Turnover telecom sector further down

09/01/2014 09:30

Turnover generated by the telecom sector has fallen almost continuously in recent years. At the same time, fewer text messages are sent and the use of mobile internet is growing.

Ongoing downward trend telecommunications sector

In the third quarter of 2013, turnover realised by the telecom sector was 3 percent down from one year previously. The telecom sector has shown an almost continuous downward trend during the past half decade. Since 2009, only five quarters have shown turnover growth.

Turnover telecom sector

Turnover telecom sector

Fewer text messages

Texting and calling are gradually superseded by mobile internet applications. This loss of revenue is not offset by revenue from growing data traffic. The use of mobile internet among 12 to 75-year-olds has risen rapidly from just over 10 percent in 2005 to more than 70 percent in 2013. The number of text messages fell from 5.7 billion in 2011 to 4.3 billion in 2012.

Mobile internet use and text messages

Mobile internet use and text messages

Profit margins under pressure

Since the introduction of mobile internet, profit margins in the telecom sector have been under pressure. In 2011, telecom companies made a total profit of 2.7 billion euros prior to taxation, i.e. 0.3 billion euros down from twelve months previously. In 2009 and 2010, profits were still growing relative to the previous year. The number of persons employed in the telecom sector has dropped dramatically by nearly a quarter to 39.2 thousand in 2011 relative to 2008.

Tax proceeds telecom sector

Tax proceeds telecom sector

Thijs Wubbels