Telecom Executives Express Views on
Wireless Voice Network Dominating
Industry
WASHINGTON, Nov. 2 /PRNewswire/ -- The Strategis Group's 1st Annual Telecom Summit
attracted executive attendance from all sectors of the telecom industry. The Summit was held in
Scottsdale, Arizona on October 29-30th. The Strategis Group developed the Summit as a unique
forum for discussion of new opportunities and risk management across all segments of the
telecommunications industry. Andrew Roscoe, The Strategis Group's president and CEO, was the
keynote speaker and gave a high-level perspective on the state of the telecom industry. Mr. Roscoe
concluded that, while the telecom industry is leading other industries in innovation, it could get ahead
of itself. ''The product innovation cycle has become much shorter than the product diffusion cycle.
We have to innovate smarter and design flexible networks that are backward compatible,'' said Mr.
Roscoe.
Based on a Strategis Group survey conducted at the Summit,key industry executives believe that
wireless will become the dominant voice network for households[emphasis mine - JLF], but not for businesses. ''With the
growth in demand for broadband services to support data traffic, it is doubtful that wireless data
networks today can meet business users' needs,'' said Andrea Knotts Bona, vice president and
publisher for CommNOW. ''It will be interesting to see if 3G changes this equation in the next few
years.'' Ms. Bona moderated the panel discussion that concluded IP protocols would become the
most important growth driver for all telecom networks worldwide.
The two-day Summit featured discussions focusing on proprietary Strategis Group data, gleaned
from more than 50 studies produced annually by The Strategis Group. The directors of The
Strategis Group led the panel discussions each day with Thursday focusing on North American
telecom issues and Friday incorporating an international telecom perspective. Elliott Hamilton, senior
vice president of the North American Telecom group, chaired the first day's discussions that
included wireless, mobile data, local competition, cable TV and the Internet.
The sessions had several recurring themes, including differentiation and the interrelationships of the
industries. ''Companies in a competitive marketplace need to differentiate their services from their
competitors. They can do this through enhanced services, customer service and the bundling of
services,'' said Mr. Hamilton. He also emphasized the issue of evaluating subscriptions in terms of
households, not just single subscribers. However, Mr. Hamilton warned, ''all households are not
created equal--high-income households are far more likely to adopt service bundles.'' Additionally,
Hamilton said that bundling activities have led to a recent spate of acquisitions and mergers in
carriers' zeal to offer one-stop shopping.
''Is mobile data ready for primetime?'' asked Stephen Virostek, director of mobile data in the
Future of Mobile Wireless panel. ''There have been a lot of promises and little fulfillment, but that
may change. Wireless e-mail and the Internet will lead the way, but it is still several years
away--maybe 3G digital will be a catalyst,'' said Mr. Virostek.
Thomas Wheeler, president and CEO of the Cellular Telecommunications Industry Association
(CTIA), was the featured luncheon speaker and provided a lively perspective on how the wireless
industry has provided a role model for the emerging competitive telephony market.
Mark Warner, managing director of Columbia Capital was the keynote speaker at Friday evening's
dinner. Mr. Warner regaled the audience with his perspective on the ''wild ride'' of the cellular
industry. He stated that even in an industry increasingly consolidated with large, well-capitalized
players, niche strategies could create opportunities for entrepreneurs. Mr. Warner described his
co-founding Nextel and Columbia Spectrum Management as such opportunities.
The Strategis Group's 1st Annual Telecom Summit concluded Friday, focusing on the international
telecom marketplace. The international program at the Summit, chaired by Dr. Samuel H. Book,
executive vice president, was devoted to next generation technologies and services in international
markets. Dr. Book noted that, ''The most exciting new market is broadband data services which
should experience exponential growth worldwide. Within five years, The Strategis Group projects
the broadband market to represent over $160 billion in annual service revenues.''
The impact of third generation cellular technology, or 3G, was also examined. Luca Tassan, director
of The Strategis Group's European Office said, ''3G will permit an extension of cellular growth in
European markets. The Strategis Group projects that 3G could represent approximately ten percent
of the European subscriber base by 2007.''
The Strategis Group an EDR (e data resources) company -- with offices in Washington D.C.,
London, and Singapore -- publishes in-depth market research reports and provides customized
consulting services and continuous information solutions to the wireless, cable TV, competitive
telephony, satellite, broadband, and Internet industries. For more information on the 1st Annual
Telecom Summit, contact Amelia Bohn 202-530-7602 (voice), 202-530-7550 (fax),
arb@strategisgroup.com (e-mail), or www.strategisgroup.com for additional information on The
Strategis Group.
SOURCE: The Strategis Group |
