European telecoms groups invest in data networks to underpin consolidation

Scientists are trying to dial up the future for BT — matching similar plans being carried out across Europe — as they look to feed the ever-growing hunger for instant broadband services that will be supplied by the next-generation network technology. After several years of declining revenues amid fierce competition from technology groups, telecoms companies are focusing on the part of the internet world where they can make a difference by developing networks capable of carrying the vast volumes of data predicted for the future. “European operators are now spending more on capex again, reflecting their greater confidence in the sector’s prospects,” says Stephen Howard, analyst at HSBC. In the mobile industry, this means a heavy investment in 4G networks to provide fast wireless Internet.