Providing market intelligence for more than 35 years

The Motley Fool

AT&T and Verizon Drag On the Dow; Can Sprint and T-Mobile Really Win?

For AT&T and Verizon, the good news is that most people never switch carriers even when superior plan options become available. According to consumer data from Parks Associates, almost half of mobile customers have stayed with their original provider for at least a decade, and only about one in eight have switched three or more times. That behavior effectively creates a competitive moat around Verizon and AT&T and their superior market share, but it doesn't mean that their leadership status is impregnable.

Still, size presents its own challenges. Verizon recently tapped the bond market again with a $4.5 billion offering, and the huge amount of debt it incurred to take full control of Verizon Wireless could present it with substantial financing obstacles if interest rates rise by the time the debt comes due. With so many people looking to AT&T and Verizon for their dividends, any threat to those payouts could cause big problems down the road.

From the article, "AT&T and Verizon Drag On the Dow; Can Sprint and T-Mobile Really Win?" by Dan Caplinger.

Previously In The News

Will Amazon Fire TV Benefit From Soaring Interest in Prime Instant Video?

Parks Associates estimates the market for streaming media players will grow 23% annualized between 2013 and 2018 as more of us get used to tuning in on-demand. Naturally, Netflix (NASDAQ: NFLX...

Can Microsoft’s Miracast Dongle Compete Against Google's Chromecast?

The global market for all video streaming devices -- which includes computers, mobile devices, smart TVs, consoles, and set-top boxes -- will grow from 4.3 billion units in 2013 to 8.2 billion unit...

Amazon.com Just Upped Its Game Against Netflix

According to the research firm Parks Associates, about 50% to 60% of U.S. homes with a connected consumer electronics device (smart TV, set-top box, etc.) have a Netflix subscription. Amazon's Prim...

Can Lowe's Outfox Apple and Google in the Connected Home?

I was able to chat with Tom Kerber recently about Lowe's and its strategy in this space. Tom is the director of research in the areas of home controls, energy management, and home networks for Park...