Pyramid Research Predictions for 2006

Pyramid Research Predictions for 2006

1. Carrier margins will decline, especially for fixed operators, with sharp decline in voice revenues, competitive pressure.

2. The world’s mobile subscriber base will reach the 2.6bn-2.7bn range; Asia and MEA will drive the growth; operators in emerging countries will have to show profitability with very low ARPU (around $5).

3. Cellular-WLAN services will take off in 2H06

4. Merger & acquisitions will continue

5. 2006 will be a watershed year for managed services deals in the telecom industry

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

7. The US mobile market will not witness significant change of ownership; T-Mobile and Alltel are here to stay

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

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

1. Fixed WiMAX (802.16d) deployments will not begin before the end of 2006.