MADRID, July 01, 2022–(BUSINESS WIRE)–This commentary provides a brief overview of the main challenges currently facing the Spanish communications industry, including high competitiveness, eroding profitability, vertical disintegration and significant capital expenditure.
— In Spain, the communications industry has become extremely competitive in recent years. Indeed, the emergence of mobile virtual network operators has led to a high degree of fragmentation.
— With most competitors offering convergence services, revenues have steadily declined over the past 10 years.
— Mobile network operators have made significant capital investments in networks and technology, which have increased their debt balance.
“While revenues are steadily declining, new investments are needed to achieve the digital transformation goal, and public funds are unlikely to be sufficient to finance the network investment needed to achieve this goal. Regulatory changes and public support may be needed to partially mitigate sector imbalances,” said Laura Gutierrez, assistant vice president, European Corporate Finance at DBRS Morningstar.
To view the full report, click here: https://www.dbrsmorningstar.com/research/399124/increasing-competition-continues-to-pressure-the-spanish-communications-industry
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