Much of the telecommunications industry's problems in 2002 resulted not from the poor economy but flawed strategies and false assumptions by major players, according to a report released last week by Insight Research, Boonton, NJ.
“The inability to transform capacity growth into actual revenue and mistaken calculations about the growth of network usage led to false assumptions of market sizes,” Insight Research president Robert Rosenberg said.
The study found that many companies overestimated the number of new competitors that could thrive in the market, the advantages that scale would impart and could not find convincing ways to differentiate their products.
Areas examined in “The 2003 Telecom Industry Review: An Anthology of Market Facts and Forecasts” include network infrastructure, broadband access, network support and telecom services.
