Monday, May 12, 2008

USA - telecom operator profits

U.S. telecom sectors hit by competing telephone and cable services - S&P

The competition between telephone and cable services is creating challenges across all U.S. telecom sectors, according to a report released by Standard & Poor's Ratings Services.

Most major cable operators continue to report a flat to modestly eroding video customer base, the rating agency said.

S&P, however, said it expects generally good prospects for wireless companies for the rest of 2008.

In contrast to the favourable outlook for the overall wireless industry, a rougher road is seen for the pure-play wireline carriers, S&P said.

Cable television is also clearly feeling the impact of competition from satellite, telephone companies and a mature pay-TV base, S&P said.

The rating agency added the heightened competition, particularly resulting from alternative technologies, means that no player in any telecommunications or cable sector is guaranteed long-term business stability.

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