Polar Capital's Davis: Our outlook for the European telecoms sector

Continuing impasse in French market deals

clock • 2 min read

The high-profile regulator rejection of consolidation in the UK and Danish markets and continuing impasse in French market deals should not detract from an improving outlook for the European telecoms sector, writes Nick Davis, manager of the Polar Capital European Income fund.

The sales outlook has been gradually improving over several quarters as pricing in some markets has become more rational and drags from roaming costs start to fade away. After a long period of regulation focusing on a pro-consumer agenda, there is a clear need for a shift to a more pro-investment stance as Europe has fallen behind other regions in the latest network technology roll outs. The introduction of 5G at the end of this decade will be an opportunity for Europe to catch up. The pro-competition regulatory environment has seen returns in the industry fall to cost of capital for ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

FundCalibre's Schooling Latter: The shifting sentiment in Europe

FundCalibre's Schooling Latter: The shifting sentiment in Europe

Portfolio picks

Juliet Schooling Latter
clock 27 March 2024 • 4 min read
Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Services price inflation remains sticky

Valeria Martinez
clock 01 February 2024 • 1 min read
Eurozone inflation rises to 2.9%

Eurozone inflation rises to 2.9%

Driven by energy prices

Elliot Gulliver-Needham
clock 05 January 2024 • 1 min read
Trustpilot