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Wireless & Cellular OVERVIEW

Wireless communications, including such fields as mobile entertainment, RFID, mobile banking and cellphone service, continues to be one of the hottest of the world’s industrial sectors. There were approximately 9.0 billion global wireless communications subscriptions by mid- 2021, according to Plunkett Research estimates. (Since some people have more than one subscription, the number of individual subscribers is significantly lower.)

Most new smartphones feature a dizzying array of advanced features. In addition, smartphones and tablets are internet-capable, typically able to take full advantage of high-speed access on 4G networks (and, to a growing extent, newer 5G networks). This means that small, lightweight smartphones and tablets can do most of the work of a standard desktop PC. Consumers love the flexibility and capability of smartphones, and by some estimates spend an average of three hours per day using them in the U.S. When considering this development, it is important not to overlook the way that smartphones have disrupted traditional business sectors. For example, thanks to the powerful cameras built into smartphones, the number of photos taken by consumers has soared at an astonishing rate, while sales of traditional cameras have plummeted.

Plunkett Research estimated that there were 464.3 million total wireless connections in the U.S. by 2020. Total U.S. wireless service company revenues were about $197.5 billion during 2020, according to Plunkett Research estimates.

By 2020, 85% of U.S. cellphone users were on smartphones, according to Plunkett Research estimates, compared to only 61% in early 2013.

Consolidation of wireless service providers has been a strong trend worldwide over recent years. Sprint and competitor T-Mobile completed a merger on April 1, 2020. The combined businesses intended to invest approximately $40 billion in infrastructure by 2022, developing what they expect to be one of the first nationwide 5G networks.

China is the world’s largest cellular market, with more than 1.6 billion subscriptions as of late 2020 (out of a population of about 1.449 billion). China Mobile Ltd. is China’s largest carrier with 941.7 million subscriptions as of April 2021. 4G connections were dominant in China by 2017, and 5G posted rapid growth beginning in 2020. Also by 2020, GSMA Intelligence expected 74% of Chinese subscribers to have smartphones.

India had 1.18 billion wireless subscribers in early 2021 (out of a population of about 1.39 billion). India has seen phenomenal growth in subscriptions in recent years due to aggressive competition among telecom firms and the issue of licenses by the Indian government. Relatively new to the mobile phone market in India is Jio, a 4G carrier launched by the giant industrial conglomerate Reliance Industries, Globally, smartphone-based electronic games (“gaming”) and mobile entertainment such as music and video continue to enjoy soaring growth, along with the increasing use of social media on mobile devices. Smartphones have become everyday banking and payment devices, particularly in Japan, Korea and parts of Europe; that trend will grow in the U.S. over the mid-term with such services as Apple’s increasingly popular Apple Pay.

Mobile banking is one of the most popular services for cellphone owners in the emerging world, as wireless innovation is bringing banking services to remote areas for the first time ever, while banking apps are extremely popular in developed nations. In lower-income regions such as Africa, special mobile phones and smartphones have been introduced at very low prices.

The wireless sector incorporates a great deal more than cellphone services, ranging from satellite-based communications to vast wireless Wi-Fi networks in corporate and public spaces. There is no end in sight to the rapid acceleration of wireless. RFID equipment prices are plummeting while adoption is growing on a global basis—this technology is vital for tracking physical inventories using digital methods. Practical uses for smartphones are growing endlessly. Applications for remote wireless sensors of all types (often referred to as the Internet of Things or IoT) are about to soar as technologies improve and costs decline. The most important wireless industry sectors for future growth and advancing technologies include self-driving vehicles, management of “smart cities,” sports, entertainment, energy management and monitoring, advertising and health care.