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Mixed view of the future from telecoms providers

The biggest telecoms companies look set to continue dominating the European marketplace, though senior executives in those companies express mixed views about the shape of the services they will be providing.

Overall, the industry is confident it will act as a catalyst for economic growth, generating increasing levels of service and contributing to new employment. In parallel, though, we are likely to see more of what Andersen Consulting calls the 'clash of the titans' as big companies battle it out for market share.

"Most European telecommunications executives liken the future of their industry to the nineteenth century gold rush in the United States - openly competitive and free-wheeling," says Andersen's Diego Visconti. "Yet a majority surveyed believe their companies will be protected by the 'gilded cage', a scenario in which regulators allow ÔsupercarriersÕ to continue to dominate local markets."

That may explain why more than half of the carriers expect to continue charging for local calls. But itÕs just over half - 45% expect local calls soon to be free.

There are mixed views on the future of wireless, too. 56% expect wireless services to remain a complement to, rather than a substitute for, fixed line services. And about the same number expect the big telecoms providers to capture a large share of the growing demand for converged voice, data and internet services.

Elliott Chase

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