Telecom markets to see drastic changes! gartner says..

The prediction gartner makes about the Telecom market is that the growth and advancement in the telecom market will be so much over and above the normal that the government intervention and regulations, cannot help but control it.

The research and analysis firm says that at the center of this change is the global trend toward telecom structural separation, or the deconstruction of a telecom carrier's vertically integrated business model into a more horizontally structured model.

In the past 20 years, carriers have increasingly focused on operational efficiency — via a tighter coupling of business assets (vertical integration) — to compete more effectively against new market entrants with lower cost structures.

Gartner said that telecom regulators have been pursuing accounting separation and are now considering functional and ownership separation as a last measure to achieve their policy goals. The difference between these types of separation is the level of control that carriers will be able to exercise over their separated units.

Functional and ownership separation are global trends and will particularly impact developed countries where the telecom market is mature and regulators are trying to inject more direct market competition as a stimulus for innovation and greater investment in next-generation broadband.