Page 3 - 1 World Wide Mobile Business Plan Flip Book

1 WORLD-WIDE MOBILE
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Executive Summary
Opportunity
Cell Phone Bills on the Rise
As technology has advanced throughout the 21st century, mobile
phones have morphed from functional devices used solely for
voice into sophisticated portable computers. Smartphone users are
now capable of texting, video conferencing, surfing the Internet,
and playing music and video on their handheld devices. With this
evolution in technology has come a meaningful increase in the
amount of money devoted towards mobile phone services. Perhaps
you have noticed that you are paying much more for your cellular service now than you were 10 years ago. Rest assured, you are not alone. Here's a look at how cell phones have evolved into an increasingly indispensable component of most people's budgets
Consumer spending on mobile phone service has grown quite significantly since the early part of this century. In fact, according to the Bureau of Labor Statistics, Americans only spent an average of $210 per year on cellular service back in 2001. That's less than $20 per month. This figure may strike you as unbelievably low. Average cell phone bill is in 2010 rose to more than $63 per month or $760 per year. In 2016, the average consumer will pay more than $1, 000 as year for their cellphone bill. Does this seem like a big increase in cell phone spending? Well, on an annualized basis, these figures reflect an increase of more than 15% per year from 2001-2010 and 24% between 2010 - 2016. This is quite a meaningful gain in money spent on cell phones, particularly when one considers that annual household expenditures only grew around 2% during that same time frame.
Cell Phones Vs. Landlines
Not surprisingly, alongside increased spending on cell phones has come decreased spending on landlines. Why pay for a home phone when a mobile phone meets all of your communication needs and then some? Here's an example to illustrate just how differently the dollars in most people's wallets are being spent now versus 10 years ago.
Let's assume that you spend $100 per month for all of your telecommunications needs. This includes your mobile phone bill as well as your landline. Using this assumption, back in 2001 you would have spent $23 per month for your cell phone services. Your landline bill would be somewhere round $75. Clearly,
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