Tuesday, July 22, 2014

The Worrisome Wireless Pricing Wars


A couple of notable trends are making investing in the domestic wireless space a concern. The stocks trade at multiyear highs and a pricing war triggered by T-Mobile  (NYSE: TMUS  ) is causing average revenue per user, or ARPU, to decline -- at least in the case of AT&T (NYSE: T  ) . The combination usually doesn't go hand in hand , especially considering the domestic market is virtually saturated with users, causing Verizon Communications  (NYSE: VZ  ) to struggle with customer additions since it hasn't entered the pricing wars.

Any pricing war should always alert investors to pending stock losses, but with AT&T trading sideways for nearly two years now do investors really have cause for concern?

Read the full article here.


Disclosure: Long T. Please review the disclaimer page for more details. 



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