Finnish telco Elisa "bucks a five-year trend among Europe's telecom incumbents of share-price shrinkage (every one of the big six – BT, Deutsche Telekom, Orange, Telecom Italia, Telefónica and Vodafone – is worth less now than it was in July 2017 bar Deutsche Telekom), gaining 45% over this period. And its second-quarter results published today are strangely good for a company in this sector".
In an analysis, Iain Morris of Light Reading takes a close look at Finland's Elisa. Regarding its mobile network, he notes that it helps that "neighboring Denmark and Sweden are each home to four networks, Finland has just three – the lowest number possible before the word "duopoly" starts floating around. Its telecom regulator is kinder than others in Europe."
Becoming a more significant player
"Lacking big geographical markets into which it can expand, and facing a domestic market in which there are many more phones than people, Elisa has pursued growth by selling its smarts to operators elsewhere." Elisa has acquired companies in Sweden, Poland, and the UK, which might help it "become a "more significant player" in service assurance".
Worries
But there are worries as well. Not only are there 'usual suspects' such as broken supply chains, rising inflation and geopolitical scares. Other parts of the company are a concern; for instance, broadband subscriptions - where competition is much sifffer - are decreasing.
Read Iain Morris' take on Finland's Elisa here:
