Top 3 Bears Arguments
As the U.S. mobile phone market reaches saturation point, the leading wireless service providers may begin to focus on acquiring a share of the smaller and rural markets where Alltel currently experiences less intense competition.
Alltel's focus on CDMA-based technology may lead to the company having to invest large amounts of capital to transfer to the technology that currently dominates the world markets, GSM-based technologies.
Subscriber growth rates are expected to decline sharply in the near future. Combined with increasing competition and decreasing prices, this will most likely lead to a decrease in the growth of Alltel's revenue and its income.