November 08, 2021
mobilityView Once Again Ahead Of The Curve On 5G & Cost Structure For Wireless Operators
The decline in OIBDA stemmed from the impact of higher energy costs and an unfavourable comparison with lower content costs in Q3 last year.
mobilityView originally wrote an article on this topic on April the 9th 2020.
We predicted that Wall Street and internal Telco cost teams did not have a clear understanding of the energy costs associated with 5G vs. 4G vs. 3G.
Cold hard reality is that energy (electricity) required to transmit 5G is considerably larger than 4G.
It’s rare to see a drop in electricity prices, and one can reasonably predict that electricity costs will increase at a minimum at the rate of inflation, and perhaps higher even in regulated energy markets.
Evidence of the above is in Telefonica’s most recent earnings where it was reported :
Telefónica España, which accounts for 29% of group revenues and over a third of earnings, reported a slight uptick in revenues in the July-September quarter, but OIBDA, the telco’s preferred earnings metric, slid by almost 9% to €3.5 billion. The decline in OIBDA stemmed from the impact of higher energy costs and an unfavourable comparison with lower content costs in Q3 last year. 5G priced at a premium to 4G is the cold hard reality.
It’s only a matter of time before you see prices for wireless services starting to increase, and likely at 2x the rate of underlying inflation
Repost : https://www.linkedin.com/feed/update/urn:li:activity:6863164157202694144
Original April 9th 2020 post : https://www.linkedin.com/feed/update/urn:li:activity:6654006506821869568
Learn More On The mobilityView Inc. Value Proposition :
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59% of employees being reimbursed nothing for Smartphone
Employee reimbursement [video] : https://lnkd.in/gV_xgax
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Getting a large tax deduction for employees & gig workers [video] : https://lnkd.in/gD5eEke
Patents issued covering 859m people : https://www.linkedin.com/feed/update/urn:li:activity:6861335270265110528Back