S&P Global – European telecoms industry weighs value of betting big on content

More recently, Sweden’s second-largest mobile operator, Tele2 AB, acquired Swedish cable TV company Com Hem Holding for $3.2 billion.

In a saturated and mature industry with limited growth opportunities, content acts as a potential new source of revenue for companies in fixed broadband and in mobile broadband, according to Bengt Nordström, CEO of telecom consultancy Northstream.

“It is not in the DNA of a telco op to be a media owner,” Nordström said in an interview, adding that “what [telcos are] doing now is upgrading the capabilities of the networks … and that is not increasing revenue.”

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