The European telecoms market is expected to contract 0.4 percent this year, after a 1.5 percent fall in revenues already in 2011, according to the annual economic report of the incumbent operators' lobby group ETNO. The report prepared with market researcher Idate estimates total revenues in 2011 at EUR 274.7 billion.
Fixed telephony revenues fell 8.3 percent, with the number of exchange lines down 5 percent. Mobile revenues were down 0.6 percent and accounted for 52 percent of the sector's total revenues. The broadband market grew by 4 percent.
Despite lower revenues, investments in the fixed and mobile sector were still up 4.6 percent. ETNO claimed its members were responsible for two-thirds of the investment, despite their revenues falling more than the market average. In 2012, the incumbents are expected to suffer a 3 percent fall in revenues, compared to a market estimate of 0.4 percent.
Luigi Gambardella, ETNO Executive Board Chair, said the third consecutive year of lower revenues in 2011 shows the sector's problems are structural rather than cyclical. "Creating the best conditions for investment and reassuring the markets in today’s difficult times must remain the key priorities," he said.
