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Future Of Global Wireless Industry Hinges On Value, Not Mergers

Future Of Global Wireless Industry Hinges On Value, Not Mergers

New research from Strategy Analytics suggests that ‘mega-mergers’ within the global wireless services market will become scarce in the future as the industry puts value before volume due to the unfavourable economic outlook.

Phil Kendall, director of Strategy Analytics’ Global Wireless Practice, commented: “Operators need to export successful strategies to sustain profit growth but there is a growing interest in the alternatives to mergers and acquisitions. Tactical minority investment to gain market influence is one option, while the virtual network operator route also has much to offer those not looking for instant market share.”

David Kerr, Vice President added, “By 2006, Strategy Analytics expects the top 10 operators to control 60% of global customers. We expect further consolidation in the global wireless market over the next five years but the identity of the top three (Vodafone, China Mobile, NTT DoCoMo) will remain unchanged.”

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