Cellular impacting landline penetration.

 Fear over landline losses has prompted analysts to reduce estimates for third-quarter profit from telecom companies. The shares of Verizon and AT&T have been under pressure since last they reported earnings in late July. AT&T has slid 20% and shares of Verizon are down 21% over the last three months.

According to Thomson Reuters, analysts have reduced estimates for earnings per share and revenue for both Verizon and AT&T over the fear of landline losses. In its last quarterly report, AT&T said total connections fell 8.1% from the year ago period, worse than many anticipated.

Verizon’s landline revenue has also fallen 1.8% from a year ago. Total landlines fell 8.5% in the second quarter from a year ago, with a large amount of that decline coming from the residential segment.

With wireless penetration above 80% in the U.S., there is a limited pool of new subscribers for AT&T and Verizon to compete for.

But how VoIP fits into these figures? Simply we don’t know because VoIP subscribers are using cable services, naked DSL, WiFi/WiMax networks, direct links and not a landline service. So its difficult to count the penetration of VoIP service at this time.

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Explore posts in the same categories: Last Mile, Mobile, Termination, VoIP

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