MANCHESTER, United Kingdom-Despite economic slowing and sector saturation, profitability of some of Europe’s savvy-and lucky-wireless operators is managing to improve across a desolate backdrop. Across the Continent, average revenue per user (ARPU) for most operators has been increasing at about 5 percent quarter on quarter.
However, the big crux for Europe’s battered telecom market is whether carriers are actually making a long-term comeback in the financial arena. Stalwarts such as Vodafone Group and mobile minnows like Swisscom-operators unburdened by onerous debt for third-generation (3G) license spectrum-all look set to weather the current storm. With capex meltdown and unfathomable market indifference threatening the existence of many wireless operators, Vodafone and Swisscom are examples of the beneficiaries of both good luck and good judgment.
Financially, the balance sheets of Europe’s bellwether operators are markedly different, but they share some similar survival values. European mobile success factors are primarily being based on maintaining a healthy ARPU together with moderately higher than fixed-line call prices.
