Telecom companies are at a crossroads. They need to restructure their business model if they are to have any prospect of sustained growth in the face of intense pressure on profitability and rising capital expenditure. The instinct to cut costs first turns out not to be the correct approach. Instead, before anything else, they need to examine and restructure their product portfolios.
Once they have devoted more attention to profitable products, improved the less profitable ones, and eliminated those that make a loss, then they can take a truly informed look at their costs. They can rationalize market-facing and back-end operations and infrastructure projects in a manner that will allow them to establish clear priorities, optimize costs sustainably, and reorganize for the next wave of growth.