Tuesday, May 11, 2010

AT&T Wireless Contract Customers Decreasing?

We've recently posted a report showing that prepaid services are starting to dominate the wireless phone industry. Well, here's another clue indicating that wireless contract customers are in decline. According to AT&T's 1st quarter report, the carrier only signed 513,000 new wireless contract--or postpaid--subscribers.

While half-a million subscribers may seem to be a huge number, this figure is down 43 percent from AT&T's new contract customers from the previous year. The carrier expected to add around 600,000 contract customers.

This trend indicates that new customers will likely sign up for prepaid service rather than contract services going forward. However, the impact of this trend may not be as alarming as it seems.

Consumers that sign wireless contracts are valuable to carriers because they pay more. A decrease in their number may seem to be bad for business. However, contract customers are expected to continue to spend more each month on service so the impact of the loss in growth will not be significant.

AT&T will also make adjustments to its prepaid offering in an attempt to take advantage of this new wireless phone service trend.

That's for this wireless contract update. Stay Tuned for more news and updates on this topic.

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