Over 90% of mobile operator EBITDA growth came from emerging markets in Q4 2007, according to a new Strategy Analytics report, "Wireless Operator Performance Benchmarking, Q4 2007." Over two-thirds of mobile operators in Western Europe saw margins fall in the quarter, highlighting the need to look further afield for growth.

This quarterly report provides a health check for the wireless operator community, tracking the operational and financial performance of 146 individual operators, accounting for 80% of the world’s cellular users. It found EBITDA levels for mobile operators in mature markets increased by just 1.5% between Q4 2006 and Q4 2007, compared to 28% growth in emerging markets, with mature markets accounting for less than 10% of all EBITDA growth between those quarters.

"The problem is most acute in Western Europe, where profitability peaked in mid 2006," comments David Kerr, Vice President Global Wireless Practice. "By contrast, most emerging markets remain in robust health and now account for 40% of wireless operator EBITDA and over 90% of growth."

Phil Kendall, Director, Global Wireless Practice, and author of the report, adds, "This trend brings into focus Orange’s reported interest in TeliaSonera or Telenor. Orange has done well to increase its presence in Africa in 2007, even though its reach in other emerging regions is limited. Over 70% of Orange’s proportionate wireless subscribers are still in Western Europe, compared to 20% of TeliaSonera’s and less than 10% of Telenor’s."