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  BlackBerryToday > News > Data Services Mean Big Bucks for Verizon, AT&T

Data Services Mean Big Bucks for Verizon, AT&T

By Judy Mottl
October 30, 2008

Demand for Internet data services is propelling growth in wireless services and helping mobile carriers' earnings appear bulletproof to a macroeconomic climate that is prompting layoffs, slashed budgets and spending cuts in other industries.

As one analyst said, wireless carriers, including AT&T and Verizon Wireless, are "immune" to the fallout from the national banking and mortgage fiasco, thanks to the uptake and demand for wireless data.

"It's just a superior way of communication, and personal mobile devices offer a compelling value," Roger Entner, an analyst with Nielsen IAG, told InternetNews.com. As a result, mobile device users aren't cutting back on buying new devices, or using Internet communication services such as texting or e-mail, said the analyst.

Entner also said he doesn't expect the two companies' earnings to fall next quarter, either.

The proliferation of new devices, such as Apple's iPhone, which AT&T lauded as a primary reason for its robust wireless financials this year, is a key aspect, said the analyst. Apple unveiled the high-speed, 3G version of its iPhone earlier this year.

See here for the full story at InternetNews.com.



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