November 22, 2004

Competition in the wireless field will continue to remain tough for 2005, with some of the hottest issues facing carriers being enterprise demand for quality of service, public safety, the growing problem of spam and in-building competition and consolidation, according to wireless technology consulting firm inCode.

In its "Top Ten Wireless Predictions for 2005," inCode expects wireless to play a major role in public safety in the areas of priority access, network interoperability and reliability, spectrum requirements and E911.

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The firm doesn't expect widespread adoption of a wireless 411 white pages, but does predict that a Yellow Pages directory of small business owners will take hold.

"The typical consumer values their privacy," says Jorge Fuenzalida, inCode's East Coast director for the technology and strategy group. For small business owners, however, their cell phones can be a primary mode of voice communication.

Other highlights from the predictions include: differentiated voice will be a competition driver; technology convergence; enterprises will demand service quality; multimedia offerings will increase; a battle will ensue over who controls content; spam-stopping technologies will proliferate; in-building wireless coverage will be a service differentiator; and U.S. carriers will stay clear of adult entertainment offerings for the time being.

Although consolidation didn't officially make it on inCode's top 10 list, it is on the list as a bonus prediction.

"The financial health of the industry has reached a point that M&A occurs," he says.

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This year saw the completed merger of two Tier 1 players, AT&T Wireless and Cingular Wireless, knocking the scorecard down from six major players to five. "Margins will continue to be tough," Fuenzalida says.

"Some folks have similar technology and so it might be cost-effective," he says. InCode predicts there will be at least one consolidation announcement made next year, possibly involving Tier 1 or Tier 2 operators.

Source: Wireless Week