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Topic: Over 10 years the base cost for the telecom companies has been steadily falling (Read 143 times)

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Over the past 10 years the base cost of mobile telephony and Internet for the telecom companies  has  been  steadily  falling  thanks  to  the  advance  of  technology  and  the  overall market growth, which made infrastructure development cheaper and more cost-efficient. However, cost of telecom services for the end user wasn’t going down as rapidly.

When  it  comes  to  the  international  roaming  industry,  consumer  prices  for  mobile  telecommunications and Internet are being reduced even slower than in case of the in-country plans even despite continuously increasing globalisation tendencies

Such a radical difference between the consumer and base price for the telco services—in other words retail vs wholesale—may be explained due to high monopolization of the telecom sector around the world.

It leads to significant increases in business risks for SMEs and makes it extremely difficult for new industry players to enter the market, resulting in price increases for the end customer.



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