Monday, July 17, 2017

Some Mobile Operators Have No Choice But to Gamble on 5G

Nothing is easy in the developed nation telecom service provider business, and nothing has not been easy for most operators for decades. The single biggest problem is revenue, even if operating costs and capital investment, plus competition, are key issues as well.

Looking at service provider revenues (dollars, billions), Western Europe’s mobile operators, which have so far been the prime examples of saturated markets, it is easy to see the revenue problem: revenues are flat or declining for Orange, Deutsche Telekom, EE, Vodafone and Telefonica (excluding international operations).

Some will warn--rightly--that the ability of 5G networks to create new revenue streams is absolutely key. If 5G does not lead to incrementally-higher revenues, the capital investments might actually make the business model worse.

In truth, there is likely little choice. Mobile operators who have run out of things to sell in a 4G context must gamble on 5G allowing them to do so.

source: Light Reading

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