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.
Tuesday, July 17, 2012
Data Tsunami Could Wipe Out All Telco Profits
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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