My two cents on the telecom Industry.
It is very similar to the Semiconductor industry, you have to spend all the money you have made in the previous cycle to be relevant with every iteration of innovation(from 2g-3g-4g-now 5g), which basically means no money will be made until we have a somewhat of monopoly or duopoly, only absence competition will give the opportunity to make money for a player with strong presence but with every iteration or innovation, the players who have made the least amount of money will become obsolete as that particular player would not have the required Investing resources. This is what can be observed in the previous cycles and currently playing out in the 5G transformation, the weakest player cannot make any substantial investments and expand its 5G service[Vodafone-Idea] which will render them obsolete. In the next Cycle[5G-6G] I fear Airtel can face the same fate, though their market position is strong now and they are able to compete during this iteration of the cycle but I would be very watchful for Airtel when the era of 6G innovation comes around, that is still at least 10 years away.
| Subscribe To Our Free Newsletter |
