Telecoms have room for growth as mobile tech expands - analysts

By IVCPOST Staff Reporter

Jul 27, 2013 10:18 AM EDT

With the expansion of the mobile technology, record sales of gadget and growth of the app market, analysts wonder why the huge wireless carriers are not cashing in. Their studies showed that AT&T, Verizon and Sprint would all overcome their circumstances with diverse strategies. This would further determine the growth that they could attain.

Analysts said that AT&T and Verizon would record the most growth. Verizon would stay dominant with its share at US$50.28 each with a forward P/E of 92. Its share was described to be a performer in the industry. Consequently, AT&T has the advantages to continue. Its earnings climbed  2.6% in a year. Its growth was accounted for the fact that it is able to deliver effective network services and an expanding broadband enterprise. Its operating expenditures climbed 4.9% in a year to US$25.9 billion. Nevertheless, analysts stated that the costs could be a good investment since spectrum and consumer base expansion would keep it even more competitive. Sprint, on the other hand, is the least competitive network. It is currently the smallest seller of iPhone and its network was said to be lagging.

Over the next five years, the smartphone sale would still boost and the gadget usage would continue to increase by a factor of 16. Analysts said that corporations who planned to capitalize on this carriers would benefit a lot. Verizon would grow the most, AT&T would stay steady and Sprint would have to make a new strategy to grow.

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