For Immediate Release
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
Technological upgrades and breakthroughs have resulted in a cut-throat telecommunications industry. Product life-cycle and upgrade-cycle have been reduced drastically as several firms are coming out with new types of products and services within a short span of time. Increasing competition is actually forcing each and every player to offer heterogeneous and bundled services.
We may see more product sharing deals between telecom, cable TV, and satellite TV operators as each of these players are trying to get a foothold into another’s territory. Even pay-TV services, offerings to business enterprises and mobile backhaul and metro-Ethernet segments may witness more convergence. Mobile phone makers are now gradually offering tablets (small laptops); chipset manufacturers are offering personal computers and mobile phones are frequently interchanging their areas of operations.
The telecommunications industry as a whole offers a number of attributes that are difficult to ignore from the standpoint of investors.
- Telecommunications - a necessary utility: The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, will continue to grow. In addition, economic stimulus plans in the U.S. and throughout the world should boost select service providers and equipment manufacturers.
- Structural subsidies: The Broadband Stimulus Program of the U.S. government has received significant acceptance among rural carriers. President Barack Obama has endorsed a wireless spectrum hike plan proposed by the FCC, which will nearly double the currently available spectrum for wireless broadband services while increasing Internet connectivity. The FCC together with the U.S. Department of Commerce will identify unused airwaves to raise the available spectrum size to 500 MHz in the next 10 years.
- International diversification: Though diversification within a country offers only limited protection in the current highly-correlated world equity markets, it offers hedging opportunities from local economic weakness and associated currency exchange differentials.
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