THE STRUGGLING WESTERN EUROPEAN OPERATOR BUSINESS: COSTS, CONVERGENCE AND COMPETITION

Convergence is too often the same thing as an unwillingness to invest – Western European operators need to embrace demand, be bolder with tariffing, and invest.
Telecoms operator revenue is continuing to decline in Western Europe, but is growing in other developed economies, and the contrast between the fortunes of the mobile sector in Western Europe and other developed economies is particularly stark. Are the reasons Europe-specific – EU regulation or eurozone economics – or do they point to a deeper and more widespread malaise in the operator business model?
This Viewpoint provides:
a strategic-level analysis of the five key reasons for continuing decline in the Western European operator business:
regulation
macroeconomics
fixed–mobile convergence
declining network and service production costs
device distribution and the subisidy model.
an assessment of where growth might come from, and where the flashpoints will be in the future.

COMPANY COVERAGE

The following companies are mentioned in this Viewpoint.
BT
Deutsche Telekom
Liberty Global

Orange
Telecom Italia
Telefonica

TeliaSonera
Vodafone