Monday, 05 December 2016

European telcos struggling to do the math(s)

By Nick Wood, Total Telecom
Friday 09 May 14

While capex as a proportion of ARPU creeps up, one telco is gearing up to put one European mobile market under yet more pressure.

Europe's telcos cannot sustain their current spending on networks under the prevailing market conditions. That was the stark message delivered by a GSMA report this week that has operators all but begging Brussels to allow market-driven consolidation. According to the industry body, capex as a proportion of ARPU has grown from 16.1% in 2011 to 18.8% in 2013. Capex is growing as operators invest to meet the ever-increasing demand for data, while ARPUs are shrinking because challenger players are giving away the family silver in a bid to win market share…

Europe's telcos cannot sustain their current spending on networks under the prevailing market conditions. That was the stark message delivered by a GSMA report this week that has operators all but begging Brussels to allow market-driven consolidation. According to the industry body, capex as a proportion of ARPU has grown from 16.1% in 2011 to 18.8% in 2013. Capex is growing as operators invest to meet the ever-increasing demand for data, while ARPUs are shrinking because challenger players are giving away the family silver in a bid to win market share…

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