Nortel's Nadir

LOU BEACH FOR TIME

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Skype's popularity underscores the fact that even wireless providers who consider themselves leading edge are increasingly viewed as utilities that provide a basic service like water or power. What matters most to users is the latest iPhone or BlackBerry with the sleekest applications. These added pressures to the customer base and bottom line may turn out to be for the telecom industry what the automobile was to the horse. Skype co-founder Niklas Zennstrom predicts that in less than a decade, telcos and cablecos will be on the bottom of the telecom food chain, faceless operators of low-value pipes delivering high-value content to smart mobile devices. Don't say you haven't been warned.