Fitch: U.S. Core Wireless Services Remain Strong; Recession Impacts Expected in '09.CHICAGO -- According to Fitch Ratings' latest biannual bi·an·nu·al adj. 1. Happening twice each year; semiannual. 2. Occurring every two years; biennial. bi·an wireless report released today, wireless results continue to demonstrate that core wireless services are relatively recession resistant and are best positioned to withstand economic pressures when compared to other telecommunication services. In addition to being viewed by consumers as a necessity-type service, recent growth for wireless communications has been fueled by aggressive smartphone promotions and strong uptake of data services. However, Fitch believes that as the recession deepens over the next several months, the churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. will increase as businesses continue to cut back on employment, and some postpaid consumers could be forced to consider limiting discretionary services associated with data plans or potentially switching to unlimited prepaid calling plans. Consequently, Fitch expects operators to report net addition pressure from subscriber losses in the enterprise/business segment, particularly from financial services, due to the weak labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience . Therefore, key themes in 2009 are centered on data and prepaid services as well as the uncertain impacts from a deteriorating economy and rising unemployment. As well as the above commentary, further important statistical measures of the U.S. wireless industry can be found in Fitch's biannual wireless report. The report aggregates numerous operational and financial measures representing more than 90% of industry subscribers including key metrics for gross additions, subscriber growth, ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. , revenue, profitability and capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . In addition, the report summarizes key developments within the industry during the past two quarters. The full report titled 'Biannual U.S./Canada Wireless Comparative Statistics and Commentary' is available on Fitch's web site at www.fitchratings.com under the following headers: Corporate Finance >> Corporates >> Special Reports. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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