The Future of Telco: Internet in the Sky!

Telco companies around the world are battling to drive average revenue per user. So forward thinking CEO’s are moving to try and participate in Over The Top (OTT) services. But that may not be enough.
Given how many people own mobile phones, it might seem surprising at first that Telco companies the world around are under pressure to grow revenues. Companies in emerging markets like Beeline, Wind, Kyivstar, Mobilink, Telecom have been suffering with year-on-year declining Average Revenue per User (ARPU) figures for the last 5 years. This is not much better in developed markets. The key challenge across all operators is the costs of licensing spectrum, maintaining physical network infrastructure on the ground, and the declining margins on data sales due to global competition. Match this with massively growing smartphone adoption across the globe, where all services are moved to data channels… and you’ve got a race to the bottom. All the telco’s are offering narrowly differentiated services and competing on… price. Not a good place to be.