PRINT THIS PAGE Facing disconnection: hard choices for Europe's telcos
09/01/2002. Source:McKinsey Quarterly. Josep Isern and María Isabel Ríos
Most European telecom companies resemble holding companies with majority interests in a variety of businesses. Over the next few years, this structure will change dramatically, says McKinsey Quarterly. Only a very few incumbents have pockets deep enough to remain integrated; most of the others will have to start shedding assets and abandoning activities. Facing massive debt and sceptical shareholders, Europe's telecommunications operators are entering a period of painful change. As the industry restructures, only a few large integrated players will remain; others will have to reduce their emphasis on either wireless or data services-areas they once considered vital. But without taking the painful steps of shedding assets and refocusing, most European telecom companies will find their growth options blocked.
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Taken from The McKinsey Quarterly, 2002 Number 1
The McKinsey Quarterly, a journal in print and online from McKinsey & Company, featuring the latest thinking on business strategy, finance and management.Copyright © 1992-2001 McKinsey & Company, Inc
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