NEW YORK-Standard & Poor’s reiterated its overall positive outlook on wireless telecommunications companies, noting the nation’s current economic recovery should benefit the sector with increased net subscriber growth, average revenue per user and increasing margins.
“We expect a strong third quarter from the group,” said Kenneth Leon, wireless telecommunications analyst at S&P’s Equity Research Service.
Leon added that the impending wireless local number portability mandate “may increase competition, customer churn and market-share changes,” but added that wireline number switching to wireless could drive long-term secular growth.
