Credit ratings agency Moody’s said it has stabilised its outlook for Europe, Middle East and African telecoms companies on the expectation of 1-2% revenue growth for the sector into 2017. “Increasing demand for broadband, improved consumer spending and a change in focus from price competition to service quality, leading to price increases will underpin European telecommunications service providers return to revenue growth in 2016,” said Carlos Winzer, a Moody’s Analyst and author of the report.
Moody’s expects increased capex spending by some companies, such as Deutsche Telekom, Telefónica and Orange, to differentiate their offering will offset any increase in free cash flow resulting from higher revenues and improved margins. However, other companies, such as Vodafone Group and TeliaSonera, are nearing the end of their capex cycle, Moody's added. source: Moody's statement