Wireless Industry Price Wars Loom

Industry analyst Craig Moffett from Sanford C Bernstein asserts that wireless carriers will have extraordinary difficulty continuing to grow based on recent data from the major carriers showing subscriber growth falling faster. The problem is, simply, that most people have phones and service. He says wireless carriers are suffering from a collective case of inflated optimism. He said that if things play out the way he projects, the industry could face a second whammy: price wars. If that happens, he said, wireless carriers together could see flat revenue growth. The wireless carriers have said they believe there will be plenty of growth as consumers move to the more powerful devices known as "smartphones." Carriers like that because smartphone users subscribe to data plans that bring in more revenue.