Estimated Cellular Voice/Data Spending Among U.S. Firms

This report estimates the total and per sector amount that U.S. enterprises and state, local and federal government spent on cellular voice/data services in 2008. This report also forecasts spending through 2013.

Business subscribers are a highly valuable segment of the U.S. cellular market because:

They typically use more minutes during peak hours and therefore buy plans with more minutes. Although mobile operators do offer pooled minute plans and discounts to enterprise customers, they still have to purchase enough minutes to cover their usage, which is typically higher than an “average” consumer.

• Nationwide calling plans and “no roaming” plans have helped to decrease roaming charges. However, a business wireless subscriber is likely to place a wireless call even if they are roaming since the company is footing the bill for the service.
• Many businesses have distributed operations that require them to contract with different mobile operators in different parts of the United States. This limits the inherent savings potential found in per-operator discounts, pooled minutes and even “in-network” wireless calling plans.
• Enterprise subscribers are more likely to need and use wireless data services such as email, text messaging (short message service, or SMS) or Internet access via wireless PC data cards (CDMA 1X, GPRS, EV-DO, EDGE and/or HSDPA). The range of these applications is expanding to include access to personal information management applications such as calendar and contacts; databases, files and documents on the corporate local area network (LAN); and sales/workforce automation applications on mobile devices such as laptops, handheld computers and smartphones. These applications all increase airtime and/or megabyte (MB) usage, which is how most mobile operators currently rate and bill for wireless data services.
• Because the “mobile professional” type of business subscriber tends to use more sophisticated applications, they typically need more advanced wireless devices such as smartphones, RIM BlackBerry devices, PDAs with wireless connectivity and laptops. This leads to higher dollar-value equipment purchases. “Blue collar” mobile workers often use expensive, rugged devices (e.g., from Intermec, Symbol or Panasonic) which can use both a wide area wireless data connection and/or a wireless local area connection.

This report details how wireless spending varies by industry, broken down into services and equipment.

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