Telecom Companies Are in A Bind
Lead Engineer, Vendor Technology Management (Former Employee) – Denver, CO – July 11, 2018
Telecom companies are in a bind. They are required and continue to get revenue from legacy services such as voice and DSL. But the take rate on voice is today very limited - even on DSL, leased circuits, and video. As a result, the company has to quickly change to become a transport provider only , which requires retaining legacy expertise, while at the same time adapting systems, processes and people to low margin transport-only models. Think of the huge cost switching to a SDN network for transport when, in fact, your revenue is eroding. It is a complicated business model that requires nearly constant cost optimization.
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The business of telecom is declining to the extent that only nimble players will survive.