Big Tech pulls out the big guns to keep its free ride.
Naturally we should welcome all investment in networks, but Big Tech wields their storytelling it such a way to insulate themselves from tax and social obligations. If we accept Big Tech’s argument, then we should remove the infrastructure obligations on other parties.Fact: Mobile operators report 20 years of declining average revenue per user in the face of exploding mobile internet data. Other broadband providers report declining profitability.
The following graph illustrates the trend taking the example of the United Kingdom . It shows the explosion of mobile internet traffic in petabytes and the decline of ARPU for the years 2007-2021. In 2007, ARPU was £23; today it is £14, some 40 percent decline. BofA Global Research reports declines in ARPU for other countries over the period; Ericsson notes the mobile internet traffic increase.
ARPU decline is also related to physics: Moore’s and Metcalfe’s Laws proscribe efficiency gains—you can process more data for more users with more sophisticated technology, though the unit cost of processing declines. Of course ARPU is not the only metric, but it is indicative of profitability, and indeed, as a sector, broadband telecommunications has flat, if not declining returns.
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