Mobile industry keeps moving, despite downturn

Peter Dinham
Thursday, 30 April 2009 14:07

Business IT - Technology

However, Obiodu warns that the biggest threat to mobile operators is that currency fluctuations reduce the value of the revenue they get, with lower values meaning it is difficult to maintain repayment on dollar or euro denominated debts and to fund new network investment.

The report further warns that, going forward, mobile operators have to get back to worrying about competition and regulation, as “these are the main challenges facing them.

“It is no use bickering about the recession when rivals are positioning themselves to outsmart you,” cautions Obiodu, adding that “neither is it savvy to fret about the fall in roaming revenues from business travellers when the EU can force roaming prices down easily.” says Obiodu.

“On many occasions where an operator has complained about the recession, it is possible to show a corresponding non-recessionary force at play,” says Obiodu, but he warns that the recession will force a change in future direction for operators.

“While the short term impact is limited, the recession will ultimately engineer a paradigm shift in strategic thinking across the industry. On the ground, the basics of the industry will surely remain the same, but the approach to service delivery will eventually change.”