Spending on wireless communications services rose to $57.6 billion in 2000, a 23.1 percent increase over 1999, and is projected to reach $108.9 billion by 2004, according to the 2001 MultiMedia Telecommunications Market Review and Forecast. Jointly produced by the Telecommunications Industry Association (TIA) and the MultiMedia Telecommunications Association (MMTA), this publication has been recognized as a leading source for validated market analysis and forecasts.

According to TIA and the MMTA, spending on wireless was spread over a variety of services including: analog and digital cellular, personal communications services (PCS), specialized mobile radio (SMR) and local multipoint distribution systems (LMDS). Spending in the fastest-growing segment of the wireless market, PCS, jumped by 52 percent in 2000 and is expected to nearly triple over the next four years, to a projected $46.4 billion by 2004. While cellular technologies continue to dominate the wireless market today, it is projected that PCS will surpass cellular as the dominant market force in 2004.

LMDS revenues are projected to reach an estimated $2.2 billion in 2004 - up from only $59 million in 2000 due to new spectrum allocations. LMDS spectrums offer an alternative for users with large data transmission requirements as well as for voice and video.

The development of third-generation (3G) wireless technology will provide an additional boost to the market for wireless data communications such as Internet access, video conferencing and other high-speed data transmission applications as winners of licenses awarded in 2003 begin infrastructure investments. Although the auctions for 3G licenses are not expected before 2003, manufacturers and service providers are already transitioning their digital wireless offers through interim upgrades, such as 2.5G technologies.

New developments in wireless communication services, such as wireless broadband data services and the possibility of direct access to either the home or business, makes wireless communications technology a bigger part of the social fabric than ever before. Bluetooth technology, which will allow laptop computers, cellular telephones, and other electronic devices to communicate with each other using short-range radio signals, could enhance the wireless market significantly. Bluetooth technology will also make possible the creation of ad hoc wireless local area networks (LANs) and facilitate the wireless integration of virtually any corporate system.

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