Startups lead innovation in the technology world. But is there room for startups in the telecom world? And, what is the future of innovation in this industry? Innovation is one of the themes of this year’s Mobile World Congress which is starting next week, so will the ecosystem address this question?
Is telecom a utility play?
Services providers play a major role in setting the tempo of the industry: they own the end customer. For years, service providers squeezed vendors on price forming large purchasing consortia and bargaining down to the penny. Profit margins, which continue to shrink for everyone, are getting close to levels seen in utilities.
Startups seeking to sell into carrier have to pass many challenges, spend tons of money and wait years for acceptance and a purchase order. VCs don’t have patience for such processes; they backed off from many types of investment in this sector long ago. Continue reading