Wireless Churn Creams Laggards

Wireless investors got a sneak peek at the future this week, and the preview was anything but pretty for AT&T Wireless (AWE Quote) and Sprint PCS (PCS Quote).

The big wireless service providers saw their shares plunge Thursday after they posted soft growth and noted a rise in subscriber defections. Worse yet, observers expect those trends to intensify in the next month with the phase-in of so-called number portability.

That rule, which allows wireless subscribers to keep a cherished phone number even as they switch service providers, is expected to accelerate the industry's separation into winner and loser camps. The issue isn't just subscriber growth, though that remains paramount; also key is who has to spend to lure or retain customers, and how that affects the bottom line. ...