Metrics service, which performs continuous tracking of activity on all major cellular and PCS networks in 44 major US markets, Telephia found that 53 percent of residents now have mobile phone service. Individual market penetration rates showed significant variability by market, ranging from a low of 45 percent to a high of7l percent The markets with the highest penetration rates were Greenville, S.C. (71 percent), St. Louis (69 percent), Raleigh, N.C. (65 percent), Orlando (65 percent), Atlanta (64 percent), Washington DC (64 percent) and Boston (63 percent).

Overall US penetration increased to 53 percent in December2002 from 50 percent in June.

While the mobile industry continues to attract new first-time subscribers and grow its ranks in all 44 US markets examined, recent results from the Telephia Attitude and Behavior Survey, which is performed jointly by Telephia and Harris Interactive, show that future industry growth will be increasingly driven by the effectiveness of marketing programs targeting the young adult (18 to 24 years of age) and Hispanic segments.

According to the study, new subscribers in 2003 are 60 percent more likely to be young adults and 69 percent more likely to be Hispanic than the overall population of non-subscribers. Among all non-subscribers, one in four anticipates signing up for mobile service in the coming year.

The Telephia Attitude and Behavior Survey, conducted by Telephia and Harris Interactive, is a comprehensive study of the behavior, attitudes and perceptions of mobile consumers. The report analyzes key industry issues by carrier and customer segment Offered quarterly, it is an online study of more than 50,000 mobile subscribers and non-subscribers in the 35 largest US markets and will be expanded to cover additional smaller regions later this year.