Connectivity is not an asset, MWC told

06 Mar 2017

“The third lie is that we are utility so we have stable returns, and because we have spectrum allocations that is our safety net.”

EBITDA multiples for the telco industry were at around 6, while utilities were at multiples of 12 to 16, so it could not be said that telcos – which often had up to five competitors in markets – were utilities.

Reznikovich asked the MWC audience to raise their hands if they believed there was a bright future for the telecoms industry. Around 15 people in an audience of more than 500 raised their hands.

“I believe there is a bright future, but not in the traditional sense,” he said.

“We really need to shift the paradigm, and create new horizons, but without software there is no tomorrow for the telecoms industry.”


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