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.

Table of Contents

• 1. Synopsis
• 2. Improving finances in Europe
  • 2.1 Before the 2001 industry downturn
    • 2.1.1 A growing trade in companies
  • 2.2 The crunch of the early 00s
  • 2.3 Continuing dominance by the incumbents
  • 2.4 An improvement in global Telco results in 2003
• 3. Future directions
  • 3.1 Telcos killed off their own earlier IT attempts
  • 3.2 IT focus now on core network
  • 3.3 Synergies between telcos and vendors
    • 3.3.1 Different cuddling up models with vendors
  • 3.4 Mobile consolidation
• 4. Related reports

• Table 1 – Prices paid for mobile customers – 1999 - 2000
• Table 2 – Global telco revenues – 1996 - 2003
• Table 3 – Major global operators by revenue growth – 2001 - 2003
• Table 4 – Financial summary for major European operators – latest financial year
• Table 5 – Revenue and net profits for major European operators – 2001 - 2004