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STRATEGY ANALYTICS: North American Cellular EBITDA Surges 30 Percent in Q4 2005; New Research Finds Q4 EBITDA Margins at Decade High.

BOSTON -- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become  margins among North American North American

named after North America.

North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
 cellular carriers jumped 4 percentage points in Q4 2005 to reach 32 percent, their highest Q4 level this decade. According to according to
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

 "Wireless Operator Performance Benchmarking, Q4 2005," the latest report from the Strategy Analytics Wireless Network Strategies service, US carriers, in particular, are in excellent form, with margins jumping 7 percentage points at Verizon Wireless Cellco Partnership, doing business as Verizon Wireless, owns and operates the second largest wireless telecommunications network in the United States, based on total wireless customers.  and 15 points at T-Mobile.

This quarterly report provides a health check for the wireless operator community, tracking the operational and financial performance of 95 individual operators, accounting for more than two-thirds of all global wireless subscribers.

Despite the cost of supporting gross additions, which were also at a decade-high, the North American wireless industry delivered a solid financial performance in Q4 2005. Average revenues per user (ARPUs) continued their recent declines in the quarter, although operational expenditure (OPEX See CAPEX. ) tracked below this, fuelling Capital Expenditure (CAPEX) increases near the 30 percent level.

"Verizon Wireless continues to stand out in the US market," comments David Kerr David Kerr may refer to:
  • David Kerr (Northern Irish politician), Chair of the Third Way group
  • David Kerr (UK politician) (born 1923), British Labour Member of Parliament 1964–1970
  • David Kerr (cinematographer), British cinematographer
, Vice President, Global Wireless Practice. "Its customers do not generate spectacular ARPUs among the tier one carriers, but Verizon spends the least on acquiring and serving these customers by far. As a result, its market-leading average monthly EBITDA margins topped the $23 mark for the first time this decade."

Phil Kendall, Director, Global Wireless Practice and author of the report, adds, "We are seeing carriers break new ground in emerging markets, where the cost of serving customers continues to fall. While OPEX per user averages $40 per month in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , it is already below the $5 level for carriers in China, Indonesia, Iraq, the Philippines, Russia, and the Ukraine."

For the chart, Average Margin Per User Per Month, see

About Strategy Analytics

Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. For more information, see
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Comment:STRATEGY ANALYTICS: North American Cellular EBITDA Surges 30 Percent in Q4 2005; New Research Finds Q4 EBITDA Margins at Decade High.
Publication:Business Wire
Geographic Code:1USA
Date:Apr 4, 2006
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