CELLULAR PHONES GAINING POPULARITY
By Adnews Staff
The world cellular network could reach $16.2 billion(US) by 1998, according to a survey done by Northern Business Information of New York. The total market last year was $14.4 billion, and is expected to grow at a rate of 27.8% annually. Ericsson Communications and Motorola dominate the market with their combined market share exceeding 50% of annual equipment sales. AT&T is in third position, followed by several manufacturers with single-digit market share including Alcatel, Hughes, NEC, Nokia, Northern Telecom and Siemens. Two major forces drove the market in 1994: an increase in cellular subscribers which forced operators to upgrade their systems and increase capacity, and the emergence of developing and unexplored markets in need of wireless technology to bolster existing communications networks or build new ones. Advanced technologies such as digital cellular and intelligent network equipment have made cellular technology more reliable and cost effective.