Skip to main content

Exploring Growth for Mobile Wholesale in Europe

Revenues for the European wholesale telecommunications market remained steady between 2010 and 2011, despite the economic downturn, intense competition, and regulatory actions.

According to the latest market study by Ovum, the European wholesale market was worth $48.4 billion in 2011, that's only 0.5 percent less than in 2010, representing 11 percent of the leading wholesalers' total European revenues.

Ovum's analysis of the size of the European wholesale telecoms market, based on the reported results of the 25 leading wholesalers, reveals a highly concentrated market.

In 2011 the top four wholesalers in Europe (BT, Deutsche Telekom, FT-Orange and Telefonica) accounted for over 50 percent of total European wholesale revenue, with the top 10 responsible for nearly 75percent of the total.

Yet almost all of the leading wholesalers in Europe experienced falling revenues from fixed voice. While some are mitigating the effect of this decline by broadening the attractiveness of their non-voice services, all of them need to do more.

"Wholesalers must lessen their dependence on traditional wholesale fixed voice sales by meeting customers' needs for non-voice services," said David James, principal analyst at Ovum.

Many carriers have already expanded their non-voice portfolios by offering emerging new services such as carrier Ethernet, content distribution, and hosting. However, according to Ovum's assessment, they must do more to attract and retain customers for their wholesale mobile and non-voice services.

Mobile wholesale is a growing sector in Europe and offers significant potential for upside opportunities based upon an increasingly diverse customer base, but it requires a more complete and flexible wholesale portfolio than capacity alone.

The fixed non-voice sector also offers greater opportunities for innovation and differentiation than voice services do.

Ovum found that a number of carriers, including Telecom Italia and French altnet SFR, did increase their revenues from other sectors to more than compensate for declines in fixed voice.

This wasn’t the case, however, for BT, the largest wholesaler in Europe by revenue, which saw its wholesale revenues decline from 2010 to 2011 as a direct result of falling fixed voice sales.

Only one of the leading players in the wholesale fixed voice sector – Belgacom – managed to increase its revenues from the sector, while all of the players in the wholesale non-voice sector experienced growing revenues.

"The decline in revenues from wholesale voice services shows no sign of relenting. Wholesalers must take action to understand and satisfy their customers’ developing requirements for non-voice services. This is particularly true for the few that dominate Europe's wholesale market," concludes James.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d