The wireless industry's competitive landscape continued to evolve in
3Q'12, according to a new report by Fitch Ratings. Many of the largest
wireless service operators announced transactions or strategic
investments that will likely result in further consolidation of market
power among the top four wireless incumbents. In addition, DISH Network
gained FCC approval to use 40 MHz of AWS-4 wireless spectrum to operate
a terrestrial-based mobile broadband wireless network. The FCC's
decision clears a path for DISH to either construct an LTE Advanced
network or partner with an existing wireless network operator.
Fitch believes further consolidation or transformative transactions will
be necessary, especially among smaller wireless service providers, to
bolster weakening competitive position relative to the market leaders
AT&T and Verizon Wireless.
Fitch's special report 'U.S. Communications Industry Leaders Competitive
Scorecard' discusses trends in the 3Q'12 regarding the scope and depth
of the competitive overlap of leading telecommunications operators. The
report compares the competitive positions of the leading local exchange
carriers (LEC), cable multiple system operators (MSOs), wireless service
providers and direct broadcast satellite (DBS) operators. The report
also summarizes key operating metrics financial statistics, particularly
related to key forecast items such as revenue growth, margin changes,
capital re-investment and debt. Additionally, the report includes
summary comments concerning key developments in the quarter.
This quarterly report can be found at 'www.fitchratings.com'
under the following headers:
Sectors >> Corporate Finance >> Corporates >> Special Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Communications Industry
Leaders Competitive Scorecard -- Third-Quarter 2012
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