Reviews:
 ·Optimum Online
 ·Verizon FiOS
| Merits of a company's value, or not Telecom services such as internet and phone service-- be it wired or wireless will be in demand in bad and good economic times. Sure, there can be more exposure to a company such as Verizon who spent billions on Fiber to the home, but that argument can only get you so far in valuing the stock (I could care less about the stock, and I have NO inevestment in ANY company, 401k or otherwise). What you should be concerned about is what the company does about losing customers... if they are not creative enough and have the authority/will to revamp services (voip, instead of POTS copper landline service, competitive bundling, and yes--customer by customer discounting retention).. then they will suffer in a down economy. Verizon & AT*T should look at making it's prepaid wireless plans more competitive, IMO they are TOO expensive.
While telcos see headwinds, Cable companies must be shaking in their boots right about now. No doubt cable-tv subscriptions may see a much steeper decline than expected... the govt' $40 coupon system is beginning to run out of money.. which means perhaps several million current cable-tv subscribers could be on the chopping block and unsubscribe from cable-tv by the end of Q1, 2009 if incomes don't rise enough.. or worse, customers lose their jobs.
Also, cell phone companies should look at the bottom part of the wireless market... it is growing. Pre paid phone services are the fastest growing market. No contracts - pay as you go service is doing MUCH better than 2-year subscription services right about now. The only caveat is you'll probably end up with a crappier, less featured phone (unless you can afford to buy a better one), but for someone on unemployment or w/o a job, they may just be borrowing the neighbor's wifi, and using prepaid and/or voip, while they work out the job situation. Cable-Tv is much more expendable than telecom services.
To meet the needs of customers, single and dual play services will have to be MUCH more competitive in the coming months to keep customers from cancelling. It will be interesting to see if companies are willing to go the extra mile to preserve customers ON the last mile.. (which accounts for at least 40-60% of the respective telco's revenue) |
