Just Four Networks Claim 85% of All Subscribers

Following Sprint Corp.'s proposed merger with Nextel Communications Inc., the wireless industry will increasingly look like its wireline cousin, with a few huge operators dominating the wireless market, says Standard & Poor's in its semi-annual survey on the wireless industry.

Once these deals are completed, the top four national wireless carriers will represent close to 85% of the U.S. industry's total subscribers. Assuming Sprint's merger with Nextel is approved, the four nationwide carriers will be Sprint Nextel; Cingular Wireless, which acquired AT&T Wireless Services in October 2004; Verizon Wireless; and T-Mobile USA.

"As of mid-2005, Standard & Poor's sees growing competition as the remaining national carriers fight for market share," said Kenneth Leon, Wireless Telecommunications Equity Analyst with Standard & Poor's Equity Research Services. "Increased competition is evident from wireless carriers" service increases - higher handset subsidies and more minutes of use on monthly plans - to renew existing customers or acquire new subscribers. Another key indicator of the industry's outlook is evidence of aggressive pricing related to increased minutes of use or monthly charges."

"With wireless penetration of the U.S. market above 60%, wireless carriers are strengthening their customer retention strategies. They are also shifting their attention to untapped market segments, such as prepaid services and the youth market, and to wholesale customers, including resellers such as Qwest Communications International Inc., Virgin Mobile Telecoms Ltd., and a growing number of other companies."

Posted to the site on 30th May 2005