GLOBAL FOLLOWER

The early returns are coming in for the first quarter, and telecom finally appears to be stabilizing at a not-so-comfortable level. Look below the headlines trumpeting EBITDA positive, though, and an ugly picture is emerging. At a time when most other economic sectors in the U.S. can claim some sort of world leadership position, we have lost that mantle in telecom. While both carrier and vendor executives have bemoaned the lack of visibility for several years, the picture that is emerging from the wreckage is one of an American market that, while still the largest, appears destined to play second fiddle in technology advancement for consumers. Maybe it's appropriate that a technology with the capability to unite the world on an auditory level would be among the first of the major industries to slip off the high perch. So who's the new king of the hill? Asia is leading the way in broadband adoption, while countries like Korea and Japan battle with the whole of Europe over wireless dominance. Don't expect the U.S. mass market to jump on the tech bandwagon for patriotic reasons either. A study by the Pew Internet and American Life Project released last week reported that of the 40% of Americans who are not online, roughly half have no intention of becoming Internet users. From our own cocoon of watching telecom's quarterly results trickle across our screens, vendors are offering up guidance that points to the increasing importance of international carriers.

While domestic carriers carp about regulatory burdens, the rest of world is advancing fast. Don't expect them to wait up.