Given that the calculation is based on a 20 year depreciation any business model in IT/Telco would be excellent. But I believe the reality shows installed HW lasts 3-5 years. So CAPEX would move to 2,20 to 3,66 Euro which is naturally another story and this does not seem to include marketing, sales, customer support for devices, subsidize devices etc. which normally is a unfortunately large cost for any operator.
They probably need to add Internet peering costs onto that too.
ReplyDeleteSo many people think that data is close to free so its nice to see a simple explanation like this.
Given that the calculation is based on a 20 year depreciation any business model in IT/Telco would be excellent. But I believe the reality shows installed HW lasts 3-5 years. So CAPEX would move to 2,20 to 3,66 Euro which is naturally another story and this does not seem to include marketing, sales, customer support for devices, subsidize devices etc. which normally is a unfortunately large cost for any operator.
ReplyDeleteNow even NSN says that 1GB of data cost can be as low as €1. See their whitepaper at http://www.nokiasiemensnetworks.com/sites/default/files/document/Mobile_broadband_A4_26041.pdf
ReplyDeleteVia: Martins blog