News

Europe's largest telecom operators have released 4th quarter results for 2009 which show signs of recovery in the wireless business.



Foreign exchange is impacting the results of companies like Deutsche Telekom and Vodafone with large interests in the USA.



Consolidation of the industry appears to be continuing with mergers, acquisitions and cooperation agreements, including the merger of Orange and T-Mobile in the U.K. and Vivendi's purchase of GVT. Telefonica has also shown interest in Latin American rival Telecom Italia.



Operators are currently deciding whether to preserve their cash flow, given continuing uncertainty in the global economy or to invest in up grading their networks.



Vodafone is expected to report a 9% increase in 3rd quarter revenue, with 1.8% increase in Europe. Verizon, Vodafone's US subsidiary, has not paid a dividend since 2006 and investments in South Africa and India will come under scrutiny.



Deutsche Telekom achieved its targets for 2009, but has made no predictions for its 2010 outlook. Investors expect lower investment in the US and a greater focus on Germany.



France Telecom's earnings continue to decline and the company has recently installed a new CEO following months of conflict regarding low staff morale.



Spain's economic downturn continues to affect Telefonica's bottom line. Latin America has brought strong growth historically but is showing signs of weakening. The company has lost significantly due to the devaluation of the Venezuelan currency and the purchase of GVT by Vivendi.