On the Technical Future of the Telecommunications Industry

Implications and growth opportunities for operators from the development of fixed and mobile networks

Telecom network operators over the past years have watched revenues stagnate, in spite of a massive increase in bandwidth demand and usage.

There exists a massive gap between the underlying growth in customer-base and data traffic, and the growth in revenue for telecom operators. Over the past 10 years, the number of mobile subscribers in Europe has grown by 40%. Data traffic has soared in both fixed and mobile broadband, increasing at an average annual rate of about 36%. Yet when measured against revenues, the picture is bleak: In Europe, mobile-service revenues have shrunk 22%, and results for the total telecom market, including fixed line operators, is almost as bad.

In this article, we project the development of network technology and consumer demand, first in fixed broadband and then in mobile broadband, and show how network operators can profit from future development and achieve revenue growth again.

On the Technical Future of the Telecommunications Industry