This IDC study presents a competitive analysis of the major U.S. wireless carriers for the second quarter of 2004. Standard industry operating metrics (including net subscriber additions, ARPU, churn, CPGA, CCPU, and MOU) as reported by the carriers are used as the framework for a discussion of the state of the wireless industry and the outlook for future growth. Individual carrier operating results for domestic operations are provided for the major national carriers ? Verizon Wireless, Cingular Wireless, AT&T Wireless, Sprint PCS, T-Mobile USA, and Nextel ? as well as select tier 2 carriers, with sequential quarter and/or year-over-year comparisons and trend analysis. IDC provides industry averages for 2Q04 in many key metrics.

At the close of the quarter, the number of U.S. wireless subscribers totaled 162 million and grew at a relatively robust annual rate of 10.1%. Among the top 6 national carriers, ARPU jumped to just under $56 during the quarter, largely driven by rising MOU and a downtick in churn.

"Verizon Wireless and T-Mobile had a particularly strong quarter in terms of net subscriber additions, while Sprint's data service revenue reached an industry-leading 7% of total service revenue. As the wireless broadband battle heats up, carriers are increasingly turning toward data services and applications to attract new customers and increase profits." ? Lewis Ward, senior research analyst, IDC's Wireless and Mobile Communications program