While continuing to be growth. This is especially profitable businesses, carriers true because many of the face an increasing challenge new users (that is, the people to financially support (e.g. and businesses creating the through investments) the demand) that carriers would increasing demand for data and like to bring online are low- voice services. Infrastructure income. Carriers rely on a costs in developing markets certain average revenue per are dropping, thanks to the user (ARPU) not only to make development of more efficient a profit but also to invest in hardware. But that’s just one infrastructure to ensure growth. part of the economic equation, and carriers now face a conundrum. The increase in demand creates more Things start to unravel if connection points and data, users are ultimately unable or which in turn require more unwilling pay for the increase infrastructure. The fundamental in connections and data problem is that the increase in bandwidth at the carriers’ demand doesn’t guarantee the required rate. returns necessary to justify the investment in infrastructure 8
