Outlook bleak for western european fixed-line services

01 January 2010 |


Fixed-line telecoms services are facing a bleak 2009 and beyond, according to the report, Western European fixed telecoms: market sizings and forecasts 2008-2014 published by Analysys Mason.

The report indicates that all three of the main retail lines of business of fixed telcos face problems. Broadband service revenue is slowing to low single-digit growth, and at the same time as the sector faces the need to invest to differentiate itself from an increasingly mobile internet, funding will be harder to justify, according to Analysys Mason.
 
New services may stabilise the average revenue per line, but this is unlikely to grow. Legacy voice has been in trouble for years, but the effect of an economic downturn will be to make revenue decline even faster relative to mobile, according to the research firm. Unemployment and income squeeze will accelerate households’ decisions to give up fixed voice services for good.