Developed Economies' Wireless Operator Margins Lifted by US Growth

Wireless operator EBITDA margins have been trending down little by little since their 2004 peak, with emerging markets increasing their overall contribution to EBITDA, built on faster revenue growth and higher margins. Since the start of 2014, operator margins in developed markets have surpassed emerging market levels, boosted by subsidy strategies better linked to customer value and needs, increased data spend facilitated by faster networks and smartphones with larger displays, and a degree of market consolidation. That is not to say that now is the time for operators to rethink emerging market footprints, just that the growth of more data-centric models in emerging regions will take time to flow through into any margin recovery.