The revenue growth and profit margins of the Middle East telecom companies will come under pressure in 2012, according to market reports as advanced markets in the region will find it difficult to fend off new rivals, besides other factors.
Fitch Ratings said yesterday in a note that the revenue growth for the region's telecom companies this year will be "flat to negative". That is because maturing market penetration rates aligned with increased competition will "offset strong economic fundamentals" due to high oil prices, population growth and higher wages for state employees, Fitch said.
"Fitch, therefore, expects at best a stabilisation of overall revenues in Middle East telecoms," it stated.
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