Omdia on why telcos are increasingly fixated on reducing opex
Omdia's Adam Mackenzie joins the podcast to dig into the causes of rising opex and explain how service providers can manage it.
At a Glance
- Areas where opex is increasing for service providers (03:34)
- Economic factors contributing to higher opex (08:21)
- Shutting down legacy networks is an effective but challenging way to reduce opex (10:39)
Inflation, rising energy costs, tighter consumer budgets and higher salary expectations are among the factors increasing service providers' operating expenses (opex). On top of the reverberating financial impact of inflation, 5G hasn't lived up to revenue expectations.
Adam Mackenzie, senior analyst with Omdia, joins the podcast to dig into the causes of rising opex and explain how service providers can manage it. This is the focus of his recent report: An Analysis of Telco Opex: Minimizing Costs and Maximizing Efficiency.
Mackenzie explains how service providers can reduce opex by shutting down legacy networks, through mergers and acquisitions (M&A) and other more unpopular methods such as layoffs.
Click on the caption button for a lightly edited transcript.
Here are a few topics we cover:
Overview of Omdia's new report on telco opex (01:51)
Areas where opex is increasing for service providers (03:34)
A look at the broader impact of rising opex on the telecom market (04:45)
Economic factors contributing to higher opex (08:21)
Shutting down legacy networks is an effective but challenging way to reduce opex (10:39)
M&A, labor reductions and other methods to reduce opex (13:19)
Italian operator TIM reduces opex through voluntary employee exits (14:36)
About the Author(s)
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