It is tough for mobile operators

[Newsfeed]

It is tough for mobile operators

Mobile operators are under pressure, with increasing levels of capital expenditure needed to keep their networks up to date.

At the same time, voice and data prices are falling.

This is according to FNB Wealth and Investments’ Wayne McCurrie, who added that smaller operators simply do not have the money to compete against Vodacom and MTN.

 

[marine1]

Yes like VCs 20 billion or so in profits.......so tough

 

[deweyzeph]

Mobile operators have to face the fact that they are going to become nothing more than wireless ISPs or data providers in the future. Their voice and sms revenues are going to continue plummeting as consumers become more data savvy and realise that they can get all their voice and messaging services across their mobile data connection and completely bypass the mobile operator.

 

[Swa]

Cry me a river when you're not actually making back multiple times your investment each year.

 

[r00igev@@r]

Yes like VCs 20 billion or so in profits.......so tough

Snap.

 

[Milano]

Heartless bunch you are. Not easy getting by on R117k per day.

 

[Medres]

O cry me a river. They have been milking the system for decades

 

[SlowInternet]

....very tough. Not if you see what the CEO's are earning and the cars that are in the parking garage

 

[Thor]

Utilities

 

[bwana]

Vodacon and MTN use this to justify inflated prices, leaving Cell C and TM to fight over the scraps.

 

[krycor]

If capital expenditure was the issue they would not be opposing the shared infrastructure company offering for 5G.

So no.. the reality is their profit margin is under increasing strain. So not getting their huge profit as their main traditional “product” is being out priced by OTT providers and with a better product.

Was surprised the other day when I was forced to fall back to a cell call and it was crap.. yet it costs many times more. Wtf!

All in all there has been limited innovation of services by the mobile telecos in SA which is why they suffering. Sorry you can’t sell the same thing you did 25yrs ago and expect same profit. That’s not how life works much like you can’t expect greater salary delivering the same value you did 25yrs ago..

 

[whatwhat]

Wonder how the rest of the world manages to get it right. South Africa always seems to be the exception to every single possible rule out there.

 

[supersunbird]

Mobile operators have to face the fact that they are going to become nothing more than wireless ISPs or data providers in the future. Their voice and sms revenues are going to continue plummeting as consumers become more data savvy and realise that they can get all their voice and messaging services across their mobile data connection and completely bypass the mobile operator.