Question 1

How fast is the transition to 10 Gbps fiber happening and what is the price floor?

Accepted Answer

European operators are aggressively deploying XGS-PON technology to reach 10 Gbps speeds, with Digi setting a disruptive price floor of EUR 25 per month in Romania. In the UK, Nexfibre and Virgin O2 are on track to cover 5 million households with this high-speed fiber by 2026.

Question 2

Is the tower market still a viable source of liquidity for operators?

Accepted Answer

Infrastructure valuations remain robust, evidenced by Iliad’s EUR 510 million sale of its remaining 30% stake in On Tower Poland to Cellnex. High profitability in the sector is further highlighted by A1 Towers, which reported EBITDA margins exceeding 85% on revenues of EUR 232 million.

Question 3

What are the risks of telcos expanding into financial services?

Accepted Answer

The sector is seeing a strategic retreat from non-core banking services after Orange recorded a EUR 700 million loss in its French retail banking operations. Despite this, some growth persists in specific regions, such as Orange Bank Spain seeing a 43% year-on-year increase in deposits as of March 2023.

Question 4

How is the retail store model changing to improve margins?

Accepted Answer

Operators like EE are shifting away from traditional handset sales toward high-margin consumer tech like gaming consoles and VR gear via the 'EE Studio' format. This strategy aims to leverage existing physical footprints to drive ARPU across a broader ecosystem of devices.

Europe Telco Report - July 2023

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team