Denmark: Mobile operators making losses
Article Abstract:
Profitability in the Danish mobile telephony business is poor - Telia and Orange are making major losses, Sonofon is about to reach a break-even point and TDC is the only profit-making operator. Operators agree that consolidation in the business is needed. According to TDC ceo Henning Dyremose, however, the situation could remain unchanged for many years as Danish authorities are unlikely to allow two of the existing mobile operators to merge. What is more, Danish mobile operators lack the funds to buy each other. Debitel MD Per Nielsen says only two companies can operate mobile networks in a profitable manner in Denmark but adds that their sponsor support is too good for this to happen and refers to Telia's Swedish and Orange's French owners. According to Nielsen, there is not enough pressure on Danish mobile operators to make them merge. Telecoms analyst Lars Larsen of Nordea Securities says the need for consolidation is most latent at Telia. However, a merger between Orange and Telia is not sufficient without TDC and Sonofon joining it. This means that the market seems somewhat deadlocked and some of the mobile operators will continue to make losses.
Publication Name: Boersen
Subject: Business, international
ISSN:
Year: 2001
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Switzerland: TDC to target corporate clients
Article Abstract:
TDC, the Danish telecoms company, that a year ago bought 78.6% of the next biggest mobile telephony company in Switzerland, now aims to target the corporate mobile telephony market in Switzerland. The company has currently only non-corporate mobile telephony clients and its share of this market is 14%. The problem is, however, that it is difficult to make a profit on the non-corporate market as the average earning per client is low due to the limited usage of the phone. TDC is struggling with the same problem in Denmark. Swisscom is currently the dominant company as regards corporate mobile telephony clients. But TDC is confident that it will grow on this market.
Publication Name: Boersen
Subject: Business, international
ISSN:
Year: 2001
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