Telecommunications Operators Reduced Their Investment a 17.4% during 2009

After reviewing the average price of the minute of mobile telephony in Spain, now let’s see the evolution in the investment deployment and modernization of networks (both mobile and ADSL except Telstra that does not offer this service).

In 2008 there was the first reduction in annual investment 17% to try to maintain the margins and 2009 has continued the trend of cutting another 17.4%, which resulted in nearly 700 million less contrasting with what operators like Movistar, Vodafone and Orange we had “ sold ” but at least, the fall has moderated at the end of the year since the accumulated data ventured a reduction of 24%.

Users have started to be interested more than ever by the rates forcing fixed and mobile operators to bid more cheap by what their investments have varied in different ways:

The most drastic cut was for part of Movistar during the first nine months of the year which reduced the resources allocated to their networks in a 27.5% but in the whole of the year has softened this fall to leave it at a 15.6% getting remain below the average of the sector.

Vodafone for its part also remains below the average cutting their investments by 12% and from 711 million in 2008 to about 625 million in 2009 while Orange has been which has more cut among the three big operators, with a fall of 22.6%, to 440 million euros.

Yoigo It is the only operator that has increased their investments due to the strong commercial pull of his proposals low cost during 2009 but it has been a shy 4% from 76 to 79 million euros. While this operator does not have ADSL in which to invest, it strikes me the huge difference of investment with the rest of the operators.

If finally taking into account investments made before the distribution of the new mobile phone frequencies, can that Telstra is in trouble but we will have to wait while the Government continues to delay the refarming.