Basically all traditional telco revenue sources (voice, text, data, wholesale interconnection fees) seems to be threatened either by substitutes (Skype, Whatsup) or regulator (roaming and termination prices etc). Yet Nordic telcos are 17-22 P/E. Same as buying NYT 20x in 2007?
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I'm wondering can telcos increase data prices to replace the loss in the wholesale business (regulator attack) and traditional voice and text (Whatsup Skype attack). The current multiples are quite high if the business models are broken, which I'm trying to think through.
I'm not well read on the regulator attack, but so long as supply is not increasing, they should be able to. If anything, seems like there is increasing consolidation in the industry, not new entrants, which suggests they can increase prices on data. Multiples for everything r hi.