Quest for Margins. Sustainable cost-reduction initiatives for European mobile telcos.
Having enjoyed high growth in demand for mobile services in recent years and seen innovation drive the uptake of new handsets, mobile telcos are now highly exposed to the slump in consumer spending created by the global recession. Operators in Europe, in particular, are facing some of their toughest times as consumers reduce spending on telecom services. While in the past strong growth in mobile revenues had diverted operators’ focus from cost saving, they must now shift their attention from growth strategies aligned with complex portfolios to simplifying their businesses and driving down costs to sustain their margins.
Capgemini concludes that, in particular, operating costs have a strong scope for targeted cost rationalization measures.