BellSouth expects revenue growth in 2006
BellSouth is expecting their 2006 revenue to grow at about the rate that Wall Street Analysts expect. What is interesting, though, is where the revenues are coming from. In a trend reflected in phone companies across the continent, revenues from traditional phone service will be unchanged or even slightly down, but that will be more than offset by strength in the mobile phone sector.
The news is not worth getting too excited about if you are a shareholder, though. Overall growth in revenue is only expected to grow by about 2%. This is, in part, a result of the fact that BellSouth only has limited exposure to the mobile business. They are just 40% owners of Cingular Wireless in partnership with AT&T which owns the rest.
The traditional phone companies have had to scramble for new sources of revenue in the face of heavy competition from cable companies and mobile companies for their phone business. BellSouth looks towards their Cingular partnership and high-speed internet to make up for the shortfall. They are also looking at offering video services and VoIP in the future.
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