STL Partners

Telco 2.0 Growth & Innovation

Credit crunch - silver lining for telcos?

Could the credit crunch be a blessing in disguise for telcos?

The current liquidity crisis in the financial markets may provide telcos with some unique opportunities for enhancement and transformation of business models, if they are open to deploying their capital in a manner consistent with Telco 2.0 thinking. Some of those are explored below, but there are no doubt others, and we’d be interested to hear of further examples from readers.

The U.S. government has clarified its stance on “moral hazard? by allowing Lehman Bros, a major investment bank, to fail. The International Swaps and Derivatives Association is so focused on orchestrating an orderly unwind of Lehman’s positions that it held a special trading session on Sunday and has even canceled its own members conference, which should have taken place yesterday (perhaps they were afraid that the offer of a free lunch might trigger a riot).

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