Industry Analysis

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On October 13, 1983, the first cellular commercial industry begins operating in Chicago. The company responsible for launching this first generation (1G) mobile phone service was Ameritech. Bob Barnett, president of Ameritech Mobile communications, called Alexander Graham Bell's nephew from Chicago's Soldier Field using a Motorola Dyna TAC handset, referred to as the "Brick" because of its hefty size. The cell phone industry has come a long way since it first began almost 29 years ago. What was once an industry with a monopolistic market model; quickly emerged into an oligopolistic market model. As many know, monopolies are often relatively short lived, this is because technological advances can lead to the development of new forms of competition for an industry, change its cost structure and affect the demand for its products. This is a perfect example of what occurred to the cell phone industry since its first launch in 1983. The cell phone industry has gone through huge changes and its market has expanded globally. The cell phone market is increasing very fast with today’s ever-emerging technology and innovation in improving cell phones. Today, society is living with advance technology and everyone wants to keep pace with the new technologies. Cell phone industry is growing larger because it has become a necessity. Parents are getting mobile phones for their teens because they want to communicate in case of an emergency and the wireless carriers have made it easy to add users to their existing plans. And carriers are becoming successful in getting parents to expand their plans to include their teens. This increases buyers and increases market size worldwide. When this industry began with Ameritech, there was no other goods to substitute and having a cell phone was only attainable to the “wealthy”. The first cell phone from Motorola was price tagged at

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