Report to Congress

Sixth Annual CMRS Competition Report

June 20, 2001

Digital Coverage in the U.S.

Digital Coverage in the U.S.

Source: FCC estimate based on publicly-available sources

69%

81% 83% 85%

95%

0%

20%

40%

60%

80%

100%

GSM iDEN TDMA CDMA TotalDigital

Per

cen

t of

US

Pop

ula

tion

Wireless vs. Wireline

• “Cord-Cutting”– 3 Percent of mobile telephony subscribers rely on their

wireless phones as their only phone– 12 percent of those surveyed purchased a wireless phone

instead of installing an additional wireline phone

• “Technology Substitution”– BellSouth exiting the payphone business in part due to

business lost to wireless phones– 20 million mobile phone subscribers have free long

distance

Mobile Data Devices

• Paging/Messaging: 45.3 million subscribers– Arch, Metrocall, SkyTel, Weblink Wireless, Verizon

• Dedicated Data Networks: 650,000 subscribers– Motient, Cingular Interactive, Metricom

• Handhelds Devices or Personal Digital Assistants (PDAs)– PalmOS, RIM, Microsoft Pocket PCs

“Wireless Web” Services Offered by Mobile Telephone Carriers

• Subscribers– From 0 in 1999 to 2.5 million in 2000

• Offerings from seven carriers– ALLTEL

– AT&T Wireless

– Cingular

– Nextel

– Sprint PCS

– Verizon Wireless

– VoiceStream

Wireless Web

1 Find It2Shopping3 Finance4 NewsStandmore...

AlertsGO

• Connect to the wireless data network

• Access websites for:– Movie listings– News– Shopping– Stock quotes– Traffic reports– Weather forecasts

3rd Generation (3G)

• ITU standards specified

• Additional spectrum allocated and assigned in most major European and Asian countries– Proceeding underway in the U.S.– U.S. carriers may use existing licenses to deploy

2.5G and 3G networks

• 2.5G and 3G rollout delayed but underway