More than half of the global tier-one telecom carriers  trying to establish new lines of business will fail between now and 2010. 

Mobile broadband, Internet Protocol (IP) technology and the desire to become full-service providers are increasingly driving telecom carrier strategies – however, according to Gartner, as they confront these industry upheavals, carriers face risks in building non-core telecom business units and over-investing in immature  technologies.
The reality for most telecom carriers is a future where they have to strive to be profitable on much lower margins than today, Gartner says.
Historically, carriers have been able to depend on high revenue growth from broadband or mobile services, but they now face the prospect of rapidly declining revenue growth.
Gartner predicts that year-on-year growth of total revenue from telecom services (80% of total global telecom market size) will shrink to just 1,7 percent in 2010.
The research organisation expects total telecom service revenues to rise only modestly over the next four years from $1,3-trillion in 2006 to $1,5-trillion in 2010.
As a result, over the next few years more carriers will invest in new markets, such as media or IT, to compensate for revenue losses in traditional telecom services like public switched telephone network voice.
However, more than half of these new approaches will fail because many carriers have a limited knowledge of their existing subscriber base and often don¹t understand the new business models.
"The synergies between the different business models and markets are very limited," says Martin Gutberlet, research vice-president at Gartner.
"This type of diversification carries a high risk of losing focus on today's core business priorities such as customer retention and cost cutting, with no
guarantee of increased revenue growth in the long-term."
Gutberlet says that, due to the high risk of failure, Gartner is advising carriers to carefully define risk mitigation and potential exit strategies.
"It will take more than just hiring a few media or IT executives for carriers to succeed in these new markets," he adds.