Skip to main content

2006 Telecommunications Sector Predictions

Pyramid Research has announced their 2006 telecom industry predictions. Additional support for each prediction is available.

Predictions for 2006:

�The world�s mobile subscriber base will pass the 2.5 billion subscriber mark; more interesting however, is how it will get there - Beyond the Vodafones, Verizons and Oranges, 2006 will be defined by the strategic moves of players such as India�s Bharti, Pakistan�s Mobilink and Paktel, or Nigeria�s Globacom

�Industry consolidation in the form of operator M&A will continue � Possible targets in the European market are: Bouygues, Belgacom, Swisscom, Eircom, Fastweb, Cable & Wireless, TDC, Elisa, Telindus and Kingston

�Carrier margins will decline throughout 2006, most notably on the fixed side - Pyramid expects fixed carriers to see reduced EBITDA margins in 2006, but they remain bullish on new services and believe the blip will be temporary; 2006 is the down year preceding a strong rebound in the net contribution of new services to carrier profitability

�The broadband, video and wireless voice bundle will be more successful than traditional triple play and, even, quadruple play

�The first commercial launches of seamless WLAN-cellular services will take place in the second half of 2006

�2006 will be a watershed year for managed services deals in the telecoms industry

�The multiplication of distribution platforms will continue to challenge the concept of content exclusivity

�The US mobile market will NOT witness significant change of ownership - T-Mobile and Alltel are here to stay

�A flurry of enterprise-focused MVNOs (EMVNO) will enter developed mobile markets

�Fixed WiMAX (802.16d) deployments will not begin before the end of 2006 unlike last year�s expectations of commercial deployment in early 2006

Popular posts from this blog

Frontier AI Peaked. Here's What Comes Next

The prevailing narrative around artificial intelligence (AI) has been one of relentless scale. Bigger models, bigger clusters, bigger budgets. The assumption, largely unchallenged until recently, was that raw parameter count translated directly into competitive advantage. New research from Omdia suggests it's time to retire that assumption. According to the latest market study by Omdia, parameter growth in frontier AI models has slowed to around 5 percent annually since 2021, a stark contrast to the more than hundredfold expansion seen between 2019 and 2021. Enterprise AI Market Development For executives who have been making infrastructure and investment decisions based on the assumption that AI would keep demanding ever-larger, ever-more-expensive hardware, this finding deserves serious attention. The race to the top of the model size leaderboard has, at least for now, plateaued. Crucially, Omdia's analysts are not reading this as an AI winter. Alexander Harrowell, senior pri...