The Telecom Business Model at Risk

Why Making Smart Network Investments Is More Important Than Ever

Today’s mobile operators face a dizzying array of choices and competitive challenges, with network investment at the top of the list. Traditionally, between 10-20% of operator revenues go to building, upgrading, and maintaining their network infrastructure. It’s the biggest CAPEX layout for almost any telecom operator and it’s loaded with risks: Every sub-optimal dollar spent on the network could add months and years to the investment recovery time as revenues and margins decline; every important investment opportunity missed could result in significant churn of the base; and every wrong technology bet could seriously hinder long-term competitiveness.

Operators need to ask themselves: Do they know both how and when to meet these multidimensional challenges? Because the investment choices they make today may ultimately redefine their long-term competitive capabilities.

The Telecom Business Model at Risk


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