Telecom Sector Immune From EU Debt Crunch….So Far, At Least

So you’re hearing it left and right, whether it’s the automotive sector in road-raging (well, once upon a time) Detroit, the banks on Wall Street, or the parliament in Greece…there’s a massive credit crunch folks, and Houston! We do have major problems! Not so fast though. Somewhere on this planet- ok, it’s the EU- the telco sector remains relatively unscathed to this point. Can it continue being the barrier, or not? So far, it seems so…

The Big 5 telecom operators Riding the Wave

According to Stephane Teral, principal analyst for mobile infrastructure at Infonetics Research,
“What many people seem to be overlooking in the midst of the European Union sovereign-debt crisis is that the EU’s ‘Big 5’ telecom operators — Deutsche Telekom, France Telecom, Telecom Italia, Telefonica, Vodafone — are cash rich, each with more than EUR10 billion in cash!” Now with those sort of cash flows greens, the companies can have a first movers advantage into the LTE revolution, and establish solid future market positions that build on the current cash pipelines.
“Yes, there are definitely challenges, and many telecom carriers, particularly in Europe and the Middle East, are going to have a tough time generating new revenue, but the fact remains that the telecom world is not falling apart. The fundamentals of the market are intact…” cements Teral.

LTE Still Looking Strong

Now, despite a downward third quarter for the overall 2G, 3G, and 4G mobile infrastructure market, the market is up nearly 9% from the year-ago quarter. And leading the pack is the LTE segment, with its “Equipment” vertical boasting a 330% growth outlook. Whilst Verizon, the pioneering juggernaut in the LTE domain, has passed its spending peak for LTE, the baton is now passed on to leaders like AT&T to lead the revolution.

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