Denmark, Finland, Norway and Sweden have often been regarded as bellwethers for the telecoms service industry in Europe, but evidence from the last four quarters indicates that these markets are diverging in terms of broadband take-up and usage. This article explores the implications of this for the overall direction of the data market in other developed economies.
The pricing strategies that operators have used to help them through the economic downturn look set to hinder any rebound in revenue. Strategies such as margin-for-loyalty trade-offs, margin-for-volume trade-offs and SIM-only contracts have fundamentally altered consumers’ perception of value and pricing. In consequence, price premiums will be harder to maintain and additional spend on new services will be more difficult to harvest.
This report analyses the key factors that are driving the voice market in Western Europe, and considers the potential impact that fixed–mobile substitution, convergence, VoIP and the economic downturn may have on the sector.
