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The EIU analyzes how the explosion of Internet and data services and the decline of the voice business is creating threats and opportunities for telecoms network operators.

While data traffic revenue could more than compensate for the decline of voice, the networks needed to support them are costly to build. In the mobile broadband market, usage levels are straining capacity and threatening profitability. But the biggest threat to operators could be the over-the-top players that operators have allowed to flourish.

The spectre of a “dumb pipe” future is overstated for all but the most hidebound of operators. The latter have numerous assets that should allow them to compete—and partner—effectively with Internet companies. But operators urgently need to take action on several fronts.

The EIU suggests five strategy options that operators should explore to take them forward:

• Smart pipe
• Efficient pipe
• Pricing pioneer
• Defender of the realm
• Transformer

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