10 signs that Telecom World is not doing well
- For MNOs (Mobile Network Operators) ARPU is in a steady and continuous degradation. Below is an example from UK (source)
2. Nokia and Ericsson shares are at their minimum price regardless of their 5G perspectives (also regardless of the $3.5Bn contract signed by Nokia with T-Mobile USA):
3. Number of jobs in Telecom are 30%-40% of what it used to be.
4. Rates in Telecom are 50% or less of what it used to be.
5. Only available jobs are those of either being a Guru/SME on one topic or being an orchestra man (10 skills or more required). Even in such cases you are required to do the job of 2-3 people so overload is the attribute of a today job in Telecom.
6. Mobile Network Operators don’t have a clear map with milestones regarding where they are heading to for the next 10-20 years.
7. Mobile internet is not a lucrative business anymore. In every country competition is so fierce that MNOs are cannibalizing each other already. Let alone having a sustained growth. One cannot be profitable when unlimited mobile internet plans are getting close to be free of charge.
8. OTTs (Over The Top players like: Skype, WhatsApp, Facebook, Youtube, Instagram etc) are flourishing while MNOs have a negative growth in revenues month after month.
9. MNOs have outsourced almost every service/department in a desperate attempt to reduce costs as much as possible. MNOs are also building common sites with competition to share costs and to increase somehow revenues.
10. There are so many third parties in the Telecom world that sometime those 3rd parties are deciding (or should I say strongly advising) what is to be done next, not the MNO itself.
Chief Executive Officer, PR1MA Communications Sdn Bhd
6 年The concept of mobility has now shifted from physical devices being mobile to users or identity being mobile accross platforms. Physical layer authentication service is key in authenticating identity or B2C/B2B digital transactions and thus for MNO to monetise.
Head of Software Delivery at ThyssenKrupp
6 年Great read. Telco golden age is over, now it is drifting faster and faster to commodity. The name of the game is: scale and efficiency.
RNO Engineer at Vodafone Qatar.
6 年Great article. But concerning point 2: Nokia and Ericsson are not the only vendors. Focusing on their low share prices isn’t enough. Huawei is a strong vendor even stronger than Nokia and Ericsson. So I think you should have considered taking into account Huawei share prices as well. Concerning point 8: MNO have various ways to deal with OTTs. Currently, these OTTs
General Manager, Australia, New Zealand and APAC, at Ekkosense.
6 年The #Telco industry is undergoing one of the most major transformations for all verticals. And we all all have a need for an efficient Telco network despite the success of the MNO’s. Most hang off the majors anyway 5G is likely to return some decent income and stability to the Telcos because 3 and 4G have been more evolutions of 2G (though significant) 5G will be quantum leap. Glenn Agiran