Increase in smartphones impact the revenues of Telecom industry

Summary:

  • Skype costing 36.5 billion$ annually for the global telecom industry.
  • WhatsApp and WeChat has impacted the SMS revenues to fall down.
  • Overall international voice calls are reduced due to skype and google hangout.
  • Hope for indian telecom industry as most of the rural India still uses voice calls.

mobile_messengers

Details:

  • Skype and Google Hangout impact the Over the Top (OTT) i.e. voice calls
  • India ranking 5th, led by China, US, Brazil and Germany in the global user base. This has a high impact
  • Though Voice calls are cheapest in India, there is a threat that data calls can take over the revenues.
  • SMS revenue fallen to 3-5% (of overall revenue) compared to 7-8% of previous year.
  • AppStore and Playstore dominated the operators apps that control the billing

Reference: “Apps May  Prove to be a Drag on Teleco’s” – Economic Times 24th OCT 2013

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