KBC Advanced Technologies : Fitch lifts outlook for EU telecoms sector

Fitch Ratings has lifted the sector outlook for western European telecoms and cable companies to stable from negative. Fitch believes an improving regulatory environment and growing demand for high speed data should ease the pressure on the companies in 2015 Fitch says it believes the decision this year to allow consolidation in the German and Irish mobile markets, which should reduce competitive pressures, indicates a shift in the European Commission's approach to telecom regulation. Policy is increasingly focused on encouraging growth as regulators look to give incentives to incumbent operators to invest in network infrastructure. This shift should contribute to a gradual improvement in margins and cashflows in 2015 following several years of weakening profitability. Story provided by StockMarketWire.