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Cingular Wireless Expected to Sacrifice ARPU to Bring on New Customers

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Release by TECH RESEARCH SERVICES 2005-08-05, TECH RESEARCH SERVICES - A recent report by Tech Research Services identifies challenges and successes that Cingular Wireless has experienced in implementing its initial post-merger initiatives.Lumberton, NJ (PRWEB) August 5, 2005 --There will likely be a trend with leading carriers, such as Cingular Wireless, sacrificing average monthly revenue per user (ARPU) to achieve higher customer counts. A recent study on Cingular Wireless, its quarterly financials, and YE2005 guidance show there is competition for the number one position in the wireless services industry and Cingular Wireless will likely sacrifice its ARPU in order to maintain its current number one position.
Cingular Wireless, the leader in total number of subscribers in the industry, added 1.1 million customers in 2Q05, giving it a total subscriber number of 51.6 million. While Verizon, who welcomed its largest quarterly customer increase, reported 1.9 million new customers, ending the quarter with 47.4 million customers. Because of its strong operating income margins, Verizon Wireless was able to sacrifice ARPU, which fell 2.7 percent to $49.42 per month, to get that boost in its customer-base.
The days of carriers placing all of its energy in securing high ARPU subscribers are gone…at least for now. Both carriers offer lucrative and innovative family calling plans that have caused a slight decrease to overall ARPU for each respectively, but gives them both gains on the road to important future subscribers—--those younger family members.
Tech Research Services estimates a year-over-year decline in ARPU to an expected $49.9 for Cingular Wireless. Cingular and Verizon both currently offer many types of services that younger family members (teenagers) use today such as ringtones, games and short-messaging-service. Both Cingular Wireless and Verizon show an increase and positive results in sales and marketing strategies to reach the growing teenage family members.
"On the surface, the potential for Cingular Wireless to excel is huge, however, it will need to exercise caution when choosing the financial goals it aims to achieve," noted Sonina Matteo, President and Research Manager of Tech Research Services. "We cannot stress enough the impact this individual carrier’s operational structure, and technology deployment have on wireless service adoption and the ability of wireless content applications to thrive."
In the “Cingular Wireless Carrier and Service Profile: 2005 Edition”, Tech Research Services examines Cingular’s unique position in the United States wireless marketplace. This study provides information on the company’s service and market position. "Tech Research Services believes Cingular brings a unique approach to the wireless data market segment," said Matteo. "The combination of Cingular with AT&T Wireless properties and the ability to be strongly positioned now in key MSA markets differentiates Cingular from its competitors in the market to reach its data-revenue service numbers."
Highlights of this report includes up-to-date information on Cingular`s:
*Subscribers, churn and calling plans
*Technology deployment, including information on GSM/GPRS, EDGE, and UMTS/HSDPA
*Revenue and expenditures, including ARPU and CAPEX information
*Product marketing and sales and distribution strategies.
This Cingular Wireless profile is the essential source for top-level company data and intelligence on the leading U.S. telecom carrier. The report examines the company`s overall service, key business structure and operations, history and products, and provides analysis of its financials, marketing, and sales strategies.
This report provides all crucial company information required for business and competitor intelligence needs and details on the company`s sales and distribution strategy, key executives, network coverage, and technology as well as a list of service offerings and the latest available subscriber numbers and ARPU data.
Purchasing this profile report will enable you to:
- Obtain the most up-to-date company information available
- Support sales activities by understanding your customers` or competitor`s businesses better.
- Keep fully up to date on Cingular Wireless’ business structure, strategy and prospects.
The report is a valuable tool for any organization looking to understand and evaluate this leading U.S. wireless carrier and the U.S. wireless industry in general.
Cingular Wireless - Carrier and Service Profile: 2005 Edition
(Download at http://www.mindbranch.com/products/P571-0001.html)
TABLE OF CONTENTS
Abstract
Purpose and Methodology
Executive Summary
Sidebar: Merger with AT&T Wireless
List of Exhibits
Carrier and Service Profile
Cingular Wireless L.L.C
Competition
POPs
No. of Subscribers/Customers
Subscriber Additions
Churn
History
Ownership
Vision/Mission
Employees
Cell Sites
US Market Coverage
Network Reach
Financials/Service Revenues
Average Monthly Revenue Per Subscriber
Expenditures
Marketing and Product Replacement Strategies
Handsets/Phones
Technology
GSM/GPRS Deployment
EDGE Network Deployment
UMTS/HSDPA Deployment
Reliability
Service Offerings
Calling Plans
Sales and Distribution Strategy
Customer Service and Support
Officers
Headquarters
Competitive Analysis
Projections: Carrier and Service Outlook
To purchase this 50-page report, or for more information, please contact Tech Research Services at 609-230-0398 or visit us online at http://www.techresearchservices.com. The report price is US$1,200 single-user PDF, $1,300 Print, $1,500 PDF Site License.
This report is currently available from Mindbranch.com, a distribution outlet of professional market research reports.
Download at http://www.mindbranch.com/products/P571-0001.html
About Tech Research Services:
Tech Research Services is a provider of research and analysis on the wireless/mobile communications industry. Tech Research offers custom and off-the-shelf market intelligence to Fortune 1000 companies, technology associations, government agencies, and telecom/datacomm service providers. The market research business of Tech Research Services, originally founded in 1997, focuses on delivering objective, in-depth analysis at affordable prices to clients so they can make informed business and technology decisions. For more information please visit www.TechResearchServices.com.
Contact:
Sonina Matteo
President/Research Manager
Tech Research Services
10 Azalea Drive
Lumberton, NJ 08048
Email -
www.TechResearchServices.com.


Source: PR Web™



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