The growing usage of the Internet has destroyed many industries since the 1990's. The advent of wireless data networks will now do the same thing to telecom. Wireless voice over Internet platforms such as Skype, Google talk, and Ting have commoditized of phone service. The result will be a dramatic increase in competition, squeezed margins, and likely a decline in dividend payments. As a result, the telecom industry will have negative real returns and will become a sector for investors to avoid.
The first strike against telecom is the Internet replacing landline and satellite infrastructure. Wireless hotspots make Internet accessible from nearly any populated area. The increase strength of data networks also makes previously profitable infrastructure such as landlines, fiber...
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