Traditional Models Under Pressure But Opportunities Remain

Mobile markets in Europe are among the most developed in the world as a result of technological innovation, technophile consumer bases and a proactive regulatory matrix operating at the regional and national level. The region's markets have high penetration rates and widespread adoption of data and value-added services, which have become an important component of operators' revenue streams in recent years. Despite this positive meta-view of the region's mobile markets, a number of factors are converging and threatening this outlook over the medium term, including macroeconomic headwinds, regulations and the potential for IP substitution. BMI examines the first sets of Q112 operator results in the context of these longer-term developments. We argue that operators face significant challenges to growth over the medium term across most of the continent. However, there are growth opportunities for operators adapting their strategy to the new reality.

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