> For the complete documentation index, see [llms.txt](https://whitepaper.qualoo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.qualoo.io/introduction/internet-landscape/current-challenges-in-the-telecommunications-internet-industry.md).

# Current challenges in the telecommunications / internet industry

Despite significant advancements, the internet industry continues to grapple with a multitude of issues. In developed markets like the US, internet downtime remains a critical problem. Over the last three years, approximately 20% of organizations have experienced a significant outage, presenting substantial costs in terms of lost productivity, revenue, data, and increased customer support, not to mention reputational damage. On average, downtime costs around $9,000 per minute ([source](https://trilio.io/resources/cost-of-downtime/)).

Maintaining robust internet performance is paramount for Internet Service Providers (ISPs). Inability to provide reliable service is a leading reason for customers to switch providers ([source](https://www.infinivan.com/top-five-reasons-why-businesses-switch-isp/)). Customer attrition is a significant drain on resources in this industry, costing US ISPs around $780 million per year ([source](https://wp.nyu.edu/adityakapoor/2017/02/17/churn-in-the-telecom-industry-identifying-customers-likely-to-churn-and-how-to-retain-them/)).

To ensure high-quality service delivery, ISPs heavily invest in their own network infrastructure. Network-related costs constitute roughly 50% of the industry's operating expenses, which are costs associated with running their business ([source](https://www.mtn-c.com/product/telco-opex-analyzer-2016-21/)). Globally, these operating expenses amount to approximately $1.5 trillion ([source](https://inform.tmforum.org/features-and-opinion/the-impact-of-5g-and-cloud-on-telco-capex-and-opex/)). Additionally, between 60% to 90% of capital expenditures, the funds used for building, acquiring, and maintaining physical infrastructure, are allocated to the network ([source](https://inform.tmforum.org/features-and-opinion/global-trends-in-telco-opex/)). In 2021, these capital expenditures totaled $326 billion ([source](https://www.mtn-c.com/telcos-are-upgrading-their-workforce-but-it-comes-at-a-price/))

In spite of the importance of maintaining a high-performing internet for both customers and ISPs, along with other stakeholders in the industry, there remain a number of unresolved performance challenges. We identify the key issues as follows:

1. No single ISP possesses enough high-quality data on internet performance.
2. Data sharing within the industry is not a common practice.
3. ISPs encounter difficulties in accessing and utilizing data within their own organizations.
4. End users typically have limited visibility into internet performance.