Wireless industry is not growth business any more by Magdalena Rosova

Even though smartphones are the hottest area in technology, investors do not see potential and possibility of future growth in the area as subscriber gains slow. There is no doubt that smartphones will boost demand for wireless services like video, games or mobile web, but analysts are afraid that there will not be sustain revenue growth. About 90 percent of people in the United States already own cellphones. Mobile subscriber growth is notably slowing down in the US and expectations for new subscribers are very low. Because of the drop analysts expect mobile operators such as AT&T Inc and Verizon Communications Inc to focus on advanced mobile services. Operators can ! charge users of smartphones extra monthly money fees for advanced services, data services like Internet access or texting. However, that will not prevent revenues from falling. The revenue growth for the U.S. wireless industry was not more than 2.6 percent by the end of 2009. Bernstein analyst Craig Moffett says wireless industry was not a growing business any more. Moffett and many others analysts forecasts a 10 or even more percent drop in the following quarter. Pricing of services is another big issue. Operators Verizon Wireless, AT&T, Sprint Nextel Corp and T-Mobile USA went down with prices to win customers from each other and to scupper Leap Wireless and MetroPCS Communications, which sell prepaid wireless services. Customers using prepaid wireless services easily change operator as they do not commit to long term. The companies now also need to upgrade their networks because smartphones demand heavy data and such upgrade can be very costly.

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by Magdalena Rosova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.