Verizon Wireless sees growth from data, rivals

NEW YORK, Sept 20 (Reuters) – Verizon Wireless, the No. 2 U.S wireless provider, sees future growth coming from data services like mobile downloads, and from winning over customers from rivals, Chief Executive Denny Strigl said on Wednesday.

He predicted strong growth in existing services, including text messaging, music downloads and digital photographs, as well as upcoming features such as advertising on cell phones and search applications that combine with location technology to direct customers to local amenities.

“Where does most of our growth come from in the future? Clearly it’s from the data side of the business,” Strigl told a Goldman Sachs investor conference.

“I’m very optimistic about our ability to grow data at a very fast pace,” said the head of the wireless venture of Verizon Communications Inc. (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research).

Strigl added that his company would continue to take market share from its rivals. Analysts believe it has done so in recent quarters, as overall growth is slowing since about 70 percent of the U.S. population already have cell phones.

“For Verizon Wireless there is plenty of opportunity for us to take customers from our competitors,” said Strigl, who added that the company wins new customers with its reputation for having the country’s most reliable wireless network.

Strigl said he did not anticipate a slowdown in overall demand for mobile services despite the current high market penetration rate, adding that consumers will begin to sign up for wireless accounts on multiple devices, such as laptops and car phones, as well as regular cell phones.

“Do I see a slowdown in growth in this industry in the near term? No, I do not,” he said. “I think we have a lot of upside. I don’t see 100 percent penetration as complete penetration in the U.S.”

Some European countries have wireless penetration rates of more than 100 percent as consumers carry more than one device

Source- http://today.reuters.com

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