Summary

Cellular telephone companies have experienced an explosive growth in the number of subscribers during the past decade. There were 340,000 cellular subscribers in the United States in 1985 versus more than 25 million by February of 1995. The growth rates in subscribership were between 40 and 50 percent annually during each of the last five years. GAO testified that the mobile telecommunications market could potentially become more competitive in the near future. By taking and approach that emphasizes competition, Congress and the Federal Communications Commission are bringing beneficial changes to this industry. New personal communications service providers should enter the market in the next two years, and GAO is optimistic that as the market gains new providers, consumers are likely to see new service offerings and lower prices.