Subject: [NEXTEL-1] Telecoms have dismal 3rd-quarter, some surprises

From: [email-masked]
Date: Thu, 23 Oct 2003 15:12:39 -0400

http://biz.yahoo.com/rc/031023/telecoms_earns_1.html
--

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ 

Search - Finance Home - Yahoo! - Help

Welcome,
marcel_rf1
[Sign
Out]

Money Manager
-
My Yahoo! View
-
Customize

Financial
News

Enter
symbol(s) BasicPerformanceReal-time MktDetailedChartResearchOptionsOrder
Book
Symbol Lookup

Reuters

Telecoms have dismal 3rd-quarter, some surprises
Thursday October 23, 1:19 pm ET

By Jessica Hall

PHILADELPHIA, Oct 23 (Reuters) - U.S. telephone companies
have been hobbled by price wars and competition from wireless
and e-mail and third-quarter financial results show most of
them still have not regained their stride.

ADVERTISEMENT

BellSouth Corp. (NYSE:BLS - News) and some wireless carriers offered
rare bright spots in the quarter, but industry heavyweights
such as SBC Communications Inc. (NYSE:SBC - News) and long-distance
carriers AT&T Corp. (NYSE:T - News) and Sprint Corp. (NYSE:FON - News) faltered as
cost-cutting efforts failed to offset shrinking revenues.
"There is no light at the end of the tunnel for long
distance," said Guzman & Co. analyst Patrick Comack (News) . "The
overall growth for the industry should be flat to down next
year."
Even if corporate spending picks up in the second half of
2004, escalating competition and a looming threat from cable
television companies encroaching on the telecom market will
oofset any pick up in revenues, Comack said.
"Revenue decline continues to plague this industry in favor
of wireless and cable," said Loop Capital analyst Greg
Gorbatenko.
Slim demand in the unsettled economy and shift by customers
to wireless telephones and e-mail has eroded sales in carriers'
core local and long-distance business.
Companies have hawked discounted packages of services or
unlimted calling plans as a way to attract and retain
customers, but even these offerings have become blurred in the
eyes of many consumers.
AT&T, which saw revenues drop for the 15th straight
quarter, said it expects pricing pressures to escalate in the
fourth quarter.
BELLSOUTH IS A RARE BRIGHT SPOT, FOR NOW
Bucking a trend of lower revenues throughout much of the
telecom industry, BellSouth's third-quarter revenues rose 5.4
percent -- the first increase in seven quarters.
Sales in BellSouth's communications group increased 1.1
percent as strong demand for its new long-distance service and
high-speed Internet access offset a decline in its core local
phone business.
"Despite these results, growth prospects at BellSouth and
of course the other (Baby Bells) remain challenged by secular
factors," said Merrill Lynch analyst Adam Quinton, citing
intense competition and a shift to cable, wireless and Internet
phone calling and e-mail.
BellSouth, the dominant local telephone company from
Florida to Kentucky, has been protected so far from
competitors, allowing the company to be less aggressive in
price cuts, said UBS analyst John Hodulik.
SBC, meanwhile, has seen blistering competition in markets
like California. SBC had a 29-percent drop in third-quarter
earnings as sales of its traditional local telephone service
dropped 11.1 percent.
WIRELESS PERFORMANCE MIXED
Third-quarter results for wireless carriers started with a
bang as Cingular Wireless and Nextel Communications Inc.
(NasdaqNM:NXTL - News) added more customers than expected.
But shares of AT&T Wireless and Sprint PCS Group (NYSE:PCS - News),
the No. 3 and No. 4 U.S. wireless companies, respectively,
plunged on Thursday after their subscriber-growth fell short of
Wall Street expectations.
The U.S. wireless industry had suffered from a recent
slowdown in customer growth, but Wall Street had hoped for a
recovery this year as operators have been careful to control
costs and focus on profits rather than market share.
Some analysts noted the industry might be showing a schism
as carriers focused on high-end customers and low-end customers
showed strength and others caught in the middle faltered.
"We do not believe that AT&T Wireless has developed a
compelling differentiated offering to consistently take share
from other carriers," said Legg Mason analyst Craig Mallitz in
a research note.
(Additional reporting by Yukari Iwatani in Chicago)

Email this story
-
Set
a News Alert

Sponsored
Links

ADVERTISEMENT

WeRLoans.com, Mortgage Loans All Types
Mortgage loans, all types. A+ and bad credit. Cash out, straight talk. No gimmick loans. Easy applications. Real rate quotes. Safe and secure.
www.werloans.com
Get a Mortgage Loan Today and Save
Get multiple offers with GoApply.com. Borrowing options include mortgage refinance, debt consolidation and home equity, improvement or purchase loans. Nationwide. Bad credit - no problem.
www.goapply.com
Home Mortgage from Full Spectrum Lending
Cut monthly payments, get needed cash or buy a new home with a home mortgage loan. We're part of Countrywide, one of the nation's leading independent home lenders.
www.fullspectrumlending.com

Related
Quotes

BLS
FON
NXTL
PCS
SBC
T

25.99
16.02
22.00
4.50
22.31
19.16

+0.99
+0.28
-0.89
-0.82
+0.21
-0.35

News
News
News
News
News
News

View Detailed Quotes
Delayed 20 mins
Quote data provided by
Reuters

Related News Stories

·

[video] Former Freddie Mac Chief Fined [1.8 min] - at Forbes.com (1:00 pm)

·

Alamosa Reports Third Quarter Customer Results; Announces Earnings Release & Conference Call Schedule - PR Newswire (12:59 pm)

·

UPDATE - Sprint PCS posts loss on low customer growth - Reuters (12:07 pm)

·

RESEARCH ALERT-Bear Stearns ups BellSouth rating - Reuters (12:00 pm)

More...

·

By
industry:
ISDEX, Telecom

Top Stories

·

Citigroup Fires 4 Brokers in Trade Probe - Reuters (1:56 pm)

·

Ex-Freddie Mac Chief to Return $13 Mln - Reuters (11:35 am)

·

Feds Arrest 300 Workers at 61 Wal-Marts - Reuters (12:23 pm)

·

Viacom Profit Rises on Cable, TV - Reuters (2:58 pm)

More...

·

More
Reuters

·

Most-emailed
articles

·

Most-viewed
articles

Copyright © 2003 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service - Copyright Policy - Ad Feedback
Copyright
©
2003 Reuters Limited. All rights reserved.
Republication or redistribution of Reuters content
is expressly prohibited
without the prior written consent of Reuters. Reuters
shall not be liable
for any errors or delays in the content, or for any
actions taken in
reliance thereon.