A survey by Pew Internet unveils that U.S. adults are increasing their text messaging, up 2.4 from a year ago to 41.5 texts a day. Users in the age group 18-24 years were heavy users of text messaging with an average of 109.5 texts a day. This translates into better profits for the telcos such as Verizon (NYSE:VZ), AT&T (NYSE:T), Sprint (NYSE:S), MetroPCS Communications (NYSE:PCS), and Leap Wireless International (NASDAQ:LEAP). All these carriers have seen falling profitability from their voice business.
According to the report, “some 83% of American adults own cell phones and three-quarters of them (73%) send and receive text messages,” and “overall, the survey found that both text messaging and phone calling on cell phones have leveled off for the adult population as a whole.”
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Verizon (NYSE:VZ) is trading at $36.14 today, down 0.74%. Shares are up 12.65% year to date. The stock’s trading range for the year is between $31.60 and $38.95.