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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

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