
European telecoms set for return to revenue growth - Moody's

The European telecom sector is expected to show revenue growth of 1-2 percent over the coming 12-18 months, according to a report from credit ratings agency Moody's. The growth is supported by the growing demand for broadband capacity, both fixed and mobile, and improving purchasing power in Europe. With most operators expected to return to revenue growth in 2016, Moody's raised its outlook for the sector's ratings to 'stable' from 'negative'. Revenue growth is also supported by the increased focus on services quality, which is helping operators limit price pressure and attract customers to higher ARPU packages. The ratings agency said it expects M&A in the sector to focus on strengthening operators' existing footprints, with big takeovers avoided in order to reduce the impact on debt.
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