Wireless Behind Telecom Revenue Growth, With 'Constructive' Regulatory Backdrop, Moody's Says

Wireless and particularly its data services is the reason for overall telecom growth, in a "regulatory environment [that] remains mostly constructive" except for scrutiny of large mergers and acquisitions and risk under Title II of the Communications Act, said a debt-ratings firm in a news release and longer report. It's an "otherwise benign environment," regulation-wise, said Moody's. "M&A activity will be limited until the broadcast spectrum auction is completed," and the March 29 start could be delayed, it said. "Without the entrance of non-traditional bidders, the auction could disappoint broadcasters who may expect high prices." Wireless data revenue "will fuel overall telecom growth, driven by the increasing use of smartphones, tablets and other connected devices, as well as the growing popularity of mobile video that has made larger data plans more alluring," said Senior Vice President Dennis Saputo. U.S. telecom profit will rise 2 percent in 2016 as wireless revenue grows 3-4 percent, said Moody's Wednesday. "Mobile video is a potential growth catalyst, but probably 2-3 years from now."