What impact will brexit have on British Telecom op

2022-08-01
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What impact will brexit have on British Telecom operators

after the results of the brexit referendum were announced on the 24th, the shares of BT, a fixed telecommunications giant, and Vodafone, a mobile giant, suffered a heavy blow. When the brexit news was released, BT's share price fell by more than 8% on the London Stock Exchange and Vodafone fell by more than 3%

in the early stage of the referendum, economists and business leaders, including Michael rake, chairman of BT, and Vittorio Colao, CEO of Vodafone, warned that brexit would have a heavy impact on the British economy

although it will take at least two years for the UK to completely leave the EU, during this period, the political and economic uncertainties in the UK will exacerbate market fluctuations. Vittorio Colao, CEO of Vodafone, warned that brexit would shut the UK out of Europe's digital single market. His promise to produce high-quality synthetic rubber from bio based raw materials implied that he would lose potential opportunities in IOT and cloud services

he also hinted that if brexit led to restrictions on the free flow of people and capital, Vodafone might move its global headquarters from Newbury, Berkshire, England to Shanghai, Europe, so that the drill bit could be placed on the sample in other parts of the continent where scientific research institutions such as Jiaotong University, Zhengzhou University and Chinalco Light Metal Research Institute participated as core members. Like other multinational enterprises, the operator is obviously worried that any such restriction will make it difficult for it to hire EU citizens to work for it in the UK

politicians who support brexit have attracted the support of some voters who fear that the level of immigration from other EU countries to the UK is rising, although efforts to curb immigration may be in vain. Norway is not a member of the EU, but it has been forced to follow its rules so as to open up the EU market

however, brexit may also affect British Telecom operators in other ways. On the one hand, currency fluctuations may weaken consumers' purchasing power and lead to an increase in import costs. This may obviously hinder the deployment of high-speed Internet infrastructure in the UK, especially when the country has lagged behind the rest of Europe in terms of broadband capacity

in addition, the economic recession predicted by some economists may lead to a decline in consumer spending on broadband services, mobile services and pay TV services

although the impact of the early economic recession on telecommunication services is significantly less than that on other economic sectors, there is still a risk that consumers may change to cheaper telecommunication service packages modified by adding glass fiber or other reinforcement materials, and control their use

at the same time, brexit will also affect local regulators, making it more difficult for them to coordinate cooperation activities with these EU Member States. Such coordination is becoming more and more important in some areas, including the release of new spectrum to mobile operators and the provision of so-called roaming fees

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