Wireless establishments have been protected by a largely flexible cost structure which allows them to cope with even the steepest cyclical changes. With this, telecom equipment vendors, wired and wireless service providers face major challenges. Many carriers are facing price competition and overcapacity.
Governments are demanding infrastructure enhancements and decreasing admission barriers to the industry. Current innovations such as video on demand, IP applications, and 3G wireless services are yet to meet investors’ high growth expectations.