Consumers in Europe will pay less for mobile phone calls, texts and Internet access when travelling abroad following a ruling on Thursday that could also prompt telecom companies to introduce cross-border deals to offset lost revenue.
On Thursday, The National Retail Federation urged the U.S.
A slowdown in spending by telecom operators globally is hurting all vendors of telecom equipment, just as they were recovering from the last downturn and intense price wars.
Analysts predict slower growth of 3-4% in the overall market for telecom network equipment, down from 7-8% last year.
The market recovered strongly in 2011 as operators invested to catch up with a surge in traffic from smartphones and tablets, but the final quarter saw renewed concern about global growth, especially in Europe.
The top three U.S. telecom carriers, Verizon Communications, AT&T Inc and Sprint Nextel Inc, recently released financial results for the first quarter of 2012. All three carriers reported higher-than-expected financial results for 1Q2012.
On Tuesday, AT&T Inc reported a higher-than-expected quarterly profit as iPhone sales declined, reducing the amount of cash it had to pay Apple Inc and boosting its margins.
ZTE Corp (Shenxhen, P.R.C.) and China Unicom (Beijing, P.R.C.), China’s second largest telecommunications equipment maker and carrier respectively, reported third quarter net profit that missed expectations, with both companies grappling with pressured margins.
ZTE posted a second straight fall in quarterly profit mainly due to the weakness in the euro and a delay in value-added tax rebates, while China Unicom's profit was up by a worse-than-expected 21% as it doled out subsidies to attract more 3G users.