Globally, telecom revenue is growing. But not in Western Europe, it appears. The mobile industry’s combined revenues from voice, messaging and data services in the EU5 economies (United Kingdom, France, Germany, Spain and Italy) will drop by nearly 20 billion Euros, or four percent a year, in the next five years, and by 30 billion Euros by 2020, according to STL Partners.
The obvious implication is that mobile service providers in the United Kingdom, France, Germany, Spain and Italy will have to create new revenue streams worth 30 billion Euros, just to stay where they are, by 2020.
That is roughly in line with a rule of thumb I use that suggests service providers in just about every developed market will need to replace about 50 percent of current revenue in 10 years.
Thursday, November 22, 2012
European Mobile Industry is Contracting
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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1 comment:
I wouldn't have expected that mobile industry revenue would be dropping anywhere, since everyone is always on their mobile phones. But Western Europe does do their own thing.
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