How do telecom companies make money?
How do telecom companies make money?
As the global economy is trying to recover from the shock and lasting impact of the novel coronavirus (COVID-19) there has been an outbreak in work from home, business running online, remote working, video conferencing, and OTT streaming services such as Netflix, Amazon Prime and many more. Though Telephone calls continue to be the biggest revenue generator there are other ways by which Telecom operators make money by providing network connectivity to other telecom companies as per their requirements, and by wholesaling circuits to heavy network users like large corporations and telecom network security solutions.
Due to advancements in network technology, with the changing time, telephone calls are being replaced by video, text, and data usage. Thus, we can say that Telecom is growing less about voice and increasingly about video, text, and data. There has been a rapid increase in High-speed Internet access, which delivers computer-based data applications like broadband information services and interactive entertainment, which are used in homes and businesses around the world. In this new era of technology Digital Subscriber Line (DSL) is in its lead role. The fastest growth comes from services delivered over different mobile networks.
Residential customers are more price-sensitive compared to big corporate customers, who are mostly concerned mostly about the quality and reliability of their telephone calls and data delivery. Large multinationals, spend heavily by availing premium services like high-security private networks and video conferencing on their telecom infrastructure to support their far-flung operations.
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