Telecom stocks are part of yesterday's news as incumbents such as BT see their market share eroded, ...
Telecom stocks are part of yesterday's news as incumbents such as BT see their market share eroded, according to Andy Brough at Schroders.
Brough, manager of Schroders UK Mid 250 and UK Smaller Companies unit trust, said growing overcapacity for telephone traffic would bring the cost of phone calls down. He added BT was recently talking about making cuts of 40% on the price of long distance calls.
Brough said relative newcomer Energis could carry every call in the UK at present and noted mobile phone charges were four times higher in the UK than in Germany, leading to inevitable pricing pressure.
He added: "I don't think we will see BT make the same amount of money as it did last year again in my lifetime."
Dominant mobile phone operator Vodafone is in danger of becoming the new BT, having to open its networks to newer entrants and see market share eroded by more modern and nimble rivals, according to Brough.
Brough said the FTSE 100 was too concentrated and that mid and small cap indices allowed for greater risk diversification.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers