The telecommunications industry stands at a critical juncture. As global data consumption skyrockets, traditional telecom operators face a perfect storm of challenges: stagnant subscriber growth, costly infrastructure maintenance and an insatiable demand for bandwidth. This capacity crunch is not just a problem for carriers; it’s a looming crisis for consumers who increasingly rely on seamless connectivity in their daily lives.
The telecom squeeze
In 2024, AT&T projected $4.7 billion in site lease costs. Add in Verizon and T-Mobile, and the annual cost of leases for wireless coverage in the US approaches a staggering $15 billion. As infrastructure costs rise, margins on internet access are projected to rise more slowly for telecom companies. Meanwhile, demand continues to explode, with global data consumption over telecom networks projected to grow by almost 2x by 2027.
The industry’s attempts to find new revenue streams, such as through fixed wireless access, which is used to connect home internet users via cellular connections, will exacerbate the problem by placing ad
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Author: Mario Di Dio
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