NEW YORK-The wireless industry’s bets are paying off, according to a new study on the industry by Standard & Poor’s.
The firm said the wireless industry is seeing healthy, double-digit growth in subscribers, use and revenue. The findings are detailed in S&P’s “Key Credit Factors For The U.S. Wireless Industry” report.
“Rising data services revenue is helping mitigate declining unit pricing for voice services, and recent industry consolidation provides newly combined companies opportunities for operating efficiencies, while carriers continue to benefit from barriers to entry that include substantial investment requirements and spectrum scarcity,” said Standard & Poor’s credit analyst Eric Geil.
Indeed, the wireless industry bet billions on the buildout of new, data-centric networks, and it appears the industry’s gamble is set to pay off, S&P said.
However, the firm cautioned against risks including the commoditization of voice services, increasing competition and continued network expenses.
