Standard & Poor’s Ratings Services said in a report that it expects the wireless industry to post moderate growth in the high single- to low double-digit range as carriers increase penetration, customers begin porting their phone numbers from wireline to wireless, and the industry continues to roll out more advanced wireless data products and services.
The report also noted that despite the impending demise of AT&T Wireless Services Inc., which is scheduled to be acquired by rival Cingular Wireless L.L.C. by the end of this year, pricing pressure is expected to continue due to increased penetration and efforts by AWS to keep its customers prior to its acquisition.
“The wireless industry will continue to be a highly competitive segment, but the risk of a viable substitute product is currently remote,” the ratings agency wrote in a statement.
