TIME March 2010

Cost Reduction in the Telecom Industry

Why operators need to act now to escape from the low-profit spiral

Cost Reduction in the Telecom Industry

Cost Reduction in the Telecom Industry

The telecoms industry in Europe and the US is at risk of becoming a low profit business. If the current trend cannot be reversed, industry margins are at risk of dropping from the current figure of 35 - 40 per cent to 15 per cent within 5 years. Cost management has to become an inherent core competence for wireless and wireline operators. Significant cost reductions are only possible with substantial changes in the business/operating model. New pressures will mean a change in mind-set and the ability to ‘think outside the box’. Arthur D. Little has successfully managed this process with many operators.

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