 Telecommunications is perhaps the one industry most responsible for today's smaller, more connected world. It is little wonder that this sector which has changed so much about the way we live and interact with each other is also in a continually evolving. This study examines 10 emerging developments sure to make 2006 another eventful year for the telecommunications industry:
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The global telecommunications market — comprising landlines, mobile communications, VoIP (voice-over Internet protocol) and broadband connectivity — should achieve a new record of connections in 2006, exceeding four billion worldwide.
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Despite a strong fourth quarter in 2005, the 3G (third-generation) phone market will likely experience slower than desired growth as the technology, and cost, exceeds the basic needs of consumers.
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Style and fashion will continue to play important roles in the communications sector, particularly in the mobile phone industry.
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The development and maturation of machine-to-machine communication devices and services should provide telecom companies with another source of revenue.
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The sector, particularly fixed and mobile industries, will increasingly compete on speed, pushing each other to reach download rates in the tens of megabits per second.
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Telecommunications is primed to undergo a period of intense mergers and acquisitions activity in 2006, driven by surplus cash reserves among the top players and a desire for scale.
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Convergence will likely remain a key focus of the sector, but many operators will struggle to get their full share of the revenues.
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The reseller market should be stronger than ever in 2006.
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Telecommunications companies will increasingly diversify, partly to leverage existing customers and infrastructure and partly as a reaction to declining revenues in their core businesses.
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Managed VoIP should continue to gain market share while ad-hoc providers (those that use the open Internet as a service platform) could struggle to generate revenue.
The report includes recommendations from the Technology, Media & Telecommunications industry group on how to take advantage of these emerging trends. Read the full report in the PDF file attachment below.
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