For years the wired phone companies have been one of the most stable industries in a poor economy. According to MetroPCS CEO, Roger Linquist, wireless carriers are now taking over this roll and he believes that wireless is a safe haven. “Wireline used to be a safe haven,” he said, contrasting the line losses of the phone companies with MetroPCS’s own performance. For the record, the Dallas-based company had an early indication of economic weakness when the number of customers who canceled service rose in the fourth quarter last year, but the carrier has added 600,000 subscribers this year.
With the largest demographic of MetroPCS subscribers coming from low income family and often immigrants it is clear that affordable wireless services are highly valued. Despite being limited to small service areas, MetroPCS has been able to excel thanks to $40 plans that offer unlimited calling. Unfortunately there is no immunity when it comes our current financial crisis and we will find out soon if the wireless industry truly is a safe haven for MetroPCS.
Source: AP News
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