Forum Views ()
Forum Replies ()
Read more with google mobile :
Smartphones not enough for carriers at CTIA
|
Edition:
U.S.
Article
Comments (0)
Save
Email
Print
Reprints
Most Popular
Most Shared
Wal-Mart to slash grocery prices
19 Mar 2010
House Democrats see momentum on health bill
| Video
19 Mar 2010
US states sue EPA to stop greenhouse gas rules
19 Mar 2010
Putin offers U.S. hints of support
19 Mar 2010
Court says no oil money for Anna Nicole's heirs
19 Mar 2010
New password-stealing virus targets Facebook
17 Mar 2010
Wal-Mart to slash grocery prices
19 Mar 2010
SCENARIOS-Fed to tread lightly, verbosely, toward exits
24 Feb 2010
US states sue EPA to stop greenhouse gas rules
19 Mar 2010
Insurer targeted HIV patients to drop coverage
17 Mar 2010
Smartphones not enough for carriers at CTIA
Sinead Carew
NEW YORK
Fri Mar 19, 2010 5:46pm EDT
Related News
PREVIEW-Smartphones not enough for carriers at CTIA
Fri, Mar 19 2010
Some broadcasters like US spectrum plan - FCC
Fri, Mar 12 2010
Cisco shares rise on bullish analyst reports
Mon, Mar 8 2010
Sprint shares rise on CFO hopes for rev turnaround
Mon, Mar 8 2010
CH Robinson shares may prove a bargain-Barron's
Sun, Mar 7 2010
A model demonstrates the Nexus One smartphone, the first mobile phone Google will sell directly to consumers based on its Android platform, after a news conference at Google headquarters in Mountain View, California in this January 5, 2010 file photo.
Credit: Reuters/Robert Galbraith
NEW YORK (Reuters) - Smartphones may be one of the hottest areas in technology with big names like Apple and Google tussling for share, but investors are questioning the growth prospects for mobile carriers as subscriber gains slow.
Technology | Media
While it is true that clever devices like the iPhone or Android phones will boost demand for advanced wireless services such as video, games and mobile web, analysts worry that returns from such services cannot sustain revenue growth.
Mobile subscriber growth is slowing as about 90 percent of people in the United States already own cellphones.
Expectations for new subscribers are already lower than usual for the current quarter, which ends days after the March 23-25 CTIA wireless show in Las Vegas.
First-quarter subscriber additions typically tend be 5 percent to 10 percent lower than in the busy fourth-quarter holiday season. But this time, analysts see as much as a 15 percent drop in additions of monthly bill-paying customers, known as postpaid subscribers.
Against this backdrop, operators such as AT&T Inc and Verizon Communications Inc are expected to focus on advanced mobile services at the CTIA show. Carriers can charge smartphone users extra monthly fees for data services, such as Internet access and texting.
But analysts say that will not be enough to offset falling voice revenue and the cost of supporting data services.
"You can wave your arms about data all you like, but the reality is that the revenue growth for the U.S. wireless industry was only 2.6 percent by the end of 2009," said Bernstein analyst Craig Moffett.
"It's just not a growth business any more," he said, forecasting a 10 percent sequential drop in postpaid subscriber additions industry wide in the first quarter.
Pacific Crest analyst Steve Clement expects a 10 percent to 15 percent drop saying, "Demand on the postpaid side has been pretty tepid."
He said the weakness is partly due to the fact that operators themselves pulled some sales forward to the fourth quarter from the first quarter through particularly heavy promotions of smartphones like the Motorola Inc Droid.
CALL FOR TIERED PRICING
Another issue is pricing because Verizon Wireless, AT&T, Sprint Nextel Corp and T-Mobile USA have been discounting services to win customers from each other and to fend off Leap Wireless and MetroPCS Communications, which sell prepaid wireless services. Prepaid customers tend to switch carriers often as they do not commit to long-term contracts.
Carriers also have to spend to upgrade their networks in the face of heavy data use by smartphones and other gadgets.
Bernstein's Moffett said operators may have to charge heavy data users more than today's flat fees for unlimited mobile Web surfing. That way they could invest the extra fees in easing network congestion.
"We're in a period of high demand and constrained supply for wireless data (capacity)," Moffett said "That should be a recipe for pricing power."
But carriers have been hesitant because many consumers are still balking at paying $30 or more per month for unlimited data services. Thus, operators are not expected to announce any kind of tiered pricing structure at the CTIA show this year.
Some analysts say the launch of fourth-generation (4G) wireless services could be a good opportunity for carriers to introduce new pricing structures.
Clearwire Corp, which is majority owned by Sprint, is building a 4G network based on an emerging technology known as WiMax. Verizon Wireless, owned by Verizon Communications and Vodafone Group Plc, is also planning a 4G offering.
"That's where we might see prices move somewhat higher," said CL King analyst Lawrence Harris.
But other analysts are less sure, saying they don't expect Sprint to lead the charge with higher pricing when it launches the U.S. market's first 4G phone -- HTC Corp's Supersonic -- expected to be unveiled at CTIA.
For 4G data card customers, Sprint now charges $59.99 a month for unlimited Internet access.
"That will be interesting to see how they price (services for) the Supersonic," Harris said.
Headline speakers at CTIA include AT&T's chief executive, Randall Stephenson, and its mobile chief, Ralph de La Vega, as well as Sprint CEO Dan Hesse and Clearwire CEO William Morrow.
Other speakers include Rene Obermann, CEO of T-Mobile USA's parent Deutsche Telekom, and J.K. Shin, president of the mobile phone unit of Samsung Electronics.
(Reporting by Sinead Carew; Editing by Tiffany Wu)
Technology
Media
Add a Comment
More from Reuters
States take aim to block plan
As the Congress once again rallies to pass healthcare reform legislation, momentum is growing in many states to pass laws to block the changes. Full Article
Factbox: States and healthcare reform
Factbox: Winners and losers in House healthcare bill
Healthcare Reform
Healthcare Reform:
Momentum on healthcare bill
Democratic leaders pushed undecided House members for support and voiced growing confidence they will win a close vote on the sweeping overhaul. Full Article | Video
What does reform mean for Obama?
Graphic: Projected effects of reform
Document: Amended health bill
Healthcare Reform
John Kemp:
Be careful what you wish for
The yuan debate is exposing dangerous illiteracy among policymakers: Despite the jobs boost for Americans, it would also cut our living standards. How? Commentary
China tries to cool U.S. yuan dispute
Factbox: Hints of divisions in China
Currencies
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Saturday, 20 March 2010 Mideast Quartet tells Israel to halt settlements
German tax authorities probe Credit Suisse clients, staff
Brazil surgical robot fixes heart in Latin America first
BA strike to go ahead after talks collapse
Rocket fired from Gaza at Israel: army
At least 200 killed as Sierra Leone mine collapses
|
Palm shares plunge on weak forecast
Atom smasher reaches record energy levels: CERN
EU agrees to act to stop Iran jamming broadcasts, Internet
US military pushed for closure of CIA-Saudi website: report
Putin says Russia could sign up to Iran sanctions: RIA
|
US Army worries about 'threat' from whistleblower website
Google to add Maya, Nahuatl languages to search engine
Owner Postpones Auction For "Sex" Website
Somali rebels join forces in cyberspace: U.N. report
Icahn Makes Hostile Takeover Bid For Lions Gate
Mexican police ask spirits to guard them in drug war
|
Palm's survival questioned
Police Accidentally Raid House 50 Times ? And Counting
Ukraine's Yanukovich to repeal Bandera hero decree
|
Ashley Tisdale, Alyson Michalka Sign On For CW Cheerleading Drama
Somali rebels join forces in cyberspace: U.N. report
|
Palm Reports Q3 Loss, Analysts Cut Price Target To $0
Paralyzed Woman Takes 8th Floor Plunge
Zuma defends minister, demands spats end
|
"The Last Song" Star Hallock Beals Talks New Movie And Miley Cyrus
US breaks up vast China, Malaysia smuggling ring
Hidden Camera Reveals Babysitter Abusing Infant
Top Colombian rebel gets 20 years prison in U.S
FIFA excludes Indonesia's World Cup bid
Obama says history is nigh on health care
Pakistan arrests halt UN contacts with Taliban
Dutch PM slams 'disgraceful' Srebrenica gay comments
The Economist not published in Thailand
Russia, US on 'brink' of new arms treaty: Clinton
Activists urge Australia to charge Japanese whalers
Japan PM hints at leaving disputed US base on Okinawa
NKorean loggers in Russia making defection bids
Net produces new generation of China activists
SKorea appeals to France over looted royal books
Trial starts in British teen's slaying in India
Bollywood, Hollywood join hands against piracy
Somali rebels join forces in cyberspace: U.N. report
|
S.Korea rebuffs N.Korea threat to seize assets
Secrets unravel as "Breaking Bad" returns to TV
Losing the battle to keep female flesh off Afghan TV
Pakistani stocks, o/n rates flat; rupee firmer
German celebrity magazine admits fake interviews
Bharti to sell iPhone 3GS in India
Patti Smith to be honored by music industry
China warns US not to politicise yuan debate
Soviet space dogs blast-off to animated immortality
Street kids stage their own World Cup in South Africa
French makes inroads in Africa
Risque sex film arouses interest in Bollywood
Bollywood, Hollywood join hands against piracy
Court rules against Anna Nicole Smith in estate
|
FCC kicks off cable-broadcaster review
|
McLachlan to release first album in seven years
|
Losing the battle to keep female flesh off Afghan TV
|
Secrets unravel as Breaking Bad returns to TV
|
Neil Young documentary captures raw energy of live show
|
Sports endorsement firm eyes music world
|
MySpace trail leads US police to teen burglar
New venture from Facebook co-founder to promote charity
Obama to Iran
Opposition red shirts try to win over Thai capital
|
British boy receives pioneering stem cell surgery
US-TECH Summary
Supposed 'ETA terrorists' are just holidaymakers:report
New York food trucks turn to Twitter
Mousavi vows 'year of perseverance' against Iran regime
Israel strikes in Gaza after deadly rocket
|
Albanian stalemate can hit EU ambitions: official
Black and white meets new technology at photo show
Gunmen block roads in Mexico's drug-plagued north
|
'Red Shirts' take to streets to win over Thai capital
North Korea parliament to meet, Kim and cadres in focus
|
YouTube creators cashed in big on sale to Google: documents
Serbia-Kosovo row overshadows EU-Balkans summit
U.S. eyes early summer for airwaves auction process
US tanker bid war heats up with Airbus, Russia in wings
Hollywood stars help prevent suicide after Twitter alert
Legal adviser to U.S. Haiti missionaries arrested
|
Republican Leader Besieged After "Punk Staffers" Remark
High Number Of Student Suicides At Cornel University Causes Concern
Sanin wins Colombian conservative candidacy
|
$940 Billion Democratic Healthcare Bill In Final Lap Ahead Of House Vote
Appeals Court Orders Federal Reserve To Release Bailout Details
U.S. Markets Dip On Global Concerns, Dow Snaps Winning Streak
US, Russia, will sign nuclear treaty in April: report
Year's biggest sandstorm turns Beijing sky orange
Obama reaches out to Iranian people
Thai protesters begin weekend march around capital
Opposition "red shirts" try to win over Thai capital
7th anniversary of Iraq War passes, little noticed
Music biz insiders say Sony-Jackson deal makes sense
Yachting Team NZ draw first blood over Italians
North Korea sets date for parliament session
Putin offers U.S. hints of support
Pakistan army chief leaves to attend talks in US
'Red Shirts' take to streets to win over Thai capital
Obama optimistic on weekend healthcare vote
Nigeria "moving on" from political crisis
NKorean loggers in Russia making defection bids
U.S. envisions troop surge in northern Afghanistan
Sandstorms blanket Beijing in yellow dust
Smartphones not enough for carriers at CTIA
|
Japan marks 15th anniversary of subway gas attacks
New York food trucks turn to Twitter
|
U.S. eyes early summer for airwaves auction process
|
Pakistani c.bank buys 62.15 bln rupees of govt paper
Serial killings highlight Indonesian child abuse
India unexpectedly hikes rates a quarter point
SKorea vice fin min sees MSCI upgrade in H1-reports
South Korea national oil firm eyes Ghana's Jubilee
US to host 2011 APEC trade talks in Montana
US-ENTERTAINMENT Summary
'A dad like any other,' son says of drug lord Escobar
Bands explore promo potential of Chatroulette
Aretha Franklin does own thing with new album
|
Music biz insiders say Sony-Jackson deal makes sense
Bands explore promo potential of Chatroulette
|
"College" kid outdoes rap stars in digital sales
Childhood memories inspire new songs for Frampton
|
Ellen, Web site give gay teen $30,000 in prom flap
Aretha Franklin does "own thing" with new album
Childhood memories inspire new songs for Frampton
McLachlan to release first album in seven years
US weighs more troops for north Afghanistan: official
British Airways strike grounds flights but passengers fly
Pope's shame and remorse over Irish child sex abuse
|
Obama to Iran: U.S. offer of dialogue still stands
|
Israeli troops kill Palestinian in W.Bank: medics
|
Allawi edges ahead of PM again in Iraq election
|
Swarm Of Bees Attack 3, Critically Injures 2 Women
U.N.'s Ban in West Bank pushes for peace talks
|
India to get access to U.S. man on Mumbai attack
|
Thousands rally against Putin, dozens detained
|
Obama urges Senate action on finance reform
Nepal's Maoists say Koirala's death a blow to peace
|
Indonesian Muslims protest Israeli settlement plan
New threat puts Hemet officers on heightened alert
Thai protesters' caravan wends through capital
US official: India to question US terror convict
Bloated lake haunts North Dakota town again
Elderly Man Calls 911 Before Killing Wife And Himself
Tokyo marks 15th anniversary of subway gas attack
Trendy Sushi Restraunt Accused Of Selling Whale Meat Closing
Clerics tell Filipino Muslims to reject Estrada
Cambodia to build memorial for slain journalists
Aust. state named disaster zone as cyclone nears
Thai protesters stage weekend march around capital
Veteran Nepal politician Koirala dies at age 86
Cambodia bans citizens from marrying South Koreans
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights