The U.S. wireless industry’s cash flow will continue to grow...
The U.S. wireless industry’s cash flow will continue to grow this year into 2013, while the nation’s wireline telecoms are set to remain stable, Moody’s Investors Service analysts said in industry outlooks Wednesday. The wireless industry’s free cash flow will…
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rise almost 11 percent this year, with an additional 12-14 percent increase in 2013, Moody’s analysts said. But much of that growth will come from the top carriers -- Verizon Wireless and AT&T -- which together will account for 67 percent of industry revenue. The smaller carriers, including Sprint Nextel and T-Mobile, will continue to struggle and will see their percentage of industry free cash flow continue to drop, Moody’s analysts said. The service attributed Verizon Wireless and AT&T’s ability to keep customer churn low to stable pricing and both carriers’ service offerings. Wireline’s operating income will rise by 1 percent this year and an additional 1 percent increase in 2013, Moody’s analysts said. The stable market will come as a result of the industry’s cost cuts and gains from TV services, which Moody’s believes will offset continued weakness in wireline voice. Though incumbent telecom companies will see competition increase from cable companies, AT&T, Verizon and CenturyLink will be less exposed to the threat than carriers that do not have “strong enterprise business products,” including Frontier Communications and Hawaiian Telcom, Moody’s analysts said.