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Price War In U.s. Mobile Market Raises Fear Of Profit Hemorrhage


Ron Burgundy
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Signage for a T-Mobile store is pictured in downtown Los Angeles, CaliforniaBy Sinead Carew NEW YORK (Reuters) - New Year's rivalry among U.S. mobile operators has Wall Street worried that the industry's profits could seriously decline. After months of aggressive moves by T-Mobile US to lure customers from other carriers, No. 2 operator AT&T Inc counter-attacked on January 3 by offering to pay consumers to switch from T-Mobile. On Wednesday, T-Mobile upped the ante, saying it would pay hefty exit costs for converts. The moves by Sprint and AT&T come after No. 4 U.S. operator T-Mobile, a long-time industry straggler, was able to report three full quarters of customer growth after four years of losses.




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