Odds of Telco Failure are Growing

One graph shows the tension in fixed network business models, globally. By the end of 2017, telecom service provider revenue will potentially be lower than the amount of capital investment being made in those networks. Presumably, if one adds the operating and overhead costs, many service providers are basically “under water” in terms of their business models, which is to say, “failing.”

That is a primary reason why the fundamental strategic challenge for any “telco” or legacy access provider is to replace nearly all of the existing revenue sources with new sources. That would be a huge challenge for the best-placed, best-managed firms in any industry.

The odds of failure continue to grow.

source: The Economist
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