Total Telecom – Upbeat European telco results still carry a healthy warning

“It’s quite a good illustration for the industry when we are happy when things don’t get any worse,” notes Bengt Nordström, CEO of Swedish telco consultancy Northstream.

“In Europe, the economy is not that strong – the threat of Greece leaving varies from week to week – and if that happens it will destabilise the market,” he said, adding that in the telco sector, competition between operators is still very tough.

“This quarter looks to be a bit more stable but I wouldn’t necessarily say this is a long-term situation,” he predicted.

Nordström said there is less and less to pick between operators’ service offerings and network coverage, meaning that price remains the most important point of differentiation.

Meanwhile, as network coverage and capacity improves, it strengthens the position of over-the-top (OTT) communication providers too, Nordström warned.

Overall, Europe is “still a market with very tough competition between operators,” he said.

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