The two largest carriers in the U.S., AT&T and Verizon have had to look for growth elsewhere while the wireless market is reaching its saturation point according to the Wall Street Journal. With AT&T announcing Saturday that it intends to buy media giant Time Warner for over $80 billion and Verizon’s uncertain future with its recent purchase of Yahoo, at $4.4 billion, the wireless industry is losing its status as one of the ‘darlings’ of the growth sectors.
“They need to find a path forward for
their core U.S. business that offers something better than inexorable
decline,” Craig Moffett, an analyst at MoffettNathanson LLC told the Journal.
“The internet, mobile phones and smartphones fueled rapid growth, but
for the first time in memory, there is no ‘next big thing’ in telecom.”
Although both AT&T and Verizon
have millions of customers actively on their respective networks,
texting, streaming, downloading, tweeting and, yes, even calling, now
that most Americans have a smartphone, the remaining growth potential is
in the content according to the Wall Street Journal. Smaller carrier rivals, meanwhile are whittling away at their subscriber base. Continue Reading