Is Rapid Growth Ending in the Wireless Industry?

Is Rapid Growth Ending in the Wireless Industry?

Jeff Kagan is a wireless and telecom industry analyst. He publishes the Jeff Kagan Report & Comment, which offers analysis and opinion of the changing industry. Click here for a report on the changing job market http://www.jeffkagan.com/REPORT-1333-ChangingJobMarket.htm

We have watched the wireless industry continue its rapid growth over the last decade or two. It has changed rapidly, however the growth seems to be slowing. Is this a temporary slip, or is this a sign the industry is changing?

We’ve been watching the numbers of subscribers jump year after year. However the numbers have been getting pretty close to reaching everyone in the United States who wants a wireless phone. What happens when we reach the point of no more first time customers?

Until now there have been multiple targets for advertising and marketing messages. Two of them are new users, and also winning business from each other. As new users fade, the battle will be waged trying to win business from each other. We have seen Verizon trying to beat AT&T over the head in advertising in recent months, but it has not have that much affect. The market place is maturing and people know the carriers they like and why they like them.

Wireless has always been a growth business, but going forward it may not be anymore. Not the way we have traditionally thought of wireless and growth anyway.

Growth in the more traditional parts of the business is slowing. That’s the bad news. However the good news is growth in other areas is increasing.

- We are seeing growth from traditional voice slowing, but growth from wireless data is continuing to explode.

- In addition there are many other new areas that will represent enormous growth opportunities going forward. Watch the wireless industry help other industries reduce their costs and improve their position in the customers mind using wireless technology.

It depends on how you look at the situation and which glasses you wear. If you are an employee or investor looking for the same traditional growth patterns we have seen over the last decade or two they unfortunately are slowing. That was inevitable. This could mean lots of change in coming years like potential job cuts in certain areas.

However if you are looking for the new growth patterns, they are many. Just look at the rapid growth of the smart phone segment. Since Apple introduced the first iPhone a few short years ago the wireless data and smart phone segment has exploded.

Other handset makers and many new apps are part of the mix. There are enormous growth opportunities in this area.

In addition every other industry is looking at wireless to transform parts of their business. Ford is putting Internet access on the dashboard of their cars. Power companies are putting wireless meter readers in the marketplace so they don’t have to send people out in cars every day. The medical and health industry is embracing wireless to transform themselves.

Industry after industry is looking to let wireless bring them into the future. There are unlimited new opportunities, but they often come from the least likely areas. Many times wireless opportunities come from non-traditional places like other companies.

So yes traditional growth in wireless, the fast growing industry we have followed during the last decade or two is finally slowing. That is the bad news. At the same time, the good news is growth in wireless is still occurring in other areas.

You just have to make sure you look with the right set of glasses. There are separate parts of the business. Make sure you are focused on the changing opportunities going forward. Make sure you are where the growth is. During this weak economy it is important to keep your job going forward. So understand the changes that are occurring and stay ahead of the growth curve in your career and your investments.

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