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ETNO
European Telecommunications Network Operators' Association

2016

| ETNO

Press Release: IDATE & ETNO unveil new Annual Economic Report on the European telecoms sector

Brussels, 15 December 2016 – ETNO, the Association representing Europe’s leading providers of digital communications and services, and IDATE, the digital economy think-tank, have presented today their Annual Economic Report on European telecoms.

European telecom markets: pressure to invest grows, revenues stabilise

IDATE & ETNO unveil 2016 Economic Report on European telcos, IoT & M2M to gain speed

Brussels, 15 December 2016 – ETNO, the Association representing Europe’s leading providers of digital communications and services, and IDATE, the digital economy think-tank, have presented today their Annual Economic Report on European telecoms.

The report describes the state of the art for the sector and presents consolidated figures from 2015, as well as projections for 2016 and the coming years. The facts and figures presented in the report are highly relevant to the on-going policy debate on creating a European gigabit society.

   
CapEx grows as investment pressure mounts

In 2015, Capital Expenditure levels (CapEx) grew 4% with respect to 2014, bringing the total sector investment in EU28 to €47bn/year. ETNO member companies lead such investment effort, representing over 70% of the sector investment in fixed networks – or 60% of the total, mobile and fixed. In Europe’s 5 key markets (DE, IT, FR, ES, UK), ETNO members and cable companies amount to 83% of the fixed investment.

CapEx growth is good news for the EU, as companies and policymakers push to upgrade Europe’s digital networks. However, there remains a significant investment challenge before the EU can achieve its 5G and gigabit society goals.

Revenues stabilize, but environment remains challenging

Good and stable revenues are vital to a sustainable investment environment. For this reason, it is positive to note how the industry bleeding seems to have stopped. Revenues growth perspectives, while far from booming, are expected to stabilize as from the end of 2016. EU28 service revenue growth should switch from negative to 0% in 2016, while turning slightly positive across the markets in which ETNO companies operate (+0,2%).

However, the gap with the United States remains significant, with EU telcos being expected to score €221bn annual revenues in 2016, compared to €306bn in the US.

Mobile more and more important, fixed upgrades on schedule

The composition of telecom service revenues shows well how telecom markets are evolving. According to IDATE, in 2016, mobile revenues will equal fixed revenues for the first time in the history of the sector (€63bn each). This is also reflected in the growth of mobile data traffic, which will reach 1.6 GB per user per month in 2016, and is expected to grow up to 7.4 GB per user per month by 2020 (downstream).

On the fixed side, ETNO’s investment effort are reflected in the rise of superfast internet, with VDSL and fibre gaining more and more ground. In 2015, there were 20.4 million VDSL subscriptions (compared to 11.8 in 2014) and 19.4 million FTTH subscriptions (compared to 14.9 in 2014).

Internet of Things and M2M, towards a 5G world

As Europe gears up for launching 5G – the future technology integrating and fixed networks – encouraging data come from the Internet of Things (IoT) and Machine to Machine (M2M) world. According to IDATE, utilities, electronics, automotive and wellness are important sectors that will drive the IoT revolution. By 2025, IDATE expects more than 1.8 billion units to be connected, with utilities alone contributing 470 million units. Similarly, M2M will contribute with 3.6% of the total mobile revenues by 2020.

ETNO Chairman Steven Tas commented: “The on-going review of Europe’s approach to regulation is essential to stimulate future investments in faster networks. With the right rules, we can support the creation of a European gigabit society”.

The full Annual Economic Report can be downloaded here.
 
For more information, please contact: Alessandro Gropelli, Director of Communications & Media – ETNO, gropelli@etno.eu, +32 (0) 476 94 18 39.

Members & Observers - View companies map

  • Albtelecom
  • Proximus
  • Eir
  • Elisa Communications Corporation
  • GO Plc (Malta)
  • Hrvatski Telekom
  • Koninklijke KPN
  • Lattelecom
  • Magyar Telekom
  • Makedonski Telekom
  • Orange
  • OTE
  • Portugal Telecom
  • Síminn (Iceland Telecom Ltd.)
  • Slovak Telekom
  • Swisscom
  • TDC
  • TDF
  • Telecom Italia
  • Telefónica
  • Telekom Austria
  • Telekom Slovenije
  • Orange Polska
  • Telenor
  • Telia Company
  • Turk Telekom
  • Vivacom
  • Deutsche Telekom AG
  • CYTA (Cyprus Telecommunications Authority)
  • BT
  • BH Telecom
  • TELEKOM ROMANIA COMMUNICATIONS S.A.
  • POST Group

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