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Wireless Market Shares Beef
by
Mark Evans
on Tue 26 Jul 2005 07:14 AM EDT | Permanent Link
Here's something that really bugs me: the insistence of North American wireless executives to cite penetration rates with Asia and Europe when talking about growth prospects. Point in case is Bell Mobility's Jim Jaques who took this position yesterday with the launch of a new youth-oriented brand called Solo Mobile. Jaques talked about how there is plenty of room in North America for growth because only 55% of young people in Canada and 66% in the U.S. have wireless phones. This compares with more than 90% in Asia and Europe. Okay, stop right there. This is an apples to oranges comparison because it doesn't take into account some major cultural differences. In Asia and Europe, for example, most people don't live in single-family homes where they spend hours sitting in front of home entertainment units. Instead, many live in small apartments. As a result, they tend not to be home as much - making a wireless phone a necessity to stay in touch with friends and family. As for why only 46% of Canadians have wireless phones, it may have something to do with the lack of competition with only three national carriers. The MVNO model has also gotten out of the gate slowly with only Virgin Mobile in the game.
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