Europe Telecom Revenue Has Declined Three Years in a Row

By Gary Kim November 19, 2012

Though the global telecommunications business is predicted by virtually all analysts to be growing, that is not necessarily the case in every region.

The European telecom service market decreased for the third year in a row, by 1.5 percent, the European Telecommunications Network Operators Association reports. 

You might blame a tough economy for the contraction, but ETNO points out that in the most-recent year, in a context of moderate economic recovery (+4.2 percent for current gross domestic product in the region), the lagging performance suggests structural changes, not just cyclical economic impact. 

Moreover, Europe's share of the global telecoms market has been declining regularly over the recent years, from 31 percent  in 2005 to just over 25 percent in 2011, as the gap between global growth (+3.2 percent in 2011) and growth in Europe widens.

The decline in fixed telephony revenue is accelerating (-8.3 percent in 2011 and –31 percent over the last five years), driven in part by a negative five percent growth of fixed lines in service. Since 2005, fixed line subscriber accounts are down 22 percent. 

The bad news is that mobile revenue--long the industry growth driver--is also declining (-0.6 percent).

Mobile voice revenue was down 4.7 percent in 2011 (–13.2 percent over the past three years), a decline driven by significant drops in some large countries: Spain (-8.3 percent), France (-8.2 percent) and Germany (-7.1 percent).

Fixed network broadband revenue is the bright spot, as revenue was up 6.5 percent in 2011.

Mobile services, though, remain the bulk of telcos revenue, accounting for 52 percent of the total market (142.7 billion EUR in 2011).

The report also shows the divergence between European and the United States market, where it comes to revenue growth. Since 2006, U.S. service providers have done better than their European counterparts.




Edited by Brooke Neuman

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Think IT Can Handle Security On Its Own? Think Again

By: Special Guest    3/28/2017

One of the major fears of any IT department is losing control - of projects, of users, of applications. Yet, even with the best technology solutions, …

Read More

Optane: Intel Builds a Supercharger for PCs

By: Rob Enderle    3/28/2017

Optane is Intel's brand name for 3D XPoint memory, a brand-new memory architecture which has speed a bit slower than DRAM but otherwise performs like …

Read More

IBM's Cloud/Data/AI Trinity Vision

By: Doug Mohney    3/27/2017

If you want to know what the future of IT looks like, it's always good to look to IBM. The company pioneered and championed PCs, the Internet, open so…

Read More

The Seven Most Important Features of Any BYOD Policy

By: Larry Alton    3/27/2017

While there's no single "correct" way to design and implement a BYOD policy, there are some staple features you'll need to include if you want to pres…

Read More

Spring Clean Your IT

By: Special Guest    3/27/2017

Spring calls for a fresh start after a long, dreary winter. There's plenty to tidy up, from the dust collecting on your shelves to the software and ha…

Read More