Barclays on U.S. Telecom Services: Major Carriers Taking Share in Prepaid
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Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 13
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Barclays on U.S. Telecom Services: Major Carriers Taking Share in Prepaid
Analyst, James M. Ratcliffe, takes note of recent trends that major carriers (like AT&T (NYSE: T) and Verizon (NYSE: VZ)) are taking market share away from companies like Leap Wireless (Nasdaq: LEAP) and MetroPCS (NYSE: PCS) in the prepaid segment. Ratcliffe notes that LEAP and PCS will continue to have a hard time recouping subscriber losses going into the next quarter (which is the weakest season of the year). Another big factor is that TOTAL prepaid net additions were down 39% year-over-year.
Major carriers such as AT&T, Verizon, Sprint (NYSE: S) and T-Mobile (NYSE: DT) picked up as much as 59% of the prepaid net additions in Q1 vs. 39% in last year's Q1.
Ratcliffe thinks times will continue to be tough for LEAP and PCS until T/VZ see cannibalization in post-paid services, which would then probably cause a pullback in prepaid offerings.
Analyst, James M. Ratcliffe, takes note of recent trends that major carriers (like AT&T (NYSE: T) and Verizon (NYSE: VZ)) are taking market share away from companies like Leap Wireless (Nasdaq: LEAP) and MetroPCS (NYSE: PCS) in the prepaid segment. Ratcliffe notes that LEAP and PCS will continue to have a hard time recouping subscriber losses going into the next quarter (which is the weakest season of the year). Another big factor is that TOTAL prepaid net additions were down 39% year-over-year.
Major carriers such as AT&T, Verizon, Sprint (NYSE: S) and T-Mobile (NYSE: DT) picked up as much as 59% of the prepaid net additions in Q1 vs. 39% in last year's Q1.
Ratcliffe thinks times will continue to be tough for LEAP and PCS until T/VZ see cannibalization in post-paid services, which would then probably cause a pullback in prepaid offerings.
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