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Western European Telecoms Continues to Diverge

Fitch Ratings says in its latest quarterly European Telecoms peer analysis and statistics update that the north/south divide in the western European telecommunications industry continued in Q311. This divergence is primarily driven by subdued non-voice revenue growth in the south, where economic pressures on consumers are hampering smartphone penetration and data revenue growth.

Revenue growth in the north has been negatively affected by regulatory cuts pressuring voice revenues. While non-voice revenues continue to grow strongly and are alleviating some of these pressures, this growth is not fully offsetting the decline in voice revenues. Furthermore, despite the growth of non-voice revenues, the European mobile market remains predominantly a voice market. Consequently, operators will continue to suffer from additional regulatory cuts in Q411 and beyond.

In fixed-line, cable operators across Europe continue to eat into incumbents' domestic market shares. As the majority of cable operators continue to enjoy a technological lead over their incumbent rivals and have a natural advantage in TV service provision, it is unlikely that this trend will reverse in the near term.

Источник: Cellular news

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