Wireless Telecom Profits Trump Wireline

Wow! Good datapoint on why telco’s spend wildly on “wireless” infrastructure. Wonder what the trajectory of this looks like?

Wireless Telecom Profits Trump Wireline: “From a new StatCan report on the Canadian telecom industry:

In 2006’s second-quarter wireless industry total profits for the first time exceeded those of conventional wireline telecommunications.

‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ Q2 2005 ‘ ‘ ‘ Q2 2006 ‘ ‘ ‘ ‘ ‘ %
Wireline:
Operating profit ‘ ‘ ‘ ‘1,112,027 ‘ ‘ ‘ 821,731 ‘ ‘ ‘ ‘ -26.1
Operating margin (%) ‘ ‘20.0 ‘ ‘ ‘ ‘ ‘ ‘ ‘15.2 ‘ ‘ ‘ ‘ ‘-23.9

Wireless:
Operating profit ‘ ‘ ‘ ‘734,649 ‘ ‘ ‘ ‘ 996,457 ‘ ‘ ‘ ‘ 35.6
Operating margin (%) ‘ ‘27.4 ‘ ‘ ‘ ‘ ‘ 32.0 ‘ ‘ ‘ ‘ ‘ ‘ 16.5

(Via Paul Kedrosky’s Infectious Greed.)

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