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Byline: SHIHOKO GOTO
WASHINGTON, July 28 (UPI) -- It used to be that charges made for phone calls were what could make or break a telecommunications company. But gone are the days when simply encouraging people to talk longer and more often could lead to profits. Instead, even established carriers are finding that making the most of new technologies is where the money's at.
This week a slew of carriers on both sides of the Atlantic Ocean announced their earnings results, most of them favorable amid a positive economic climate worldwide, and above all more enthusiasm among consumers to get connected through many means beyond fixed-line calls. Still, that means that established companies are facing ever-increasing competition from start-ups that can often provide connectivity cheaper and more conveniently.
On Thursday, for instance, British telecom giant BT reported its tenth consecutive quarter of revenue growth amid heightened demand for its broadband and related services. The company said revenue from so-called new-wave services, which includes broadband, rose 18 percent from the same period a year ago and made up 34 percent of overall group sales, compared to 29 percent in the previous year.
At the same time, however, there is growing concern among many industry analysts that BT is losing its competitive edge in the broadband market, which is expected to keep growing. For instance, while the company signed on about 300,000 new wholesale subscribers in the latest quarter, that number fell far short of the 700,000 who had subscribed to BT services in the previous quarter. What's more, the number of new retail broadband customers reached 158,000 in the latest quarter compared to 250,000 in the earlier ...