CHICAGO-Fitch Ratings released a new report on the wireless industry in which it said large North American wireless operators will maintain stable credit profiles in the coming year.
Regional Bell operating companies should be able to offset financial losses from Voice over Internet Protocol competition and fixed-line erosion with wireless service results, said Fitch. Wireless accounted for 42 percent of total incumbent local exchange carrier consolidated revenues in the third quarter of this year, which represents the first time wireless has exceeded non-data wireline revenues, said the report.
Wireless revenues are expected to increase in the high single-digit range next year due to lower net customer additions and average revenues per user. Further, Fitch predicts churn will continue to decrease as carriers improve customer retention via longer contracts, better network quality and handset upgrades.
