Declining revenue and investment in telecoms sector represent a major challenge for Europe

Brussels – The EC Implementation Report unveiled today confirms the trend of the past years of continuously shrinking revenue and investment growth in the telecom sector, which has been aggravated due to current economic downturn. The EC report further underlines that investment in next generation access networks remains limited.

“Declining revenues and investment is worrying at a time when crucial investment is needed in high speed broadband access networks”, says Michael Bartholomew, ETNO Director.

In 2009, total telecoms revenue dropped by 3% and investment by 7.5%, according to preliminary data from IDATE for an ETNO report to be released next September. Overall revenue growth in the sector for 2010 is expected to remain negative. This makes the much needed deployment of NGA, identified as a key driver for economic recovery, even more risky and challenging.

“For the European economy and society to fully benefit from high speed broadband, in line with the objectives of the recently adopted digital agenda for Europe, the forthcoming NGA recommendation should strengthen incentives for private investment in next generation access networks and take into account the high risks involved”, added Bartholomew.

For more information, please contact: Thierry Dieu, ETNO Communications Manager Tel: (32-2) 219 32 42 Fax: (32-2) 219 64 12 E-mail: dieu@etno.be

ETNO’s 41 member companies from 35 European countries represent a significant part of total ICT activity in Europe. They account for an aggregate annual turnover of more than 250 billion Euros and employ over one million people across Europe. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe.