Telecommunications operators and yield on investment

PTS has examined how the Swedish market developed during 2008–2022 and analyzed operators’ return on capital in various parts of the world.

PTS has studied the development of Sweden’s electronic communications market between 2008 and 2022 in terms of revenues, investments, and data traffic, based on data collected by PTS. In addition, the report explores how operators’ Return on Invested Capital (ROIC) and Return on Capital Employed (ROCE) have evolved, using data from Bloomberg.

During this period, Swedish consumers have received more value for money, as the cost per unit of data has decreased substantially since 2008. Operators’ revenue per gigabyte of data dropped from SEK 140 in 2008 to SEK 5 in 2022.

The report also shows that, in recent years, there has been no clear difference in return on invested or employed capital between North America, Europe, Sweden, and the rest of the world, according to PTS’s analysis of Bloomberg data. During the period, the return on invested capital for telecommunications operators has generally decreased.

The fact that the returns turn out to be similar is particularly interesting given that the market structures differ between, for example, North America and Europe. The U.S. market, for instance, has greater market concentration, with a few large players, which has sometimes been used as an argument for the need for consolidation or regulatory relief in Europe in order to increase returns and promote investment.

The purpose of the report is to provide useful, data-driven insights as a factual basis for any potential future review of the EU regulatory framework for electronic communications.