It sometimes might feel as though the connectivity business is tough, and it is. But it might not be uniquely tough. Since all public companies are evaluated financially on revenue, profitability and other growth-related metrics, revenue growth potential is directly related to asset value.
But not every industry grows at the same rate, and therefore different industries have asset valuations that reflect those differences. In fact, the connectivity service provider business (mobile, fixed services, wireless services) might be considered to rank somewhere in the middle of all industries in terms of growth prospects.
With the caveat that forecasts and ratios can vary widely between firms in the same industry but different geographies or market segments, connectivity service providers operate somewhat in the middle of growth rates, and have price/earnings ratios perhaps in the middle or lower-half of all industries.
The point is that the connectivity service provider tends to be a low-revenue-growth type of industry. Since faster-growing firms and industries tend to have higher valuation ratios, it would not be surprising if connectivity service provider firms sported P/E ratios reflective of slower-growing industries and firms.
Internet service providers routinely complain about their inability to benefit from the value of internet ecosystem products and services, especially compared to the value internet app providers seem to reap, for example.
And it might sometimes “feel” as though connectivity is an inherently “more difficult” business to manage. It is more difficult than some; but not uniquely difficult.
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