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January 18 2013

The telecommunications industry has grown with breathtaking speed during the previous two decades. The mobile telecoms market started as a nascent new telecoms service in the early 90s and has fully taken the world in less than 20 years. The growth of mobile telephony, coupled with the offering of fixed and wireless broadband, has not only offset the gradual decline of traditional fixed telephony but has actually exploded the revenues of the many telecommunication service providers around the world. Combined with one of the best gross margins compared to most other industries (legal ones at least..)ranging between 20% and 60% (depending on the region and type of telecom service provider), has resulted in the creation of some of the largest and most profitable companies in the world. People are often unaware of or unable to grasp the size and profits levels of the large telecommunication companies. The revenues of the top telecom service providers in small European countries, such as the Czech Republic, are exceeding the 1 billion Euro revenue mark, and large EU countries have telecom companies with revenues in the tens of billions of Euros. The large customer base of telecom service providers expanding their reach across all population segments,and the ongoing penetration of mobile and broadband services during the previous decade,combined with the high profit margins, was more or less a license to print money. 

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