ABSTRACT
The worldwide mobile communications industry is at a crossroads. The voice market has been rapidly maturing. The 3G technology is unproven, and has experienced technical difficulties and delays; its cost is higher than the previous 2G system, and moreover, spectrum is insufficient and expensive. This chapter will review the issues facing the industry and their implications for a mass media content strategy. We discuss the United States, including its particularities, but the main dynamics apply to other developed countries, too. The chapter is divided into five sections. This section provides a brief overview of the industry. The next two sections discuss the major problems and issues confronting the U.S. cellular industry: spectrum cost and allocations, standards, and pricing strategies for voice services. 1 The fourth section summarizes the business model practiced by the wireless carriers. The last section reviews the industry and concludes.
