The financial health of telecoms area 'a concern'

European opinion formers in the telecommunications industry are concerned about the financial health of the sector but remain divided on the level of regulation needed to support recovery, a new international survey has found.

The survey, which invited responses from politicians, senior business people and academics, also found experts think there will be a delay in the delivery of new wireless communications, particularly third-generation technology.

The 2002 survey, compiled by research firm RSM and sponsored by BT, found more than a quarter of respondents were concerned about delays in broadband, wireless and third-generation technologies.

In a similar survey conducted a year previously, no respondents had expressed concerns about delays. There was a significant amount of comments about "matching the hype" with regard to different types of new technology, the survey found.

Concerns over communication suppliers' finance is considered the most important issue for the industry and was highlighted by 38 per cent of respondents. In 2001, this was mentioned by 34 per cent of opinion formers.

"Concerns are mainly about the debt levels of some suppliers, and profitability of certain services, especially third-generation technology," concludes the survey.

But the survey also found there was an expectation among opinion formers of increased wireless usage and an improvement in functionality and services. There is a recognition that the demand for broadband and higher bandwidth will grow as information streams increase, it says.

Despite the difficulties facing the industry, opinion formers are deeply divided about how to regulate the communications industry. Some 34 per cent favour more regulation, 31 per cent believe the current level is right and 31 per cent favour less regulation. The remaining 4 per cent are unsure.

The survey concludes that academics generally favour more regulation, as do the media, while senior business people generally prefer less regulation. Legislators are the audience most happy with the current levels of regulation.

Results for the Republic show 45 per cent of respondents favour less regulation, 30 per cent believe current levels are correct and 20 per cent favour more regulation. Some 5 per cent do not know.

The survey was compiled by the research firm RSM across nine European countries.