Sprint Nextel Executive Predicts Slower Reduction in Wireless Costs

6:00 am on March 31, 2006 | Category: Mobile Devices, Telecom Services

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Sprint Nextel’s Chief Operating Officer, Len Lauer, predicted that American wireless carriers would be less aggressive in reducing call costs this year, as growth in average customer usage begins to slow.

The number of minutes used by the average customer is only poised to grow between 10% and 16% this year, compared to growth of up to 35% in previous years. This growth was largely driven by declining call prices, but penetration has now reached the point where further price reductions to increase usage would not be cost effective for providers.

“There will be some price declines, but I think it will be a little more restrained than previous years,” Lauer said in a speech to investors at a recent Bank of America conference in New York.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock