Mobile operators 'slitting their own throats'

Mobile operators 'slitting their own throats'

Focus on cheaper services is shrinking margins

An obsession with winning new business by undercutting the competition is killing mobile operators, according to an industry expert.

"How much money can you make if you walk into a customer and say I'll save you 10 per cent? You will not," said Rakesh Mahajen, global director of mobility at BT Global Services. "We are slitting our own throats as an industry."

Mahajen admitted that mobile operators are ducking the issue when it comes to helping customers with services, but maintained that this is a necessary step to boost profits.

"Ultimately the value is going to be created by understanding your customers and focusing on their business in enterprise mobility," he said. "That is where the growth is, and that is where the money is. Customers will pay for this."