Telefonica Illustrates Mobile Communications Carrier Challenges and Trends
A recent presentation by César Alierta, Telefónica chairman and CEO, illustrates the significant issues even the relatively-robust mobile phone business faces these days. Consider organic revenue growth, the rate at which a tier-one carrier is able to grow revenues on its existing customer base and lines of business, without making an acquisition.
Telefónica grew at an organic rate of about 2.5 percent in 2010, as did Vodafone. AT&T grew revenues organically by a bit below one percent.
And those were the fortunate companies. France Telecom saw negative organic growth of about 1.25 percent. Deutsche Telekom saw two percent negative organic growth in 2010. BT saw negative three percent organic revenue growth that same year. Telecom Italia saw organic revenue shrink about 3.8 percent.
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