Telecom Carriers Will Spend Billions to Try to Survive the IP Revolution: GartnerĀ 

Mobile broadband, Internet Protocol (IP) technology and the desire to become full-service providers are increasingly driving telecom carrier strategies and billions in investments, according to Gartner.  

As they confront these industry upheavals, carriers face risks in building non-core telecom business units and over-investing in immature technologies, says Gartner. 

Gartner said most telecom carriers have to strive to be profitable on much lower margins than today. Gartner expects total telecom service revenues to rise only modestly over the next four years from $1.3 trillion in 2006 to $1.5 trillion in 2010 when the annual growth rate shrinks to just 1.7%.

As a result, Gartner said that over the next few years more carriers will invest in new markets, such as media or IT, to compensate for revenue losses in traditional telecom services like public switched telephone network voice.  

However, according to Gartner, more than half of global tier-one telecom carriers trying to establish new lines of business will fail through 2010.

Check more on these and other related trends from Gartner's report Predicts 2007: Carriers Will Spend Billions to Try and Survive the IP Revolution. 

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