Credit Suisse 4Q report
The UK was the highest growing mobile market in Q4 2006, according to research released today from Credit Suisse.
Finland and Switzerland have also bounced back well from recent dips in growth, although Spain’s growth slowed to just 3% in the quarter, which Credit Suisse described as a “big surprise” and a worry as that market is preparing to undergo pre-paid price cuts and the competitive pressure of new entrants.
Germany was in negative growth for the quarter, due to heavy price erosion on voice, and Austria was “shrinking” and Belgium “slowed significantly”, even ahead of impending cuts in rates.
Overall, European industry growth in the quarter sowed only slightly to 3.7%, down from 4% growth in the third quarter. Credit Suisse expressed surprise that data usage was driving much of the growth, with usage up as consumers made use of various flat rate data tariffs across the continent.
In terms of operators, Vodafone was the biggest winner, gaining an extra 1% as national incumbents struggled.
Capex remained at a stable level of 12/75 of sales in Q4, however, beating off Credit Suisse’s forecast decline, which will have hearten industry suppliers.