Wireless providers added 4.4m wireless connections in 2Q11, driven again by iPhone activations and the growing popularity of tablet computers.
The demand for mobile data and the popularity of smartphones and tablets such as the iPhone, Droid, and iPad continue to drive wireless connections up.
Prior to reporting a solid performance from its wireless business in 2Q11, ACS made distinct moves to strengthen the segment.
Any guesses as to where ceo Anand Vadapalli focused his comments on ACS' second quarter results?


Frequently, companies will force you to read between the lines with regards to performance, outlook or corporate strategy, but ACS did not pull any punches while discussing its 2Q11 results. If there was any uncertainty regarding the new team's growth strategy for ACS going forward, recent announcements and the presentation of its 2Q11 results put all questions to bed. Smartphone users accounted for 36% of Verizon postpaid subs in 2Q11, but 60% of postpaid phones sold by Verizon in the quarter provided Internet connectivity. While wireless providers currently do not break these subs out, we estimated there to be 14m data-only wireless connections as of 2010 and project this total to grow at a CAGR of 25.2% over the next ten years.


Elsewhere, strong performances in data hosting, video conferencing and managed services drove enterprise revenue up 7% YoY to $12.6m, while retail, wholesale and access wireline revenues declined nearly 6%. After losing 12% of its customers in 2010, ACS management is committing to grow its wireless business.



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