The Federal Communications Commission (FCC) has released its annual report on the state of competition in the mobile telephone industry.
The FCC’s report, which is based on 2006 data, found that 99.8% of the U.S. population (280 million people) has at least one operator offering mobile telephone service in their area, and that more than 95% of U.S. consumers live in an area with at least three mobile operators competing to offer service. Further, more than 50% of consumers live in areas with at least five competing mobile operators.
The Commission concluded that there is effective competition in the U.S. marketplace for mobile phone service, and that this competition benefits consumers through low prices, improved service quality and new technologies.
The Commission’s report also noted the following findings:
- During 2006, the number of mobile phone subscribers increased to 241.8 million, up from 213 million in 2005, and representing a nationwide penetration rate of 80%;
- The average usage by mobile phone subscribers now stands at 714 minutes per month, up from 708 minutes per month;
- 18.7 billion text messages were sent in December 2006, nearly double the 9.8 billion sent in December 2005;
- The average per minute price of mobile phone service remains unchanged, at 7 cents per minute.
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