The European carrier market will continue to suffer. Once upon a time, Europe led in telecom innovation and usage via a couple of large carriers and network equipment suppliers. More than 100 carriers in the 27 European countries are after 650 million consumers — less than the installed base of China Mobile alone. Competition will be fierce, especially in France with Free/Iliad’s aggressive disruption. Expect regulation, acquisitions, and cost-sharing to be high on the agenda, but the No. 1 challenge is to invent a new business model via more strategic partnerships with OTT players.