The Future of Telecommunications Companies

Telecom Co. usually have a lot of cash flow, but I think that they will face a great challenge by new phones generation. I assume that calls and sms massages would become free of charges, also the amount of internet usage will increae combined with decrease in prices. However, the only chance to success in this industry is by putting their "financial weight" on creating new devices with interesting features, or just keep developing new advertisement tools. Obviously, TV streaming service is a good example for new device that helps telecom companies securing their profits. Nevertheless, it is easier to focus on allowing for businesses to display their ads with  free services, Youtube as example.On the other hand, Saudi Communication and Information Technology Authority (CITC) still supporting telecommunication companies by blocking free calls featured apps in a desperate move to reduce the loses of local telecommunication companies. Fair Usage policy for example is another tool CITC uses to serve telecommunication corporates, which result into one of the highest cost of calls and texting in the world, higher than what it should be. Minutes and SMS in average cost 25 Riyals (6.5 US dollars),in contrast, world average tariff of SMS is $0.07 according to ITU Facts and Figures report for 2010. Furthermore, in 2012 ITU Executive Summary indicates that telecommunication cost for each capita has decreased, but Companies in Arab region still charge higher than other world parts.In conclusion, as ITU director, Brahima Sanou, indicates that 'prices have to go down further', which appear to be true. As result, relying on voice and text communication would no longer guarantee good returns on telecommunication firms shares. Finding other tools is the real investment sooner or later, to avoid revenue falls down.