The arguments by Telecom Operators against “Net Neutrality” – or their desire to not just charge users but also website and application owners for allowing users to access that content – is also financial. They say a lot of things about their revenue being cannibalized, that they have to make spectrum investments and so on. Let’s meet their financial fears head on. The basis of this article is to state that: There is no loss to telcos on account of Whatsapp or Skype increased usage, or for that matter, any application. Their “loss” will get converted to profits in data, and with way more usage, substantially higher profits and revenues. Data is in fact driving their revenues up, far more than anything else. Regulatory changes in anti-spam regulations have already dropped SMS and call volumes. The investments in spectrum and infrastructure by the telcos is a function of their regular operation, is amortized over many many years, and realizes revenues in a back-loaded manner. … (Read On…)
[via Capital Mind]
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