This is according to a study conducted by consultancy Detecon International in Europe and Africa.<\/p>\n
More than half of the industry managers surveyed indicated they have yet to notice any negative effects on their core business.<\/p>\n
However, they do expect further declines in demand from customers — thus ruling out the possibility of price wars in the sector.<\/p>\n
About 50percent say that, despite this, there were ways in which to draw out long-term investments in some areas such as the roll-out of broadband technology and the provision of other key ICT services.<\/p>\n
More than 80percent of the executives from Africa believe funds will be scarce while 50percent say the blocking of capital expenditure liquidity is a “real threat” to the sector growing.<\/p>\n
Christoph Klein, a co-author of the study and partner at Detecon, said the majority of respondents in Africa and Europe dismissed any hint of a price war.<\/p>\n
“We believe that larger African carriers with strong balance sheets and access to funding will evade really harsh negative impacts.”<\/p>\n
But he said that many smaller operators in weaker economies in Africa will feel the pinch during the second half of the year.<\/p>\n
He said European and African telecommunications service providers must focus on securing customer loyalty and maintaining current sales levels.<\/p>\n
Some measures, he said, could include the expansion of available services for the same price.<\/p>\n
Fritz Milosevic, co-author of the study and a managing consultant for Detecon in South Africa, said: “While other industries are struggling with market collapses — some of them of historic dimensions — the telecommunications market is proving to be hale and hearty.”<\/p>\n
Milosevic said, unlike their European counterparts, African executives regarded the current crisis as an opportunity to grow through mergers and acquisitions.<\/p>\n