Mobile operators profitability challenged within three years, says study

A study undertaken by Tellabs, based on independent analyst data, has found that profitability could become extremely challenging for some mobile operators within three years. The mobile Internet is forcing operators to transform their networks and business models.

Without rethinking the design and capabilities of their networks, costs will surpass revenues for many operators in:

• North America by Q4 2013. In some cases this could happen as early as Q1 2013.
• Developed Asia Pacific by Q3 2014. In some cases this could happen as early as Q3 2013.
• Western Europe by Q1 2015. In some cases this could happen as early as Q1 2014.

The study puts timescales on an issue that has concerned operators since users began embracing the mobile Internet. Traditional ways of handling dramatic traffic growth are expensive. Meanwhile competition has increased pressure on revenues.