Is it the end of Telecom companies?

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Image: Livemint

Are you connected to what is happening in the world right now? Even if you didn’t notice until now, your daily habits are slowly destroying the biggest treasure of telecom companies.

Let’s see… Where do you send messages, call or exchange files today?

For years we have been conditioned to very expensive rates and packages in order to communicate. This made Carlos Slim – the Mexican business magnate, the richest man in the world from 2010 to 2013.

The same industry which once made Carlos Slim the richest man in the world, made him the biggest billionaire loser in 2015, with a loss of more than US $25 billion dollars according to Forbes Magazine.

Did you notice that telecom companies are being reduced to internet providers?

To make sure you understand what is happening, let’s have a look on how telecom companies make money:

  1. Mobile operations
  2. Telephone lines
  3. Bandwidth
  4. Television

Now think about the development of Skype, Facebook, Messenger, Viber, Whatsapp, Netflix and Youtube?

Skype allows you to make very cheap calls to anywhere in the world, and provided you have a high quality internet, you can also make free calls.

Viber, Messenger and whatsapp destroyed what we knew back then as SMS and MMS. Today, in the blink of an eye, you can send messages, files and documents, without having to be worried about the amount of credit on your sim card.

According to recent statistics, Netflix is the biggest consumer of bandwidth, dominating almost 51 percent of the US internet market, and more than 70 million subscribers worldwide.

For a very considerable price, users have a huge variety of movies and TV Shows to watch every month. Then YouTube comes into the picture, allowing users to consume so much content about anything they want at no cost. Because of them, some millennials don’t even remember the last time they actually sat down to watch television.

I think that by now you can have a clear picture that Telecom companies continue to drink from their own poison. The same internet provided by them, is the main influencer in the development of internet companies that are now dominating their market.

Internet companies grew on such a quick rate, that they left no time for telecom companies to respond to the wave of innovation. Thus, telecom companies are using all their techniques to stop the development of companies like Facebook, Whatsapp and Netflix.

What telecom companies did not understand until now is that their old methods and packages will not seduce the new market anymore. The telecom industry cries for innovation, and that is what has put internet companies ahead of the game.

Telecom companies should really consider being more creative and consumer focused, than just trying to raise the cost of internet in order to prevent users from going to other mediums.

What are your thoughts on this? I would be glad to hear them in the comments section below!

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