Juniper Research: Mobile operator costs pass $800B annually as margins become squeezed

Annual mobile operator expenditures are now in excess of $800 billion (€638 billion), and several leading players face the possibility of costs exceeding revenues by the end of the decade without remedial action, according to a new report from Juniper Research. A combination of flat-lining revenues allied to surging data traffic costs could ultimately threaten the viability of network operations. In an analysis of 12 international operators, the report found that margins had fallen by an average of 6.4 per cent over a three-year period, with five of those surveyed experiencing decreasing margins in every year throughout the period. Furthermore, a number of major operators now have single figure margins: with costs currently increasing at 1.5 per cent-2 per cent per annum, the situation is unsustainable in the longer term. Release

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