Telecoms sector to be hit by the crisis

UNDER the influence of the global economic crisis, the general business climate has significantly worsened in countries such as Slovakia and this is expected to be reflected in the telecommunications sector. According to an analysis conducted by Deloitte Slovensko, a slowing in the growth of telecoms revenues is expected for 2009 in comparison to the 3.7 percent overall growth of the Slovak telecommunications market and the 5.3 percent growth of its mobile services segment recorded in 2008.The expected drop in revenues is directly linked to customers’ reduced willingness and greater caution in subscribing to new services or extending existing contracts.

UNDER the influence of the global economic crisis, the general business climate has significantly worsened in countries such as Slovakia and this is expected to be reflected in the telecommunications sector. According to an analysis conducted by Deloitte Slovensko, a slowing in the growth of telecoms revenues is expected for 2009 in comparison to the 3.7 percent overall growth of the Slovak telecommunications market and the 5.3 percent growth of its mobile services segment recorded in 2008.
The expected drop in revenues is directly linked to customers’ reduced willingness and greater caution in subscribing to new services or extending existing contracts.

Currently, 55 percent of Slovak customers have signed subscription contracts with periods of up to two years at most. From the viewpoint of telecoms operators these customers represent a so-called guaranteed income stream for the upcoming period of time and thus are of ‘high value’ for the companies.

To read the entire analysis by Michaela Hrachalová and Peter Horovčák, managers of the Consulting Services Department at Deloitte Slovensko, written for The Slovak Spectator, go to www.spectator.sk.

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