European telecoms revenue falls for third consecutive year

With total revenue of €274.7bn in 2011, the overall telecoms sector revenue has declined for the third year in a row

Revenues from Europe’s telecoms sector have declined for the third year in a row, according to the trade association for the region’s operators ETNO.

Figures released in the third ETNO Annual Economic Report found that total revenue in Europe’s telecoms sector amounted to €274.7bn in 2011, a decrease by 1.5 per cent compared to 2010. It also revealed that over the past six years, Europe’s share of global telecoms markets has shrunk from 31 per cent to 25 per cent.

Fixed telephony revenues experienced a decline of eight per cent year on year, while mobile revenues have reduced 0.6 per cent, although broadband markets revenue grew by four per cent. Investments in fixed and mobile sectors continued to grow by 4.6 per cent.

“Latest figures demonstrate that in 2011 EU telecoms sector’s revenues experienced a decline for the third year in a row, in a context of moderate economic recovery, showing that structural rather than cyclical changes are shaping the sector”, said Luigi Gambardella, ETNO Executive Board Chair.

“Despite this complex scenario, data shows that operators remain committed to investing and continue driving broadband deployment. Creating the best conditions for investment and reassuring the markets in today’s difficult times must remain the key priorities.”

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