How Roam is Pioneering Decentralized Telecom
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Editorial Note: The following content does not reflect the views or opinions of BeInCrypto. It is provided for informational purposes only and should not be interpreted as financial advice. Please conduct your own research before making any investment decisions. Driven by the wave of global informatization, the traditional telecom industry faces unprecedented challenges. On the one hand, the upfront investment pressure of 5G continues to grow, while on the other, revenue model transformation has yet to materialize, resulting in a lackluster performance in value-added services. Revenue from traditional communications services continues to decline due to competitive pressure. As shown in the graph below, while revenue in the telecom industry for leading U.S.-listed companies is 50% higher than that of internet giants, the former’s profitability is only 30% of the latter. The telecom industry’s profit margin stands at just 20% of that of internet giants, with net income barely holding at around 5%. Compared with internet companies, the market value of telecom operators is only 30%, reflecting investors’ lack of confidence in capital-intensive models with limited growth potential. Traditional telecom operators rely on users signing long-term contracts and paying fixed fees for network access, a “pay-to-use” model that is increasingly inefficient in the digital age. Users generally can only select one service provider—such as AT&T, Verizon, or T-Mobile—without the flexibility to switch providers or use multiple providers concurrently. This not only fragments the user base but also ignores customer experience, making it difficult to attract new customers. In contrast, internet services like search, social media, and e-commerce are generally freely available to users. Imagine how limiting it would be if Google and Bing each served only half of the U.S. market, or if Alibaba, Baidu, and Tencent each only catered to a third of China—such segmentation would be highly restrictive. Telecom…
Filed under: News - @ November 14, 2024 10:28 am