Slowing Cellular Market Leads to Better Deals

In our slumping economy, it seems like the price of everything is rapidly going up; however, the slowing of the cellular market, and new customer growth, could be silver-lining for consumers. To sharpen their competitive edge and steal subscribers, leading carriers must offer better deals and improve service. When everyone who wants a cellphone has one, the clearest marketing strategy is focusing on customer retention rather than new business.

Slower Cellphone Growth in USA Could Bring Good Deals

By: Leslie Cauley, USA TODAY

May 30, 2008

After years of go-go growth, the number of people signing up for cellphone service in the USA is finally slowing.

That could spell good news for consumers as carriers turn up the marketing heat, says Craig Moffett, a senior analyst at Bernstein Research and author of a report documenting the trend.
"When operators have no choice but to try to take customers away from each other, they have a natural inclination to sharpen the pencils and make the best offer they can," he says....
Carriers are pinning their hopes on wireless data, which is exploding as Web-enabled wireless devices such as the Apple iPhone start flooding the market.
At AT&T, the sole iPhone distributor in the USA, data revenue is growing by more than 50% every quarter.

Moffett says that's not enough to make up for the waning growth of wireless voice customers, who still account for 87% of revenue growth at Verizon and AT&T....
And Sprint says its future is bright. "We believe the future of wireless is data, and that's our sweet spot," says spokeswoman Leigh Horner. Sprint has teamed with Google and other backers, including wireless visionary Craig McCaw, to build an advanced wireless data network across the USA.
http://news.yahoo.com/s/usatoday/20080530/tc_usatoday/slowercellphonegrowthinusacouldbringgooddeals;_ylt=AsoE1s9yXpQzgadXaMtq8Yes0NUE

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