| NOTAS: | In the 3 years following the market crash, European telecom operators have made dramatic efforts to cut costs; yet according to a new IDATE and Cap Gemini Ernst & Young jointly authored research report, in 2004 operators need to improve operational efficiency and asset management further, as well as generate additional revenues.
"Telco Strategies After the Crisis: The Quest for Growth" finds that while remedial action taken since spring 2000 has delivered a greater level of stability - demonstrated by recently reduced debt levels, increased profitability, and stronger operational margins - fundamental challenges remain. In particular, these include an ever-declining Return On Capital Employed (ROCE). Current strategies must therefore be geared towards timeline and process-driven investments if the sector is to become the investor's friend again.
Based on primary and secondary research, the team found that significant opportunities remain for cost reductions in operations that are generally still too complex, along with numerous examples of non-strategic asset management." |
