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Telephone networks are a dead business. You look at European telecom stocks and they just keep going down year after year. Wont be long before they're all bankr
by u678u 6y ago
Telephone networks are a dead business. You look at European telecom stocks and they just keep going down year after year. Wont be long before they're all bankrupts and will get nationalized again.
- monopoledance 6y agoFingers crossed.
- tpmx 6y agoSort of like the airlines. The high level of competition is good for the consumers, of course.
- ClumsyPilot 6y agoProviding affordabke reliable service is bad for business?
- joejerryronnie 6y agoYes, if there is no future growth in the market. Companies need to figure out how to expand their total addressable market or enter new lines of business.
- ta2987 6y agoWhy?
- tjohns 6y agoI'm not sure this follows. There's plenty of business that are sustainable with flat growth. Especially utilities once they reach market saturation. Just as a quick example, the supermarket down the street from me is neither expanding their market or entering a new line of business. There is no risk of a Walmart opening next door given the location. They just seem to be doing just fine selling the groceries people need each week. Yes, sometimes market conditions change, and the companies need to react. Maybe people prefer buying avocados instead of carrots this season, and they need to adjust their stock. But outside that, there's no need for them to radically expand to stay sustainable.
- hansel_der 6y agoimo this is the difference between investors think and consumer/worker mentality. the latter group is far bigger and totally fine with a sustainable bussiness w/o any growth but then again 'money talks'.
- joejerryronnie 6y agoYes, I would say you are correct. For small/local businesses a sustainable business which continues to produce a reasonable profit is perfectly acceptable. For publicly traded companies, the expectations are very different and analysts almost don’t care what you’re doing today, as long as the near-future will produce growth.
- KaiserPro 6y agoand yet they have reliable, cheap, high speed, highly available networks.
- diegoholiveira 6y ago> and will get nationalized again IMO, this would be a bad move. Let them die. Voice and text over the internet is here to stay. In the last two years I didn't a single phone call thanks to WhatsApp, Signal and Instagram.
- fulafel 6y agoMature businesses tend to have lower margins. Doesn't follow that he businesses would fail, just that the owners extract lower rents from the public.