In wireless, competition is easing and revenues are poised to rise

According to some of the nation’s top Wall Street analysts, wireless network operators are positioned to reap the financial benefits of a relatively quiet first half of 2018.

“US Wireless becoming a ‘good news’ story,” wrote the analysts at Deutsche Bank Research. “This will mark the first full quarter the industry laps the ‘unlimited’ price wars of 2017, and several positive data points have sweetened the narrative for US Wireless in recent periods. From a high level, pricing has stabilized (we have actually seen several fee increases in recent months), competitive intensity has moderated (churn is near all-time lows for VZ/T/TMUS), and the industry’s two biggest disruptors (TMUS/S) have announced plans to merge. In addition, Cable MVNO pricing has not been overly aggressive.” The Deutsche Bank analysts weren’t the only ones pointing to a subdued period in wireless. “2Q is typically seasonally softer, and combined with a somewhat muted competitive environment, we expect volumes will be relatively subdued,” wrote the Wall Street analysts at Jefferies. “Promotions came in pulses, largely around holidays in the latter half of the quarter, though we do not anticipate any significant impacts.”