Wireless Revenues Expected to Rise
Thanks to 3G technologies being accepted and rolled out in the United States and in Europe, wireless revenues are expected to rise in 2006. Wireline revenues are expected to fall off ~5 to 6% in 2006 due to cable system operator telephony offerings making further inroads as well as market saturation for products like DSL.
On the other hand, wireless revenues should increase in the high single digit rate, according to Fitch Ratings. They happen to like wireless operators such as Sprint Nextel and Verizon Wireless, giving Sprint Nextel a favorable rating outlook for 2006. Due in no small part to their improved network quality and 3G network upgrades (EV-DO). Good news.