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The New Telecom Economy

Published: 2009-03-04

Part 2 - The times they are a-changing

(Bob Dylan)

Part 1 analysed the stock evolution of some major market players, as an indicator of the ups and downs that were provoked by the technology hypes of the late 1990's, as a certain number of telecom mythologies, particularly concerning the Internet and data communications in general, previously taken for granted, were suddenly questioned. We showed that the "datawave", beyond its real magnitude, has the capacity to restructure the whole telecoms economy with the introduction of new technologies and new tariffing schemes. As a matter of fact, the topic was more about a cultural revolution that would favour new players from the new continent, although the economic weight of such an equipment category - which is predominant in enterprise networks' accounts for only 20% of world markets for CPE and 9% for all equipment. Today, the revolution has stalled as network overcapacity is acknowledged, because traffic lures did not materialize.

Part 2 of this article addresses a number of key issues in market evolution, such as mobiles, competition and geographical market restructuring.

Published: 2009-03-04



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