Mobistar, Belgium’s second largest mobile network operator by subscribers, has said that it expects to generate lower earnings in its current financial year, ending March 2010, on the back of increased regulation and higher levels of investment. The operator has also said that it expects to achieve savings of approximately EUR100 million (USD137.6 million) over the next three years on operating costs and investments. To that end, in October 2009 the operator announced that it had inked a deal with rival KPN Belgium which will see the two work together on the construction and operation of new sites for future deployments of their respective networks. Mobistar claims that the agreement will generate considerable cost savings.
For the three months ended 31 December 2009 meanwhile, Mobistar recorded total service revenues of EUR1.048 billion, a decrease of 1.2 % compared to the EUR1.06 billion reported a year earlier. The operator said that the decline was a direct result of lower roaming tariffs dictated by new regulation introduced in July 2009, alongside lower mobile termination rates (MTRs), introduced in May and July 2008. Mobistar has claimed that it expects the negative impact of the regulation for MTR and roaming for 2009 on total revenues to be approximately EUR35 million.