Deloitte Predictions For 2006

Deloitte’s Technology, Media & Telecommunications industry group is not predicting a rosy 2006 for the telecoms sector. It predicts that 3G will not grow enough to make investments in the network look like good ones…”customers’ needs are being met by existing standards; they don’t understand the benefits of 3G and why they should pay for them”. I moved to 3 when it opened in Australia because it had the cheapest call plan. The tens of millions of subscribers that will move to 3G networks will be “nowhere near enough to pay back the tens of billions of dollars invested”, according to Deloitte.
Deloitte also predicts that mobile TV will disappoint. “While it will be promoted as the next big thing, and tens of millions of promotional dollars will be spent, consumer acceptance will lag.” I think these predictions are a pot-shot because there is so much conflicting information out there about mobile TV.
There’s also a prediction that MVNOs will take off: “Telecom providers are looking for new sources of revenue, content companies are looking for new channels, and companies of all types want to leverage their loyal customer bases. This could be the year that MVNO takes off.” Well, with the launch of ESPN and Amp’d and the coming launch of other MVNOs like Helio, we’ll find out how much demand there is for targeted mobile content services…

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