Tim
Don’t forget the do-or-die situation here for telecom. They don’t really have a choice…

First off, data is a huge growth opportunity for telecom. Were they to crack-into the data business, Big Telecom, in particular, stand to double their 5-year CAGRs — both directly (thanks to data’s new revenue source) and indirectly (thanks to monetization of the content/content producers they’ve been acquiring).

Furthermore, Verizon/AT&T/Comcast/etc. already have scale. That scale not only means superior network coverage/quality, but also larger revenue bases to spread the costs of improving user experience across. Given those competitive advantages, why wouldn’t they invite more open competition?

Most importantly, don't forget the creeping disruption that’s a Sword of Damocles dangling above telecom today. Telecom’s options are to:

  1. Sit idly by as Google/Facebook subsume their realm of the supply chain; or
  2. Actively subsume Google/Facebook’s realm of the supply chain

The end result of this is not whittling-away small and mid-sized telecom; instead it’s eating-into Google and Facebook’s outsized profit margins. The bull-case is a rising tide for all of telecom; the base case is telecom staves-off obsoletion; the bear case is telecom gets disrupted.

Anthony Bardaro is the Founder of Annotote, an app that finally provides a reading experience that’s all signal, no noise. Join top journalists and readers on the network where they consolidate their daily media diets — an app that makes it 10x better to read everything you read anyway. Try Annotote today!

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