Data Tsunami Could Wipe Out All Telco Profits

Telecom service provider “costs per gigabyte must decrease by 90 percent every three to four years” just to keep service provider revenues and costs in the same relationship as they are now, according to Norman Fekrat, IBM Global Business Services partner and VP. That illustrates the magnitude of changes many believe must be made in the global telecom business.

And the bad news, says Fekrat, is that, at the moment, service provider costs are “increasing when it needs to decrease.”

“The cost structures need to be reduced significantly,” not incrementally, he says.