Europe telecom sector to see signs of recovery

www.WirelessFederation.com/news: Some signs of recovery are expected to be seen in the fourth-quarter results from European operators even though the regulatory drag on revenue is set to persist. Foreign exchange is expected to be a major driver with the dollar rally boosting Deutsche Telekom and Vodafone.

The theme of the telecom sector in Europe will remain the same namely mergers, acquisitions and cooperation agreements and more deal is expected to come after the merger of Orange and T-Mobile in the U.K.

According to the analysts, European telecoms operators have two options, either to postpone investments further to remain focused on free cash flow and preserve the financial flexibility that an uncertain environment requires, or use the financial flexibility created in the sector in 2009 to upgrade both fixed and mobile networks to repurpose the old voice model.