Iain Morris

A fiery debate has erupted in the halls of telecommunications about traffic—the gigabyte rather than vehicular variety. On one side are the mountaineers, who argue data volumes will continue to climb as usage grows and more advanced applications take off. On the other are the dissenting levelers. Led by William Webb, an independent consultant and former Ofcom executive who has written several books on the topic, they foresee a plateauing of consumption as smartphone customers struggle to cram more gigabytes into the day.

Long-time observers of AT&T and Verizon may be wondering how low they can go on headcount. In mid-September, Verizon made the telecom news with a securities filing that warned around 4,800 jobs would be cut by March next year at a severance cost of about $1.8 billion. Without any hiring to offset those cuts, this would leave it with fewer than 100,000 employees for the first time this millennium.

The top three telecommunications companies in the US are shrinking quickly. Across the industry, telecommunications companies are shedding employees as quickly as they can as they automate their networks, outsource tasks to other companies and do less when it comes to customer service.