Good times still ahead for telecom?

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Like businesses in other industries, telecommunications companies are in danger of losing revenue as consumers look for ways to cut back on their expenses. But one industry analyst said products and services such as high-speed Internet and cell phones are so essential to consumers that the effect will be minimal. "Telecom is holding up pretty well," said Jeff Kagan, a telecommunications analyst in Atlanta. "If this were 10 years ago, the wireless industry would be hurt much more because we were not using wireless phones as our main communication devices. Customers don't seem to be canceling in large numbers." Although droves of customers are not canceling Internet, phone or TV service altogether, many are cutting back on extra services and features, such as premium channels, faster Internet speeds and GPS service on cell phones, Kagan said. Thanks to the widespread availability of complete TV shows on sites such as Hulu.com and Apple's iTunes, many consumers have found they can cancel TV service and still watch their favorite shows. The recession also might be speeding up the trend of customers ditching traditional landline service in favor of using only a cell phone.


Good times still ahead for telecom