Fixed line cos harmed by growth of mobile phones

Cannibalisation of fixed-line traffic by mobile networks is having a negative impact on revenues among incumbent telecom players in emerging markets, according to SchroderSalomonSmithBarney (SSSB). Vladimir Postolovsky, equities analyst at SSSB, says negative fixed-line growth is being seen in most emerging, Middle East and African telecom markets, with the estimated line substitution to mobile currently up to 5%. Postolovsky believes the main drivers of this move from fixed line to mobiles in emerging markets are the former's penetration, pricing, distribution and the time it has take...