Telecoms sector benefits from increased cashflow

After the crash of technology, media and telecoms in 2001, the telecoms sector has recovered to become the strongest performer of the Dow Jones Euro Stoxx Index over the 12 months to 7 April. With investors avoiding telecoms owing to high debt levels among member stocks, companies were forced to rethink their strategies and abandon aggressive growth plans. Companies like BT and Dutch telecoms operator KPN set a trend in the market of financing their debt with rights issues to increase their cashflow. Most of the major European companies followed suit and began to cut costs. Aaron B...