European incumbents could cut capital expenditure (capex) by a further EUD 12 billion by 2005 to drive free cashflow growth, but only if they change their current strategies, states investment bank JPMorgan. Portugal Telecom, TDC of Denmark, Norwegian Telenor and Greek OTE could benefit most from reducing capex in the short-to-medium term. Some operators, KPN for example, have already acknowledged that their fixed-line capex could be low for a number of years because of historical overinvestment, and have aggressively cut capex guidance for 2002 and 2003. JPMorgan says, however, that KPN is capable of reducing capex even further.
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