Telco health index reveals a fit Middle East but a frail Europe

• Kearney’s first Global Telecom Health Index puts UAE and Qatar top
• Nordics also perform well, but it’s bad news for Italy, UK and Germany
• Index ranks health of telco sector in 34 countries

Middle Eastern telecom markets are outperforming other countries in terms of sector health, according to a new global benchmark from global management consulting firm Kearney, while the diagnosis for Europe is, to say the least, much less encouraging.  

The firm has published its Global Telecom Health Index, which benchmarks 34 countries worldwide based on 20 indicators related to financial performance, commercial strength, network, market structure, and customer satisfaction.

The benchmark found that the United Arab Emirates (UAE) and Qatar are the healthiest telco markets, with especially strong performance in terms of technology, financial, business environment, and customer sentiment markers. 

Although Europe as a region has telco health challenges, the top five is rounded out by Sweden, Norway and Switzerland, while Finland (7^th) also makes the top 10 countries indexed, alongside Malaysia (6^th), Saudi Arabia (8^th), Thailand (9^th) and China (10^th).

Countries included in the index vary considerably in size, from Qatar with a population of around 3 million to China and India with populations approaching 1.5 billion. 

But, curiously, Kearney said it did not find any link between GDP per capita and health score. Take Malaysia, for example, which sits 32^nd in terms of GDP per capita but 6^th in terms of the index, which the consulting firm credited to a well-structured market, coordinated technology rollout, and an active national policy framework.

The firm released some early data from the Index, which is an expansion of its European Telecom Health Index, first launched in 2025, but there will be concerns for countries lurking near the bottom – Italy, the UK and Germany make up the bottom three. The data showed that the UK ranked particularly badly on customer sentiment (28^th out of 34) but is also lagging in both technology deployment and commercial ability.

Market concentration was a prominent issue in the study. Kearney found that global health index  scores are higher in markets with fewer than four operators, which ties into the logic cited by many operators currently pursuing M&A strategies. Of the 34 markets covered in the index, 24 have three mobile operators or fewer, versus 10 with four or more.

The same relationship is evident in fixed broadband. More concentrated markets achieve higher fibre coverage (81% versus 68%) and fibre take-up (58% versus 43%). Crucially, greater market concentration does not come at the expense of customers: Customer satisfaction is at a similar level in three-player mobile markets as it is in those with four operators.

This could be good news for the UK, where the market recently shifted from four mobile operators to three with the merger of Vodafone and Three UK in mid-2025.

Owen Tracey, a partner at Kearney, stated: "One of the clearest findings from this year's Index is the relationship between market structure and overall telecom sector health. There is often an assumption that more operators automatically lead to better customer outcomes, but our research suggests the picture is more nuanced. In many cases, markets with fewer, stronger operators appear better placed to sustain investment, improve network quality and support long-term sector health."

And Kearney’s report concludes: “As the provider of an essential infrastructure underpinning so much of the digital economy and technology development, a healthy telecom sector is in the national interests of every country globally. As our Telecom Health Index highlights, achieving a healthy position requires an ecosystem with all dimensions working in sync. The markets that achieve this see benefits for all stakeholders, while those that do not must prioritize the shift from a potentially vicious cycle to a virtuous one. Achieving and maintaining a positive balance does not happen by chance but requires vigilance and a proactive approach. It cannot be taken for granted.” 

- James Pearce, Editor, TelecomTV