Global - Industry - European Telco Benchmarks and Direction - 2004

Synopsis

The document was archived in 2005. Following the collapse of the telecommunications industry in 2001-2002, the industry worldwide is returning to profitability. Gone are the excesses of the late 90s where huge amounts were spent on 3G licences and rash acquisitions. In most cases, companies have retreated to their core businesses and have learnt to operate in an environment without unlimited funds from overenthusiastic stock markets. However, cost savings are almost exhausted and the cash cow – fixed line – is in full retreat despite the growth of xDSL. The move to wireless is rapid and permanent. New business models are needed. This report examines the financial trends of European companies over the past four years, and Paul examines future strategies for survival of the telcos.