Telco debt why so high the revenue/debt ratio is like 2
45 billion is a lot of money spent on 5G and they probably need to spend more to upgrade in the future.
price or cost of technology is suppose to be lower but all the telcos are paying big bucks and costing a lot of money and these investments may not pay off meaning the profits are not there to pay the dividends. or every repay the debt.
the company is hitting the debt ceiling too before it becomes junk bonds and cannot borrow any new money to build the expensive 5 G networks, no cell phone company can operate without wireless internet and cell phone wireless internet now is too slow. 5G networks are the future but gov't force Canadian telcos and US telcos to buy from the most expensive vendor. increasing their debt in commodity low margin business. in low growth industry.
gov't increasing the cost of telcos in the billons in the future if there is no competition in who they can buy cheapest hardware whichis the hauweii.. third world countries cell networks are faster than Canada and US and cheaper. due to cheap hardware. how much cheaper compared to
Building 5G networks is extraordinarily expensive. 5G networks are significantly denser than their 3G and 4G predecessors and require the construction of a huge number of additional base stations, particularly in urban environments (because 5G operates at a higher frequency bandwidth which often cannot pass through obstacles such as buildings, for example). It will also require the rollout of massive multiple-input multiple-output (MIMO) antennas and a range of other changes to existing infrastructure, at a cost ranging from the billions to the hundreds of billions depending on the size of the network.
Price, not politics, will be the decisive factor for many nations when deciding which companies will be permitted to tender for their national 5G networks.
Huawei claims that its equipment is smaller, lighter and cheaper than its competitors’ and has 30% lower energy consumption, making it both easier to deploy and less expensive to maintain.
Even some of the wealthiest nations in the world, and the US’s closest allies, are clearly factoring cost into their decisions on whether to follow the US and Australia in banning Huawei from their 5G builds. Germany’s telco companies have been pressuring the German government, which is reportedly seeking a ‘no spy’ deal with China, to allow Huawei to participate in Germany’s national 5G networks.
Meanwhile, Huawei is trumpeting at least 30 5G contracts around the world, from Turkey to Iceland, and from Monaco to South Africa.
If nations as wealthy as Switzerland and Saudi Arabia are picking Huawei (and their bank accounts) in the face of US displeasure, we cannot realistically expect developing countries without such deep pockets to choose differently.