Telecom Industry History of the Future 0 2

Telecom Industry: History of the Future 0 -2 years – RBOCs are big early winners gaining upto 20% market share in long distance while losing only 3 -5% share in the local telephone. – AT&T is the biggest loser – Companies invest heavily in R&D and infrastructure

Telecom Industry: History of the Future – RBOCs and AT&T lose substantial market share in their core business (15%-25%), – AT&T makes decisive inroads in local telephone, gain up to 30% local telephone marketshare in key metropolitan areas – Online service demand explodes almost doubling each year – RBOCs customer loyalty withers away in 24 -30 months 3 -5 years – CAPs (competitive access provider) and cable companies become increasingly competitive due to unbundling products – AT&T and MCI skim the cream with one-stop shopping accounting for up to 50% of the profits

Telecom Industry: History of the Future • Size of the US market $1. 3 trillion and $3. 5 trillion worldwide • AT&T and MCI sets new rules of the game • Online service demands open up many foreign markets • Mergers and acquisitions continue to shape the Industry • GM controls 30% of wireless communications and upto 15% of semi-conductor markets • AT&T and Microsoft join hands and emerge as 5 - 7 years biggest winners collecting tax on every bit transmitted around the world