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October 14, 2010

Fitch Presents Important Statistical Measurements for the Wireless Industry

Fitch Ratings is a global rating agency committed to providing the world’s credit markets with independent and prospective credit opinions, research, and data. In its latest biannual wireless report released on October 7, 2010, it furnished statistics in respect of two major wireless operators and the implications it had for the remaining operators.

According to Fitch Ratings, both Verizon Wireless and AT&T Wireless were strongly positioned to capture additional market share and market growth opportunities in the wake of rapid uptake of advanced data services and introduction of innovative new devices that would help increase revenue.

However, the dominant market share, higher margins, strong free cash flow, and robust spectrum portfolios were associated with those two companies only, and for other regional, national and niche wireless operators were likely to face increasing credit risk.

The Fitch report indicates that in spite of technology evolving to4G with new substitute services and competitive markets intensifying for certain offerings, even the remaining operators had the potential to achieve positive growth characteristics. They should however develop defensible niches to grow revenues and increase cash flow.

Other important statistical measures for U.S. and Canada wireless industries are also available in the Fitch report. The report aggregates numerous operational and financial measures representing more than 90 percent of industry subscribers including key metrics for gross additions, subscriber growth, ARPU, revenue, profitability and capital spending.

Key developments within the industry during the past several months are also summarized, which includes a regulatory update and 3G/4G wireless data deployments plans in the U.S. Fitch's opinion and recommendations also find a place in the report.

The full report titled 'Biannual U.S./Canada Wireless Comparative Statistics and Topical Commentary' is available on Fitch's Web site.

Fitch Ratings is headquartered in New York and London and is part of the Fitch Group. In addition, the Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics, and related services.


Mini Swamy is a contributing editor for MobilityTechzone. To read more of her articles, please visit her columnist page.

Edited by Chris DiMarco


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