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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (3551)	7/29/1999 10:18:00 AM
From: elmatador	Respond to of 5390

The most striking trend is that US telecommunications revenue has been virtually flat in real terms over the past five years, and in terms of spending per subscriber is actually falling by almost 5 per cent per year. Users' base going up. Revenue per user going down: Consumer spending on telecommunications services is going down: Revenue Local fell down by 1.2%, Non-local grew 1.2% Mobile grew by 32% BUT REVENUE PER SUBSCRIBER WENT DOWN 4.8% between 1989 and 1994 of which: Local fell -4.9% Non-local -1.9% Mobile -12 This means the operators have must deepen the market by trying to persuade consumers to spend more time using telecommunication-based applications. (Here you see ERICY NOK offering those flavors of data over Wireless) In addition to increasing the four minutes per day consumers spend on the telephone, opearators must seek a share of the three hours or more per day consumers spend watching television or shopping. (Here you see vendors reacting and trying to get into home networking) They are aiming at a greater share of the customer, as much as a higher share of the market. This is what will drive those opearators to start investing in their home countries again. Moreover, they can apply the same technology in South America and in the OECD countries. Sooner or later the market pressures will be felt out there as well. Those non-OECD countries have de-regulated and privatized. The rules that today applies in the developed markets will apply there as well.