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Finland's Telecoms operators report static total turnover

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In 2012, the total turnover of Finland based telecoms operators remained at the same level as the year before despite the difficult economical situation, according to figures released by the telecoms regulator. Also, the telecoms operators' investment rate remained at a good level.

In 2012, the total turnover of telecoms operators was €4.9 billion, which is even slightly more than in 2011. Although the total turnover remained unaltered, the telecoms turnover fell from €3.9 billion to €3.8 billion. The fall can be explained by lower revenue from wholesale mobile services, which is mainly due to the reduction of termination charges.

"Termination charges are reciprocal charges telecoms operators charge from one another for network usage. A fall in termination prices decreases both wholesale revenue and wholesale expenses of the mobile network. Thus, termination charges increase telecoms operators' turnover, but they have practically no influence on their result," states Chief Jukka-Pekka Juutinen from FICORA's Steering group.

The investments made by telecoms operators and the investment rate showed little change in 2012. The investments amounted to €660 million and the investment rate or the ratio of investments to turnover was 13.5%.

The investments made in telecoms operations in the mobile network increased by 13% and accounted for €245 million, whereas the investments made in the fixed telecoms networks decreased by 16% to 260 million euros, and the investments made in TV and radio operations fell by 8% to 65 million euros.

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Tags: ficora  Finland