The European Mobile operators have stated that Google Inc., Apple Inc., and Facebook Inc. need to set in to help pay for the billions of dollars of network investments needed for their bandwidth-hogging services.
As mobile and Web companies add videos, music and games, operators including France telecom SA, Telecom Italia SpA and Vodafone Group Plc want a new deal that would require content providers like Apple and Google to pay fees linked to usage.
As per France Telecom Chief Executive
Officer Stephane Richard previous statement, service providers are
flooding networks with no incentive to cut costs. It’s necessary to put
in place a system of payments by service providers as a function of
their use.
Richard has joined Telecom Italia CEO
Franco Bernabe and Telefonica SA CEO Cesar Alierta in what could turn
into a cold war with Web companies. As more consumers access the
Internet on mobile devices, the cost of building bigger networks may
outstrip revenue growth for wireless operators, slicing their return on
investment.
According to Bernabe, the mismatch
between investments and revenue is set to compromise the economic
sustainability of the current business model for telecom companies.
According to research firm Canalys,
while the number of mobile data connections in Western Europe will rise
by an average of 15% a year to 270 million in 2014, overall end-user
revenue will decline about 1% a year, Interactive Data Corp. estimates.
In the same period, operators’ annual spending on network gear will
surge 28% compared with last year to about $3.7 billion.
for more information visit our website : wireless industry association
, Mobile Operators Association, Wireless Network Operators
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