Price war in U.S. mobile market raises fear of profit hemorrhage

People work on their mobile devices at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada January 8, 2014. REUTERS/Robert GalbraithBy Sinead Carew NEW YORK (Reuters) - New Year's rivalry among U.S. mobile operators has Wall Street worried that the industry's profits could seriously decline. After months of aggressive moves by T-Mobile US to lure customers from other carriers, No. 2 operator AT&T Inc counter-attacked on January 3 by offering to pay consumers to switch from T-Mobile. On Wednesday, T-Mobile upped the ante, saying it would pay hefty exit costs for converts. The moves by Sprint and AT&T come after No. 4 U.S. operator T-Mobile, a long-time industry straggler, was able to report three full quarters of customer growth after four years of losses.


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