"Downchurning" in action.

In a November post, this Blog predicted a trend called "downchurning" among U.S. mobile subscribers. Here is the post for reference.

Today there are some numbers reported by various US carriers that support the notion of downchurning as the recession deepens. Here is the article. Electronic prepaid network providers should benefit, as well as Virtual Mobile Network Operators (VMNOs) that specialize in prepaid. According to the article Sprint (S) seems to be benefitting the most among US carriers from this trend. As the recession extends, more financially stressed consumers are likely to switch from post-paid contracts to prepaid services. Investors should see more action in the space in terms of consolidation as the main carriers gobble up some of the high growth MNVOs.

I do not own any shares of the Companies identified in this post.

No comments:

Post a Comment