Federica Laricchia
Research expert covering the global consumer technology industry
Get in touch with us nowTelecommunications: an expensive business powered by people
Operating and maintaining telecommunications infrastructure and services is a mammoth task requiring significant expenditure. Vodafone’s capital expenditure in Europe alone reached 6.139 billion euros in 2021, showing the scale of spending required in the industry.Keeping people connected also requires a huge number of skilled technicians and employees, which is why major telecommunications companies are such major employers. China Mobile Limited is one of the world’s largest telecommunications employers, with a workforce of around 456,239 people. Verizon provides around 118,000 jobs, while Vodafone employs approximately 94 thousand people.
Average mobile revenue per user around the world
The average revenue per user (ARPU) among mobile subscribers varies greatly around the world. In France, telecommunications companies generate a mobile ARPU of 22 U.S. dollars. In neighboring Germany, this falls to just 13 U.S. dollars. Canada stands out as one of the most expensive countries, with an ARPU of 37 U.S. dollars.Postpaid subscribers can also bring in more than double the ARPU of a prepaid subscriber. Telefónica, for example, generates an ARPU of 7.5 euros per prepaid user in the United Kingdom (UK), rising to 22.1 euros for postpaid subscribers.
5G to set the tone in the coming years
While meeting the challenges the industry currently faces, telcos still need to look at keeping up with improving technologies and the greater data demands of customers. Going live in 2019, 5G has emerged as the next major technology that will transform how telcos provide a service. Global shipments of 5G handsets are on the rise. Companies offering affordable 5G handsets, such as Vivo and Xiaomi, have shown impressive growth in this area. Demand is expected to increase three-fold between now and 2025.
