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The rivals of Telephone tighten the belt before the crisis
The operators who compete with the giant of the telecommunications in Spain reduce in a 15% their investments in the first semester, in the hope of knowing the regulatory new features on infrastructures

Budgets in revision. The operators who compete with Telephone in the dynamic Spanish market of the telecommunications have reduced significantly their investments during 2008. Urgeed by the stagnation of the sales, in a context of strong contraction of the consumption, as well as by the regulatory uncertainty on new infrastructures, these companies are postponing part of their investing plans.

In the six first months of the year, the rivals of the ex- monopoly have reduced to a 15% their joint investment, up to 792 million Euros. That is to say, they have destined to his business 140 million Euros less than in the same period of 2007. Excluding Vodafone, the unique one of the competitors of Telephone who maintained until March numbers similar to those of the previous year, the cut of the investments of these companies reaches 28%.

Orange has carried out the greater cut of investments of the sector in Spain in absolute numbers, when happening of 226 million of 2007 to 148 million Euros in the first semester of the year. In percentage terms, Jazztel does not go to him to the rear, reducing in a 33% its cost in the six first months of 2008.


Savings

In the case of the Gallic group, the cut corresponds essentially to the business of movable telecommunications, that has undergone parón investing after the renovation of the networks of third generation. In addition, the company has assumed a fort cost in Spain in both last years, when Pleasant acquiring to the old one Combines, after which it looks for savings to improve his margins before parón of his income.

In similar situation is Jazztel, although of his so large minor, that it makes difficult the pick up of market, more it is forced than his rivals to reduce his total costs.

The case of Ono is something different. During first half of the past year, the company that Eugene Galdón presides over had to undertake extraordinary investments, related to the process of integration of the business of fixed telecommunications of the old one Combines. Discounting these extraordinary expenses, the number of investments of Ono would be “in a level similar to the one of the previous year”, according to point sources of the group.

Against this parón investing generalized, Telephone it has increased his total investments in Spain in the first semester. Although in fixed telecommunications they have been reduced slightly, the total investments grow by the renovation of the networks of movable telecommunications to adapt them to the high speed access to Internet, key to remove party to the launching from iPhone, the great Telephone bet of relaunching its income.

Besides frenazo of the consumption, the reduction of the investments obecede to the regulatory uncertainty on the treatment of the new optical fiber networks, that the Commission of the Market of Telecomunicaciones (CMT) must finish making specific in the next months.

The manufacturers and the installers of networks, great victims of parón investing
The suppliers of equipment of telecommunications have been since the beginning of year seriously worried about the possibility that the operators, mainly Telephone, paralyze their investments in the new broadband networks fixes, the well-known ones like networks of new generation (New Generation Networks or NGN, according to its abbreviations in English) that are those that will have to allow to offer services of highest speed, with accesses of 50 or 100 megas per second.

Although at the beginning of year it was predicted that these services sent of commercial form at the end of March or principles of April, the date it has been delayed and at the moment it does not exist a concrete calendar for his implantation.

Between the main providers of equipment of networks for the Spanish operators are companies like Alcatel-Lucent, Ericsson, Nokia Siemens Network, Huawei, Motorola, Nortel or Cisco. In addition, other groups, specialized in facilities of networks, are providing intensive of the Spanish operator, like Avánzit, Cobra, Isolux, Dominion or Seirt. This group of companies altogether reunites tens of thousands of jobs.

These companies received the encouraging news on the part of the CMT at the beginning of August, when deciding the regulator that Telephone does not have obligation to yield its networks to its competitors. Nevertheless, this decision, controversy when counting on three opposite votes in the advice of the CMT must still take shape after the allegations of the rivals of the ex- monopoly. to stay as it is predicted, Telephone it would release foreseeably more investment to the sector, whereas to his they would restrain it rivals.


(Expansion, 22/08/08)







 
           
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