Worries accompany growth for cellular phone industry; there are more portable phones, but they are being used less
Article Abstract:
The cellular phone industry continues to grow at a rapid pace in spite of the recession, but cellular phone manufacturers are worried about profits and revenue per customer. According to studies, there were 7.5 million cellular phone users in 1991, up 40 percent from 1990. The rising user base has brought in a large proportion of people who use their phones rarely and for short amounts of time. This causes the revenue per person to drop. New digital services provide better quality communication and longer battery life, but force phone users to purchase phones that handle analog and digital phone signals. McCaw Cellular and BellSouth are planning to introduce these phones which could cost up to $1,000. The average monthly bill has also come down from 1991's figures and industry vendors are worried about the large turnover rates as people find other companies or drop their cellular phone use altogether.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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A chapter 11 filing is set by Telesphere
Article Abstract:
Telesphere Communications Inc is filing for Chapter 11 protection and has hired Richard R. Redden, a specialist in crisis management, to lead recovery efforts. The company will stop offering audiotex telephone services such as horoscopes and 'phone-sex' through 900 telephone numbers. Revenues from the services at one time made up about 59 percent of Telesphere's income, but the amount has fallen to 35 percent. Creditors are surprised by the company's move to halt the services, but Telesphere reports it has had problems with collecting fees from local telephone companies. Telesphere lost $18 million on $293 million in sales in 1990, and the company lost another $17 million on sales of $195 million in the first half of 1991. Mr. Redden indicates that Telesphere's strategy will involve renegotiating bank loans and bringing in more investors.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1991
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Sprint's 3d-quarter profits grew by 13.2%
Article Abstract:
Sprint reports that its profits grew by 13.2 percent in the 3rd qtr. The company's profits hit $109.6 million, or 49 cents a share up from $96.8 million or 44 cents a share in 1991. Sprint has spent a lot of money promoting some of its services including the Foncard calling card, the Most discount program and Business Clout discount program for small businesses. The company experienced an increased rise in telephone traffic in the 3rd qtr and was helped by lower interest rates to pay off debt and strong performances from local telephone operations. Sprint's earnings were higher than analysts' expectations.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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