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Tuesday, May 25, 2010

Wall Street Journal

FCC: LESS RIVALRY IN WIRELESS
WSJ writes that the FCC’s annual report on competition in the wireless industry, released on Thursday, notes that concentration in the industry has increased by almost a third, indicating a reversal in the trend of effective competitiveness, which could pave the way for new regulations aiding smaller mobile operators, which have been losing market share to AT&T and Verizon, the two largest operators in the US. The report could have an impact on which wireless companies are permitted to bid in local airwave auctions.
MOBILE PHONE COMPANIES SHOULD HANG UP ON THEIR STORES
WSJ reports that wireless carriers may need to determine a focus of future business on either wireless communications or retail, as growth shifts away from new subscribers to gaining more revenue from existing customers through data plans, reducing the efficacy of operating nationwide networks of retail outlets that will increasingly focus on customer service, thus becoming “cost centers rather than revenue generators.”

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