By Timothy Stenovec
That’s one of the takeaways from a new report of the U.S. mobile market, according to Tero Kuittinen, a mobile analyst and vice president at Alekstra, a firm that works to reduce companies’ phone bills.
Because fewer new customers are signing up for wireless plans, giants like AT&T and Verizon are looking everywhere they can for additional revenue, which means charging their existing subscribers more, Kuittinen wrote on BGR.
Only 1.1 million new wireless accounts were created the first three months of 2013, according to the report from Chetan Sharma Consulting, a firm that specializes in mobile trends and strategy. This represents a whopping 60 percent decline over the number of new connections in the same quarter of 2012.
That’s a huge problem for the wireless industry, which thrived in previous years as new customers signed up for mobile subscriptions.
In the year 2000, wireless companies derived more than 20 percent of their revenues from new subscribers, according to a slide in Sharma Consulting’s presentation. Now, that share is hovering around 2 percent.