European mobile operators should not see their credit ratings come under pressure from the launch of 5G networks, according to Moody's, in large part because the early deployment will be phased carefully.
European operators are expected to remain cautious about investment until there is clarity on the business case, Moody’s analysts believe.
Also, since commercial deployment of 5G in Europe is not expected until 2020, demands for acquisition of new spectrum and capital investment in the network will be restrained, initially.
Also, in the early stages, between 2020 and 2025, the bulk of investment will be upgrades of existing 4G networks, with only selective deployment of 5G.
“This phased approach will allow a faster time to market and limit investment, mitigating the financial pressure on operators,” Moody’s believes.
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