As US Carriers Cut Subsidies, Phone Vendors Wobble

August 14, 2012   |   August 2012 Bond Updates
Some of the biggest surprises in the recent mobile operator earnings reports have come from lower than expected handset subsidy and promotional spending numbers. T-Mobile USA delivered surprisingly strong US earnings number, thanks to 38% lower phone subsidies. T-Mob has gained some extra wiggle room as both AT&T and Verizon have slapped new tariffs on consumers buying smartphones. In addition, AT&T and Verizon are now forcing new smartphone buyers into plans featuring unlimited voice and unlimited texting. Metro PCS share price bounced 34% after its spring report, buoyed by lower than anticipated customer acquisition costs.

View more at: http://www.forbes.com/sites/terokuittinen/2012/08/14/as-us-carriers-cut-subsidies-phone-vendors-wobble/
 
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