Telecoms Fixed Line - V - Wireless
The advent of wireless communications became stiff competition for the fixed line operators. Having a cellphone meant there was less need to have a landline as well. To compete the landline companies had to introduce wireless services as well. The increased demand for internet especially with the introduction of Broadband kept the demand for fixed line alive.
What should be noted is that it's easier for fixed line companies to get involved in wireless than it is for wireless companies to get involved in fixed line except via M & A activities.
For wireless companies this is not a problem while they are in front for coverage and new technology continues on handsets. But now technology has swung back in favour of fixed line. The increasing demand for Voice Over IP from the likes of Ebay's Skype of free phone calls means that the fixed lines core revenue from phone calls is under threat.
To combat this the fixed line operators next move is to channel these 'free' calls to wireless handsets via Wi-Fi technology Because of the nature of Wi-Fi the ability of Fixed Line operators to install repeaters and hot-spots is much easier for them than for the Wireless operators.
The speed of data across wireless carriers is still very low, except for G3 which is comparably highly priced to the end user because of the way it was initially setup - whereas, although not good coverage, Wi-Fi is fast enough to take VOIP phone calls.
Fixed line operators are now taking advantage of this by introducing handsets that can switch from Wi-Fi to Wireless Networks automatically without losing the call. This we believe is key for them going forward.
For a wireless company that has no fixed line interests, we see this as having a large impact on there call and data margins, thus they will have to reduce prices to compete.
Thus in our view we would suggest Buying Fixed Line operators and Selling Wireless operators.
The timing of this we would look to technicals.
Media Terestial - V - Satellite
Report available upon request.