 frequencies other than those for which rights have been auctioned. 27 Two of the competitors, AT&T and Sprint, were launched by large long-distance companies. 28 One is a joint venture of two Bell companies, SBC and Bell South, and one is a joint venture of another Bell company, Verizon, and the European wireless firm Vodafone. Although the United States launched its "second-generation" digital wireless service somewhat after Europe and Japan, the number of sub- scribers is now growing rapidly (see figure 3-7). By mid-2004, it had risen to almost 170 million and by 2005 is likely to exceed the number of fixed access lines. The substitution of wireless for traditional wire-based tele- phony is clearly accelerating. Many households, particularly those with young adults, do not even have a traditional copper-wire telephone service. Others are using their wireless service rather than their home telephone for long-distance calls. The effect on traditional wire-based telephone carriers is obvious. Long-distance revenues for wire-based carriers are now declin- ing, and the number of fixed access lines is now also falling after decades of steady growth (see figure 3-8). The potential stumbling block for wireless operators is the technology required to provide high-speed Internet access. In Europe and other parts of the world, carriers have paid billions of dollars in auctions for spectrum designated for "third-generation" (3G) wireless services. But these services are likely to grow more slowly and be less easy to use than fixed-wire broad- band services, such as cable modems and DSL, or the new wireless WiFi services. The United States has not yet auctioned additional spectrum for 3G applications, but Verizon Wireless is now offering a new high-speed service over its existing spectrum. Nevertheless, the traditional telephone The First Eight Years under the New Law Figure 3-7. Growth in Wireless Subscribers and Revenues, 1993-2003 Millions Subscribers Revenues (thousands of dollars) Source: Cellular Telecommunications I