$4.3 bln spent on wireless voice by middle market firms in 2004

In-Stat/MDR estimates that middle market firms will spend approximately $4.3 bln on wireless voice services in 2004, a 16% increase from 2003, and translating to $41 per user per month. Per user monthly rates are only expected to escalate in the future for this market. However, wireless voice service usage is already showing signs of maturity in this market, as well as others, where rates are falling (due to competition and multi-user discounts) and new subscriber growth is slowing. As a result, growth in this category of expenditure is expected to slow through 2008, at which point, mid-sized businesses are expected to spend roughly $7.1 bln on wireless voice services, a 12% annual increase.

Across size of business, the greatest percentage of wireless voice services spending is expected from firms with 100 to 249 employees, accounting for 55% of the total for this market. This sub-segment is estimated to spend approximately $2.4 bln on wireless voice services in 2004, an 18% increase from the year before. These smaller firms are expected to experience the highest growth over the next five years, in part, because the effect of corporate contract discounts are less pronounced at this level. By 2008, firms with 100 to 249 employees are expected to spend roughly $4 bln on wireless voice services, a 13% annual increase.