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Mobile Music on, Mobile TV off – inCode Reveals Top 10 Global Wireless Predictions for 2006

Entertainment, Consolidation, Convergence and New Business Models for Voice Cause Market Shakeups

SAN DIEGO. Nov. 2, 2005–inCode, the global business and technology consulting firm, has released its Top 10 Global Wireless Predictions for 2006. inCode predicts mobile entertainment taking centre stage, fierce competition leaving only five handset manufacturers standing and new business models enabled by converging access technologies.

The 2006 Predictions include (full text follows this release):
• A digital music innovator will launch a Mobile Virtual Network Operator (MVNO) focused on mobile entertainment services
• Mobile TV will provide a ‘snack’ rather than a killer app
• Five long-term survivors will emerge from the brutally competitive handset market
• A new business model for voice services will emerge, based on mobile Voice-over-Internet Protocol (VoIP)
• At least one major network operator will abandon its retail brand and use wholesale access as an innovative business strategy

“2006 will be a year of substantial and rapid change in the wireless market, favouring smarter, more nimble players,” said Bengt Nordstrom, chief strategy officer, inCode. “New entrants will challenge existing business models, especially in mobile entertainment and voice, which will dramatically increase competition. Meanwhile, the most innovative established operators will work quickly to monetize their expensive 3G networks. If these operators can rapidly align device design with market-leading applications and respond to emerging technology challenges, they will be able to seize the opportunities and dodge the threats.”

The inCode Top 10 Predictions, now in their third year, are regarded as highly accurate due to inCode’s substantial first-hand knowledge and experience of the worldwide wireless market. The strategic powerhouse behind many of the most complex business and technology initiatives in wireless, inCode employs 400 experienced professionals. Due to this expertise, 90 percent of the 2005 Predictions were proven in the first 10 months of this year.

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