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The mobile market is becoming an increasingly challenging environment: Regulation, competition within and outside the established value chain, the appearance of new entrants and the fast-paced change in user requirements are starting to put a strain on mobile operator profit margins. Moreover, financial and market trends that previously followed a cycle of years can now disrupt a mobile business in mere months. One such example is the of erosion SMS-messaging revenue due to competition from OTT services and other free offerings from Web companies, including WhatsApp, Viber and Apple's Facetime and iMessage. Operators have little leeway to challenge these services and are realizing that they need to streamline their business in many ways, so that they remain profitable and agile and can respond to user demands. As these trends progress, operators are finding out that vendors are likely to become valuable partners, rather than merely infrastructure providers.
Over 2010 through 2013, new trends have redefined the telecoms market, including mass-market LTE networks, rapid smartphone adoption and awareness of data services among users, as well as several other trends that have established new ecosystems. There are a number opportunities for and threats to mobile operators in developed markets: Most are critical issues that they began addressing in 2012 and 2013 and will continue to address throughout 2014.