Editor’s Note: This is one of a series of stories examining the current economic downturn and how it affects the wireless industry. For more on this topic, visit RCRWireless.com/EconomicDownturn.
Industry CEOs have been hopping between company conferences to boast their business and assure investors that wireless will not be hit by the economic tidal wave crashing across the nation. Denny Strigl, CEO of Verizon Communications Inc., told Goldman Sachs Communacopia Conference attendees that Verizon Wireless is on track, knocking down questions about stiff competition. Indeed, Strigl said the attention from Apple Inc.’s 3G iPhone has increased how revenues from smartphone and PDA users.
“I think the more we are able to do on smartphones and PDAs, the better,” he said. “About 30% of sales are now smartphone PDA sales.”
However, when challenged about decreasing voice average revenue per user, Strigl countered that ARPU isn’t a main priority. “You all worry about the voice ARPU more than I do,” he said. “I would like you rather to be thinking about revenue growth. And I think as we go forward, ARPU becomes less and less important.”
Dan Hesse, Sprint Nextel Corp. CEO, also made an appearance at the Goldman Sachs conference and brought similar reassurances. Hesse addressed the proposition of selling the carrier’s iDEN wireless network, saying selling may still be an option. Compelling offers will be considered, Hesse said. If not, the carrier plans to hold on to it.
Overall, the carriers’ spokesmen said wireless is a core essential for consumers today.
Industry analysts, however, think carriers might be acting a bit na
