CTIA Reports Industry Broke Growth Record In '05

By Joseph Palenchar -- TWICE, 4/24/2006

Las Vegas — The cellular industry gained more net new subscribers in 2005 than in any other year in the industry's history, according to CTIA statistics released here at the association's annual convention.

The subscriber base expanded by 25.7 million people, a gain of 18.4 percent over 2004's 21.7 million net-new subscriber gain. The industry's previous record was set in 2000, when the industry gained 23.4 million net new subscribers.

With the additions, the year-end subscriber base grew to an estimated 207.9 million, bringing the penetration rate to almost 70 percent, the association said. The gain marked the third consecutive year of double-digit percentage gains in new subscribers following declines in 2001 and 2002. The gains in the past three years were all double-digit percentage gains.

In 10 years, the subscriber base grew by 515 percent from 1995's 33.8 million subscribers.

CTIA's semi-annual carrier survey also found that carrier revenue from data services jumped more than 86 percent in 2005 to $8.58 billion and that subscribers spent almost 1.5 trillion minutes talking on their phones during calendar 2005, up almost 36 percent.

Wireless Phone Industry Gains
Full Year 2005 Second Half 2005
YearEstimated Total SubscribersNumber Of Net New Subscribers% Change In No. Of New SubscribersYearNumber Of Net New Subscribers% Change In No. Of New Subscribers
2000 109,478,031 23,431,028 +39.2% 2000 12,442,106 +27.5%
2001 128,374,512 18,896,481 -19.4% 2001 9,976,778 -23.3%
2002 140,766,842 12,392,330 -23.3% 2002 6,205,472 -37.8%
2003 158,721,981 17,955,141 +44.9% 2003 10,656,157 +71.7%
2004 180,464,003 21,742,022 +21.1% 2004 10,996,610 +3.2%
2005 207,896,198 25,755,836 +18.4% 2005* 13,416,834 +22%
*Based on restated June 2005 subscriber base (Includes cellular, PCS, and ESMR subscribers)
Source: CTIA-The Wireless Association, Washington ( www.ctia.org) © TWICE 2006