Rising handset costs dial down wireless margins: Moody's

NEW YORK - Increasing handset subsidies by wireless carriers are putting more pressure on those company’s margins, according to a new report released Tuesday by Moody's Investors Service.In a special report on the U.S. wireless industry, which reflects trends seen here in Canada, Moody’s said that subsidy costs incurred by wireless carriers have increased 78% on average in the past three years for the seven largest U.S. wireless carriers by revenue.Historically, carriers offset these expenses through cost improvements in other parts of the business, which has resulted in flat earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of approximately 33% across the industry,...