Strand Consult released its latest prediction post for the telecommunications industry, looking into eight different trends that the firm believes will become the most prominent in this market. Strand had been releasing these reports for over a decade now.

Telco & Political sectors

The first two highlights of the forecast focus on the frictions between the telco industry and the political arena. Strand’s analysts think that 2012 will be the year when we’ll see more cooperation between the private sector carriers and the feds in recognition of an evolving space. They also believe this will extend to other markets including Europe.

This year will be the time when the EU will decide upon the way they’ll regulate the various industries in the different nations – whether or not they’ll harmonize things. This will also apply to telcos, which will need to work on sorting out the frictions mentioned above.

Competitive market

The next portion of the forecast focuses on an outlook of increased competition. There will probably be a lot of M&A and consolidation going on as providers will try to hold on to their competitive edge in an increasingly crowded market. Nokia has been lagging behind for too long, and will likely take a hit in 2012 even as it is trying to catch up on the longer run.

The fifth bulletin discusses the spread of LTE and high-speed broadband, driven by the industry’s recognition of a huge new opportunity and fueled by growing demand from customers.

Naturally, Strand is seeing even more momentum ahead for apps and other mobile services – but the firm does present a very interesting contradiction.

“All in all, 2012 will end up being a year where many companies experience growth in their mobile traffic. But the fight against free services will result in most companies experiencing the frustration of having a solid growth in traffic, but at the same time seeing their cash flow stagnate or even decrease.”